Crocodile Gold Produces 53,583 Ounces of Gold in the First Quarter
of 2014
TORONTO, ONTARIO--(Marketwired - Apr 23, 2014) - Crocodile Gold
Corp. (TSX:CRK)(TSX:CRK.DB)(TSX:CRK.WT)(OTCQX:CROCF)(FRANKFURT:XGC)
("Crocodile Gold" or the "Company") reports on its production
results for the first quarter of 2014. Related financial details
for the first quarter are planned for release in May.
First Quarter Production Highlights
- Consolidated operations achieved gold production of 53,583
ounces with 678,821 tonnes of ore processed in the first quarter -
a 9.5% increase in gold production when compared to Q1 2013.
- Gold production is on track to meet guidance of 200,000 to
210,000 ounces for 2014.
- The Cosmo Gold Mine successfully completed the previously
announced change over to the new underground mining contractor in
late March.
- The Stawell Gold Mine's Big Hill Enhanced Development Project
has taken a significant step forward with the release the related
Environmental Effects Statement (EES) in for public review.
- The Company ended the quarter with a preliminary cash balance
of $38.0M and working capital of approximately $28.3M. The Company
also fully settled its outstanding credit facility with Credit
Suisse during Q1.
Consolidated Operational Summary
|
Q1 2014 |
Q1 2013 |
Q4 2013 |
Ore Milled (t) |
678,821 |
555,286 |
617,945 |
Average Recovery (%) |
83.2% |
84.8% |
86.4% |
Average Grade (g/t Au) |
2.92 |
3.26 |
3.36 |
Ounces Produced (oz) |
53,583 |
48,953 |
58,276 |
Rodney Lamond, President and CEO of Crocodile Gold, commented:
"Crocodile Gold has started the year continuing the positive trends
that were established in 2013 with production of over 53,000 ounces
of gold in the first quarter of 2014. With these results, I am
pleased to report that we are well on our way to meeting our 2014
guidance of between 200,000 and 210,000 ounces of gold. We ended
the quarter with a strong cash balance and were able to settle our
remaining outstanding facility with Credit Suisse." Mr. Lamond
continued: "I would like to highlight the work of our team at the
Cosmo Gold Mine and that the transition to our new mining
contractor was a success. The team continued operations and moved a
significant amount of ore in light of a mining contractor
transition. At our Fosterville Gold Mine, I am very encouraged by
the exploration results that will ensure the extension of the mine
life for the operation and the Company continues to work on an
updated mineral reserve and resource estimate for the site. In
addition, the Big Hill Enhanced Development Project took a
significant step forward with the release the related Environmental
Effects Statement (EES) in for public review. The Company is
committed to moving Big Hill forward as one of our most important
growth projects for 2014 and the release of the EES is a key
milestone."
Cosmo Gold
Mine
In late March 2014, the Cosmo Gold Mine transitioned its mining
contractor to Downer EDI (see news release from February 3, 2014).
All critical gear and staffing are now in place and operating at
targeted levels, and while there were some operational challenges
in the early part of the transition which impacted mine
productivity, the new contractor has quickly met or exceeded
performance indicators with target run rates achieved by the third
day after changeover. The Cosmo Gold Mine continued to operate at a
consistent level posting underground ore production of 180,047
tonnes of ore during Q1 at an average grade of 3.36 g/t Au.
Development during the quarter advanced at an average rate of 398
metres per month.
Tonnes milled in the first quarter were 230,815 tonnes of ore at an
average grade of 2.79 g/t Au and recovery rate of 85.9%, for total
gold production of 17,841 ounces of gold. Underground ore was
supplemented with approximately 55,500 tonnes of lower-grade oxide
material from an exploration property for reclamation purposes. The
stockpile had a lower than estimated grade, which also impacted the
recovery rate. The material was fully processed in Q1, and the
related potential environmental liability has been reduced.
Fosterville Gold
Mine
The Fosterville Gold Mine had a strong start to the year with
underground ore production of 206,540 tonnes at an average grade of
3.76 g/t Au, with higher tonnes offsetting lower grades.
Fosterville drew on higher grade stockpiles to process 220,379
tonnes of ore at a grade of 4.32 g/t Au with a recovery rate of
84.3%, resulting in gold production of 25,786 ounces in the first
quarter. Mine development continued at an average advance rate of
618 metres per month with a strong advance of 662 metres in March
as the site pushes to open up more mining fronts. Exploration on
the Phoenix and Central ore bodies had encouraging results (see
news release of March 12, 2014) and the Company is preparing a
Mineral Resource and Reserve Estimate with the anticipation that
additional mineral resources identified will continue to extend the
mine life of Fosterville.
Stawell Gold
Mine
The Stawell Gold Mine continues to focus on the upper levels of the
mine, accessing remnant mining areas supplemented with stockpiled
oxide materials. During the quarter Stawell mined 141,126 tonnes of
underground ore at an average grade of 2.49 g/t Au. The Stawell
Mill processed a total of 227,627 tonnes at an average grade of
1.71 g/t Au, as underground ore was supplemented by lower grade
surface oxide stockpiles. An average recovery rate of 79.4%
resulted in gold production of 9,956 ounces for the quarter.
Update on the Big Hill Project
In April 2014, Crocodile Gold released the Environmental Effects
Statement (EES) for the Big Hill Enhanced Development Project (the
"Project"). The EES is a significant part of the permitting process
and will form the basis of the Ministerial assessment of the
Project expected later in 2014. The EES is available for public
review and comment; access to the complete document has been made
available on the Company's website at www.crocgold.com.
Cash Balance and Working Capital Position
At the end of the first quarter of 2014, Crocodile Gold had a
preliminary cash balance of $38.0 million and working capital of
approximately $28.3 million. In February 2014, the Company fully
settled its outstanding credit facility with Credit Suisse.
As disclosed in the December 31, 2013 audited annual financial
statements, the Company and AuRico Gold Inc. engaged an independent
expert to determine the treatment of certain financial transactions
in the net free cash flow sharing arrangement that exists between
the two parties. On April 14, the independent expert concluded that
such items were to be included in the calculation of contingent
payments. The Company has reviewed the report and determined that
no contingent payments are currently payable under the agreement
and that based on current plans and gold prices, no portion of the
contingent consideration will be classified as current.
About Crocodile Gold
Crocodile Gold is a Canadian gold mining and exploration company
with three operating mines in Australia, in the State of Victoria
and the Northern Territory. The Company also has a combined land
package in excess of 4,000 sq. km. Crocodile Gold is focused on
sustainable production from its three operating mines, Cosmo,
Stawell and Fosterville, while also exploring and developing the
Company's assets to ensure continued production in the future. For
additional information, please visit our website
www.crocgold.com.
Follow us on Twitter @crocgold_crk or on Facebook at
/CrocodileGoldCorp.
Qualified Person
F. W. Nielsen, P.Geo., a technical consultant to 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.
Cautionary Note
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 licences, 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 that 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.Rob HopkinsManager, Investor
Relations416-861-5899info@crocgold.comwww.crocgold.com