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

Crescent Gold Limited

October 26, 2010 00:01 ET

Crescent Gold Limited: Strong First Gold Drilling Results-Apollo Gold Project

PERTH, WESTERN AUSTRALIA--(Marketwire - Oct. 26, 2010) -

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 growing Australian gold miner and resources developer today reported encouraging results from its first programme of Reverse Circulation (RC) drilling at the Company's Apollo gold project, part of its broader Laverton gold project in Western Australia. 

The Company believes these results, in conjunction with previous and planned drilling will form the basis for attractive additions to its growing reserve and resource base. The Company's focus on increasing both the quality and quantity of its reserve inventory is paying off, as evidenced by the recently announced increase in reserves from 254,000 oz to 445,000 oz over the last year.

The current drill programme is aimed at extending the known resources on the Apollo project area, estimated at June 30 at an Inferred Resource of 1.4 million tonnes grading an average 2.4 grams per tonne gold for a contained 109,000 ounces of gold.

Significant recorded intersections include:

2m @19.12 g/t gold   4m @ 7.74 g/t gold   18m @ 2.75 g/t gold
10m @ 4.01 g/t gold   6m @ 6.75 g/t gold   8m @ 4.45 g/t gold
8m @ 6.68 g/t gold   6m @ 5.09 g/t gold   11m @ 5.30 g/t gold
8m @ 3.79 g/t gold   8m @ 4.10 g/t gold   14m @ 4.01 g/t gold

(A full table of intercepts > 0.8 g/t received in this programme is included below).

Crescent Gold's Interim Managing Director, Mr Mark Tory, commented, "We are very excited and pleased with our first round of drilling results from the Apollo gold project. These results and further planned drilling on the project will likely enable the Company to extend its resource base for the project."

The Apollo deposit is located 8 kilometres southwest of Laverton and approximately 20 kilometres from Barrick's Granny Smith Mill (BGSM). Crescent has an Ore Purchase Agreement (OPA) with subsidiaries of Barrick Gold for the sale of Crescent's gold ore to Barrick for processing at BGSM.

Along with the associated mineralisation on the Aurora prospect and the nearby Eclipse prospect, the Apollo mineralization is located on mining leases 38/535 and 38/101, held 100% by Crescent Gold Limited.

Up until 30th September, Crescent had drilled 63 RC holes for 5,434 m at Apollo to extend and scope the mineralisation. RC drilling is continuing at Apollo, Aurora, Eclipse and Calypso, along a gold mineralized trend that strikes in excess of 11 kilometres.

Crescent intends to continue development of these deposits, with further infill RC, diamond core drilling and associated development studies to commence by early 2011.

To view the Apollo RC Drilling results table, please click on the following link: http://media3.marketwire.com/docs/c1025t.pdf

The information in this report that relates to gold Exploration Results is based on information compiled by Mr Jeff Ion, who is a Member of the Australasian Institute of Mining and Metallurgy and a member of the Australian Institute of Geoscientists and is employed by Crescent. Mr Ion 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". He consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

To view the image associated with this press release, please click on the following link: http://media3.marketwire.com/docs/c1025.pdf

ABOUT CRESCENT GOLD

Crescent Gold is a top 10 listed Australian gold producer and explorer. Based in Western Australia, current annual production of 100,000-120,000 ounces is being sourced from a series of open pits at our Laverton Gold Project (LGP).

Crescent maintains a position of over 1,200km2 of highly prospective tenements in a world recognised and well endowed mineralised geological domain. With 30Mt of Mineral Resources which contain over 2.1Moz of gold, and an Ore Reserve position of 445,000 ounces contained gold, Crescent has a plan to carry on building its presence in the Laverton district and to continue with its exploration and development strategy of growing its reserve/resource base and extending the mine life of its production schedule beyond 2016.

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.

SHARE INFORMATION
ASX Share Price: A$0.165
Issued Shares: 620.1m
Market Cap: A$102.3m
Unlisted options: 35.9m
FULLY DILUTED BASIS
Shares: 656.0m
ABN 49 087 360 996

Contact Information

  • Crescent Gold Limited - Australia
    Mark Tory
    Interim Managing Director
    +61 8 6380 7100
    or
    Crescent Gold Limited - Canada
    Renee Brickner
    +1 604 802 6806
    www.crescentgold.com