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Tuesday, 29th August 2006 (3177 views)

Crescent Gold's Laverton mine looks set to get the green light for start up after the company secured a loan worth A$25 million.

The Laverton project, located in Western Australia, will be the newest gold mine in the country when it opens by the end of the year, if everything goes to plan.

Crescent has received a credit-approved loan offer from the Investec Bank of Australia. The company will now start gearing up for production work, which should begin within the next six months. The company expects the mine to be operating at its full capacity during the first half of 2007.

The loan consists of a A$20 million project gold credit, weighing approximately 27,000 ounces. A cash loan of A$5 million for gold puts and diesel caps, as well as a gold hedging facility are also included.

Estimated reserves stood at 292,000 ounces at the time of the last survey in 2005. Using this as a guide Crescent expects an output of 90,000 ounces of gold per annum over four years.

Managing director at Crescent Andrew Haythorpe said: "We are well advanced on increasing our reserve estimates and project."

 

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