Pantoro Ltd earlier this week discussed strong high-grade gold results from its OK Underground Mine, part of the Norseman Gold Project in Western Australia.
Highlights
- Pantoro reported high-grade results from the OK Underground Mine drilling program.
- The program marks the first extensional drilling since the feasibility study.
- Results showed extensions at depth and along strike in both the Star of Erin and O2 lodes.
- The company expects further reserve growth at OK, which is now a long-term operation.
- Broader Norseman project activities include:
- High-grade mineralisation at Scotia being developed on multiple levels.
- Open pit mining resumed at Princess Royal.
- Rehabilitation and drilling started at Bullen — Norseman's historic top producer.
- Pantoro recently completed a 17-to-1 share consolidation, now with ~387 million shares on issue. The aim was to reduce price volatility and stabilise investor portfolios.
- The company remains focused on maintaining strong cash flow and aims to reach 200,000oz annual production.
High-grade mineralisation at depth
Pantoro said the new intercepts come from the first extensional drilling program since the project’s feasibility study. The results have confirmed high-grade mineralisation at depth and along strike in the Star of Erin and O2 lodes. It highlighted that OK has performed strongly since operations restarted and continues to show potential for long-term production.
The company told investors that the OK Mine began with a small reserve, but recent drilling has helped expand the resource base. It expects that growth to continue as drilling programs progress in 2024.
Full steam ahead at Norseman
Pantoro also provided an update on the wider Norseman operations. It said open pit mining resumed in March at Princess Royal and that development continues at Scotia, where multiple levels have been established into high-grade zones. In addition, the company has commenced rehabilitation of the Bullen decline and has started drilling underground in the Mainfield area, which was historically the largest producing zone at Norseman.
The company recently completed a 17-to-1 share consolidation to reduce the total shares on issue to approximately 387.00 million. It said the move was designed to reduce share price volatility and improve market stability.
Pantoro is targeting annual production of 200,000 ounces and aims to maintain positive cash flow across operations.
Read more: Pantoro uncovers more high-grade gold in OK Underground drilling campaign