Sunday, 24 July 2011

Crescent Gold exceeds forecasts with 23,871 gold ounces produced in June quarter

Crescent Gold (ASX:CRE, TSX:CRA) exceeded gold production guidance by 8.5% in the June quarter - producing 23,871 gold ounces for a gross value of around US$36 million, based on a spot of US$1500.

Production for the period, known as Campaign 7, was the third highest campaign since the Ore Purchasing Agreement with Barrick Granny Smith commenced.

A total of 570,488 tonnes at an average feed grade of 1.43g/t was processed over the 47 day campaign with an overall recovery of 91.1%.

Crescent said ore for Campaign 7 was sourced from the Mary Mac South, Craiggiemore, Grouse, Pieces of Eight and Fish open pit operations, in addition to 75,000 tonnes of ore stockpiled at the end of Campaign 6.

Mining activities are well advanced at Craiggiemore, Mary Mac Hill and Fish with around 450,000 tonnes of ore stockpiled at Granny Smith, positioning Crescent to achieve forecast gold production of 22,000 ounces for Campaign 8.

In other Crescent news, shareholders are accepting the Focus Minerals (ASX: FML) off-market takeover offer, with Focus now holding 36.2% of Crescent.

The offer is open until Monday 1st August 2011, with the Crescent directors already provided acceptances.

Focus is offering one share for every 1.18 Crescent, which is conditional on a minimum acceptance of 90% - representing a 30.5% premium.

Focus has received a pre bid agreement in favour of Focus for 19.9% of Crescent from Deutsche Bank group.

In addition, Deutsche Bank has stated an intention to accept the offer for the balance of its holding, around 9.24% of Crescent shares, in the absence of a superior proposal.

The merger will make Focus one of Australia’s top five gold producers with a 230,000 ounce production target in 2012 from multiple open pit and underground operations.

The combined group will have a JORC Resource of 4.3 million gold ounces.

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