Pantoro (ASX:PNR) produced 11,828 ounces of gold in the June quarter, up 14% on the March quarter and 77% on the previous June quarter.
Gold is being produced from both open pit and underground mining at Pantoro’s Nicolsons gold mine within the 100% owned Halls Creek Project located in Western Australia.
Significantly, the upgraded production output has been achieved from cash flow generated by the mine.
Paul Cmrlec, managing director, commented: “Operational results at Nicolsons continue to deliver in accordance with the production ramp up plan.
“Throughput in the mill is now at targeted levels, and both the underground and open pit mines are delivering high grade mill feed.”
June quarter highlights
During the June quarter, 11,828 ounces of gold were produced compared with 10,348 ounces in the prior March quarter, a 14% increase.
Tonnage processed for the period increased to 57,073 tonnes, surpassing the annualised run rate target of 200,000 tonnes per annum.
Based on current throughput, annualised processing rates of 230,000 tonnes per annum are now achievable.
Open pit production operated on day shift only for the period and production further increased with circa 26,174 tonnes mined at a grade of 4.85 g/t gold, plus 5,807 tonnes of low grade stockpiled separately.
Underground production of circa 35,145 tonnes mined at a grade of 7.98 g/t gold plus 5,301 tonnes of low grade stockpiled separately.
Initial ore development in the Johnston Lode from the south decline identified higher grades than anticipated in the resource model. A splay structure named the Bobby Lode was also identified and developed.
Surface stockpiles of ore continued to build with 19,969 tonnes at 5.05 g/t and a further 36,927 tonnes at 1.86 g/t of low grade material for a total of 56,896 tonnes at 2.98 g/t for 5,453 ounces of gold available for processing.
Analysis
Pantoro has entered the September quarter in a comfortable position having recently expanded the resource size and with cash and gold to the value of $11.9 million.
Furthermore, the recently upgraded JORC resource and reserve has provided security for investors in terms of mine life.
Pantoro plans to continue growing its gold inventory during the current financial year.
Ongoing exploration continues to extend the known mineralised zones at the project, and further rapid growth of the Mineral Resource and Ore Reserve is a priority for the company.
The board has approved increased drilling from underground and surface positions during the current financial year, with identification of potential underground ore sources at Wagtail being a priority,
Regional exploration is also advancing following the wet season with additional drill targets defined across tenements utilising geophysical data combined with field mapping and surface sampling.
Pantoro shares are up 35% year to date, currently priced $0.245.