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Additional Information

Market:	ASX
Sector:	Gold Mining
EPIC:	CRE
Latest Price:	0.06 (-6.67% )
52-week High:	0.11
52-week Low:	0.03
Market Cap:	69.30M

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Crescent Gold Full Crescent Gold profile here

Crescent Gold (ASX: CRE, TSE: CRA) is a top 10 listed Australian gold producer and explorer based in Perth, Western Australia.

With a primary focus on gold development and mining, the company is actively advancing its flagship asset, the Laverton Gold Project located 250km north east of Kalgoorlie in Western Australia with current annual production of 100,000-120,000 ounces.

Crescent Gold doubles gold inventory to two million ounces in well timed acquisition

Friday, August 14, 2009

With a judicious move, Crescent Gold (ASX: CRE) has doubled its gold resource inventory and gold exploration acreage in the Laverton gold province of Western Australia.

The acquisition from Barrick Gold and Carbon Energy (ASX: CNX) appears well timed and will boost Crescent’s gold inventory to over 2.1 million ounces of JORC Measured, Indicated and Inferred Resources (1 million currenly). And continues rationalisation of interests in the Laverton region.

The Laverton Exploration Joint Venture (LEJV) contains the Chatterbox and Beasley Creek gold deposits and a 100% interest in the Lancefield deposit. The purchase of the combined assets delivers an aggregate of 1,100,000 wholly owned ounces (including 510,400 resource ounces contained in shallow oxide deposits) to Crescent.

The deal provides Crescent with additional gold resources to develop and enable Crescent to deliver ore into the recently signed Ore Purchase Agreement (OPA) with Barrick.

As consideration, Crescent will pay A$1 million in cash to each of Barrick and CNX on signing of a formal sale and purchase agreement. Further payments to both parties will total A$3 million in six months and 12 months after signing of the formal agreement, via a combination of cash and the issue of ordinary shares in Crescent.

If total ounces produced by Crescent from the newly acquired assets exceeds 75,000 ounces, both Barrick and CNX will be paid a further A$1.5 million each through a combination of cash and shares to be negotiated.

Importantly, for upside for Crescent shareholders, the deal represents a purchase price of only A$7 per resource ounce.

The deal also holds out the tantalising prospect of amalgamation of numerous contiguous exploration projects and tenements in the area.

Crescent is on track for the delivery and processing of ore to Barrick’s Granny Smith Mill in the December 2009 quarter.

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