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

Crescent Gold Limited

March 04, 2011 00:05 ET

Crescent Gold Operations Update

PERTH, WESTERN AUSTRALIA--(Marketwire - March 4, 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

As announced on February 17th, the mining operations at Laverton were temporarily suspended as a result of severe weather conditions that caused extensive flooding regionally. A review of the impact on the operations at Laverton is ongoing. The Company was able to evacuate all staff and contractors safely from the flooded camp, and water levels receded to enable some staff to move back into camp shortly afterwards.

Mining operations have recommenced at Craiggiemore and Grouse pits and the Mary Mac South pit has been completely dewatered with preparations for mining operations to commence shortly.

Haulage roads from Laverton pits to Barrick Granny Smith sustained minor damage and require the roads to dry before being able to recommence haulage. Further rains have hampered haulage but assuming no additional rains in the region, haulage is anticipated to recommence in the next few days. The haul road to the higher grade Fish open pit sustained more significant damage that continues to be assessed. The decision has been made to demobilise the digger from Fish until the haul road is repaired.

The impact of the rains on the operations due to inability to haul to Barrick Granny Smith has led to a reduction in our processing at Barrick by 18 days. This has had a negative impact on production during the quarter. Final reconciliations from Barrick are not yet available, but it is anticipated that production, which was budgeted to be approximately 27,000 ounces will be in the order of 15,000 ounces. The combination of the rains in the December quarter, leading to reduced production and the current quarters production issues detailed above, have led to a reduction in expected revenue. 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 the use of proceeds.

The Company is in the process of revising production scheduling and budgets for the next twelve months and reviewing its insurance position and a further announcement will be made when details are finalised.

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

ABN 49 087 360 996

SHARE INFORMATION  
ASX Share Price: A$0.084
Issued Shares: 1,077.9m
Market Cap: A$90.5m
Unlisted options: 33.2m

Contact Information

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