Crocodile Gold increases guidance
On October 14,2014 Crocodile Gold announced third quarter results.They produced 56,000 ounces of gold for the quarter and 163,516 ounces for the nine months.This solid result caused them to raise guidance from 200,000 to 210,000 ounces up to 220,000 to 225,000 ounces of gold - a 10% increase.This is important because it appeared that Crocodile was going to be stagnant for awhile.Maybe no increases in production for some time;now they have raised it.They did it with less tonnage produced but higher grades of ore and higher recoveries from the mill.
Three mines
Their newest mine called Cosmo posted strong mine production of 202,000 tonnes of ore but the grade was down somewhat.Gold recovery from the mill was up;it was 92.8% for the quarter.It produced almost 18,000 ounces for the quarter.
The second mine is called the Fosterville mine.Tonnage of ore produced was down but the grade was higher at 5.21 grams per tonne.They had an almost 30% increase in gold produced as the Fosterville mine moved into the Lower Phoenix structure which has higher grades of ore.
The Stawell mine processed 232,000 tonnes of ore at an average grade of 1.63 grams per tonne.It has only remnants resources in the upper level plus lower grade stockpiles.It only produced 9654 ounces of gold.Production may be lower next quarter until the approval of the Big Hill project.
Financial results
Their cash balance was up to $31 million and working capital was healthy at $16 million.Crocodile has struck an agreement with Phoenix Copper to develop the Mount Bonnie and Maud Creek developments in the Northern Territory with buy-back provisions included.This may increase reserve resources in late 2015 or 2016.In addition, Crocodile says it has invested $5.5 million in a Canadian silver startup called Silver Devil.This may increase in value once production starts.But it is not likely to add to equity like the 100% owned Maud Creek property.
The Maud Creek Property
This is seen as a wildcard or a variable in the Crocodile Gold story.They have a development agreement with Phoenix Copper and they have an agreement to buy back if it is successful.But Phoenix Copper does not seem to have the resources to develop at a fast pace.There is an agreement in place to enable Phoenix to sell to a third party like BHP and this would speed up development dramatically.But Maud Creek is an already discovered orebody and seemingly has not proven economically feasible.Has Crocodile Gold found new undiscovered resources?It is true that Crocodile has found gold where others could not and this is the possible location of a fourth successful mine.It must not be forgotten that the Big Hill project connected to the Stawell mine will soon have approval. Next year, with any luck,Crocodile Gold will give us guidance of 260,000 to 270,000 ounces of gold.
Three mines
Their newest mine called Cosmo posted strong mine production of 202,000 tonnes of ore but the grade was down somewhat.Gold recovery from the mill was up;it was 92.8% for the quarter.It produced almost 18,000 ounces for the quarter.
The second mine is called the Fosterville mine.Tonnage of ore produced was down but the grade was higher at 5.21 grams per tonne.They had an almost 30% increase in gold produced as the Fosterville mine moved into the Lower Phoenix structure which has higher grades of ore.
The Stawell mine processed 232,000 tonnes of ore at an average grade of 1.63 grams per tonne.It has only remnants resources in the upper level plus lower grade stockpiles.It only produced 9654 ounces of gold.Production may be lower next quarter until the approval of the Big Hill project.
Financial results
Their cash balance was up to $31 million and working capital was healthy at $16 million.Crocodile has struck an agreement with Phoenix Copper to develop the Mount Bonnie and Maud Creek developments in the Northern Territory with buy-back provisions included.This may increase reserve resources in late 2015 or 2016.In addition, Crocodile says it has invested $5.5 million in a Canadian silver startup called Silver Devil.This may increase in value once production starts.But it is not likely to add to equity like the 100% owned Maud Creek property.
The Maud Creek Property
This is seen as a wildcard or a variable in the Crocodile Gold story.They have a development agreement with Phoenix Copper and they have an agreement to buy back if it is successful.But Phoenix Copper does not seem to have the resources to develop at a fast pace.There is an agreement in place to enable Phoenix to sell to a third party like BHP and this would speed up development dramatically.But Maud Creek is an already discovered orebody and seemingly has not proven economically feasible.Has Crocodile Gold found new undiscovered resources?It is true that Crocodile has found gold where others could not and this is the possible location of a fourth successful mine.It must not be forgotten that the Big Hill project connected to the Stawell mine will soon have approval. Next year, with any luck,Crocodile Gold will give us guidance of 260,000 to 270,000 ounces of gold.
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