Crocodile Gold purchased its assets from GBS Gold Australia Pty Ltd, a subsidiary of GBS Gold International Inc., in liquidation, on June 19, 2009 for a total purchase price of AUS$50 million (approximately C$40 million), payable in installments over a 12 month period.
GBS Gold owned and operated the Burnside and Tom’s Gully projects, which includes processing plants at Union Reefs (2.4 mtpy) and Tom’s Gully (240,000 tpy). They commenced operations in September 2006. GBS Gold ceased mining operations in September 2008 upon the appointment of administrators due to a lack of working capital. Annualized production prior to receivership was 140,000 ounces of gold at a cash cost of US$610/oz (at US$:AUS$1.25).
After several years of production in the Northern Territory, Crocodile Gold entered into an acquisition agreement with Northgate Australian Ventures Corp Pty., a subsidiary of AuRico Gold. The acquisition closed on May 4, 2012 and Crocodile Gold took ownership of the Fosterville and Stawell underground mines in Victoria State, Australia.
At its Northern Territory properties, the Company operates the Cosmo Gold Mine, which is currently producing 75,000 ounces of gold per annum. The other exploration properties Crocodile Gold operated in the Northern Territory have recently been sold or optioned to Phoenix Copper.
At the State of Victoria properties, the Company operates the Fosterville Gold Mine, set to produce 95,000-100,000 ounces per annum, and the Stawell Gold Mine. The current focus at Stawell is the Enhanced Big Hill Project, the surface extension of the Stawell Deposit which will extend the operational life of the Stawell Gold Mine. The multi-year project will provide the Town of Stawell with an additional 80-100 jobs and has an NPV of AUD$38.5 million and a pre-tax IRR of 125.3%. The project is currently under ministerial review and is expected to be operational by late 2014.