TORONTO, ONTARIO--(Marketwired - Oct. 10, 2013) -Crocodile Gold Corp. (TSX:CRK)(OTCQX:CROCF)(FRANKFURT:XGC)("Crocodile Gold" or the "Company") is pleased to announce that based on consistent and sustainable production rates at all three of the Company's mines, management is raising its production guidance for 2013 to 200,000 to 205,000 ounces. Previous guidance for 2013 had been set at 170,000 to 180,000 ounces gold.
As disclosed in the Company's press release earlier today, the Cosmo Gold Mine in the Northern Territory posted record gold production in the third quarter and the mine has now transitioned to a sustainable operations under a new revised mine plan focused on quality tonnes and higher cut-off grades. The Cosmo Gold Mine plan is focused on delivering immediate cash flow to the Company while also building in sustainable resource development and exploration to deliver returns for the future.
The Fosterville Gold Mine produced more than 25,000 ounces of gold in the third quarter attributable to higher tonnage, feed grade and good recoveries. 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 evaluation of resources in the upper levels of the mine has enabled Stawell to continue mining underground for the remainder of 2013 and into 2014. The Big Hill Project at Stawell continues to progress through the permitting process and will be an important growth strategy for both the Company and the local community.
"Following an extensive review of all of Crocodile Gold's operations and modifications to mine plans, I am pleased to report that management remains focused on profitable production at each operation while simultaneously exploring and developing the Company's resources," commented Rodney Lamond, President and CEO. "As outlined below, a number of strategic initiatives have been initiated to deliver positive returns to our shareholders."
- Positive Cash Flow: All of the Company's mines are focused on generating positive cash flow after sustaining capital. New revised mine plans focusing on the right tonnes at the right grade that are linked to cost control programs have been initiated. In addition, the Company is looking at ways to generate higher returns by considering options such as custom milling agreements for the Union Reefs Mill.
- Cost Control: A number of cost control measures have been implemented across the Company's operations to centralize various functions and streamline operations. A top priority of Crocodile Gold is to develop a culture of value-driven decision making to ensure that all capital expenditures deliver positive returns to the Company. Exploration budgeting has been reviewed to ensure that the focus is on near-term targets that generate confidence in the mine plans and ensure sustainable production levels.
- Minimize Share Dilution: Crocodile Gold has committed to making its first payment on its convertible unsecured debentures in cash, due on October 31, 2013. This reflects the Company's strong cash position and confidence in its mine plan, and a desire to minimize dilution to shareholders.
- Divesting Non-Core Assets: The Company continues to explore opportunities to divest non-core assets and is reviewing its land positions at all mines to minimize carrying costs of these assets
Mr. Lamond concluded by stating: "I am very pleased with the operational performance during the third quarter at all mine sites and this was achieved as a result of the efforts and contributions of our employees and support teams. I am confident that with these achievements and our commitment to implement our strategic initiatives the Company will be in a position to generate value for all our stakeholders."
Crocodile Gold would also like to announce the appointment of Jason Morin as General Manager of the Northern Territory Operations effective immediately. Mr. Morin was most recently in the role of General Manager at the Langlois Mine for Nyrstar NV in Quebec, Canada.
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.
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.
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Forward Looking Information
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 2013 production estimates, 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.