March 22, 2010 / 1:19 PM / in 8 years

UPDATE 1-Crocodile Gold sees 2010 output of 120,000 ounces

* Sees 2010 capex of $56 million

* Says to focus on resource expansion in 2010

March 22 (Reuters) - Canada’s Crocodile Gold Corp CRK.TO forecast production of 120,000 ounces of gold in the Northern Territory of Australia in 2010 and said it had started an expanded exploration program.

Capital expenditure for 2010 is expected to be $56 million.

The company, which combined with Franc-Or Resources Corp last year, forecast its 2010 cash cost of production at $650 per ounce.

Crocodile said its budget for the expanded exploration program, which will focus on resource expansion, was $23 million and that its long-term goal was to increase its resources to 10 million ounces of gold.

The company said it was currently extracting ore from its Howley open pit mine and its Brocks Creek underground mine. The mill at its Tom’s Gully mine, where development of access ramps is under way, is expected to restart in the third quarter.

Shares of the Montreal-based company, which have risen 8 percent in the past three months, closed at C$1.70 Friday on the Toronto Stock Exchange. (Reporting by Abhiram Nandakumar in Bangalore; Editing by Mike Miller)

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