Pantoro (ASX:PNR) has significantly upgraded its JORC Mineral Resources and Ore Reserves at its Nicolsons gold mine within its 100% owned Halls Creek Project in Western Australia.
Resources have been updated in the Nicolsons, Wagtail, and Rowdies deposits and the total combined resource now stands at 1.58 million tonnes at 7.43 g/t for 376,701 ounces of gold.
The total Ore Reserve now stands at 773,252 tonnes at 7.35 g/t for 182,823 ounces of gold, a 62% increase after mining depletion.
Paul Cmrlec, managing director, commented: “Pantoro commenced gold production at Nicolsons less than two years ago.
“Since that time, we have undertaken major production increases and expanded exploration efforts using cashflow generated from the operation.”
Nicolsons JORC upgrade
The new Mineral Resource and Ore Reserve update is calculated as at the 30 April 2017 and replaces the 30 May 2016 estimate.
The Ore Reserve provides a base case life of circa four years, with excellent potential for further increases through drilling and mine development.
Mineralisation remains open at depth in all lodes currently being mined at Nicolsons and Wagtail.
Ongoing drilling programs are continuing aimed at establishing additional Ore Reserve increases in the near term.
When taking total mining depletion of circa 74,000 ounces gold into account, the total known gold endowment for the project is over 451,000 ounces.
Early ore mining on the first two levels in the southern Johnston Lode has already resulted in development of high grade ore from outside of the new Mineral Resource and Ore Reserve.
The results to date suggest that further upgrades, similar to those seen in early development of the northern Hall and Anderson Lodes may eventuate.
Accelerated exploration
The Pantoro board has also approved acceleration of exploration activities across the project areas with additional drilling from both surface and underground.
Exploration activities in the coming year will include increased drilling activity, extensive geochemical sampling programs, and geophysical surveys to identify additional targets across the company’s tenements.
Analysis
The resource and reserve upgrades have shown the potential the Nicolsons gold mine has to prolong its mine life, which in turn increases its value.
Both Nicolsons and Wagtail have consistently outperformed the previous Ore Reserve estimates and Pantoro continues to encounter high grade mineralisation at Nicolsons and Wagtail.
This Mineral Resource and Ore Reserve upgrade has produced a substantial mine life extension and exploration results during the past year have revealed the potential of this project.
Pantoro continues to believe that it has only scratched the surface at Halls Creek with plenty of upside to come.
The approved acceleration of exploration activity will support the company as it continues to seek and define Western Australia’s next major gold mining camp.
Pantoro will continue to aggressively explore with the clear intention to facilitate further production increases through Ore Reserve growth in the near term.
Shares in Pantoro have more than doubled over the past 12 months, currently priced at $0.232.