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

Crescent Gold Limited

April 28, 2011 00:59 ET

Crescent Gold Limited: Quarterly Report Summary 31 March 2011

SUBIACO, WESTERN AUSTRALIA--(Marketwire - April 28, 2011) - Crescent Gold Limited (TSX:CRA)(ASX:CRE)(FRANKFURT:CRE5) -

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

HIGHLIGHTS FOR THE QUARTER ENDED 31 MARCH 2011

  • The US dollar gold price is continuing to set new records (circa US$1,500oz) at a time Crescent commenced the current processing campaign through Barrick's Granny Smith Mill on 12 April 2011. The operations have been running well with haulage tonnes and grades to Granny Smith Mill above target.
  • The Company announced the completion of a A$45 million capital raising through a non-renounceable rights issue. The rights issue closed oversubscribed on the 27th January 2011 raising A$48.1 million (before costs).
  • Following heavy unseasonal rains associated with Cyclone Dianne off the northwest coast of Western Australia, the Company temporarily suspended operations at the Company's wholly-owned Laverton Gold Project in WA. The Company was able to evacuate all staff and contractors safely from the flooded camp. Water levels receded sufficiently soon afterwards to enable some staff to move back into camp. Mining operations recommenced shortly afterwards following dewatering of pits and a review of the haul roads. The impact of the rains on the operations due to an inability to haul to Barrick's Granny Smith Mill led to a reduction in the Company's processing days at Barrick by 18 days and had a significant negative impact on production during the quarter. The reduction in revenue combined with additional costs associated with the flooding has required the Company to draw on funds recently raised, which has altered some use of proceeds raised in the rights issue.
  • The Company repaid its debt facility in full to Indago Resources.
  • The Company's operations require significant balance sheet flexibility and the Company is investigating debt, equity, and contractual operating alternatives that will restore that flexibility following the flooding events.
  • Encouraging results from soil geochemical sampling near the Company's Pieces of Eight gold project at Laverton were announced in the period.
  • Crescent appointed Interim Managing Director, Mark Tory as Managing Director and Mark Hine as Chief Operating Officer.

The full quarterly report can be viewed on the company's website at www.crescentgold.com or at www.sedar.com along with additional information related to the Company.

ASX Code: CRE
TSX Code: CRA
FFT Code: CRE5
SHARE INFORMATION
ASX Share Price:A$0.054
Issued Shares:1,077.9m
Market Cap:A$58.2m
Unlisted options:32.3m
CONTACT DETAILS
Level 2, 40-48 Subiaco Square
Subiaco WA 6008
Phone: +61 8 6380 7100
Fax: +61 8 6380 7199
info@crescentgold.com
http://www.crescentgold.com/
ABN 49 087 360 996

Contact Information