www.norsemangold.com
Norseman Gold plc is an AIM and ASX listed gold production and exploration company. Its key asset is the Norseman Project, which lies at the southern extent of the Norseman-Wiluna Greenstone Belt in the Eastern Gold fi elds Province of the Yilgarn Block, Western Australia. The Norseman Project is operated and managed by resource specialist, Tulla Resources Group Pty Ltd, which is focussed on producing 100,000 ounces of gold per annum by 2014 and increasing the resource base, currently standing at 3.4 million ounces of gold at an average grade of 4.7g/t. A review of operations is currently underway aimed at maximising future production and reducing costs.
Norseman Gold: North Royal open pit remains key, says Ocean Equities
The next major catalyst for Australian gold miner Norseman Gold (LON:NGL, ASX:NGL) will be the December quarter's activities report, says Ocean Equities.
The 3 month report is due before the end of January next year and will show the company's production profile and operating cash flow following a sustained period of poor production performance and significant cash burn, said Ocean.
Norseman held its AGM today in Perth where all resolutions were passed, including the reappointment of David Steinepreis as a director, said Ocean.
The key to returning Norseman to profitability remains the North Royal open pit, it said, and this has continued to ramp up, produce broadly in line with schedule.
Ocean said the key points from the presentation at the meeting were that development at the open pit in Western Australia had continued with the following milestones achieved to date:
On November 8, first blast was achieved while first low grade ore was found on Thursday last week (December 1).
The first sizable blast showing low and high grade ore was on December 6 this year.
Heavy rain has affected operations in early December, said the research house and there is a backlog of assay results as Norseman continues to mine through the oxide and transition zones to hard rock.
Ocean also pointed out that underground production remained flat with the review ongoing and Norseman continued to be impacted by high staff turnover.
In October this year, the firm had told investors that operations at the North Royal open pit at its project in the Eastern Goldfields province of Western Australia had continued in line with expectations during the three months to the end of September in spite of time lost due to weather.
Gold production from the Norseman project during the quarter totalled 11,631 ounces – which was down 22 per cent on the previous quarter. The direct cash operating cost was A$1,591 per ounce of gold.
