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

Crescent Gold Limited

May 04, 2011 22:23 ET

Crescent Gold Limited: Current Processing Campaign Update-Laverton (WA) Gold Project

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 4, 2011) -

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

Crescent Gold Limited (TSX:CRA)(ASX:CRE)(FRANKFURT:CRE5), the Australian gold miner and resources developer, is pleased to advise that it has successfully completed 21 days in its current processing campaign through Barrick's Granny Smith gold processing mill (BGSM) in the Laverton region of Western Australia.

Ore mined by Crescent Gold from its wholly-owned Laverton project deposits north of Kalgoorlie in WA, is delivered to the nearby 3.8mtpa BGSM for processing under an Ore Purchase Agreement (OPA). Under the OPA, Crescent transports ore to BGSM for processing in a 50 day processing cycle per quarter.

In the current campaign to date, which commenced on the 12th April 2011, Crescent ore processed was 253,744 tonnes at an average grade of 1.61 g/t with recoveries of 91.0%. This has resulted in 11,929 ounces of gold being recovered in the first 21 days of the campaign. Crescent is therefore on track to exceed its previously forecast quarterly equivalent gold production (22,000 ounces) for the April, May and June 2011 period.

Crescent Gold's Managing Director, Mr Mark Tory, commented:

"We are very pleased with the production results achieved to date under the current campaign, which is supported by the continuing strength of the US$ gold price (above US$1,500oz). The recent flooding in Laverton and the significant weather impacts previously reported at Crescent's operations (which also impacted other local mining companies) during the March 2011 quarter is now historic.

Crescent is successfully moving forward with its revised production schedule. Initial pit optimisations from the recent drilling results at Apollo indicate five pits are likely to be mined, with average grades of over 2 g/t. A reserve update will be made once further work is completed.

The progressive re-establishment of multiple ore sources at Laverton and increased mining flexibility should see production rates progressively increase over the course of the year, associated with increasing grade profiles. Forecast production for the full year to December 2011 is between 80,000 and 90,000 ounces."

ABOUT CRESCENT GOLD

Crescent Gold Limited is a top 10 listed Australian gold producer and explorer based in Perth, Western Australia. With a primary focus on gold mining and exploration, the Company is actively advancing its flagship asset, the Laverton Gold Project located 250km north east of Kalgoorlie in Western Australia.

Crescent maintains a dominant land position of over 1,400km2 of highly prospective tenements in a world recognised and well endowed mineralised geological domain. With 30Mt of Measured, Indicated and Inferred Mineral Resources that contain over 2.1Moz of gold, and a Probable Ore Reserve position of 445,000 ounces (both as at 30 June 2010), Crescent has a plan to carry on building its presence in the Laverton district. The Company plans to continue exploration and development to grow its reserve and resource base, and further leverage its production base to grow reserves, production, cash flow and earnings.

FORWARD LOOKING STATEMENT

This discussion and analysis contains certain forward-looking statements. These include statements about our expectations, beliefs, intentions or strategies for the future, and are indicated by words such as "budget", "anticipate", "intent", "believe", "estimate", "forecast", "expect", and similar words. While all forward-looking statements reflect our current views with respect to future events, they are subject to certain risks and uncertainties. Actual results may differ materially from those projected in these statements for a number of factors, including those which are described in the Corporation's periodic filings with securities regulatory authorities. We base our forward-looking statements on information currently available to us and we do not assume any obligation to update or revise them, except in accordance with applicable securities laws, readers should not place undue reliance on forward-looking statements.

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 Laverton Gold Project Western Australia" which is available on SEDAR (www.sedar.com) or the Company's website www.crescentgold.com.

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

ASX Code: CRE
TSX Code: CRA
FFT Code: CRE5
SHARE INFORMATION
ASX Share Price:A$0.044
Issued Shares:1,077.9m
Market Cap:A$47.4m
Unlisted options:32.3m

Contact Information

  • Crescent Gold Limited - In Australia
    Mark Tory
    Managing Director
    +61 8 6380 7100

    Crescent Gold Limited - In Canada
    Renee Brickner
    +1 604 802 6806
    www.crescentgold.com