Crocodile Gold Produces 53,583 Ounces of Gold in the First Quarter of 2014 - Seite 2

Cosmo Gold Mine

In late March 2014, the Cosmo Gold Mine transitioned its mining contractor to Downer EDI (see news release from February 3, 2014). All critical gear and staffing are now in place and operating at targeted levels, and while there were some operational challenges in the early part of the transition which impacted mine productivity, the new contractor has quickly met or exceeded performance indicators with target run rates achieved by the third day after changeover. The Cosmo Gold Mine continued to operate at a consistent level posting underground ore production of 180,047 tonnes of ore during Q1 at an average grade of 3.36 g/t Au. Development during the quarter advanced at an average rate of 398 metres per month.

Tonnes milled in the first quarter were 230,815 tonnes of ore at an average grade of 2.79 g/t Au and recovery rate of 85.9%, for total gold production of 17,841 ounces of gold. Underground ore was supplemented with approximately 55,500 tonnes of lower-grade oxide material from an exploration property for reclamation purposes. The stockpile had a lower than estimated grade, which also impacted the recovery rate. The material was fully processed in Q1, and the related potential environmental liability has been reduced.

Fosterville Gold Mine

The Fosterville Gold Mine had a strong start to the year with underground ore production of 206,540 tonnes at an average grade of 3.76 g/t Au, with higher tonnes offsetting lower grades. Fosterville drew on higher grade stockpiles to process 220,379 tonnes of ore at a grade of 4.32 g/t Au with a recovery rate of 84.3%, resulting in gold production of 25,786 ounces in the first quarter. Mine development continued at an average advance rate of 618 metres per month with a strong advance of 662 metres in March as the site pushes to open up more mining fronts. Exploration on the Phoenix and Central ore bodies had encouraging results (see news release of March 12, 2014) and the Company is preparing a Mineral Resource and Reserve Estimate with the anticipation that additional mineral resources identified will continue to extend the mine life of Fosterville.

Stawell Gold Mine

The Stawell Gold Mine continues to focus on the upper levels of the mine, accessing remnant mining areas supplemented with stockpiled oxide materials. During the quarter Stawell mined 141,126 tonnes of underground ore at an average grade of 2.49 g/t Au. The Stawell Mill processed a total of 227,627 tonnes at an average grade of 1.71 g/t Au, as underground ore was supplemented by lower grade surface oxide stockpiles. An average recovery rate of 79.4% resulted in gold production of 9,956 ounces for the quarter.