Promising results have been released in a preliminary economic assessment (PEA) of the Big Hill project at Crocodile Gold’s Stawell property in the central west of the Australian state of Victoria. The company has taken its first steps in the permitting process by submitting an environmental effect statement to the state government.
Highlights of the PEA include a Net Present value (NPV) of Aus$40 million, with production of 2.3 million tonnes @ 1.65 grams/tonne gold for 108,000 ounces of gold over the project life of up to five years.
Crocodile Gold says the initial capital necessary for the project has been estimated at $17 million, creating up to 100 jobs for the local region.
The company acquired a 100% interest in the Big Hill project through its acquisition of the Stawell gold mine in May 2012. The Big Hill project is the up-dip extension of the Stawell Magdala system, which is currently being mined from underground.
The PEA outlines a possible open pit operation based on an updated independent mineral resource estimate, optimization study and design works carried out during the latter half of 2012.
Crocodile Gold’s chief executive officer Chantal Lavoie says, “This project represents an excellent opportunity to maximize the value and extend the life of the Stawell gold mine, further contributing to the growth of the company’s gold production while reducing operating costs. It is worth noting that this project will have access to our experienced workforce and well established business partners.”
Stawell gold mine general manager Troy Cole says, “We are also excited about the opportunities that this project presents to the Stawell area and our ability to continue to contribute to the region’s golden heritage will be determined through a responsible consultation program engaging community, local and state governments.”
The Stawell property is 250km northwest of Melbourne and is accessible by rail, air and road infrastructure.
Crocodile Gold is a Canadian gold mining company with three operating mines in Australia and a significant and prospective land package in the Northern Territory hosting a measured and indicated 3.175 million ounces of gold and an underground mine.
The company’s Victorian properties host an additional measured and indicated 1.216 million ounces of gold. Crocodile Gold has exploration programs under way to expand the resource base of each property.