Resource World Magazine

48 www.resourceworld.com A U G U S T / S E P T E M B E R 2 0 1 4 a u s t r a l i a n u p d at e G r e g B a r n s Australian mid-tier gold producer, Crocodile Gold Corp. [CRK-TSX], is one miner that appears to have weathered the gold price slump. The company has three mines in Australia: Fosterville and Stawell in Victoria and Cosmo in the Northern Territory. In Q1 2014, Crocodile produced 107,807 oz gold from ore averaging 2.99 g/t. The company believes that it will meet its full year guidance of 200,000-210,000 oz. Although Crocodile acquired them in the past three years, the Fosterville Mine, in the historically rich Bendigo field and the Stawell Mine, in northwest Victoria, have been operating for most of the last two decades. Fosterville is an open cut and underground operation that operates its own processing facility (830,000 tpy) and uses a bacterial oxidation process utiliz- ing BIOX technology (under licence from Goldfields Pty Ltd). In 2013, Fosterville produced 98,000 oz gold. This year the company expects it will produce 95-100,000 oz. In the first half of 2014 Fosterville produced 48,784 oz aver- aging 4.32 g/t in Q1 and 3.86 g/t in Q2. In May, Crocodile Gold announced a major increase in resources at Fosterville. Estimated measured and indicated resources increased to 2.1 million oz gold, up 30%. Total estimated measured and indicated resources increased to 16.6 mil- lion tonnes at 3.87 g/t gold. The company also said results "from exploration drilling at Fosterville indicate significant potential for further resources through surface and underground drilling." The Cosmo gold mine also saw a resource increase earlier this year of measured and indicated resources of 500,000 oz, a 4% increase. Total estimated measured and indicated resources increased to 4.5 mil- lion tonnes at 3.43 g/t. The company also said drilling indicates "the deposit remains open at depth and holds significant poten- tial for further resource growth." Cosmo produced 74,000 oz gold in 2013. The company has focused on cost cutting and, with a new mining contractor, upped production Q2 2014 to 21,845 oz from ore averaging 3.69 g/t. The 2014 forecast pro- duction is 95-100,000 oz. Potentially, the most exciting devel- opment is the Big Hill Enhanced Project at Stawell. The existing Stawell opera- tion is small. In 2013 it produced 37,000 oz gold and this year is forecast to be 30,000 oz. Big Hill has been subject to a NI 43-101 compliant feasibility study released in May. The project has 145,000 oz in reserves grading 1.5 g/t. Economics are robust, based "on a forecast gold price of A $1,415/oz, the feasibility study pre- tax NPV (8%) is A $39M with an IRR of 125%." For the company, the "most positive characteristic of the project is its high operating margin; economic sensitivity analyses demonstrated the Project NPV to be resilient to downward movement in the gold price and potential upward move- ment in costs." Importantly, payback is only 1.5 years on a pretax basis. Permit approval for Big Hill Project is imminent and expected sometime in the next two months. Since it moved in to Australia in 2012, Crocodile Gold has upped pro- duction each year. In 2012 it produced 155,000 oz gold and in 2013 it produced 210,000 oz. Crocodile Gold is focus- ing on extending mine life at its projects through underground exploration and development. n Crocodile Gold: a thriving mid-tier producer * Resource World does not sell your information to third parties 709-700 W Pender St., Vancouver Bc V6c 1G8 canada Name aDDreSS City prov. poStal CoDe pHoNe e-mail online at www.resourceworld.com or phone 1.877.484.3800 SAVE 50% up to resource World (print and Digital edition) 1 year ($19.95) resource World (Digital edition) 1 year ($9.95) resource World (Digital edition) 2 years ($14.95) resource World (print and Digital edition) 2 years ($24.95) international resource World (print) 1 year ($89.00) renew my subscription Canadian subscribers please add applicable sales tax

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