February 28, 2011 / 1:53 PM / 7 years ago

RPT-UPDATE 2-Crocodile Gold sees sequential fall in Q1 production

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* Expects 2011 production of 85,000-100,000 ounces

* Sees 2011 cash cost of $875-$975/ounce

* Names Stephen Woodhead as CFO

* Says will not receive permits for mining at Pine Creek until Q2

* Shrs down 15 pct (Adds details, share movement)

Feb 28 (Reuters) - Crocodile Gold Corp , which has been hit by heavy rainfall in Australia, said it expects a sequential drop in first-quarter production, sending its shares down as much as 15 percent.

Crocodile Gold, which owns and operates mines in the northern territory of Australia, said it sees first-quarter gold production at 14,000-17,000 ounces. It produced 22,351 ounces in the fourth quarter.

With the rest of Australia, the company’s operations have been impacted by abnormal rainfall. The country has seen massive flooding and a maximum-strength cyclone over the past two months, largely because of a dominant La Nina weather pattern.

Shares of Crocodile Gold, which have lost nearly 16 percent in value since it reported a third-quarter profit in November, were trading down 13 Canadian cents at C$1.17 on Monday on the Toronto Stock Exchange.

Toronto-based Crocodile Gold also said it sees production at 85,000-100,000 ounces in 2011, with a cash cost of $875-$975 per ounce. In 2010, it had produced 81,793 ounces.

The company also said permits for mining of the international pit at Pine Creek project will not be received until the second quarter.

In October, Crocodile Gold had raised its mineral resource estimate for its Pine Creek project to 288,600 ounces of gold, up from its prior view of 69,600 ounces.

Pine Creek contains North Gandys, International, South Gandys, Enterprise, Czarina, South Czarina and South Enterprise gold mines.

The company, which is currently developing the Cosmo underground mine in western Australia, said acceleration of exploration and further investment in infrastructure in 2011 will increase production to over 200,000 ounces a year by 2012.

It has received permits to dewater the Cosmo open pit.

The company also said Stephen Woodhead will take over as chief financial officer from Brad Boland. Woodhead currently serves on the board of Vaaldiam Mining Inc . (Reporting by Bhaswati Mukhopadhyay and Arnika Thakur in Bangalore; Editing by Roshni Menon and Joyjeet Das)

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