crocodile gold november 2011
TRANSCRIPT
TSX: CRK OTCQX: CROCF FRANKFURT: XGC
NOVEMBER 2011
Accelerating Our Growth and Exploration
TSX:CRK OTCQX: CROCF
Our Investment Advantage
Existing infrastructure (replacement value $200M)
Adjacent to major highway and utilities (natural gas and power lines)
Road, rail and deep sea port in close proximity
Infrastructure
Production 2010 production of 82,000 ounces
2.4M TPA processing facility
Expanding production profile with decreasing cash costs
Exploration
Outstanding potential to discover additional resources
$10-12 million budgeted for exploration efforts in 2011
Extensive exploration project and development pipeline
Assets 3.175 million ounces M&I and 2.14 million ounces Inferred
Over 3,300 km2 land package with proven historical production
Financially well positioned to support exploration and production
Potential Strong management team
Positioned for significant growth in the short and long term
Exploration strength with excellent JV opportunities
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TSX:CRK OTCQX: CROCF
Location & Infrastructure Northern Australia
Total Surface area: 3,300km2
Northern Territory Historical Gold Production:
14.9 million oz. (3 million oz. from Crocodile Gold tenements)
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Our Assets
Production Howley Trend
open pit mines
– Howley & Mottrams
Yam Creek Trend
open pit mine
– Princess Louise
Development Cosmo
underground mine
initial ore mined Q3 2011
Pine Creek Area
open pit mines
– International
– production upon receipt of permits
Brocks Creek
Rising Tide open pit mine
Processing Union Reefs Mill
2.4M TPA
in operation, >94% availability
Tom’s Gully Mill
240,000 TPA
care and maintenance Exploration
Potential >3,300 km2
Exploration Burnside
Pine Creek/Union Reef
Maud Creek
Moline
Mt. Bundy
Base Metals
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TSX:CRK OTCQX: CROCF
Delivering Quality Production Through 2011
2011 Major Capital Investments
Cosmo underground
Union Reefs mill improvements
Exploration
2011 Production Sources
Open Pits: Howley mines, Princess Louise
Underground: Cosmo
2011 Key Catalysts Production from Cosmo
– Initial ore Q3 - 2011
– Will contribute 50% of ounces at full production (800,000 TPA ore)
Aggressive exploration program (brownfields and greenfields)
Increasing % of high grade mill feed throughout the year from Princess Louise & Cosmo
2011 Guidance
77,500 to 82,500 oz
Cash Cost US$1,150 - $1,250/oz
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Production Pipeline
Production Advanced
Exploration Development
Projects Generative Exploration
Pine Creek North
Pine Creek South
Maud Creek
Cosmo Underground
Rising Tide
Greenfields
Burnside
Moline
Maud Creek Extension
Base Metal Potential
Historical Resources
Golden Dyke
The Greeks
Mt Bonnie
Moline
Identified Resources
Union Reefs Underground
Bridge Creek, Western Arm, Bons Rush, Kazi
Iron Blow
Mottrams
North Point
Princess Louise
Cosmo Underground
Reserve Extensions
Cosmo Underground
Yam Creek Trend
Gandys
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Exploration
Strategy Growth through greenfields and brownfields exploration
Exploration Goals Reserves: Replace & Increase reserves from 650,000 oz
to 1M oz.
Resources: Replace & Increase resources from 5M oz to 6M oz
Discover “new” precious metal deposits
Assess the Company’s 3,300km2 land position
2011 Objectives $10 - $12 Million budgeted
Complete 30,000m of diamond drilling, 20,000m of RC drilling
Completed 4,000 line km of VTEM airborne geophysical survey
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Short Term – Focus on higher quality ore – Commissioning and Ramp-up of Cosmo underground mine – Optimization of the Burnside area – New production from the Union Reefs and Pine Creek areas
Medium Term – Maximize value of gold assets – Increase production from higher grade deposits – Consolidation of assets – Continued significant investment in Exploration on an annual basis – Expansion of processing capabilities - scenario
Long Term – Explore – Development of Maud Creek Deposit – Generate value out of the base metal deposits, currently 500,000
equivalent AU oz. in resource
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Our Growth Strategy
TSX:CRK OTCQX: CROCF
Strategic Production Growth Cost Comparison
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Burnside Burnside Cosmo Prospect Crosscourse
$2.50 $2.50 Mining Cost per Tonne $44.00 $80.00 $44.00
3.0 6.5 Strip Ratio N/A N/A N/A
$10.00 $18.75 Mining Cost per Tonne
Milled $44.00 $80.00 $44.00
$16.00 $16.00 Processing Cost $16.00 $16.00 $16.00
$8.25 $8.25 Ore Haulage $8.50 $1.00 $1.00
$5.00 $5.00 Site General & Administration
$5.00 $5.00 $5.00
$39.25 $48.00 Total $/Tonne Milled $73.50 $102 $66
1.30 1.50 Ore Grade g/t Au 4.50 6.00 4.50
90.0% 93.0% Recovery 92.0% 92.0% 92.0%
$1,043 $1,070 Cost per Ounce $552 $575 $496
Open Pit Mines Provide good margin
(>US$500) to current gold price
Lower grade leads to higher cash cost
Underground Mine - Cosmo Provides leverage of additional high-
grade ore leading to significantly lower cash costs/oz.
Will eventually make up 40% of mill feed (50% of ounces) which will:
– Lower overall costs – Improve overall production
Potential for expansion at depth and on West Lodes
Underground Projects Potential Based on existing operating data and projected Cosmo costs Union Reefs UG deposits show excellent potential to deliver
low cost ounces to the production profile. – High-Grade targets (Prospect & Lady Alice) – Bulk-Ore targets (Crosscourse- “Cosmo Style”)
Need to expand resources and complete detailed mining studies before deposits can be included in any future
production forecasts
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Assuming the following:
Continued production from Burnside, new production from UR/Pine Creek Surface & UG
Successful conversion of resources into reserves
Expansion of processing facilities by 2014
Permitting, construction and operation of Maud Creek by 2016
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Our Growth Strategy What could CRK look like?
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Burnside Cosmo UR/Pine Creek Maud Creek Cash Cost/oz.
TSX:CRK OTCQX: CROCF
Capital Structure & Price Comparison
*Including 2.5 million shares to be issued under the Company Share Compensation Plan
Analyst Coverage Cormark Securities Frasier Mackenzie Raymond James Union Securities
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Share Structure (At October 31, 2011)
Basic: 310,027,546
Warrants: 69,499,116
Options: 19,441,204
Fully Diluted*: 401,615,366
Market Capitalization: $161.2 Million
52 Week Trading Range $0.47 – $1.63
Price to Net Asset Value
Valuation at 0.5x net assets Share price trading at a discount
when compared to peers Source: Raymond James Updated as of June 14, 2011
Economic Value/oz Au
EV/oz Au Producer Average = $US 145/oz
Crocodile Gold = $US 45/oz Source: NBF on June 15, 2011
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Historical Share Price
TSX:CRK OTCQX: CROCF
Management & Board
Chantal Lavoie, P.Eng.
President and Chief Executive Officer
David Keough
Chief Operating Officer
Steve Woodhead
Chief Financial Officer
Bill Nielsen, P. Geo
Vice President Exploration
Colinda Parent
Vice President Business Development
Brianna Davies
Corporate Secretary
Stan Bharti, P.Eng.
Chairman
Chantal Lavoie P.Eng.
George Faught, CA
Mike Hoffman, P.Eng.
Bruce Humphrey, P.Eng.
Peter Tagliamonte, P.Eng.
Management Board of Directors
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TSX:CRK OTCQX: CROCF
Our Investment Advantage
Existing Infrastructure (replacement value $200M)
Adjacent to major highway and utilities (natural gas and power lines)
Road, Rail and Deep Sea Port in close proximity
Infrastructure
Production 2010 production of 82,000 ounces
2.4M TPA processing facility
Expanding production profile with decreasing cash costs
Exploration
Outstanding potential to discover additional resources
$10-12 million budgeted for exploration efforts in 2011
Extensive exploration project and development pipeline
Assets 3.175 million ounces M&I and 2.14 million ounces Inferred
Over 3,300 km2 land package with proven historical production
Financially well positioned to support exploration and production
Potential Strong Management Team
Positioned for significant growth in the short and long term
Exploration strength with excellent JV opportunities
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TSX:CRK OTCQX: CROCF
Investor Contact Information
Chantal Lavoie President and CEO 416-861-2964 [email protected]
www.crocgold.com Find us on
A Member of the Forbes & Manhattan Group of Companies
Investor Relations Rob Hopkins 416-861-5899 [email protected]
TSX: CRK OTCQX: CROCF FRANKFURT: XGC
Crocodile Gold Corporation
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Additional Information
TSX:CRK OTCQX: CROCF
Reserve Summary December 31, 2010
Note: Mineral Reserves are included in Mineral Resources. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Depleted for mining as at December 31, 2010 and does not include any depletion for mining since such date. The Mineral Reserve estimate was reviewed and optimized by Mark Edwards who is a “qualified person” as such term is defined in National Instrument 43-101 and has supervised the preparation of the technical information and data included in this news release. The mineral resource estimate was generated using the following parameters: • Models used have been reviewed and optimized by Mark Edwards and Fleur Muller • Model technique is Ordinary Kriging, Multiple Indicator Kriging or Inverse Distance (review NI43-101 for more details) • Mineralization wireframes conducted on 0.4-2g/t material with a minimum width of 1-2m depending on deposit and mineralization styles • High grade top cut used of 2-40g/t depending on statistical review of sample results • 1m metre samples with core half core or split RC samples used in models • Samples were generally submitted to NAL and analyzed using 50g fire assay with AAS finish, some samples were submitted to umpire laboratory for QAQC purposes
PROBABLE MINERAL RESERVE
Project Deposit Cut-off (g/t) Tonnes Gold Grade
(g/t) Ounces
Gold
Burnside Brocks Creek 7.1 34,000 8.6 9,300
Cosmo Deeps 3.1 3,100,000 4.2 420,000
Howley 1.0 340,000 1.6 18,000
North Point 1.0 55,000 2.3 4,000
Princess Louise 1.0 200,000 1.5 9,700
Mottrams 1.0 980,000 1.2 39,000
Pine Creek Kohinoor 1.0 290,000 1.9 18,000
Cox 1.0 500,000 1.6 26,000
International 1.0 1,300,000 1.5 65,000
Gandys 1.0 480,000 1.7 26,000
South Enterprise 1.0 420,000 2.0 27,000
TOTAL 7,699,000 2.7 662,000 Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
Gold Price: $US1000/oz
$A:$US 0.91
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Resource Summary December 31, 2010
M+I MINERAL RESOURCE INFERRED MINERAL RESOURCE
Project Tonnes Gold Grade (g/t) Ounces Gold Tonnes Gold Grade (g/t) Ounces Gold
Mt Bundy*A 20,241,000 1.0 664,800 10,513,000 1.0 350,800
Burnside* 16,553,330 2.4 1,268,500 18,679,800 2.2 1,323,200
Union Reefs 239,000 2.4 18,200 3,740,000 1.7 204,200
Pine Creek 5,528,000 1.6 288,600 2,347,000 2.4 183,200
Maud Creek* 9,288,000 3.1 935,000 1,072,000 2.4 82,000
Total 51,849,330 1.9 3,175,100 36,351,800 1.8 2,143,400 *Includes Underground Resources A Crocodile Gold holes 80% interest in the Rustlers Roost deposit which is included in this Project
Please Note: Mineral Resources include Mineral Reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Due to the uncertainty of measured, indicated or inferred mineral resources, these mineral resources may never be upgraded to proven and probable mineral reserves. Calculated at a gold price of US$1,000>/oz and exchange rate of $A0.91:US$1.00 ) and contained within optimizing pit shells using current operating costs
MINERAL RESOURCE STATEMENT (Other Commodities)
INFERRED MINERAL RESOURCE
Project Deposit Commodity Cut-off Tonnes Grade (ppm) Contained metal
Burnside Iron Blow
Lead 1.0g/t Au 3,175,000 7,595 53,163,000 pounds
Zinc 1.0g/t Au 3,175,000 32,823 229,750,000 pounds
Silver 1.0g/t Au 3,175,000 101 10,200,000 ounces
ThunderballC Uranium 200ppm 316,800 796 556,000 pounds
C Crocodile Gold has a 30% free carried interest in this deposit
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Our Assets Burnside – Howley Trend
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Burnside - Howley Trend 2011/12 Production - Open Pit
Mottrams Pit – Looking West
Howley Pit and Ore ROM Pad
Howley Pit Successfully completed mining in Q2
2011
Possible extension – West Howley being investigated
Mottrams Pit Initiated production in Q2 2011,
transitioning from Howley pit
Main open pit feed for remainder of 2011
Optimizing the operations Increasing equipment fleet in H2 2011
Current plan is to have >400,000t of stockpile material in place prior to the next wet season.
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TSX:CRK OTCQX: CROCF
Burnside – New Production 2011/12 Production - Open Pit
Princess Louise Open Pit
Rising Tide Open Pit
Princess Louise Pit Initiated production in Q3 of 2011
Will contribute to improving open pit mine grade for the remainder of 2011 and going into 2012
North Point Pit Production scheduled for 2012
Rising Tide Pit Production schedule for 2012, possibly earlier
Main open pit feed for 2012
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TSX:CRK OTCQX: CROCF
Cosmo Pit Dewatering On schedule for completion in Q3
2011
By October 2011, a total of 5.7 Glitres of water will have been pumped out.
Once dewatering is complete, underground production will begin
Way forward Surge capacity & Infrastructure in
place to address the upcoming wet season.
Burnside – Howley Trend Cosmo Dewatering Progress
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Burnside – Howley Trend Development - Cosmo
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Underground Mine Target production of
800,000 TPA
Initial ore Q3, 2011
Ramp-up to full production in 2012
East Lodes - Reserves & Resources Main focus of initial
production
Expansion potential at depth
TSX:CRK OTCQX: CROCF
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Burnside - Howley Trend Development - Cosmo
West Lodes - Resources
• Significant potential for expansion
• Present development plan limited to near surface portion
• Infrastructure design to handle future development
TSX:CRK OTCQX: CROCF
Burnside - Howley Trend Cosmo Underground Development
Western Lodes
3D Isometric View & Composite Development Plan
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Pine Creek/Union Reefs New Production - 2012
Improving the cost profile Production close to Union Reefs mill with minimum
transport cost
Potential for both surface and underground mines, higher grade ore
Pine Creek – International Open Pit In the permitting process
Potential to add to 2012 production profile.
Union Reefs – Underground Ore Bodies Located on granted mining lease and ability to bring in
to production very quickly
Next to the process plant so essentially no trucking costs
Several high grade intersections over 3 distinct ore bodies (Prospect, Lady Alice, Crosscourse)
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TSX:CRK OTCQX: CROCF
11m @ 6.60g/t Au 36m @ 4.10 g/t Au 16m @ 6.00 g/t Au
19m @ 10.62 g/t Au 9m @ 24.40 g/t Au 9m @ 4.00 g/t Au 8m @ 10.16 g/t Au
Crosscourse – “Cosmo” scale target:
5m @ 31.97 g/t Au 3m @ 45.10 g/t Au
Lady Alice:
3m @ 24.56 g/t Au
Union North:
3m @ 37.50 g/t Au 4m @ 27.00 g/t Au
Prospect Claim:
Historical Production/Intercepts:
Union Reefs = 800,000 oz Au
Pine Creek = 750,000 oz Au
Significant potential to increase existing resources
Pine Creek/Union Reefs Potential High Grade Deposits
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Exploration Regional Program
Airborne Geophysics More than 4,000 line km’s completed of
AEM and magnetometer survey
Geotech VTEM system- state of the art
Includes Moline and Maud Creek tenements
Ground follow-up of individual targets underway
Review of historical information
Major database compilation in progress of all past work including government files
Will ultimately be able to access and manipulate all past geochemical and geophysical surveys. Tens of thousands of geochemical sample results available.
It is anticipated that thousands of past drill holes with assays and logs will be found and incorporated into the database
Acquired high resolution satellite imagery for all areas
Airborne Geophysical Survey Areas 27
TSX:CRK OTCQX: CROCF
Exploration Three Key Areas
Burnside
Union Reefs-
Pine Creek
Maud Creek
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Exploration Burnside Area
Reserves & Resources • 1.2M oz of Measured &
Indicated
• 1.3M oz of Inferred
Howley Trend: a 25 km long structure with
additional deposits of interest
Includes Cosmo Underground and Howley Open Pits
Eastern Side Similar trend with known
deposits – past production
Presence of base metal deposits with significant precious metal content
Cosmo look-a-likes
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TSX:CRK OTCQX: CROCF
Reserves & Resources • 306,800 oz of Measured &
Indicated
• 387,400 oz of Inferred
Potential New targets adjacent to Union
Reefs Mill
Potential for near term, low cost production
2011 focus on shallow and near surface deposits
Exploration Union Reefs/Pine Creek area
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Exploration – Strategic Assets Gold Deposits - Maud Creek
Previously Mined 173,600t @3.32g/t Au for 18,500oz
Resources Indicated - 9,288,000t @ 3.1g/t Au for
935,000oz
Greater than 4.5g/t Au – 3.1 Mt @ 6.3 g/t for 628,000oz
Inferred - 1,072,000t @2.4g/t Au for 82,000oz (using a 1.0g/t Au cut-off)
Future Development Partially refractory – metallurgical testing
indicates 90-95% recovery by flotation with concentrates grading 6 opt.
Near the town of Katherine – 8km haul road to paved highway
Significantly expanded land position
North south trending, good widths, excellent configuration for underground mining
Typical Section Maud Creek Deposit
Maud Creek Optimized Pit Shell
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TSX:CRK OTCQX: CROCF
Exploration Other Key Strategic Assets
Massive Sulphide Deposits Iron Blow
Mount Bonnie
Gold Deposits Mt. Bundy
Moline
Uranium Deposits
Thunderball
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TSX:CRK OTCQX: CROCF
Exploration – Strategic Assets Massive Sulfide Deposits
Aeromagnetics- tilt derivative
Iron Blow
* “Gold Deposits of the Northern Territory” by Ahmad, Wygralak and Ferenczi, 2009. A qualified person has not done sufficient work to classify this historical estimate as current mineral resources or mineral reserves. Crocodile Gold is not treating the historical estimate as current mineral resources or mineral reserves and the historical estimate should not be relied upon. Crocodile Gold believes with minimal confirmatory drilling this historic resource information could be included in the Mineral Resource inventory.
Historic Production
10,000t oxide @ 9g/t Au and 250g/t Ag = Au eq 15.8g
25,000t sulphide (supergene) @ 7g/t Au and 360g/t Ag = Au eq 17g
Total production Au eq = 18,747oz
Current Inferred Resources
3,175,000t @ 2.1g/t Au, 101g/t Ag, 3.3% Zn, 0.76% Pb, 0.19% Cu
Au eq = 4.85g or 495,000oz (only Au and Ag considered)
Mount Bonnie Historic Resource*
650,000t - 1.7g/t Au, 279g/t Ag = Au eq 9.3g/t or 194,000oz
plus 9% Zn, 2% Pb, 0.5% Cu
Oxide Cap previously mined
110,000t @ 7g/t Au and 230g/t Ag
Au eq = 13.3g/t Au or 47,000oz Au
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TSX:CRK OTCQX: CROCF
Exploration Mount Bundy Area
Reserves & Resources 664,800 oz of M&I
350,800 oz of Inferred
Infrastructure: Tom’s Gully mill, presently on
Care & Maintenance
Deposits Tom’s Gully
Mt Bundy (Rustler’s Roost)
Quest 29
Way Forward Evaluating possible divestment
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TSX:CRK OTCQX: CROCF
Forward Looking Statements
This presentation contains forward-looking statements under Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to the development potential and timetable of the projects; the Company‟s ability to raise additional funds as necessary; the future price of gold; the estimation of mineral resources; conclusions of economic evaluation (including scoping studies); the realization of mineral resource estimates; the timing and amount of estimated future production, development and exploration; costs of future activities; capital and operating expenditures; success of exploration activities; mining or processing issues; currency exchange rates; government regulation of mining operations; and environmental risks. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made. Estimates regarding the anticipated timing, amount and cost of mining at the projects are based on assumptions underlying mineral resource estimates and the realization of such estimates; results of previous mining activities at the projects, and detailed research and analysis completed by independent of the Company; research and estimates regarding the timing of delivery for long-lead items; knowledge regarding the factors consultants and management involved in building a mine and other factors described in the technical reports and Annual Information Form filed under the profile of the Company on SEDAR. Capital and operating cost estimates are based on results of previous mining activities, research of the Company and independent consultants, recent estimates of construction and mining costs and other factors that are set out in the scoping study. Production estimates are based on mine plans and production schedules, which have been developed by the Company‟s personnel and independent consultants. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: timing and availability of external financing on acceptable terms; unexpected events and delays during construction, expansion and start-up; variations in ore grade and recovery rates; receipt and revocation of government approvals; actual results of exploration and mining activities; changes in project parameters as plans continue to be refined; future prices of gold; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements except in accordance with applicable securities laws.
Investors are advised that National Instrument NI 43-101 of the Canadian Securities Administrators requires that each category of mineral reserves and mineral resources be reported separately. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Due to the uncertainty of measured, indicated or inferred mineral resources, these mineral resources may never be upgraded to proven and probable mineral reserves.
Non-GAAP Measures
Crocodile Gold believes that investors use certain indicators to assess gold mining companies. The indicators are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance in accordance with the International Financial Reporting Standards.
“Cash Cost per Ounce” is a non-GAAP performance measure which could provide an indication of the mining and processing efficiency at the operations. It is determined by dividing the operating expenses, excluding stock-based compensation allocated to the operating expense and next of silver revenue, by the number of ounces of gold sold. There are variations in the method of computation of „cash cost per ounce” as determined by the Company compared with other mining companies.
Qualified Person
David Keough, MAusIMM of Crocodile Gold Australia Operations 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 presentation.
Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated or Inferred Resources
The information presented uses the terms “measured”, “indicated” and “inferred” mineral resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize these terms. “Inferred mineral resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of measured or indicated mineral resources will ever be converted into mineral reserves. United States investors are also cautioned not to assume that all or any part of an inferred mineral resource exists, or is economically or legally mineable.
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