TORONTO, ONTARIO -- (Marketwire) -- 03/01/13 -- Crocodile Gold Corp. (TSX: CRK)(OTCQX: CROCF)(FRANKFURT: XGC) ("Crocodile Gold" or the "Company") has reached commercial production at its Cosmo Mine.
During the last six months, the mine has sustained a development rate well in excess of its long-term requirements while increasing total ore production from less than 1,000 tonnes per day prior to September 2012 to over 1,650 tonnes per day in February 2013. At full production, Cosmo is expected to produce between 700,000 and 750,000 tonnes of ore per annum (or 2,000 to 2,150 tonnes per day) with associated recovered gold production of 75,000 to 90,000 ounces of gold.
-- Achieved an average ore production rate of approximately 1,600 tonnes per day during the last three months, which is equivalent to 75% of steady state production;-- Increased the ore grade from approximately 2.5 g/t Au to 3.5 g/t Au. At current production levels, Cosmo is expected to produce over 5,000 ounces of gold per month;-- Reached an average development rate of 535 meters per month over the last three months, in excess of 100% of the requirements for the next few years;-- Demonstrated excellent recoveries of gold on Cosmo ore, ranging from 91% to 94%;-- On target to reach full production rate of approximately 2,100 tonnes per day in the 4th quarter of 2013; and-- Commissioned the main surface ventilation system in February 2013 that will provide airflow requirements as the mine reaches its full production rate later this year.
Commenting on these important milestones, Chantal Lavoie, President and CEO of the Company, said: "This represents a significant achievement for our Company. The dedication and resilience of our team combined with the support and engagement of our key business partners and local government agencies were all essential to attaining successful commercial production at the Cosmo Mine."
Peter Crooks, General Manager - NT Operations, also commented: "Although some work remains to be done on major infrastructure such as expanding the underground electrical reticulation system, the ventilation airways network and the expansion of the underground pumping system, the key components are in place to bring the Cosmo Mine to a steady state operation." He continued: "A significant amount of effort has been made to better understanding of the deposit's geology and this will greatly assist in maintaining steady production. Four underground diamond drill rigs have been operating since last November in order to expand the resource and reserve base and allow the Company to better plan its future operations."
About Crocodile Gold
Crocodile Gold is a Canadian company with three operating mines in the Northern Territory and the State of Victoria in Australia.
At its Northern Territory properties, the Company has 3.175 million ounces of NI 43-101 reported measured and indicated mineral resources (51.849 million tonnes grading 1.89 g/t Au) and 2.14 million ounces of inferred mineral resources (36.352 million tonnes grading 1.80 g/t Au). These resources are inclusive of mineral reserves. (see the NI 43-101 compliant technical report entitled "Report on the Mineral Resources and Mineral Reserves of the northern Territory Gold and Base Metals Properties for Crocodile Gold Corp." by Fleur Muller, Mark Edwards and Heath Gerritsen dated April 4, 2011, filed under the Company's profile on SEDAR for the details regarding these mineral resource estimates).
At the State of Victoria properties, the Company has an additional 0.924 million ounces of NI 43-101 reported measured and indicated mineral resources (14.36 million tonnes at an average grade of 2.262 g/t gold) and 0.479 million ounces of inferred mineral resources (5.091 million tonnes at an average grade of 2.92 g/t gold) (see the NI 43-101 compliant technical reports entitled "Preliminary Economic Assessment on the Big Hill Development Project, Stawell Gold Mine, Victoria Australia" prepared for Crocodile Gold Corp. by Mark Van Leuven BEng in Mining Engineering, MBA (Technology Management), FAusIMM(CP), Principal Mining Engineer for Mining One consultants of, Melbourne, Victoria and, Stuart Hutchin BSc, Applied Geology, MAIG, MAusIMM, Geology Manager for Mining One consultants of, Melbourne, Victoria, Australia dated January 25, 2013 (the "PEA") and "NI 43-101 Technical Report Fosterville Gold Mine, Victoria, Australia" prepared for Crocodile Gold Corp by James P Llorca of Mining Plus, and Neil Schunk of CP Mining dated April 9, 2012, each of which is filed under the Company's profile on SEDAR for the details regarding these mineral resource estimates). These resource estimates are exclusive of mineral reserves which total 0.365 million ounces.
Crocodile Gold has a significant and prospective land package in the Northern Territory and the State of Victoria. Crocodile Gold's main focus is on the advancement of the Big Hill Project at the Stawell Gold Mine and the development of the Maud Creek, Union Reefs and Pine Creek project areas. In both the Northern Territory and the State of Victoria, the Company has exploration programs in place designed to expand the resource base of each mine property. The Company has a combined land package in excess of 4,000 km2.
For additional information, please visit our website www.crocgold.com. Follow us on Twitter (@crocgold_crk) or Facebook (www.facebook.com/CrocodileGoldCorp).
F. W. Nielsen P.Geo, V.P. Exploration of Crocodile Gold Corp is a "qualified person" as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this press release.
The preliminary production rates and grades presented herein with respect to February 2013 are approximate figures and may differ from the final results included in the quarterly financial results.
The PEA is preliminary in nature and is based on a number of assumptions that may be changed in the future as additional information becomes available. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The PEA includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA will be realized.
Certain information set forth in this press release contains "forward-looking statements", and "forward-looking information under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements, which include the Company's expectations for future performance based on current drill results and past production, expected gold prices, and mineral resource estimates, and are based on Crocodile Gold's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "expects", "anticipates", "believes", "projects", "plans", and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Crocodile Gold's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: liabilities inherent in mine development and production; geological, mining and processing technical problems; Crocodile Gold's inability to obtain required mine licenses, mine permits and regulatory approvals required in connection with mining and mineral processing operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in commodity prices and exchange rates; currency and interest rate fluctuations; various events which could disrupt operations and/or the transportation of mineral products, including labour stoppages and severe weather conditions; the demand for and availability of rail, port and other transportation services; the ability to secure adequate financing and management's ability to anticipate and manage the foregoing factors and risks. There can be no assurance that forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Crocodile Gold undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
Crocodile Gold Corp.
Manager, Investor Relations