* Says to start production at Union Reefs mill on Tuesday
* Says on track to meet FY '10 and '11 production outlook
* Starts excavation at new Cosmo mine ahead of schedule
May 31 Canada's Crocodile Gold Corp CRK.TO
said commercial production at its Union Reefs mill in Australia
will begin on Tuesday, as target throughput, grades and
recoveries are now being met on a consistent basis.
Crocodile Gold, whose mines are located in the Northern
Territory of Australia, has also commenced the portal
excavation ahead of schedule at its new Cosmo underground mine,
with production expected to begin in mid-2011.
"Due to its higher grade, production from Cosmo is expected
to assist in lowering the company's overall operating costs,"
Crocodile Gold said in a statement.
The company added it remained on track to produce 100,000
ounces of gold in 2010, increasing to 200,000 ounces in 2011.
Shares of the company closed at C$1.33 Friday on the
Toronto Stock Exchange.
(Reporting by Arnika Thakur in Bangalore; Editing by Aradhana