Crocodile Gold Exceeds Increased Production Guidance With 210,696 Ounces Produced in 2013

XGC, T.CRK, CROCF

Increases 4th Quarter Production to Over 58,000 Ounces

TORONTO, ONTARIO--(Marketwired - Jan. 21, 2014) - Crocodile Gold Corp. (TSX:CRK)(OTCQX:CROCF)(FRANKFURT:XGC) ("Crocodile Gold" or the "Company") reports on its 2013 annual and fourth quarter production results. Full financial details for fiscal 2013 planned for release in mid-March.

2013 Annual Production Highlights

  • Consolidated annual gold production increased 26% to 210,696 ounces.
  • Annual gold production from the Cosmo Gold Mine increased 45% to 74,106 ounces, while average grade increased 58% to 3.57 g/t Au.
  • The Fosterville Gold Mine continued its strong performance, producing 98,424 ounces.
  • The Stawell Gold Mine achieved a full year of underground mining with production of 38,166 ounces

Fourth Quarter Production Highlights

  • Strong operational performance across all three operations led to a record quarterly gold production of 58,267 ounces for the fourth quarter.
  • Consolidated fourth quarter average grade increased 4% to 3.36 g/t Au.
  • Record quarterly gold production from the Cosmo Gold Mine of 22,570 ounces for the fourth quarter.
  • Fosterville Gold Mine increased its underground ore mined during the quarter by 4%
  • Stawell continues to exceed expectations with a 21% increase in ounces produced over Q3.

Rodney Lamond, President and CEO of Crocodile Gold, commented: "I am very pleased to announce that Crocodile Gold has exceeded our increased gold production guidance for the year with over 210,000 ounces produced in 2013 while also achieving our cost reduction goals. This demonstrates the focus and commitment of all our employees to take our Company to a new level. Crocodile Gold has reacted quickly to the weakening gold market by cutting corporate expenditures, establishing diligent capital allocation strategies and by reviewing productivity and operating costs. Further work will be required as we continue to closely monitor the changing gold market, however, we believe we have built confidence in our three operations and will continue to invest in the necessary sustaining capital to ensure our goals and objectives are achievable and sustainable."

2014 Production Guidance

Building on the achievement of its increased production guidance in 2013, Crocodile Gold has established production guidance for 2014 of 200,000 - 210,000 ounces of gold.

Operational Summary

  Q1 2013   Q2 2013   Q3 2013   Q4 2013   Total  
Cosmo Mine  
Ore Milled (t) 152,128   175,708   188,758   202,743   719,337  
g/t Au 3.12   3.50   3.83   3.74   3.57  
Recovery 86.4 % 89.5 % 91.8 % 89.9 % 89.6 %
oz 13,169   17,706   21,316   21,915   74,106  
Fosterville Gold Mine  
Ore Milled (t) 190,026   197,769   204,231   200,140   792,166  
g/t Au 4.74   4.32   4.44   4.63   4.53  
Recovery 81.4 % 85.5 % 86.7 % 87.4 % 85.3 %
oz 23,556   23,470   25,359   26,039   98,424  
Stawell Gold Mine  
Ore Milled (t) 213,132   238,344   222,322   215,062   888,860  
g/t Au 2.06   1.20   1.62   1.81   1.66  
Recovery 86.5 % 76.5 % 73.5 % 82.3 % 79.5 %
oz 12,228   7,085   8,531   10,322   38,166  
Totals 48,953   48,261   55,206   58,276   210,696  

Cosmo Gold Mine

The Cosmo Gold Mine improved on its third quarter performance during the fourth quarter with underground ore production at 200,211 tonnes at an average grade of 3.93 g/t Au. The Union Reefs mill facility processed 202,743 tonnes at an average grade of 3.74 g/t Au and at a recovery rate of 89.8%, resulting in gold production of 21,316 ounces for the quarter. A slight decrease in recovery rates was attributed to certain sections of development ore. The Cosmo Mine achieved an average development rate of 549 meters in the quarter, in line with operational requirements while continuing to minimize capital expenditure.

Fosterville Gold Mine

The Fosterville Gold Mine had a strong finish to the year for both mining and processing. Underground ore production was 219,713 tonnes during the fourth quarter at an average grade of 4.82 g/t Au, setting a new quarterly record for underground ore mined. Fosterville processed 200,140 tonnes of ore at a grade of 4.63 g/t Au with a recovery rate of 87.4%, resulting in gold production of 26,039 ounces in Q4. Mine development continued at an average advance rate of 609 metres per month during the quarter. Exploration is continuing on the Phoenix and Central ore bodies with encouraging results and it is anticipated that additional 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. During the quarter Stawell mined 157,708 tonnes of underground ore at an average grade of 2.39 g/t Au. There continues to be a focus on prolonging underground mining activities at Stawell and it is anticipated that underground operations will continue in the first half of 2014. The underground ore mined was supplemented with surface oxide material for a total of 215,602 tonnes processed at an average grade of 1.81 g/t Au. Stawell achieved a recovery rate of 82.3% which, coupled with the slight increase in feed grade, resulted in an increased gold production to 10,322 ounces for the quarter. Stawell set a new annual record for tonnes of ore processed during a calendar year with 888,860 tonnes.

The Big Hill Project continues to move through the permitting process with governmental submissions being made in the first half of 2014. Geotechnical drilling and various technical studies were completed during the quarter, which will form part of the submissions. The Big Hill Project continues to be Crocodile Gold's highest priority growth project.

Cash Balance and Working Capital Position

At the end of 2013, Crocodile Gold had a preliminary cash balance of $27.5M and working capital of approximately $15M. The 2013 annual financial statements will be released in March 2014.

As a result of the continued volatility in the price of gold, management is assessing the carrying value of its mine properties and property, plant and equipment as the recoverable amount at lower prices may exceed the carrying amount of those assets, which would result in an impairment charge. This assessment is currently ongoing and will be finalized as part of the Company's 2013 annual financial statements.

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.

Follow us on Twitter @crocgold_crk or Facebook facebook.com/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 Hopkins
Manager, Investor Relations
416-861-5899
info@crocgold.com
www.crocgold.com

Tags: GOLD

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