Crocodile Gold (CRK.TSX) announced that it now expects 2012 gold production to increase 200% with the completion of the acquisition of the Fosterville and Stawell mines in Australia from AuRico Gold.  The Canadian-based gold miner also reported operational results for the first quarter of 2012 from its properties in the Northern Territory of Australia.

Highlights:

* The addition of two producing mines to Crocodile Gold’s portfolio should raised 2012 expected production by approximately 155,000 – 175,000 ounces, or 200%

* The acquisitions will provide the Company with significant near-term cash flow which can be redeployed into projects such as Union Reefs and Maud Creek

* In the first quarter of 2012, Crocodile Gold processed 371,000 tonnes of ore at an average grade of 0.99 grams per tonne of gold, with a 92% mill recovery, for gold production of 10,900 ounces

* Tonnes milled and recovery rates were above budget forecasts

Chantal Lavoie, President, CEO and Chairman of Crocodile Gold:

“The two mines will add meaningfully to Crocodile Gold’s near-term production as our Cosmo mine continues to ramp up to steady state. We also believe that significant synergies exist between the operations that should create additional value for Crocodile Gold and the shareholders.”

Rene Marion, President and CEO of Aurico Gold:

“We are pleased to have entered into this agreement with Crocodile Gold and look forward to becoming a shareholder of Crocodile Gold on closing…We see significant value in the combination of these Australian assets with Crocodile Gold’s portfolio.”