Crocodile Gold Provides Outlook for 2012: Expected to Produce 75,000 to 85,000 Ounces of Gold With Cosmo as Key Catalyst
TORONTO, ONTARIO -- (Marketwire) -- 01/26/12 -- Crocodile Gold Corp. (TSX: CRK)(OTCQX: CROCF)(FRANKFURT: XGC) ('Crocodile Gold' or the 'Company') is pleased to provide its outlook for 2012 production as well as discuss major plans for the year ahead. In terms of guidance, management expects its mines to produce between 75,000 and 85,000 ounces of gold at a cash cost of US $1,100 to $1,300 per ounce, with the majority of production to come from the Cosmo Mine.
Cosmo/Howley Project Area
The Company's flagship underground mine, Cosmo, is expected to contribute 50,000 to 60,000 ounces of gold, or more than 70% of total gold production. Production ore is expected in the first quarter of 2012 with longitudinal mining starting in the upper section of the mine. Management expects Cosmo to reach commercial production in the second half of 2012 and the majority of Cosmo's contribution to the expected annual production will come at this time.
As the Company reported in its press release dated November 10, 2012, the underground delineation drilling has been successful in identifying greater thicknesses than initially expected and, in the lower part of mine, a higher grade core. These thicker zones will allow the introduction of more productive bulk mining methods. Delineation drilling activities will continue throughout the year to support detailed mine planning and to better understand the extent of the previously identified high-grade core on the western part of the orebody and at depth.
Key capital infrastructure work to be completed in 2012 includes:
-- the extension of the main ventilation system on the western part of the
Cosmo orebody.
-- the extension on the main decline down to the 785 metre level.
-- the establishment of seven new levels and sublevels as shown in Figure
1.
The Company is also reporting that the first ore has been mined from two newly developed open pits from the Burnside/Howley Area: Howley West and Rising Tide. These pits were identified, drilled and designed by the Company during 2011 and mining of these pits was approved by the government in the fourth quarter 2011. To date, the Company has successfully developed and mined a total of 8 open pits. Ore feed in the first quarter of 2012 will come from the lower grade Howley West pit as the infrastructure associated with this pit is expected to cope better with monsoonal weather conditions. Precipitation has been substantially below that experienced in 2011.
Union Reefs Project Area
The main focus of work at Union Reefs will be continued exploration on the Prospect and Crosscourse underground deposits where the Company has had significant exploration success in 2011. Two diamond rigs are currently working on the next phase of surface drilling. Management believes that these deposits will be the next catalyst after Cosmo due to their close proximity to the Union Reefs Mill, ultimately allowing the Company to increase production at lower costs.
As part of the Union Reefs Mine Management Plan renewal submission to the regulators, an application for an advanced exploration program, including the development of an exploration decline was submitted in January 2012. Once in place, the decline will facilitate the second phase of detailed drilling and an underground bulk-sampling program focused on the Prospect orebody. Historical production from the Prospect open pit was 411,994 tonnes at 1.6 g/t while past production from the Crosscourse pit amounted to over 13 million tonnes averaging 1.7 g/t Au to produce over 700,000 ounces of gold. Ore was treated at the existing Union Reefs mill with recovery in excess of 94%. Preliminary design work on the upper part of the deposit shows amenability to small scale sublevel retreat mining methods and may provide high grade feed to the mill as shown in Figure 2.
Pine Creek Project Area
The Company continued to work with the various government agencies to finalize permits for mining of the International open pit which is adjacent to the town of Pine Creek. Last December, the Company submitted a Notice of Intent that addressed all previously raised Northern Territory government questions. Feedback is expected in February 2012. Given the uncertainty around the timing of the permit, no provision has been made for production in 2012 from the International open pit.
Other Projects
-- Management expects to announce the sale of the Mt. Bundy Property by the
end of the first quarter of 2012.
-- Management expects to complete the compilation of drilling results from
2011 on its Maud Creek deposit and begin preparation for further
advancing the project once Board approval and funding are in place.
-- Drilling results are now being received and compiled on the
base/precious metal properties of Iron Blow and Mt. Bonnie. They will be
reviewed in order to assess how to maximize their value.
About Crocodile Gold
Crocodile Gold is a Canadian company with operating gold mines in the Northern Territory of Australia with a land package of over 3,300 km2. Crocodile Gold is currently mining a number of open pits in the Howley Corridor. The Company is also developing the Cosmo underground mine. Ore is processed at the Union Reefs Mill with a capacity of 2.4 million tonne per year. Crocodile Gold has 3.175 million ounces of NI 43-101 compliant Measured and Indicated mineral resources and 2.14 million ounces of Inferred mineral resources (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). The Company has an extensive exploration program in place and is drilling on several key properties on its expansive land package. Crocodile Gold's main focus is on the Cosmo Mine, the Union Reefs and Maud Creek project areas.
For additional information, please visit our website www.crocgold.com. Follow us on Twitter (@crocgold_crk) or Facebook (www.facebook.com/CrocodileGoldCorp).
Qualified Person
David Keough F.AusIMM of Crocodile Gold Inc 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 management's production projections and cash costs, of Crocodile Gold's future plans, operations 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, as 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.
To view the Figures associated with this press release, please visit the following link: http://media3.marketwire.com/docs/2012GuidanceImages.pdf
Contacts:
Crocodile Gold Corp.
Rob Hopkins
Manager, Investor Relations
416-861-5899
info@crocgold.com