Crescent upgrades gold reserves

Shares in Crescent Gold have closed slightly higher after the company announced a large increase in its gold reserves at its Laverton project.

In a statement to the Australian Securities Exchange Crescent said the, "total Probable Ore Reserves are now estimated to contain 6.5Mt @ 2.1g/t equating 445,000 ounces of contained gold in 12 deposits."

The company had depleted the 2009 Ore Reserve of 254,000 ounces by 69,000 ounces across four pits.

"The subsequent addition of 260,000 oz through development work and engineering studies at 8 other gold deposits at Laverton represents an increase in reserves of 140 per cent over the deleted reserve figures," the statement said.

At the close of trade Crescent shares were up 3.23 per cent to 16 cents.

See company statement below:

Crescent Gold is pleased to announce that an updated Ore Reserve estimate for the Laverton Gold Project has been prepared by independent consultants resulting in a significant increase in reserves.

As at June 30 2010, total Probable Ore Reserves are now estimated to contain 6.5Mt @ 2.1g/t equating in 445,000 ounces of contained gold in 12 deposits.

Recent mining at 4 pits had depleted the 2009 Ore Reserve (254,000) oz) by 69,000 oz over the first 9 months of production down to 185,000 oz. The subsequent addition of 260,000 oz through development work and engineering studies at 8 other gold deposits at Laverton represents an increase in reserves of 140% over the depleted reserve figure.

The increase in reserves demonstrates the immense exploration potential of Laverton and supports Crescent's view of the long term production capability of the Company's asset base.

The Ore Reserves are based on a gold price of A$1,250 oz for the 11 open pit mining projects whilst A$1,350 oz for the underground mining Summit deposit. Spot price at time of writing is A$1,360 oz.