🕐28.04.11 - 07:27 Uhr

CRESCENT GOLD LIMITED - 31 MARCH 2011 QUARTERLY REPORT



HIGHLIGHTS FOR THE QUARTER ENDED 31 MARCH 2011
* The US dollar gold price is continuing to set new records (circa US$1,500oz) at a time Crescent commenced the current processing campaign through Barricks Granny Smith Mill on 12 April 2011.

The operations have been running well with haulage tonnes and grades to Granny Smith Mill above target. * The Company announced the completion of a A$45 million capital raising through a non-renounceable rights issue.

The rights issue closed oversubscribed on the 27th January 2011 raising A$48.1 million (before costs).


* Following heavy unseasonal rains associated with Cyclone Dianne off the northwest coast of Western Australia, the Company temporarily suspended operations at the Companys wholly-owned Laverton Gold Project in WA.

The Company was able to evacuate all staff and contractors safely from the flooded camp.

Water levels receded sufficiently soon afterwards to enable some staff to move back into camp.

Mining operations recommenced shortly afterwards following dewatering of pits and a review of the haul roads.

The impact of the rains on the operations due to an inability to haul to Barricks Granny Smith Mill led to a reduction in the Companys processing days at Barrick by 18 days and had a significant negative impact on production during the quarter.

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 some use of proceeds raised in the rights issue.
* The Company repaid its debt facility in full to Indago Resources.
* The Companys operations require significant balance sheet flexibility and the Company is investigating debt, equity, and contractual operating alternatives that will restore that flexibility following the flooding events.
* Encouraging results from soil geochemical sampling near the Companys Pieces of Eight gold project at Laverton were announced in the period.


* Crescent appointed Interim Managing Director, Mark Tory as Managing Director and Mark Hine as Chief Operating Officer.



Questions can be directed to: Mark Tory or Renee Brickner Managing Director
Geologist, Corporate Communications N.A Perth, Australia
Vancouver, BC Ph: +61 8 6380 7100
Ph: +1-604-802-6806
To Unsubscribe simply reply to this email with the words "Unsubscribe" in the Subject line.
-- Message protected by MailGuard: e-mail anti-virus, anti-spam and content filtering. http://www.mailguard.com.au



Products & Services | Jobs