Norseman Gold identifies new reef at Harlequin

Norseman Gold (ASX: NGX) released more upbeat news for investors - a new reef at (one of two operating gold mines) Harlequin has been identified with high grade gold intercepts received from underground drilling results.

The Norseman mine is producing at a rate of around 80,000 ounces per annum, sourced from two high-grade narrow-vein underground mines - the Harlequin and the Bullen.

The new reef is called the Perch Reef. The Perch Reef has developed in the footwall of Redfin and appears to strike alongside the plunge of the Redfin Reef. The development on the Redfin ‐280W Level has subsequently been extended to drive along the Perch Reef with a resultant payable zone in development of 30 metres of strike at an average reef width of 0.8m at an average grade of 145.8 g/t gold.

Resource diamond drilling was conducted to test the Redfin Reef when the new reef was encountered.  Further testing will be conducted to test the extent of both the Perch and the Redfin Reefs.

Better results into the Perch and Redfin Reef from the drilling were:

- 2.3m @ 350.7 g/t gold (uncut, 178.6 g/t cut) from 56.2m includes 0.3m @ 1,146.6 g/t gold (uncut) and
- 1.2m @ 7.6 g/t gold from 162.0m in drill‐hole HD1763
- 1.3m @ 284.8 g/t gold (uncut, 208.4 g/t cut) from 50.9m and
- 3.5m @ 1.9 g/t gold from 101.0m and
- 2.2m @ 25.2 g/t gold from 108.6m in drill‐hole HD1766
- 1.4m @ 72.8 g/t gold from 74.1m includes 0.5m @ 222.0 g/t gold in drill‐hole HD1770
- 0.3m @ 17.3 g/t gold from 110.6m in drill hole HD1797

Importantly, the new Perch Reef can potentially give the Harlequin Decline a complementary production source to the Redfin Reef which will allow the production from this mine to be further stabilised at present levels into the future.

At Norseman's second operating gold mine, diamond drilling was undertaken on the Norseman Reef and on large remnant pillars on the Mararoa Reef.

Better intersections received to date include:

- 9.8 m @ 1.8 g/t gold from 248.0m including
- 1.0m @ 8.2 g/t gold from 250.0m in drill‐hole BN609B
- 1.9m @ 15.3 g/t gold from 204.7m and
- 0.9m @ 11.2 g/t gold from 207.0m in drill‐hole BN610
- 1.5 m @ 18.2 g/t gold from 36.5m and
- 0.9m @ 6.3 g/t gold from 44.3m in drill‐hole BN618

There are assays pending on a number of completed holes at Bullen. The Company owned and operated underground diamond drill rigs are currently located at Harlequin Decline and OK Decline.

Norseman will acquire a third underground diamond drill rig and this unit is expected to be on site and operational at the Bullen Decline by late in the September quarter.

The company is aiming to bring a third mine into production to bring it currently operating 700,000 tonnes per annum CIL treatment plant, towards its capacity.

The exploration potential of the Central Norseman area is considered good at both the brownfield and greenfield level, with targets identified both along strike and at depth of the existing mines as well as advanced targets located close to infrastructure that have the potential to become future ore sources.

Exploration commenced with the drilling of targets within and around the OK Decline this quarter. The focus on improving the understanding of, and prioritising the next round of targets for resource drilling continued during the quarter particularly in the areas where drilling has commenced.

Drilling at prospects in the vicinity of the OK Decline, including OK West, Golden Goose and Royal Coachman all intersect Norseman style reef. The drilling at Golden Goose has identified an extensive new structure.

Approval for the extension of the dewatering licence to commence the dewatering at North Royal is imminent.