Crocodile Gold Corp. (CROCF: OTCQX International) | Crocodile Gold Reports 2014 Year-End Mineral Reserves and Mineral Resources and Maintains Large Resource Base Supporting Future Production

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Crocodile Gold Reports 2014 Year-End Mineral Reserves and Mineral Resources and Maintains Large Resource Base Supporting Future Production

Mar 31, 2015

OTC Disclosure News Service

– Crocodile Gold Reports 2014 Year-End Mineral Reserves and Mineral Resources and Maintains Large Resource Base Supporting Future Production

TORONTO, ONTARIO–(Marketwired – Mar 31, 2015) – Crocodile Gold Corp. (“Crocodile Gold” or the “Company”) (TSX:CRK)(TSX:CRK.DB)(TSX:CRK.WT)(OTCQX:CROCF)(FRANKFURT:XGC) today announces its consolidated 2014 year-end Mineral Reserves and Mineral Resources. The Company’s AIF and technical reports prepared in accordance with NI 43-101 supporting the 2014 Mineral Reserve and Mineral Resource estimates will be available under the Company’s profile at www.sedar.com.

2014 Highlights

  • Consolidated Mineral Reserves maintained: 2014 year-end Mineral Reserves increased 1% to more than 935,000 ounces of gold including updated Mineral Reserves and Resources at Stawell Gold Mines (“Stawell”).
  • Increased Measured and Indicated (“MI”) Resources at Fosterville and Cosmo Gold Mines: MI Resources increased 3.9% at Fosterville Gold Mine (“Fosterville”) and 7.8% at Cosmo Gold Mine (“Cosmo”) compared to 2013 following positive exploration results.
  • Maintained Mineral Resource base after depletion: 2014 year-end MI Resources maintained at 4.8 million ounces of gold, a similar level compared to MI Resources at year-end 2013.
  • Mineral Reserve Grade Impacted by Enhanced Big Hill Open Pit Project: A focus on delivering high margin ounces has resulted in a year-over-year decrease in consolidated Mineral Reserve grade to 3.15 g/t as the Enhanced Big Hill open pit project at Stawell was included in 2014 year-end consolidated Mineral Reserves.
  • Improved grade profile at Fosterville: Exploration drilling completed at Fosterville during 2014 has provided increased definition and confidence in Fosterville’s geological model resulting in a 3.0% increase in Mineral Reserve grade to 6.6 grams per tonne (“g/t”) as well as a 8.1% increase in Measured and Indicated Resources grade to 4.2 g/t.

Rodney Lamond, President and Chief Executive Officer commented: “In 2014, we delivered strong physical and financial results and achieved successful exploration results from drill programs at all of our operating mine sites. Our exploration programs drilled more than 110,000 metres to replace the ounces from record mining depletion and maintained our Mineral Reserve and Mineral Resource base of nearly 0.9 million ounces and 4.8 million ounces of gold respectively. This was a significant achievement given the challenging gold price environment, which also positions us well for 2015. In addition, we are extremely pleased with the positive exploration results from Stawell that enabled us to provide the operation’s first updated Mineral Reserve and Mineral Resource report since 2012.”

“Looking ahead, we have a clear objective to execute our sustainable mining model to replace the ounces mined per year, roughly between 205,000 to 220,000 ounces annually, through the conversion of resources to reserves while maintaining a consistent resource base.”

2014 Mineral Reserve and Mineral Resource Summary*

Gold Ounces (000’s)
Gold Grade (g/t)
December 31, 2014
2014
2013
% Change
2014
2013
% Change
Proven and Probable Reserves
935
927
0.9%
3.15
4.13
-23.7%
MI Resources
4,753
4,789
-0.8%
2.82
2.81
0.4%
Inferred Resources
2,024
2,473
-18.2%
2.48
2.46
0.8%
*Detailed Mineral Reserve and Mineral Resource tables follow at the end of this press release.

Mineral Reserve Summary by Asset and Highlights:

  • Consolidated Mineral Reserves maintained: Mineral Reserves at Stawell increased 69.2% since its last technical report in 2012 as a result of the inclusion of the Enhanced Big Hill Project and positive drill results achieved during 2014. Adjustments to geological models at Fosterville resulted in a decrease in Mineral Reserve with an increase in the resulting grade profile. At Cosmo, resource conversion expenditures were constrained during the year while under the net free cash flow sharing arrangement with AuRico Gold Inc. Cosmo’s grade profile decreased slightly due to the inclusion of additional material from outside the main higher-grade 100 footwall lode. Additionally, at Stawell, a focus on delivering high margin ounces resulted in a 56.3% decrease in grade year-over-year to 1.5 g/t due to inclusion of 145,000 ounces, at 1.54 g/t, from the Enhanced Big Hill open pit project.

Proven and Probable Reserves (2P)*

Gold Ounces (000’s)
Gold Grade (g/t)
December 31, 2014
2014
2013
% Change
2014
2013
% Change
Fosterville
308
342
-9.9%
6.55
6.37
3.0%
Cosmo
148
180
-17.8%
3.57
3.79
-5.8%
Stawell
181
107
69.2%
1.50
3.43
-56.3%
Burnside
10
10

1.93
1.93

Union Reefs
42
42

4.40
4.40

Pine Creek
62
62

1.55
1.55

Maud Creek
184
184

5.40
5.40

All Sites 2P
935
927
0.8%
3.15
4.13
-23.7%
*Detailed Mineral Reserve tables follow at the end of this press release.

Mineral Resources Summary by Asset and Highlights:

  • Consolidated MI Resources maintained after mining depletion at 4.8 million ounces of gold year-over-year, with a 0.4% increase in average grade to 2.82 g/t to support future production.
  • Achieved Successful Exploration Results at All Three Operating Mines: Several opportunities have been identified during the 2014 Mineral Resource exploration drilling that resulted in increased MI Resources at Fosterville and Cosmo. Fosterville increased MI Resources by 3.9% to over 2.1 million ounces of gold while Cosmo increased MI Resources by an impressive 7.8% to 539,000 ounces of gold.

    At Fosterville, the 2014 exploration results established the continuation of gold mineralization down-plunge and mineralized faults below the Phoenix and Lower Phoenix Faults demonstrate the potential to extend Mineral Resources.

    At Cosmo, cross-cutting faults have been identified at the southern and northern edges of the main eastern lode sequence. These faults have been shown to offset the main lodes and in some cases create repetition of the mineralization. Extensional drilling will continue to test these areas during 2015.

    At Stawell, mining transitioned from deep in the mine to the upper levels of the mine where the extraction of remnant and other ore materials is currently in progress. As a result, the new 2014 MI Resource of 243,000 ounces, with an average grade of 1.81 g/t, reflects this transition since 2012.

    With more than 30 years of continuous operation, and over 2.2 million ounces of gold production at Stawell, the Company believes that there is still strong potential for finding additional underground mineral resources. During 2014, a targeted drill program at Stawell was implemented and focused on the middle to upper portion of the strongly mineralized Magdala system. Drill results identified areas for potential resource growth and provided upside for potential extension of the life of Stawell’s underground operations. Current and extensive historical mining of the upper levels in the mine will allow target areas to be readily accessed in the future.

Mineral Resources*

Gold Ounces (000’s)
Gold Grade
December 31, 2014
2014
2013
% Change
2014
2013
% Change
Fosterville
2,150
2,069
3.9%
4.18
3.87
8.1%
Cosmo
539
500
7.8%
3.35
3.43
-2.3%
Stawell
243
399
-39.1%
1.81
2.64
-31.4%
Burnside
335
335

1.38
1.38

Union Reefs
236
236

2.43
2.43

Pine Creek
379
379

1.41
1.41

Maud Creek
871
871

3.50
3.50

Total MI
4,753
4,789
-0.8%
2.82
2.81
0.4%
*Mineral Resources include Measured and Indicated Mineral Resources. Detailed Mineral Resource tables follow at the end of this press release.

  • Inferred Resources Impacted by Strategic Investment in Increased Mineral Reserves: Inferred Resource ounces declined at all three sites as a result of exploration investment focused on strategic conversion of existing MI Resources over the growth of new resources given the challenging price environment. Additionally, the Company completed the sale of two non-producing assets which contained Inferred Resources in 2013.

Inferred Resources*

Gold Ounces (000’s)
Gold Grade
December 31, 2014
2014
2013
% Change
2014
2013
% Change
Fosterville
699
777
-10.0%
3.72
3.78
-1.6%
Cosmo
84
109
-22.9%
2.72
2.94
-7.5%
Stawell
77
145
-46.9%
3.08
4.72
-34.6%
Burnside
323
602
-46.4%
1.47
1.58
-7.0%
Union Reefs
305
305

2.23
2.23

Pine Creek
191
191

2.34
2.34

Maud Creek
344
344

2.55
2.55

Total Inferred
2,024
2,473
-18.2%
2.48
2.46
0.8%
*Detailed Inferred Resource table follows at the end of this press release.

Mineral Reserves
Deposit
Category
Tonnes (T)
Gold Grade (g/t)
Oz Gold (Oz)
Fosterville UG a
Proven
137,000
5.50
24,000
Probable
880,000
5.56
157,000
Sub-Total
1,017,000
5.55
182,000
Fosterville Residue b
Proven
441,000
8.89
126,000
Cosmo UG c
Proven
301,000
3.66
35,000
Probable
994,000
3.54
113,000
Sub-Total
1,295,000
3.57
148,000
Stawell UG d
Proven
68,000
3.69
8,000
Probable
759,000
3.05
28,000
Sub-Total
827,000
2.80
36,000
Big Hill OP e
Probable
2,900,000
1.54
145,000
Burnside OP f
Probable
154,000
1.93
10,000
Union Reefs UG g
Probable
298,000
4.40
42,000
Pine Creek OP h
Probable
1,251,000
1.55
62,000
Maud Creek UG i
Probable
1,055,000
5.40
184,000
Sub-Total Proved
947,000
6.34
193,000
Sub-Total Probable
8,291,000
2.78
741,000
Total Reserves
9,238,000
3.15
935,000

All
Mineral Resources have been rounded to 1,000 tonnes, 0.01 g/t Au and 1,000 ounces. Minor discrepancies in summation may occur due to rounding.
Mineral Reserves have demonstrated economic viability.
Processing Recoveries range between 88% and 93%, excluding Fosterville residue which expects recoveries of 25% (see reports for details).
Mining Recoveries range from 85% and 95% (see reports for details).
Mining Dilution ranges from 5% to 15% (see reports for details).
a,b,c,d
Gold Price of $Au1,425/Oz used.
Mineral Reserves as of December 31, 2014.
e
Gold Price of $Au1,415/Oz used.
Mineral Reserves as of December 31, 2014.
f, g, h, i
Gold Price of $Au1,450/Oz used.
Mineral Reserves as of December 31, 2012.
a – Fosterville UG
The cut-off grades applied ranged from 1.6 g/t to 3.5 g/t Au for underground sulphide ore depending upon width, mining method and ground conditions
Source: Report on the Mineral Resources and Mineral Reserves of the Fosterville Gold Project in the State of Victoria for Crocodile Gold Corp. dated Dec 31 2014 and prepared by, Troy Fuller, MAusIMM (CP), Geology Manager for Crocodile Gold, Simon Hitchman FAusIMM, Exploration Manager for Crocodile Gold and Ion Hann, FAusIMM, Mining Manager for Crocodile Gold (the “Fosterville Technical Report”).
b – Fosterville Residue
Source: Report on the Mineral Resources and Mineral Reserves of the Fosterville Gold Project in the State of Victoria for Crocodile Gold Corp.?Çû dated Dec 31 2014 and prepared by, Troy Fuller, MAusIMM (CP), Geology Manager for Crocodile Gold Simon Hitchman FAusIMM, Exploration Manager for Crocodile Gold and Ion Hann, FAusIMM, Mining Manager for Crocodile Gold (the – “Fosterville Technical Report”).
c – Cosmo UG
Cut-off grades of 2.4 g/t Au were used.
Source: Report on the Mineral Resources and Mineral Reserves of the Cosmo Gold Project in the Northern Territory for Crocodile Gold Corp. dated Dec 31, 2014 and prepared by, Mark Edwards, MAusIMM (CP) MAIG, General Manager of Exploration for Crocodile Gold and Murray Smith, MAusIMM (CP), Principal Mining Consultant for Mining Plus (the – “Cosmo Technical Report”).
d – Stawell UG
Cut-off Grade applied was variable for underground depending upon width, mining method and ground conditions.
Source: Report on the Mineral Resources and Mineral Reserves of the Stawell Gold Project in the State of Victoria for Crocodile Gold Corp. dated Dec 31, 2014 and prepared by, Justine Tracey, MAusIMM (CP), Senior Resource Geologist for Crocodile Gold and Wayne Chapman, MAusIMM (CP), Technical Services Manager for Crocodile Gold (the – “Stawell Technical Report”).
e – Big Hill OP
Cut-off grade of 0.4 g/t Au was used.
Source: NI 43-101 Technical Report – Big Hill Enhanced Development Project at Stawell Gold Mine, Mineral Resources Reserves dated June 2014 and effective March 2014 and prepared by Dean Basile, MAusIMM (CP), Manager Mining for Mining One and Stuart Hutchin, MAIG, MAusIMM, Geology Manager for Mining One Pty Ltd (the – “Big Hill Technical Report”).
f- Burnside
Cut-offs used were 0.93 g/t Au for North Point and 0.95 g/t Au for Glencoe.
Source: Report on the Mineral Resources and Mineral Reserves of the Burnside Gold and Base Metal Project in the Northern Territory for Crocodile Gold Corp.?Çû dated July 2013 and effective Dec 31, 2012 prepared by, Mark Edwards, MAusIMM (CP), MAIG, General Manager of Exploration for Crocodile Gold and Dean Basile, MAusIMM (CP), Principal Mining Engineer for Mining One (the ― “Burnside Technical Report”).
g- Union Reefs
Cut-off grade of 2.7 g/t Au was used.
Source: Report on the Mineral Resources and Mineral Reserves of the Union Reefs Gold Project in the Northern Territory, Australia for Crocodile Gold Corp.?Çû dated June, 2013 and effective Dec 31, 2012 prepared by, Mark Edwards, MAusIMM (CP), MAIG, General Manager of Exploration for Crocodile Gold and Phil Bremner, FAusIMM, Principal Mining Engineer for Mining One (the ― “Union Reefs Technical Report”).
h – Pine Creek
Cut-offs used were 0.91 g/t Au for Kohinoor, Cox and South Enterprise and 0.93 g/t Au for International.
Source: Report on the Mineral Resources and Mineral Reserves of the Pine Creek Gold Project in the Northern Territory, Australia for Crocodile Gold Corp. dated July 2013 and effective Dec 31, 2012 prepared by, Mark Edwards, MAusIMM (CP), MAIG, General Manager of Exploration for Crocodile Gold and Dean Basile, MAusIMM (CP), Principal Mining Engineer for Mining One (the ― “Pine Creek Technical Report”).
I – Maud Creek
The cut-off grade for Mineral Reserves was estimated at 4.0 g/t Au.
Source: Report on the Mineral Resources and Mineral Reserves of the Maud Creek Gold Project in the Northern Territory, Australia for Crocodile Gold Corp.?Çû dated July 2013 and effective Dec 31, 2012 prepared by, Mark Edwards, MAusIMM, MAIG, General Manager of Exploration for Crocodile Gold and Phil Bremner, FAusIMM, Principal Mining Engineer for Mining One (the ― “Maud Creek Technical Report”).

Mineral Resources
Measured
Tonnes (kt)
Gold Grade (g/t)
Oz Gold (kOz)
Fosterville a
2,722
3.81
334
Cosmo b
1,556
3.68
184
Stawell UGc
137
4.19
18
Total Measured
4,415
3.78
536
Indicated
Tonnes (kt)
Gold Grade (g/t)
Oz Gold (kOz)
Fosterville
13,902
4.06
1,817
Cosmo
3,450
3.20
355
Stawell UG
1,068
1.89
65
Big Hill d
2,971
1.68
160
Burnside e
7,546
1.38
335
Union Reefs f
3,021
2.43
236
Pine Creek g
8,393
1.41
379
Maud Creek h
7,733
3.50
871
Total Indicated
48,083
2.73
4,218
Total (MI only)
52,498
2.82
4,754

Mineral Resources
Inferred
Tonnes (kt)
Gold Grade (g/t)
Oz Gold (kOz)
Fosterville
5,839
3.72
699
Cosmo
961
2.72
84
Stawell UG
732
3.19
75
Big Hill
46
1.15
2
Burnside
6,853
1.47
323
Union Reefs
4,263
2.23
305
Pine Creek
2,540
2.34
191
Maud Creek
4,192
2.55
344
Total Inferred
25,426
2.48
2,024

All
Mineral Resources are inclusive of Mineral Reserves.
Mineral Resources have been rounded to 1,000 tonnes, 0.01 g/t Au and 1,000 ounces. Minor discrepancies in summation may occur due to rounding.
Gold Price of $Au1,450/Oz used.
a,b,c
Mineral Resources are stated as of December 31, 2014.
d,e,f,g
Mineral Resources are stated as of December 31, 2012.
a – Fosterville
The lower cut-off grades applied were 0.5 g/t Au for oxide, 0.8 g/t Au for near-surface sulphide (above 5050mRL) and 3.0 g/t Au for underground sulphide (below 5050mRL).
Source: the Fosterville Technical Report.
b – Cosmo
Lower cut-off of 2.0 g/t Au was used to calculate the Mineral Resources.
Source: the Cosmo Technical Report.
c – Stawell UG
Lower cut-off of 2.0 g/t Au for resources outside Big Hill pit optimization and 2.3 g/t for underground, Surface Resources using a cut-off of 0.44 g/t Au.
Source: the Stawell Technical Report.
d – Big Hill
Cut-off grade of 0.4 g/t Au was used.
Source: the Big Hill Technical Report.
e – Burnside
Lower cut-off of 0.7 g/t Au was used to calculate the Mineral Resources for Open Pit deposits, lower cut-off of 2.0 g/t used for Underground deposits.
Source: the Burnside Technical Report.
f – Union Reefs
Lower cut-off of 0.5 g/t Au was used to calculate the Mineral Resources for Open Pit deposits, lower cut-off of 2.0 g/t used for Underground deposits excluding Crosscourse which used a lower cut-off of 1.0 g/t.
Source: the Union Reefs Technical Report.
g – Pine Creek
Lower cut-off of 0.5 g/t Au was used to calculate the Mineral Resources.
Source: the Pine Creek Technical Report.
H – Maud Creek
Lower cut-off of 1.0 g/t Au was used to calculate the Mineral Resources.
Source: the Maud Creek Technical Report.

About Crocodile Gold

Crocodile Gold is a Canadian-listed gold mining and exploration company with three operating mines in Australia. The objective of Crocodile Gold is to continue to focus on the safe and profitable operating performance from its three operating mines, Fosterville and Stawell Gold Mines in the state of Victoria and Cosmo Gold Mine in the Northern Territory. Our primary goal of sustainable operating performance is achieved through building confidence in our mine plans, continuing with prudent cost management controls, and targeted exploration and resource development. Sustainable operating performance from our current assets is a critical step in supporting the future growth toward the Five Year Strategy of Crocodile Gold.

For additional information, please visit our website www.crocgold.com or follow us on Twitter @crocgold_crk or on Facebook at CrocodileGoldCorp.

Qualified Person

Mark Edwards, MAusIMM (CP), MAIG, General Manager Exploration and Business Development for Crocodile Gold, 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.

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 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.

Laura Lepore
Director, Investor Relations
Crocodile Gold Corp.
Tel: 416-847-1847
info@crocgold.com

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