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.