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 says talks with potential strategic partner ongoing
Norseman Gold (LON:NGL, ASX:NGL) said its negotiations with a potential strategic partner are ongoing and it will update investors on its operations and corporate restructuring “as soon as possible”.
Back in December, the group revealed that it was in negotiations with a potential strategic partner, which was looking to take an active role in the development of the group.
This potential partner has experience in operating at Norseman, particularly the Harlequin and Bullen mines, and understands the ore bodies and their potential.
Norseman’s main project is the Norseman mine in Western Australia. At the end of 2011, the company reported that it had reached the targeted hard rock ore at the North Royal open pit, enabling more ore to be added to the overall treatment plant feed.
This should result in an increase in the ounces produced as more tonnes will be able to be treated.
With a direct focus on cost, the company has decided to suspend mining at the OK Decline to reduce expenditure and focus on the areas of the mine that are performing and/or producing profitable ounces.
A detailed review of both the Bullen and Harlequin underground mines and how production and profitability at these mines can be improved is also ongoing with an update expected this year.
The progress report on the Bullen and Harlequin review will also include guidance on gold production for the full year.
At the end of January, the company requested and was granted a trading halt and later voluntary suspension on the Australian Stock Exchange (ASX), pending an update on its operations and corporate restructuring.
Following the trading halt announcement on January 30, shares in Norseman rallied from around 5.5 pence to Friday’s close of 7.08 pence. This morning, Norseman tacked on a further 4.5 percent to trade at 7.4 pence, valuing the group at £26.5 million.
