TORONTO, ONTARIO -- (Marketwire) -- 01/12/11 -- Crocodile Gold Corp. (TSX: CRK)(OTCQX: CROCF)(FRANKFURT: XGC) ("Crocodile Gold" or the "Company") announces fourth quarter production of 22,351 ounces and 2010 annual production of 81,793 ounces.
Highlights include:
-- 518,475 tonnes at a grade of 1.49 grams/tonne gold were milled in the
fourth quarter of 2010 to produce 22,351 ounces at a recovery of 91.4%.
Of note, ore milled in October was 196,000 tonnes before the wet season
began to impact mill throughput.
-- Gold poured during the fourth quarter of 2010 of 23,300 ounces despite
the Northern Territory of Australia experiencing one of its wettest
quarters on record.
-- During 2010, a total of 1,856,180 tonnes at a grade of 1.55 grams/tonne
gold were milled to produce 81,793 ounces for an overall recovery of
88.4%. Higher than normal monsoonal rains in December negatively
affected both mine production and mill throughput. There were 8 days of
lost production in December at Howley as higher grade ore at the bottom
of the pit was inaccessible reducing production by approximately 2,000
ounces in the last half of December. In addition, 40,000 fewer tonnes
were milled in December due to rainfall related production issues.
-- The Company focused on selectively mining higher grade areas to offset
production difficulties caused by abnormally high rainfall. The current
long term weather outlook for the monsoonal season which typically ends
in March indicates that there will be further above average rainfall in
the first quarter of 2011.
-- Production during the fourth quarter of 2010 came from the Brocks Creek
underground mine and the Howley, North Point and Princess Louise open
pits.
-- Crocodile Gold continued to work with the various government agencies to
finalize permits for mining the International open pit in the Pine Creek
North area.
-- Crocodile Gold is ready to begin dewatering the Cosmo open pit upon
approval of final discharge permits expected shortly.
-- During the fourth quarter of 2010, total underground development at
Cosmo was 140 metres. The focus was on developing and installing the
required underground infrastructure including electrical and water
reticulation. Total underground development in 2010 was 562 metres.
-- The Cosmo mine development and production contract was put out to tender
and the Company received a number of very competitive bids including a
significant cost savings for the next two years. Awarding of this tender
is anticipated to occur early in the first quarter of 2011.
-- Crocodile Gold expects to provide production guidance for 2011 shortly.
-- Crocodile Gold expects to provide an update on the reserves and
resources in mid-February.
In releasing this information, Mike Hoffman, President and Chief Executive Officer of Crocodile Gold, commented, "Our fourth quarter results continue to reflect the steady progress we are making at our operation since we began commercial production on June 1, 2010. Our priority remains bringing the Cosmo underground mine to production in mid-2011 and to develop new sources of production in the Union Reefs/Pine Creek area."
About Crocodile Gold
Crocodile Gold is a Canadian company with operating gold mines in the Northern Territory of Australia and a land package of over 2,500 km(2). Crocodile Gold is currently mining from the Howley, North Point and Princess Louise open pit mines and the Brocks Creek underground mine. Crocodile Gold commenced mining in November 2009 and announced its first gold pour in December 2009 at its Union Reefs Mill. The Company is currently developing the Cosmo underground mine. Ore is currently processed at the 2.4 million tonne per year Union Reefs Mill. Crocodile Gold has 3.5 million ounces of NI 43-101 compliant measured and indicated resources (57 million tonnes at an average grade of 1.9 g/t gold) and 2.2 million ounces of inferred resources (38 million tonnes at an average grade of 1.8 g/t gold) (see the Amended Annual Information Form dated November 5, 2010 and Crocodile Gold press releases dated September 8, 2009, January 25, 2010, October 14, 2010 and December 2, 2010). The Company has an exploration program in place with a main focus on the Cosmo/Howley corridor which covers a five kilometre strike length of a 25 kilometre trend.
Qualified Person
David Keough, MAusIMM of Crocodile Gold Australia Operations is a "qualified person" as such term is defined in National Instrument 43-101 and has reviewed and confirmed 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, including management's assessment of Crocodile Gold's targeted production, future plans, operations, weather forecasts 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 those risks described in the annual information form of the Company. 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, "Figure 1: Crocodile Gold Northern Territory Location Map," please visit the following link: http://media3.marketwire.com/docs/CrocFig112.pdf.
Contacts:
Crocodile Gold Corp.
Michael Hoffman
President and CEO
416-861-2964
Crocodile Gold Corp.
Ashleigh Clelland
Manager, Investor Relations
416-861-5899
info@crocgold.com
www.crocgold.com
