Crescent Gold Limited

Crescent Gold Limited

December 22, 2006 09:30 ET

Crescent Gold JV's Gawler Craton IOCGU and Uranium in the Northern Territory

PERTH, AUSTRALIA--(CCNMatthews - Dec. 22, 2006) - Crescent Gold Limited (TSX:CRA)(ASX:CRE)(FWB:CRE5) has entered into a series of Joint Ventures (JV) with Southern Gold Limited (ASX:SAU) ("Southern") in the Gawler Craton in South Australia and in the Northern Territory. This includes a farm-in agreement by Crescent into Southern Gold's IOCGU (Iron Oxide-Copper-Gold-Uranium) projects in the attractive Prominent Hill-Olympic Dam-Carrapteena zone. Southern Gold, through a heads of agreement with Crescent, has the right to joint venture 2 uranium exploration projects in the Rum Jungle and Westmoreland regions of the Northern Territory.

Gawler Craton Joint Venture, South Australia.

The JV agreement covers 4 tenements covering some 2,500km2 on the Stuart Shelf province of the Gawler Craton in South Australia. These tenements are within the mineralised corridor which hosts the world's largest copper, gold and uranium deposit (IOCGU) at Olympic Dam and close to the recent copper gold discoveries at Prominent Hill and Carrapateena (Figure 1).

The Torrens South project is positioned immediately east of the new Punt Hill discoveries in South Australia's Gawler Craton (Figure 2). The Company has identified high-priority targets with IOCGU style potential along the gravity trend extending southeast from Punt Hill. Some of the new targets identified on Southern Gold's Torrens South project are within 15km SW along strike from the Punt Hill discoveries and on the same gravity structures currently being drilled by Monax on its adjacent tenement.

Terms of the Gawler Craton Joint Venture

Under the Terms of the JV, Crescent can earn 25% of the project by spending A$1m by 31/12/2007 and 50% total by spending a further A$3m by 31/12/2008. If Crescent does not spend A$4m total by 31/12/2008 then it drops all interest in the tenements and they are returned to 100% Southern.

Southern has the right to maintain its interest at 50% or choose to dilute. At that Stage Crescent may earn another 25% by spending an additional A$3m.

Southern has the right to maintain its interest at 25% or choose to be diluted to a 10% free carried interest. Crescent has the right to purchase the Free carried interest for A$35m.

Uranium Projects Heads of Agreement, Northern Territory

Rum Jungle Project - (EL 24867)

The Rum Jungle Project is located near the historical Rum Jungle Uranium - Copper mines. Rum Jungle was the Northern Territory's first uranium discovery and Australia's first large scale Uranium mine (1950-1971) and produced 3,530t of U3O8 at head grades ranging between 0.28-0.41% in the different ore bodies.

Calvert Hills Project - (EL 24837)

The Calvert Hills Project is located 100km west of the Northern Territory-Queensland border in northern Australia and is focused on the outcropping Westmoreland Conglomerate. Uranium occurrences in the Westmoreland Uranium Field have a spatial association with the unconformity between the Westmoreland Conglomerate and the underlying Cliffdale Volcanics. Proterozoic unconformity related deposit includes some of the highest grade and largest deposits in the world, principally within two areas, the Alligator River region in the Northern Territory (eg: Ranger) and the Athabasca Basin in Canada (eg: Cigar Lake).

Terms of the Heads of Agreement (HOA)

Under the Terms of the HOA, Southern Gold can earn 50% of the project by spending $600,000 by 30/6/2008. If Southern Gold does not spend $600,000 total by 30/06/2008 then it drops all interest in the tenements and they are returned to 100% Crescent.

If Crescent chooses not to maintain its interest at 50%, Southern Gold can then earn 75% in the project by spending a further $400,000 by 31/12/2008.

Crescent has the right to maintain its interest at 25% or choose to be diluted to a 10% free carried interest. Southern Gold has the right to purchase the Free Carried Interest for $35m.

Crescent will retain 100% interest in its Calvert Hills South tenements which overly two notable bulls-eye type magnetic anomalies with the potential to host IOCGU targets. Coincident surficial radioactivity surveys note the presence of radioactive material which further supports the potential for IOCGU type targets.

Crescent sees the opportunity to JV a portion of its Uranium Properties as a step towards focusing on those projects which best fit Crescent's exploration model outside of Laverton.

With the recent addition of the Torrens South project within the Gawler Craton, Crescent has shifted its focus in exploration to include those areas with strong IOCGU type mineralization potential.

The JV will provide Crescent with the ability to focus on reaching production at its Laverton Gold Project and will allow the company to focus on exploration targets fitting the company's objective: large scale mineral deposits. Crescent plans to begin focusing on IOCGU drill target generation shortly. In the meantime, Crescent remains focused on commencing commercial production at its Laverton Gold Mine targeting January 2007 to kick off processing.

Laverton Gold Project Update

Crescent Gold is in the final stages of commissioning its 100% owned Laverton Gold Project, which will be one of Australia's more 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 since 2003 and established a bankable reserve of 358,000ozs. A recent update on the progress at the Laverton Gold Project was announced on December 18, 2006.

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


Andrew Haythorpe

Crescent Gold Limited

Managing Director

The information in this report has been compiled by Stephen Biggins (BSc(Hons)Geol, MBA) as a full-time employee of Southern Gold and who is a member of the Australasian Institute of Mining and Metallurgy and is bound by and follows the Institute's codes and recommended practices. As a Competent Person, he has a minimum of 5 years relevant experience in the style of mineralisation and types of activities being reported and has given written consent to the above report in the form and context in which it appears.

To view Figure 1 and Figure 2, please click on the following link:

FFT Code: CRE5


ASX Share Price: A$0.31
Issued Shares: 247.2m
Market Cap: A$76.6m
Options unlisted: 26.8m


Shares: 273.9m
Cash on dilution: A$5.4m
Current Cash(ii): A$7.0m


EV: A$69.6m
EV / oz reserve: A$194/oz
EV / oz resource: A$49/oz


Measured: 0.07m ozs
Indicated: 0.88m ozs
Inferred: 0.54m ozs
Market Cap/oz: A$51/oz


Probable: 0.36m ozs
Market Cap/oz: A$214/oz


L5 89 St Georges Terrace
Perth WA 6000
Phone: +61 8 9322 5833
Fax: +61 8 9322 5866

ABN 49 087 360 996

(ii) Inc. A$2.4m Enviro' Bonds

Contact Information

  • Crescent Gold Limited - Australia
    Hayley Patton
    +61 8 9322 5833
    +61 8 9322 5866 (FAX)
    Crescent Gold Limited - Canada
    Renee Brickner
    (604) 687-0072
    (604) 687-4770 (FAX)
    Southern Gold Limited
    Mr Stephen Biggins
    Managing Director
    +61 (0) 8 8132 0044
    +61 (0) 8 8132 0199 (FAX)