Crocodile Gold Increases Measured and Indicated Mineral Resources
to 2.1 Million Ounces Gold at Fosterville Gold Mine and 500,000
Ounces Gold at Cosmo Gold Mine
TORONTO, ONTARIO--(Marketwired - May 20, 2014) -
- The Fosterville Gold Mine increased estimated Measured and
Indicated Mineral Resources to 2.1 million ounces of gold, a 30%
increase. Total estimated Measured and Indicated Mineral Resources
increased to 16.6 million tonnes at 3.87 g/t Au.
- Results from exploration drilling at Fosterville indicate
significant potential for further Mineral Resource growth through
ongoing drilling from surface and underground.
- The Cosmo Gold Mine increased estimated Measured and Indicated
Mineral Resources to 500,000 ounces of gold, a 4% increase. Total
estimated Measured and Indicated Mineral Resources increased to 4.5
million tonnes at 3.43 g/t Au.
- Results from exploration drilling at Cosmo indicate the deposit
remains open at depth down plunge and holds significant potential
for further Mineral Resource growth.
Crocodile Gold Corp. (TSX:CRK)(OTCQX:CROCF)(FRANKFURT:XGC)
("Crocodile Gold" or the "Company) has updated the Mineral Reserves
and Resources Estimates at the Company's Fosterville Gold Mine as a
result of the successful exploration drill program detailed in the
Press Release of March 12, 2014. In addition, the Company has
updated the Mineral Reserve and Resource statement for the Cosmo
Gold Mine. Separate technical reports are being prepared in
accordance with NI 43-101 for each of the project areas and will be
filed on SEDAR within 45 days of this news release.
Rodney Lamond, President and CEO of Crocodile Gold, commented:
"I am pleased to announce that Crocodile Gold has significantly
increased the Measured and Indicated Mineral Resource categories
for both Fosterville and Cosmo Gold Mines. The substantial increase
in Mineral Resources at Fosterville has extended the current Life
of Mine plan and provides for potential Mineral Reserve increases
as infill drilling continues. At Cosmo, the exploration drilling
programs have focused on near term targets and have significantly
increased the Measured Mineral Resource category. This increase
provides greater confidence in the resource and in Cosmo's mine
plans. As the Cosmo deposit remains open at depth, the 2014
exploration drilling program will focus down plunge of the deposit
that will potentially provide further Mineral Resource growth."
Reserve and Resource Update from the Fosterville Gold Mine
At the Fosterville Gold Mine, the total Mineral Resources
reported are contained in four separate areas: the Central Area,
Southern Area, Harrier Area and Robbin's Hill Area. Drilling
throughout 2013 was concentrated on near term drilling targets in
the Central and Harrier Areas and resulted in the successful
delineation of zones of mineralization that have led to growth in
total Measured and Indicated Mineral Resources to over 2 million
ounces of gold.
Central
Area
A total of 205 holes (47,466 metres) were drilled in the Central
Area, predominately targeting the Phoenix and Lower Phoenix
structures during 2013. This drilling successfully identified
additional zones of mineralization (see Press Release dated March
12, 2014) that has led to an increase in total Measured and
Indicated Mineral Resource of approximately 374,000 ounces of gold.
This is a 42% increase on Measured and Indicated Mineral Resources
from the December 2012 Mineral Resource estimate for this area. In
addition, 158,000 ounces of gold (an 89% increase) of Inferred
Mineral Resource was added to the Central Area as a result of
drilling programs undertaken during 2013 and subsequent resource
modeling (Figure 1).
On the back of the Mineral Resource expansion in the Central
Area, Fosterville experienced significant Mineral Reserve growth,
with the addition of 39,000 gold ounces of Proven and Probable
Mineral Reserve, after mining depletion of 68,500 ounces. This
represents a 26% increase in Mineral Reserve from the December 2012
Mineral Reserve position. The total Mineral Reserve for the Central
Area now stands at 189,000 contained ounces of gold; driven by an
11% increase in tonnes and 14% increase in grade for the area.
The Company anticipates continued Mineral Resource growth in the
Central Area which contains untested, open plunge resource
extension potential on both the Phoenix and Lower Phoenix
structures. Additional drilling is planned to further define the
resource. Fosterville currently has one surface and three
underground diamond drill rigs operating in the Central Area.
Harrier
Area
A total of 63 holes (9,890 metres) were drilled in the Harrier
Area throughout 2013, testing down plunge extensions of the Harrier
system and providing adequate resource definition for near term
mine planning. The Harrier Area drilling and modeling produced a
less pronounced increase in Measured and Indicated Mineral
Resource. However, coupled with the re-interpretation of existing
datasets, the Harrier Area yielded an increase of 99,000 ounces of
gold (22% increase). In addition, there was a sizeable increase in
the Inferred Mineral Resource category in the area. In total,
197,000 ounces where added to the Inferred Mineral Resource base
for a 288% increase (Figure 2). This was driven largely by a
re-interpretation of mineralized domains above the 4800mRL and the
inclusion of exploration drilling results at the southern extent of
known mineralization on the 4850mN section.
The Proven and Probable Mineral Reserve estimate for Harrier
stands at 42,000 ounces of gold. This represents a 27% ounce
reduction when compared to the December 2012 Mineral Reserve
position for the same area, inclusive of mine depletion of 54,000
ounces over 2013. The Proven and Probable Mineral Reserve
reductions in the Harrier Area were offset by gains in the Central
Area, resulting in an overall Mineral Reserve growth of 12% for a
total of 231,000 contained ounces.
The Harrier mineralized system remains open down plunge and is
to be considered in future drill planning, however, in the
Company's view, the Central Area currently provides the highest
potential for near term Mineral Reserve and Resource growth
opportunity and is the primary focus of Fosterville's 2014
exploration and resource definition programs.
Drilling was not undertaken in the Southern and Robbin's Hill
Areas during 2013 and the Mineral Resource inventory in these areas
remain unchanged, however, it is the Company's view that these
areas still hold high potential for future mineral resource
growth.
The CIL Tailings Proven Mineral Reserve experienced a 13%
increase in contained gold ounces during 2013 to a total of 111,000
ounces. Expected gold recovery from this Mineral Reserve is 25%,
based on laboratory test work and operating performances.
Table 1: Estimated Mineral Resources for Fosterville Mine
Category |
Tonnes ('000) |
Grade (g/t Au) |
Ounces (Koz) |
% change in ounces from 2012 |
Measured |
2,405 |
2.99 |
231 |
11% |
Indicated |
14,231 |
4.02 |
1,838 |
32% |
Total |
16,636 |
3.87 |
2,069 |
30% |
Inferred |
6,392 |
3.78 |
777 |
84% |
1) Mineral Resources are stated as of the 31st of
December 2013. |
2) All Mineral Resources are reconciled to CIM
standards as prescribed by the National Instrument 43-101. |
3) Mineral Resources are inclusive of Mineral
Reserves |
4) Mineral Resources are calculated using these
parameters; |
a. Gold price of AUD$1,450 per ounce |
b. Lower cut‐off grade applied is 0.5 g/t Au for
oxide |
c. Lower cut-off grade applied is 0.8 g/t Au for
near-surface sulphide (above 5050mRL) |
d. Lower cut-off grade applied is 3.0 g/t Au for
underground sulphide (below 5050mRL) |
5) 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. |
6) Mineral Resource Estimate was prepared by Troy
Fuller and Simon Hitchman of Crocodile Gold. |
Note: Mineral Resources are inclusive of Mineral
Reserves. The previous Mineral Resource estimate for Fosterville
(effective date 31st December 2012) reported Mineral Resources
exclusive of Mineral Reserves. The comparative variances shown are
against a recast December 2012 Mineral Resource estimate, which is
inclusive of Mineral Reserves. |
Table 2: Mineral Reserve Estimate for Fosterville Gold Mine
Category |
Tonnes ('000) |
Grade (g/t Au) |
Ounces (Koz) |
% change in ounces from 2012 |
Proven |
294 |
4.76 |
45 |
25% |
Probable |
1,081 |
5.36 |
186 |
9% |
Total |
1,375 |
5.23 |
231 |
12% |
1) Mineral Reserves are stated as of the 31st December
2013 |
2) All Mineral Reserves are reconciled to CIM standards
as prescribed by the National Instrument 43-101 |
3) Mineral Reserve Estimates were prepared by Murray
Smith of Mining Plus Pty Ltd. |
4) The Mineral Reserve estimate used a gold price of
AUD$1,415 per ounce. 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. |
5) Dilution of 15% and mining recovery of 85% were
applied to stopes within the Mineral Reserves estimate. |
6) Mineral Reserves 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. |
7) CIL tailings are stated as contained ounces - 25%
recovery is expected. Recoveries are based on laboratory and
processing plant test work and operating experience. |
Table 3: CIL Tailings Mineral Reserve Estimate for Fosterville
Gold Mine
Category |
Tonnes ('000) |
Grade (g/t Au) |
Ounces (Koz) |
% change in ounces from 2012 |
CIL Tails Proven |
394 |
8.75 |
111 |
13% |
1) Mineral Reserves are stated as of the 31st December
2013 |
2) All Mineral Reserves are reconciled to CIM standards
as prescribed by the National Instrument 43-101 |
3) Mineral Reserve Estimates were prepared by Murray
Smith of Mining Plus Pty Ltd. |
4) The Mineral Reserve estimate used a gold price of
AUD$1,415 per ounce. 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. |
5) Dilution of 15% and mining recovery of 85% were
applied to stopes within the Mineral Reserves estimate. |
6) Mineral Reserves 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. |
7) CIL tailings are stated as contained ounces - 25%
recovery is expected. Recoveries are based on laboratory and
processing plant test work and operating experience. |
Reserve and Resource Update from the Cosmo Gold Mine
At the Cosmo Gold Mine, the total Mineral Resources reported are
contained within the one Mineral Resource model, which encompasses
both the Eastern and Western Lodes of the deposit. Drilling in 2013
was concentrated on near term targets and was successful in
increasing the Mineral Resources to 0.5 million ounces of gold in
the Measured and Indicated categories, providing increased resource
confidence for mine planning.
A total of 142 Resource Definition and Exploration diamond
drill-holes (for 22,693 metres) were drilled into the Cosmo Deposit
during 2013, mostly in the footwall zone of the regional F1 Fault
on the Eastern Lode. This drilling was prioritized in order to add
confidence in the near term targets for the operation and returned
a significant increase of 69% in the amount of Measured Mineral
Resources and a total 4% increase in total Measured and Indicated
Resources (Figure 3). This is after the mining depletion of 86,500
ounces during 2013.
Changes in the Mineral Reserves Estimate for the Cosmo Deposit
have shown a slight reduction, which is mainly related to the
mining depletion since the last report was effective on June 1,
2013. Other factors that have affected the Mineral Reserves have
been due to changes in the mining recovery and dilution assumptions
to align with current understanding and practices. When mining
depletion of Mineral Reserves is factored into the changes there is
an overall reduction of around 10% in gold ounces since the last
report was filed in 2013.
When considering the total reconciled Mineral Resources mined
from the Cosmo Gold Mine, a total of 57,500 ounces of gold have
been mined since June 1, 2013. This suggests a total of 27,000
ounces of Non-Mineral Reserve material (or 47% of mined ounces of
gold) were opportunistically mined based on new drilling results in
the area above the F1 Fault.
The Cosmo Deposit remains open at depth down plunge and in the
Company's view holds significant potential for further Mineral
Resource growth to support future Mineral Reserve studies. In early
2014, approval was granted for a resource definition program to
develop the down plunge extension of the Cosmo Deposit. This
drilling has commenced and is expected to be completed in the first
quarter of 2015.
Table 4: Estimated Mineral Resources for the Cosmo Gold Mine
Category |
Tonnes ('000) |
Grade (g/t Au) |
Ounces (Koz) |
% change in ounces from 2012 |
Measured |
1,331 |
3.80 |
163 |
69% |
Indicated |
3,203 |
3.27 |
337 |
-12% |
Total |
4,534 |
3.43 |
500 |
4% |
Inferred |
1,115 |
2.94 |
109 |
-54% |
1) Mineral Resources are stated as of the 31st of
December 2013 |
2) Mineral Resources are inclusive of Mineral
Reserves |
3) Mineral Resources are calculated using these
parameters; |
a. Gold price of AUD$1,450 per ounce |
b. Lower cut‐off of 2.0 g/t is used to calculate the
Mineral Resources |
4) All tonnes are rounded to the closest 1,000t and
ounces are rounded to the closest 100 ounces |
5) Mineral Resource Estimate was prepared by Craig
Pridmore of Crocodile Gold. |
Table 5: Mineral Reserve Estimate for the Cosmo Gold Mine
Category |
Tonnes ('000) |
Grade (g/t Au) |
Ounces (Koz) |
% change in ounces from last report |
Proven |
264 |
4.04 |
34 |
-9% |
Probable |
1,213 |
3.74 |
146 |
-26% |
Total |
1,477 |
3.79 |
180 |
-24% |
1) The Mineral Reserve is stated as at 31st December
2013 |
2) All Mineral Reserves have been estimated in
accordance with the JORC code and are reconciled to CIM standards
as prescribed by the National Instrument 43-101 |
3) Mineral Reserves were estimated using the following
mining and economic factors: |
a. 10% dilution added to all stopes |
b. Minimum stope width is 3.0m |
c. Expected mining stope recovery is 95% |
d. Gold price of AUD$1,415 per ounce |
e. Overall processing recovery of 93% |
4) The diluted cut-off grade for Mineral Reserves has
been estimated at 2.76 g/t Au |
5) Mineral Reserve Estimates were prepared by Murray
Smith of Mining Plus Pty Ltd |
Notes/Technical Disclosure/Disclaimers
Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability. Environmental, permitting, legal,
title, taxation, socio political, marketing, or other relevant
issues may materially affect the estimates of Mineral
Resources.
The quantity and grade of reported Inferred Mineral Resources in
the above estimations are uncertain in nature and there has been
insufficient exploration to define these Inferred Resources as an
Indicated or Measured Mineral Resource and it is uncertain if
further exploration will result in upgrading them to an Indicated
or Measured Mineral Resource category.
Technical reports prepared in accordance with NI 43-101
supporting the updated Mineral Resource and Mineral Reserve
estimates will be available under the Company's profile on SEDAR
(www.sedar.com) within 45 days of this news release.
Qualified Person
F. W. Nielsen, P.Geo, Technical Consultant to 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.
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 advancing development programs to
further organic growth. For additional information, please visit
our website www.crocgold.com.
Follow us on Twitter @crocgold_crk or Facebook
facebook.com/CrocodileGoldCorp.
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 and
mineral reserve 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.
To view Figure 1 accompanying this press release, please visit
the following link:
http://media3.marketwire.com/docs/947096_1.pdf
To view Figure 2 accompanying this press release, please visit
the following link:
http://media3.marketwire.com/docs/947096_2.pdf
To view Figure 3 accompanying this press release, please visit
the following link:
http://media3.marketwire.com/docs/947096_3.pdf
Crocodile Gold Corp.Rob HopkinsManager, Investor
Relations416-861-5899info@crocgold.comwww.crocgold.com