Crew Gold Provides Corporate and LEFA Operational Updates
(Thomson Reuters ONE) - Corporate news announcement processed and transmitted by Hugin AS.The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------------------------------ Press Release - October 12, 2009 Crew Gold Provides Corporate and LEFA Operational UpdatesLONDON, United Kingdom: Crew Gold Corporation ("Crew" or "theCompany") (TSX, OSE: CRU) today announces an update with respect toits third quarter production, cash position, reserve and resourcereporting, revised production guidance for LEFA and the proposedcapital and debt restructuring.Third quarter production and cash positionGold produced at LEFA for the quarter ended September 30, 2009 was39,000 ounces ("oz"). Production was impacted by previously announceddowntime relating to SAG Mill 1 ("SAG1") and the Lero crusher. Inaddition, there were disruptions relating to availability of themining fleet due to mechanical breakdowns. Unrestricted cash and cashequivalents at the end of September amounted to $8.4 million howeverthere were significant amounts of overdue trade creditors' paymentsoutstanding.Reserve and Resource reportingThe NI43-101 reserve and resource reports are being reviewed by theCompany's independent consultants and are expected to be released inNovember. Notwithstanding that the independent consultants have notyet finished their work, it is anticipated that the previouslypublished proven and probable reserves for the LEFA concession willbe reduced, after taking into account reserve depletion since theprevious publication, by approximately 10%. The principal reason forthe reduction in reserves is a decrease in the overall reserve gradedue to;* a significant reduction in the estimated grade of ore to be mined in the Fayalala pit. Following the poor reconciliation in 2008 between mined ore and ore predicted by the geological model, in the extremely complicated mineralization at Fayalala, the block model has been redone and the result has been a reduction in grade;* mining of the higher available grades in the Lero and Karta pits during the previous 24 months of operation to meet cash flow concerns of the LEFA. The previous models predicted that this higher grade ore would be processed over the life of the mine;* a reduction, based on independent geotechnical reviews, of some of the pit slope angles used in previous modelling leading to a reduction in economically mineable higher grade ore at the bottom of those pits.It is also anticipated that the Company's previously publishedmeasured, indicated and inferred resources will remain substantiallyunchanged after taking into account resource depletion. The MineralReserves are being estimated using an $800 per oz gold price inaccordance with the requirements of NI43-101 while the mineralresources are being estimated using a $1,000 per oz gold price. TheCompany is using Whittle pit shell models in both cases which theCompany believes is becoming the industry norm and is an improvementin procedure from the company's previous reserve and resourcereporting methodologies.Once the independent consultants have completed their work, thedetailed reports will be announced and filed at www.SEDAR.com andwww.newsweb.no.Revised Production guidanceThe Company anticipates that production for the final quarter of the2009 year will be between 50,000 and 65,000 oz. However this estimateis predicated on continuous operations without equipment breakdowns,delays in the delivery of supplies or stoppages caused by socialissues. At present, and in line with the return of SAG1, the plant isrunning reliably at a rate of approximately 15,000 tonnes per day("tpd"). Achieving a reliable rate of production is subject to anumber of factors including availability of the Company's miningfleet, insurance spares and consumables. Throughput is also impactedby the blend of fresh ore and saprolite.The fuel supply to the site has been disrupted as a result of therecent events occurring in Conakry. The Company's principal fuelsupplier declared a force majeure under the contract of supply butfuel supply recommenced on October 8, 2009. The impact of the delayin fuel deliveries at the beginning of October was that miningactivities were curtailed and ore fed to the mill was taken from thestock piles which contain lower grades than the ore that was plannedto be mined and processed.The Company believes a reliable production rate of 18,000 tpd isachievable provided significant capital expenditures are undertakenover the next 3 years, principally in connection with the Company'smining fleet and the acquisition of insurance spares to reduce therisk of long term shutdowns when there are equipment failures. Oncethe Company's Life of Mine Plan and independent reserve and resourcereports are completed, the Company expects to provide revisedlong-term production guidance.Capital and Debt restructuringThe Company has, at this point, been unable to reach agreement withthe bondholders holding bonds due for repayment in October 2009 inconnection with its previously announced capital and debtrestructuring. If the Company fails to reach an agreement with theaforementioned bondholders, it is uncertain whether it will make the$23.2 million (NOK 131 million) principal payment due to thebondholders in late October 2009 as it will be required to conservecash for operating and necessary capital expenditure purposes. TheCompany continues to work with its convertible bondholders (due forrepayment in November 2010) and secured bondholders (due forrepayment in March 2011) with respect to a restructuring of all bondsto be completed under Canadian law or pursuant to an arrangement withthe bondholders.William LeClairCEOSafe Harbour StatementCertain statements contained herein that are not statements ofhistorical fact, may constitute forward-looking statements and aremade pursuant to applicable and relevant national legislation(including the Safe-Harbour provisions of the United States PrivateSecurities Litigation Reform Act of 1995) in countries where Crew isconducting business and/or investor relations. Forward-lookingstatements, include, but are not limited to those with respect to (1)production guidance for LEFA, (2) the proposed capital and debtrestructuring, (3) the expected release of NI 43-101 reserve andresource reports and the contents of those reports, (4) theanticipated update of the Company's life of mine plan, (5) theexpected actions of the Company's principal fuel supplier, and (6)the Company's anticipated non-payment of the $23.2 million principalpayment due to bondholders in October 2009. Often, but not always,forward-looking statements can be identified by the use of words suchas plans, expects, targets, budget, estimates, forecasts, intends,anticipates, believes, or equivalents or variation, includingnegative variation, of such words and phrases, or state that certainactions, events or results, may, could, would, might or will betaken, occur or be achieved.Forward-looking statements involve known and unknown risks,uncertainties and other factors that could cause the actual resultsof the Company to be materially different from any future resultsexpressed or implied by such forward-looking statements. Such risksand uncertainties include, among others, (1) the actual productionresults at LEFA being less than anticipated, (2) the actual resultsof the independent consultant's review of the reserves and resourcesat LEFA, (3) failure of plant, equipment or processes to operate asanticipated, (4) accidents, labour disputes and other risks of themining industry, and (6) the Company's operating and necessarycapital expenditures being higher or lower than expected.The material factors and assumptions used to develop forward-lookingstatements which may be incorrect, include, but are not limited to,(1) there being no significant disruptions affecting operations,whether due to labour disruptions, supply disruptions, damage toequipment or otherwise, (2) continued development, operation andproduction at the Company's properties consistent with currentexpectations, (3) foreign exchange rates among the currencies theCrew does business in being approximately consistent with currentlevels, (4) certain price assumptions for gold, (5) prices forelectricity, fuel oil and other key supplies remaining consistentwith current levels, (6) production forecasts meeting expectations,and (7) materials and labour costs increasing on a basis consistentwith Crew's expectations.Except as may be required by applicable law or stock exchangeregulation, the Company undertakes no obligation to update publiclyor release any revisions to the forward-looking statements containedherein to reflect events or circumstances after the date of thisdocument or to reflect the occurrence of unanticipated events.Accordingly, readers should not place undue reliance onforward-looking statements.http://hugin.info/90/R/1346825/323635.pdf --- End of Message ---Crew Gold CorporationAbbey House, Wellington Way, Weybridge Surrey United KingdomWKN: 226534105 ; ISIN: CA2265344028; ;
Datum: 12.10.2009 - 07:23 Uhr
Sprache: Deutsch
News-ID 6780
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