Norseman Gold (LON:NGL) has announced an upgrade in both reserves and resources at it Western Australia mine.
And in a statement to investors, the company said it expects reserves and resources to continue to expand over the next 12 months.
It is the third consecutive year the company has increased the resource estimate for the Norseman Gold Project in the Eastern Goldfields and the second time reserves have gone up.
The Aim listed digger, which is also quoted on the Australian Stock Exchange, said its reserves increased by 5 per cent to 420,000 ounces of gold from 1.7 million tonnes at 7.7 grams of gold per tonne.
The resource base, meanwhile, creeps up 3 per cent to 3.8 million ounces of the precious metal from 21 million tonnes at 5.3 grams per tonne.
Of the total Reserves, 330,000 ounces of gold are located within the Bullen, Harlequin and OK declines.
The inclusion of ounces from the North Royal open pit optimisation should see the project grow further, while the results of drilling programme should also unearth more resources, the firm said.
A gold price of A$1,200 per ounce has been used to assess the economic viability of Norseman’s resource and reserve.