Pantoro (ASX:PNR) increased gold production by 12% in the September quarter to 13,282 ounces from the Nicolsons Mine within its 100% owned Halls Creek Gold Project, Western Australia.
Production at Nicolsons has increased in every quarter since the first gold pour in September 2015.
Significantly the Nicolsons processing plant has achieved a run rate of 230,000 tonnes per annum consistently for the past six months.
Drilling during the past quarter has been successful in extending mineralisation at the Nicolsons underground mine and at the Wagtail underground target.
The company ended the September quarter with $14.6 million in cash and gold after loan repayments.
Acquisition of Grants Creek Project
Subsequent to the end of the quarter, Pantoro reached an agreement to acquire the Grants Creek Project north of Halls Creek.
Grants Creek has been drilled a number of times during the 1980s, 1990s and 2000s with high-grade results similar to those seen at Nicolsons achieved in a number of programs.
Grants Creek effectively doubles the company’s landholding in the area and provides good near-term potential to provide supplementary ore feed for the Nicolsons processing plant.
Halls Creek Project
Pantoro has rapidly grown its production profile at Nicolsons, and is increasing its exploration effort in order to secure further growth.
The company is actively drilling depth extensions at Nicolsons, underground mining targets at Wagtail, and a number of regional exploration targets.
The company strategy is to continue profitable production while substantially growing the Ore Reserve to facilitate further growth at the operation.
Taking Wagtail open-pits underground
Both Wagtail North and Wagtail South were mined during the quarter and Pantoro plans complete the current phase of open pit mining in December 2017.
The development focus for Wagtail is now commencement of underground mining following completion of the open pits.
Drilling of underground targets is now being undertaken 24 hours per day with an objective to drill the zone between the base of the open pits and 200 metres below surface while completing open pit mining.
Papua New Guinea projects
In addition to the Halls Creek Project, Pantoro’s exploration portfolio in Papua New Guinea (PNG) is prospective for the discovery of world-class gold and copper deposits.
The 380 square kilometre Garaina Project is Pantoro’s main exploration target in PNG alongside the Widubosh Project, both located in the Morobe Province.
Pantoro has discovered a large surface copper and gold anomaly at the Garaina Prospect, which has been further delineated by geophysical surveys, grid-based geochemical assays, surface costean sampling and drilling.
The discovery has potential to be developed into a large-scale deposit through further exploration, however, Halls Creek remains as Pantoro’s sole focus at the present time.