re: Ann: CRE: FML: Takeover of Crescent Gold ... Crescent Gold...

re: Ann: CRE: FML: Takeover of Crescent Gold ...
Crescent Gold (ASX Code: CRE) is predominantly a pure
gold player with a mixture of producing assets and
advanced brownfields and greenfields exploration assets.
With a primary focus on gold development and mining, the
company is actively mining and advancing its flagship
project, the Laverton Gold Project - located 250 kilometres
NE of Kalgoorlie.

The Laverton Gold project contains numerous exploration
opportunities including extensions to existing open pit
resources, high grade underground targets, and conceptual
large scale, bulk mining targets.
Summit Underground Mine - High Development Potential
Within the company?s Laverton tenements, the Summit
underground mine will become an area of focus over the next 12 months.

Summit was an operating gold mine in the 1980s,
producing in excess of 1m oz of gold, however the mine closed in 1994 when the gold price was ~ US$380/oz. Summit has an indicated resource estimate (as at 30 June 2010) of 2.04mt @ 6.5 g/t and an inferred resource of 620kt @ 7.1 g/t.

Initial studies conducted by CRE indicate that the Summit mine, if recommenced, could produce between 50,000 and 70,000 oz of gold per annum at a cash cost of approximately A$750/oz. Most of CRE?s immediate work is centred on dewatering the Summit underground mine and the start of feasibility work.

Subject to available funding, CRE are aiming to complete a feasibility study in 2H 2011 and expect first production in 2H 2012.

Future Exploration to Target Mineralisation at Depth
The company?s broader exploration strategy is to drill at depth, given the presence of two world class underground mines in the Laverton region: the Wallaby and Sunrise Dam project, both of which are +7m oz deposits and start deeper than 200 metres.

Of the tenements currently owned by CRE, only 2% of all drill holes have gone deeper than 150 metres.
The majority of the company?s exploration success to date has been achieved through relatively shallow drilling to develop open pit ore reserves.

CRE is planning deep exploration drilling on a
number of targets, focusing on the well-established structural corridors which host the known deposits.

FULL report below - for anyone chasing FACTS not emotion's

http://www.crescentgold.com.au/images/crescent-50--okonaeteif.pdf