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

Crescent Gold Limited

October 27, 2009 21:14 ET

Further Milestone Achieved for Crescent Gold-The Inaugural Gold Pour Under the OPA

PERTH, WESTERN AUSTRALIA--(Marketwire - Oct. 27, 2009) -

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

The directors of Crescent Gold (TSX:CRA)(ASX:CRE)(FRANKFURT:CRE5) are pleased to announce the first gold pour under the collaborative Ore Purchase Agreement (OPA) with Barrick Gold through the Granny Smith Mill at Laverton, Western Australia.

The gold pour is a key event for Crescent and heralds Crescents return to cash flows following an extensive 12 month development phase.

The dore was poured on the 21st October and totaled ~ 132.7kg representing 9 days of processing only and is the first out-turn under the OPA.

Barrick will continue purchasing and processing Crescent sourced ore over the scheduled 50 days per quarter with gold pours undertaken roughly every fortnight. Crescent will receive cash payments for approximately 50% of the value of the gold out-turn at the time the product is shipped. A final reconciliation payment (less costs and margin) will be paid to Crescent at the end of each 50 day campaign period.

The result is a pleasing outcome for Crescent as the recommencement of mining and processing at Laverton will deliver solid cashflows and provide the company will a sound platform on which to continue with its long term growth strategy.

Benefits of OPA

The OPA is designed to generate elevated cash flows for Crescent and maximizes efficiency at Barrick's Granny Smith mill, resulting in improved economics for both Crescent and the Granny Smith mill.

Crescent would like to acknowledge Barrick Gold for the collaborative partnership in the ore purchase and processing under which the OPA is intended and we look forward to a long, mutually beneficial and co-operative working relationship and approach to extracting value from our mutual assets.

Yours faithfully

ROLAND HILL, CHAIRMAN

Additional information related to the Company is available for review at www.sedar.com or on the Company's website at www.crescentgold.com.

ABN 49 087 360 996

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

SHARE INFORMATION
ASX Share Price: A$0.215
Issued Shares:    591.6m
Market Cap:        A$127.19m
Options unlisted:  37.0m

FULLY DILUTED BASIS
Shares:              628.6m

Contact Information

  • Crescent Gold Limited - Australia
    Roland Hill
    +61 8 6380 7100
    or
    Crescent Gold Limited - Australia
    Jo-Ann Wellstead
    +61 8 6380 7100
    +61 8 6380 7199 (FAX)
    or
    Crescent Gold Limited - Canada
    Renee Brickner
    +1 604 802 6806
    www.crescentgold.com