Crocodile Gold fka CRK

[diggg]

CRK.t/CROCF.pk

(Me too - tr8derrvic)

http://www.theaureport.com/pub/na/6989

Brian Mok: Gold Dynamics
Source: Brian Sylvester of The Gold Report 08/04/2010

Union Securities Analyst Brian Mok gets excited about gold companies with prospects for big-time growth. But then again, who doesn't? In this exclusive interview with The Gold Report, Brian discusses at length, and offers target prices on, no less than five juniors headed for big increases in gold production.

TGR: Another company that has a similar business model but is a fair distance away is Crocodile Gold Corp. (TSX:CRK; OTCQX:CROCF) in Australia. It's a high-cash-cost producer that brought some old projects back into play. Tell our readers about that one.

BM: Crocodile Gold's sole asset is in the Northern Territory in Australia. The asset base consists of the former assets of GBS Gold, which went into bankruptcy protection in 2008. Essentially GBS tried to bring these operations on and ran into operational problems, then faced a cash crunch just as the financial crisis hit. They had to go into bankruptcy.

Crocodile Gold purchased the assets, applied a new mining plan, and essentially started operations in November 2009. I think the company was a bit aggressive in terms of their initial gold production forecast of 120,000 ounces for 2010. They had to subsequently reduce it to 100,000 ounces and the stock took a bit of a hit earlier this year, but they recently announced commercial production beginning in June. June production figures are around 8,700 ounces. I had forecast 7,500, and I was surprised they were able to beat my estimates. They've maintained their guidance for 100,000 ounces in 2010, which I think is very positive. I'll keep an eye on the stock for Q3 and Q4, but I'm fairly comfortable now that the company will be able to execute on this year's target and line things up for 2011, when they're aiming for 200,000 ounces.

TGR: It's not just one mine, though. There's a lot going on there.

BM: This operation is actually a series of operations. They've got two mills, a number of open pits planned and two underground mines. Basically they're drawing ore from all the mines and processing them in the Brocks Creek Mill, as well as at the Tom's Gully Mill.

TGR: But if somebody came up to you and asked, "What stands out about Crocodile Gold?" what would you say?

BM: What I like about Crocodile Gold is that, in typical Aussie fashion, they drilled shallow and only drilled a resource large enough to justify a small operation. The previous operators, even prior to GBS Gold, missed a lot of potential. Now Crocodile is going back and doing what we would typically do in North America, in terms of drilling to define a resource. I think there's significant potential to add resources to enhance the production profile and the mine life. Also, they can ramp up production quickly, and are able to go from 0 to 100,000 and potentially to 200,000 ounces. Those are the main things I like about Crocodile Gold.

TGR: What's your 12-month target price on that?

BM: My target price on Crocodile Gold is $2.60.