Welcome!

News Feed Item

Crocodile Gold Produces 53,583 Ounces of Gold in the First Quarter of 2014

TORONTO, ONTARIO -- (Marketwired) -- 04/23/14 -- 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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
Virtualization over the past years has become a key strategy for IT to acquire multi-tenancy, increase utilization, develop elasticity and improve security. And virtual machines (VMs) are quickly becoming a main vehicle for developing and deploying applications. The introduction of containers seems to be bringing another and perhaps overlapped solution for achieving the same above-mentioned benefits. Are a container and a virtual machine fundamentally the same or different? And how? Is one techn...
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
The financial services market is one of the most data-driven industries in the world, yet it’s bogged down by legacy CPU technologies that simply can’t keep up with the task of querying and visualizing billions of records. In his session at 20th Cloud Expo, Jared Parker, Director of Financial Services at Kinetica, will discuss how the advent of advanced in-database analytics on the GPU makes it possible to run sophisticated data science workloads on the same database that is housing the rich inf...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, represent...
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Things are changing so quickly in IoT that it would take a wizard to predict which ecosystem will gain the most traction. In order for IoT to reach its potential, smart devices must be able to work together. Today, there are a slew of interoperability standards being promoted by big names to make this happen: HomeKit, Brillo and Alljoyn. In his session at @ThingsExpo, Adam Justice, vice president and general manager of Grid Connect, will review what happens when smart devices don’t work togethe...
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
Adding public cloud resources to an existing application can be a daunting process. The tools that you currently use to manage the software and hardware outside the cloud aren’t always the best tools to efficiently grow into the cloud. All of the major configuration management tools have cloud orchestration plugins that can be leveraged, but there are also cloud-native tools that can dramatically improve the efficiency of managing your application lifecycle.