|By Marketwired .||
|February 3, 2014 07:00 AM EST||
TORONTO, ONTARIO -- (Marketwired) -- 02/03/14 -- Crocodile Gold Corp. (TSX: CRK)(OTCQX: CROCF)(FRANKFURT: XGC) ("Crocodile Gold" or the "Company") announces today that it has entered into three key contracts to support the Company's mining operations in the Northern Territory, Australia. The contract to provide underground mining services at the Cosmo Gold Mine has been awarded to Downer EDI Mining Pty Ltd ("Downer EDI") and the diamond drilling contract for the Cosmo Gold Mine has been awarded to Boart Longyear. Once implemented, Crocodile Gold expects to see a reduction in costs from the execution of these important contracts. In addition, the Company has negotiated a new power supply contract with the Northern Territory Power and Water Corporation.
Rodney Lamond, President and CEO of Crocodile Gold, commented: "I am very pleased with the outcome of the contract tender processes and the outcome with the negotiations of the power supply contract. I believe the tendering processes have been completed using a fair and transparent process that has identified the best contractors for Crocodile Gold to partner with for the coming two years. I also feel that the contract terms provide the Company and our new partners with the necessary flexibility and scalability in order to be responsive and adaptable to future variables, while also having a positive impact on our operational costs in the Northern Territory."
Underground Mining Contract
Crocodile Gold is pleased to award its underground mining services contract for the Cosmo Gold Mine to Downer EDI for a period of two years, with the option to extend for a third year. A thorough tender process was utilized to ensure a fair and transparent approach. Interested parties were evaluated on various non-price dependant variables such as personnel, capabilities and fleet management. Preferred parties were subsequently invited to site to gain a better understanding of the operation. Based on the fully priced tenders and the review of non-price variables the Company selected Downer EDI as the preferred contractor. Crocodile Gold expects a reduction in the cost of underground mining with this new contract, in addition to increased flexibility and scalability. Downer EDI will mobilize on site in March to take over mining operations and will work closely with management to ensure minimal impact to production levels.
Diamond Drilling Contract
Crocodile Gold is pleased to award its diamond drilling contract for the Cosmo Gold Mine to Boart Longyear for a two year term to support the underground drilling necessary for mine planning and resource definition. A similar tender process to the underground mining contract was used to identify a qualified list of interested parties who were then invited to provide fully priced tenders. By selecting Boart Longyear, the Company is pleased to have a leading provider of drilling services as a partner to achieve Crocodile Gold's drilling needs. With the improved productivity and contract rates, Crocodile Gold expects a reduction in drilling costs.
Power Supply Contract
Crocodile Gold has also negotiated a new electrical power supply contract with the government controlled Power and Water Corporation. The new contract will cover a term of one year that will allow Crocodile Gold to benefit from lower rates compared to its existing contract. Crocodile Gold also continues to look at alternate power options as a way to reduce operational costs.
About Crocodile Gold
Crocodile Gold is a Canadian gold mining and exploration company with three operating mines in the Northern Territory and the State of Victoria, Australia. The Company has a combined land package in excess of 4,000 sq. km. The objective of Crocodile Gold is to continue production from its three operating mines, Cosmo, Stawell and Fosterville, while also exploring and developing the Company's resources to ensure sustainable production in the future. For additional information, please visit our website www.crocgold.com.
Follow us on Twitter @crocgold_crk or Facebook facebook.com/CrocodileGoldCorp.
F. W. Nielsen, P. Geo, a technical consultant to Crocodile Gold Corp., is a "qualified person" as such term is defined in National Instrument 43-101 and has reviewed and approved the technical information and data included in this press release.
Certain information set forth in this press release contains "forward-looking statements", and "forward-looking information under applicable securities laws. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements, which include the Company's expectations for future performance based on current drill results and past production, expected gold prices, and mineral resource estimates, and are based on Crocodile Gold's current internal expectations, estimates, projections, assumptions and beliefs, which may prove to be incorrect. Some of the forward-looking statements may be identified by words such as "expects" "anticipates", "believes", "projects", "plans", and similar expressions. These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause Crocodile Gold's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to: liabilities inherent in mine development and production; geological, mining and processing technical problems; Crocodile Gold's inability to obtain required mine licences, mine permits and regulatory approvals required in connection with mining and mineral processing operations; competition for, among other things, capital, acquisitions of reserves, undeveloped lands and skilled personnel; incorrect assessments of the value of acquisitions; changes in commodity prices and exchange rates; currency and interest rate fluctuations; various events that could disrupt operations and/or the transportation of mineral products, including labour stoppages and severe weather conditions; the demand for and availability of rail, port and other transportation services; the ability to secure adequate financing and management's ability to anticipate and manage the foregoing factors and risks. There can be no assurance that forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Crocodile Gold undertakes no obligation to update forward-looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
Crocodile Gold Corp.
Manager, Investor Relations