TORONTO, ONTARIO--(Marketwired - Oct. 10, 2013) -Crocodile Gold Corp. (TSX:CRK)(OTCQX:CROCF)(FRANKFURT:XGC)("Crocodile Gold" or the "Company") produced 55,206 ounces of gold in the third quarter of 2013, a 14.4% increase over second quarter production of 48,261 ounces. Related revenue and cost per ounce details will be included in the Q3 2013 financial results which will be released in mid-November.
Production Highlights for the Third Quarter:
- The Cosmo Gold Mine posted record mine production results in all categories, making the transition from a ramp-up operation to a sustainable producer. The Cosmo Mine produced 21,316 ounces gold in the third quarter, a 20% increase over the second quarter of 2013, in part because of improvements to recovery rates, currently in the range of 90-92%.
- The Fosterville Gold Mine processed 204,231 tonnes of ore at a grade of 4.44 g/t Au with a recovery rate of 86.7%, resulting in gold production of 25,359 ounces gold compared to 23, 470 ounces in the second quarter. Drilling at the Fosterville Gold Mine in the first half of 2013 replaced depleted ore in the same period.
- At the Stawell Gold Mine, the ongoing review of the upper mine resources has extended the underground mine life into 2014. Stawell produced 8,531 ounces gold in the third quarter compared to 7.085 ounces in the second quarter.
- The Company ended the quarter with a cash balance of $27.9 million and working capital of approximately $14 million. The Company continues to pay down its credit facility with Credit Suisse of which $6.25 million remains outstanding (net of the related debt service reserve account).
|Consolidated Production Summary|
| ||Q3 2013||YTD 2013||Q3 2012||YTD 2012|
|Ore Milled (t)||614,025||1,781,132||508,655||1,351,150|
While the Company continues to review all mining plans and expenditures in light of the challenging gold market, Crocodile Gold is pleased to report that once again all assets have performed solidly in the past quarter, demonstrating a 14.4% increase in gold production from Q2. Strong performance from all mines contributed to the increase with the Cosmo Mine in particular showing increases in throughput, grade and recovery.
Rodney Lamond, President and CEO of Crocodile Gold, commented: "Despite ongoing market challenges, Crocodile Gold has achieved a strong quarter of production while we continue to implement strategic initiatives to deliver positive returns to shareholders. I would like to acknowledge the hard work of Crocodile Gold personnel in ensuring our operations are focused on profitable and sustainable production in a safe working environment for all Crocodile gold employees and contractors."
| ||Q3 2013||Q2 2013||Q1 2013||Total|
|Cosmo Gold Mine|
|Ore Milled (t)||188,758||175,708||152,128||516,594|
|Fosterville Gold Mine|
|Ore Milled (t)||204,231||197,769||190,026||592,026|
|Stawell Gold Mine|
|Ore Milled (t)||222,322||238,344||213,132||673,798|
Cosmo Gold Mine
- The Cosmo Gold Mine posted record mine production results in all categories, producing an average of 67,000 tonnes per month in the third quarter at an average grade of 3.71 g/t Au out of which approximately 34,000 tonnes was left to be processed as of September 30, 2013. Cosmo produced 21,316 ounces in Q3, a 20% increase over the previous quarter. Cosmo has made the transition from a ramp-up operation to a sustainable producer under a revised mine plan which focuses on quality tonnes and higher cut-off grades. The mine plan includes value-driven drilling programs to ensure the sustainability of the mine.
- The Union Reefs mill processed 188,758 tonnes during the quarter at an average grade of 3.83 g/t Au and at a recovery rate of 91.8%, resulting in gold production of 21,316 ounces. After issues with recovery rates in the past quarter, improvements to treatment times has increased recoveries to a range of 90-92%, in line with 2013 budgeted figures.
- The Cosmo Mine achieved an average development rate of 477 meters in the quarter, in line with operational requirements while continuing to minimize capital expenditure.
Fosterville Gold Mine
- The Fosterville Gold Mine (FGM) produced 210,360 tonnes from the Harrier and Phoenix zones during the third quarter at an average grade of 4.61 g/t Au. This was the second highest quarterly total for underground production in FGM's history, a result of continued focus on productivity increases across mining operations.
- FGM processed 204,231 tonnes of ore at a grade of 4.44 g/t Au with a recovery rate of 86.7%, resulting in gold production of 25,359 ounces for the third quarter. The quarterly recovery rate was a record for Fosterville, a result of improved blending practices and optimization of the leaching circuit.
- Mine development continued at an average advance rate of 604 metres per month during the quarter.
- Drilling in the first half of 2013 (particularly in the Phoenix ore body) saw Fosterville replace ore depleted through mining activity in the same period.
Stawell Gold Mine
- The Stawell Gold Mine (SGM) continues to focus on the upper levels of the mine, accessing remnant ounces while reviewing the upper level resource to identify further profitable opportunities from the underground. Consequently, Stawell is expected to continue underground mining into 2014.
- During the quarter it mined 147,345 tonnes of underground ore at an average grade of 2.27 g/t Au which was supplemented with surface oxide material for a total of 222,322 tonnes processed at an average grade of 1.62 g/t Au. SGM achieved a recovery rate of 73.5%, which resulted in gold produced of 8,531 ounces.
- Crocodile Gold is also proud to note that SGM has recently surpassed 825 days of Lost-Time Injury Free operations.
About Crocodile Gold
Crocodile Gold is a Canadian gold mining and exploration company with three operating mines in the Northern Territory and the State of Victoria, Australia. The Company has a combined land package in excess of 4,000 sq. km. The objective of Crocodile Gold is to continue production from its three operating mines, Cosmo, Stawell and Fosterville, while also exploring and developing the Company's resources to ensure sustainable production in the future. For additional information, please visit our website www.crocgold.com.
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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.
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.