Crescent Gold Limited
ASX : CRE
TSX : CRA
FRANKFURT : CRE5

Crescent Gold Limited

February 01, 2007 15:35 ET

Crescent Gold Limited: Successful Follow Up of 11m at 45.4g/t-West Laverton

PERTH, AUSTRALIA--(CCNMatthews - Feb. 1, 2007) - Crescent Gold (TSX:CRA)(ASX:CRE)(FWB:CRE5) has discovered additional high grade gold mineralisation along the West Laverton Trend ("WLT"). This confirms the presence of a high grade target. Assays for 15 RC drill holes for an advance of 1,350m have been received. Better intersections include:



10m @ 7.7 g/t from 75m (includes 2m at 23.7 g/t from 75m)
9m @ 7.0 g/t from 87m (includes 2m at 14.5 g/t from 92m)
4m @ 6.7 g/t from 56m (includes 2m at 10.6 g/t from 56m)
6m @ 6.4 g/t from 56m (includes 2m at 13.9 g/t from 57m)


A full listing of results is detailed in Table 2 (down-hole lengths reported - true widths will be determined). The results follow recently reported (December 2006 Quarterly) intersections, which are located 750m to the north along WLT at Mary Mac South;



12m @ 7.6 g/t from 56m (includes 4m @ 19.1g/t from 62m)
10m @ 4.6 g/t from 26m
15m @ 3.1 g/t from 137m


The above results demonstrates the highly prospective nature of the WLT for new discoveries.

Assays are pending for 7 holes which intersected the target. Drilling is on - going. Mineralisation appears similar to the historic Craiggiemore Underground Mine (production grade of 11 g/t), located 500m north of southern most intersection of 5m at 4.7g/t (refer Table 1). A magnetic feature, identical to that at Craiggiemore, remains untested (Figure 1).

"We are pleased that the search for further high grade has met with such early success," Mr. Haythorpe said today. "It confirms our view that plenty of untested potential remains at Laverton." These discoveries can be incorporated into the mine plan. In turn, increases to the budgeted grade, tonnage and resulting ounces will assist in reducing unit costs.

The area is located 11 km south-west of the Laverton Gold Plant and just 200m from an existing haul road. The company holds 100% of the 4km strike length of favourable Banded Iron Formation (BIF) sequence within the WLT. Previous intersections from the area (refer Figure 1 and 2) to be used in future resource estimations include;



11m @ 45.4 g/t from 25m (includes 2m at 240.0 g/t from 31m)
26m @ 17.8 g/t from 62m (includes 9m at 26.0 g/t from 92m)


A summary of assays is detailed in Table 1 (down-hole lengths reported - true widths will be determined).

Geological Interpretation and Exploration Potential

Mineralisation is located within a Banded Iron Formation ("BIF"). Gold mineralisation at Craiggiemore is strata bound within a BIF unit that has undergone significant deformational and structural thickening. The BIF strikes north and dips steeply east and lies between ultramafic rocks to the west and basalts to the east.

The geology along strike appears similar to the Craiggiemore deposit, and no mining has taken place in this area. Mineralisation south of Craiggiemore occurs within two sub-parallel lodes.

The width, geological nature and tenor of the Eastern BIF warrants deeper drilling as the depth potential is largely untested (refer Figure 2).

The magnetic feature which appears identical to that at Craiggiemore is 600 metres long, 250 m wide and is overlain by transported cover, which would mask standard exploration geochemistry techniques. The company is now RC drilling this area (refer Figure 2).

Previous Activity at Craiggiemore

Underground mining commenced at Craiggiemore in 1896 and continued until 1912. Production totalled 139,000t at a head grade of 11.0g/t Au to only a depth of 130m.

During this period the Mine Manager of the Sons of Gwalia Mine inspected Craiggiemore and of the four dozen claims he visited on his trip, it was one of only three mines of interest. His conclusion that further investigation was warranted was not followed up. Some years later the Mine Manager, Mr. Herbert Hoover, returned home and was later elected President of the United States of America.

Ashton Mining carried out open pit mining between July 1988 and May 1992. A further 394,922 tonnes ore were mined at an average head grade of 2.97 g/t for 37,652 oz of contained gold.

Further Drilling



A summary of holes drilled with assays pending are listed below.

Hole ID North East Dip/Azi Geological Summary
CMRC011 6829258 440398 -60/285 BIF from 66m to 78m with qtz/py
CMRC015 6829591 440348 -60/285 BIF from 72m to 80m
CMRC016 6830186 440467 -60/285 Quartz veining from 70m to 74m
CMRC017 6830263 440469 -60/285 Quartz veining from 55m to 60m
CMRC018 6829764 440473 -60/285 BIF from 91m to 103m
CMRC019 6829389 440398 -60/285 BIF from 67m to 73m
CMRC020 6829381 440427 -60/285 BIF from 99m to 102m


For diagrams and full details please refer to the company website www.crescentgold.com and www.sedar.com.

To view the additional tables and the maps attached to this release please click on the following link:

http://www.ccnmatthews.com/docs/0201cre.pdf

Quality Assurance and Quality Control (QAQC):

Gold intersections reported have been verified by the company's QAQC protocols, which include routinely inserted standards and replicate field splits. All samples from drill holes are prepared by Genalysis and pulverised to 90% passing 75 microns then analysed for gold using Fire Assay methods.

Caution Regarding Forward-Looking Statements

Some of the statements in this news release contain forward-looking information, which involves inherent risk and uncertainty affecting the business of Crescent. Actual events may differ materially from those currently anticipated in such statements.

Laverton Gold Project

Crescent Gold is set to become one of Australia's significant gold producers with an estimated output rising above 90,000 ozs pa progressively over the next 12 months.

Crescent has more than doubled its resource at Laverton and established a Probable Reserve of 358,000ozs (6.2mt @ 1.8g/t) in 2006.

Information on Crescent Gold Limited and technical reports on the Laverton Gold Project can be found on the company's website www.crescentgold.com.

Regards

Crescent Gold Limited

Andrew Haythorpe, Managing Director

Julian Tambyrajah, CFO & Company Secretary

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Andrew Spinks, who is a Member of The Australasian Institute of Mining and Metallurgy included in a list promulgates by the ASX from time to time. Andrew Spinks is employed by Crescent Gold Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" and a "Qualified Person" under Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects. Andrew Spinks consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

In accordance with the requirements of Canadian National Instrument 43-101 further information on the geology and mineralising setting can be found within the "Independent Technical Report on the Mineral Asset of Laverton Gold Project" which is available on SEDAR (www.sedar.com) or the company's website www.crescentgold.com

Further information on Crescent Gold Limited and technical reports on the Laverton Gold Project and all aspects of the Company's activities can be found on the company's website www.crescentgold.com.



ASX Code: CRE
TSX Code: CRA
FFT Code: CRE5

SHARE INFORMATION

ASX Share Price: A$0.33
Issued Shares: 247.2m
Market Cap: A$81.6m
Options unlisted: 26.8m

FULLY DILUTED BASIS

Shares: 273.9m
Cash on dilution: A$5.4m

RESOURCES

Measured: 0.07m ozs
0.9mt
2.5g/t
Indicated: 0.88m ozs
18.7mt
1.5g/t
Inferred: 0.54m ozs
11.4mt
1.5g/t
Market Cap/oz: A$55/oz

RESERVES

Probable: 0.36m ozs
6.2mt
1.8g/t
Market Cap/oz: A$228/oz

CONTACT DETAILS

L5 89 St Georges Terrace
Perth WA 6000
Phone: +61 8 9322 5833
Fax: +61 8 9322 5866
info@crescentgold.com
www.crescentgold.com

ABN 49 087 360 996


The TSX does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Crescent Gold Limited - Australia
    Hayley Patton
    +61 8 9322 5833
    +61 8 9322 5866 (FAX)
    or
    Crescent Gold Limited - Canada
    Renee Brickner
    (604) 687-0072
    (604) 687-4770 (FAX)
    Website: www.crescentgold.com