Crocodile Gold digs in
About 12 to 15 months ago Crocodile Gold was trading around $1.00 per share.But as recent as this summer it was trading in the $.05 to $.10 per share.However in the past month it has raised equity at $.26 per share and Friday closed at $.33 per share.New shareholders like what they see at $.33 to $.35 per share.What has caused the change?Crocodile has increased it's production in 2012 and 2013 and has lowered it's cash cost of production.It's new mine called Cosmo was mining 1600 tonnes of ore per day and now is mining 2100 tonnes .Now the slow developing Cosmo mine is producing 5000 ounces of gold per month.In 2014 Crocodile produced almost as many ounces of gold as B2Gold and Semafo Gold.Both trade above $2.00 per share.
New ore
At the start of 2013 Crocodile Gold gave guidance of 170,000 to 185,000 ounces of gold for the year.Actual production has not been stated(in their year-end report) but new guidance is for 200,000 to 205,000 ounces of gold.Their new mine called Stawell is showing declining production as the mine is only expected to last until 2015.Thier other new mine called Fosterville also does not have a long mine life with it's present reserves.Most analysts thought that production for 2014 would fall back to the level of 2012.But Crocodile made two key announcements (1) the Big Hill project located on the Stawell property held up to 125,000 ounces of gold and they were submitting an Environmental Assesment report to the state of Victoria (2) they found small intercepts of high grade ore at the Phoenix ore body which is connected to their Fosterville mine.The new discovery extended 100 metres down plunge and 60 metres down dip.It is part of the same fault structure 100 metres to the south.This makes the Phoenix ore body about 250 metres in strike length.This for sure would extend the mine life of the Fosterville mine.However it also appeared to put a boundary on the size of the strike length.
Recently they did more drilling and found high grade ore beyond the old drill areas and the expected boundary of the strike.The ore was even higher grade in another area called the Lower Phoenix deposit.A part of the Fosterville mine called the Central area provides access to the Phoenix area which connects to the Lower Phoenix area.This means that the Fosterville mine should extend over to the Lower Phoenix deposit. Crocodile even anticipates extensions to the north and south of the Lower Phoenix ore body.In 2014 Cocodile Gold will spend almost $5 million to provide underground ventilation of the new areas.This sounds like the extensions will have more gold than the original Fosterville mine.It will be interesting if Crocodile gives new guidance for 2014 now closer to 230,000 ounces of gold or if shareholders will have to wait a little longer.But it looks like Crocodile will have increased production from all three of their mines.This should bring the price of Crocodile Gold closer to that of B2Gold or Semafo.Time will tell but it is clear that Crocodile Gold is digging in. see Blogdaleupsome and Workathon for advice on gold stocks
New ore
At the start of 2013 Crocodile Gold gave guidance of 170,000 to 185,000 ounces of gold for the year.Actual production has not been stated(in their year-end report) but new guidance is for 200,000 to 205,000 ounces of gold.Their new mine called Stawell is showing declining production as the mine is only expected to last until 2015.Thier other new mine called Fosterville also does not have a long mine life with it's present reserves.Most analysts thought that production for 2014 would fall back to the level of 2012.But Crocodile made two key announcements (1) the Big Hill project located on the Stawell property held up to 125,000 ounces of gold and they were submitting an Environmental Assesment report to the state of Victoria (2) they found small intercepts of high grade ore at the Phoenix ore body which is connected to their Fosterville mine.The new discovery extended 100 metres down plunge and 60 metres down dip.It is part of the same fault structure 100 metres to the south.This makes the Phoenix ore body about 250 metres in strike length.This for sure would extend the mine life of the Fosterville mine.However it also appeared to put a boundary on the size of the strike length.
Recently they did more drilling and found high grade ore beyond the old drill areas and the expected boundary of the strike.The ore was even higher grade in another area called the Lower Phoenix deposit.A part of the Fosterville mine called the Central area provides access to the Phoenix area which connects to the Lower Phoenix area.This means that the Fosterville mine should extend over to the Lower Phoenix deposit. Crocodile even anticipates extensions to the north and south of the Lower Phoenix ore body.In 2014 Cocodile Gold will spend almost $5 million to provide underground ventilation of the new areas.This sounds like the extensions will have more gold than the original Fosterville mine.It will be interesting if Crocodile gives new guidance for 2014 now closer to 230,000 ounces of gold or if shareholders will have to wait a little longer.But it looks like Crocodile will have increased production from all three of their mines.This should bring the price of Crocodile Gold closer to that of B2Gold or Semafo.Time will tell but it is clear that Crocodile Gold is digging in. see Blogdaleupsome and Workathon for advice on gold stocks
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