www.navigatorresources.com.au
Navigator Resources Limited (ASX:NAV) is an emerging Perth-based gold producer with an objective of building value for shareholders and establishing a pipeline of advanced projects. The Company acquired the Bronzewing Gold Project in late 2009, and this Project recommenced production in April 2010. Navigator also continues to pursue development opportunities at the Leonora Gold Project by initially carrying out a trial mining program. The Company’s medium term objective is to target 150,000oz pa of gold production from these two open pit projects. The Company also maintains an interest in assets in the East Kimberley region, including the 100% owned Cummins Range Rare Earth Project.
Navigator Resources boosts cash flows from Bronzewing gold production, reduces debt
With 2,095 gold ounces sold at spot in the first week of December providing revenue of A$3 million, Navigator Resources (ASX:NAV) is well placed to use the very strong short term cashflows to reduce debt.
Navigator made an early loan repayment of $2 million to its debt provider, RMB, at the start of December, reducing outstanding debt to $13.2 million, with the company set to repay another $1 million before the end of 2010.
Since September 2010 the financial position of Navigator has strengthened substantially, with $19.3 million of total gold sales revenue during October and November, and with December sales, total gold revenue is $22.3 million so far during the December quarter.
Another big plus for the company is that increased production has not resulted in a cost blowout, with operational costs running on budget.
In addition to reducing interest payments, the early debt repayments have allowed the Navigator to renegotiate the number of options required to be paid to RMB under the original terms of the loan agreement from 23.4 million, as approved at the AGM, to 19.964 million, a reduction of almost 3.5 million options.
Navigator's cash balance will be boosted to $17.7 million from tomorrow, after the receipt of funds from the December spot gold sales, which excludes the $6.55 million of restricted cash dedicated to secure environmental bonds.
The open pit Bronzewing Gold Project is located in the Eastern Goldfields of Western Australia, with an open pit mine life of 5 years, with a JORC reserve of; 6.32Mt at 1.9g/t gold for 385,000 gold ounces, and a JORC resource of; 13.65Mt at 2.1g/t gold for 946,000 gold ounces.
The project is in the Yandal Greenstone Belt, which has produced approximately 10 million ounces of gold in the last 20 years, mainly from three mining centres – Bronzewing, Jundee and Darlot.
Navigator completed its purchase of the Bronzewing Project in September 2009 with re-commissioning of the processing plant taking place in April 2010, with the first gold poured on 21 April 2010.
