Australia-focused Crocodile Gold Corp., which is in the middle of an unsolicited takeover offer, said Tuesday a new study estimates its Maud Creek Deposit holds inferred resources of 1,072,000 ounces of gold at 2.4 gram per ton.
The study also estimates Maud Creek holds 9,288,000 ounces at 3.1 grams per ton.
The high-grade mineralized zones located immediately below the existing oxide open pit indicates that for the first three years of mine production approximately 70,000 ounces per annum is achievable, with an average annual life of mine production of greater than 50,000 ounces per year, Crocodile said in a statement.
Late Monday Crocodile announced a so-called poison pill in response to an unsolicited takeover bid from Luxor Capital Group LP. Luxor's offer values Crocodile at about $173.7 million.
Crocodile said it took the action to ensure that it would have the opportunity to respond to and offer an alternative to the Luxor offer.
Besides Maud Creek, Crocodile also has interests in other Northern Australia prospects.