Pantoro Ltd (ASX:PNR) has updated the indicated and inferred resource at its Wagtail underground mine in Western Australia’s Kimberley region to 574,000 tonnes at 6.8 g/t gold for 126,000 ounces.
The maiden underground probable ore reserve is 62,000 ounces at an average grade of 5.4 g/t gold.
Pantoro’s mineral resource and ore reserve are made up of ore lodes from the Wagtail South, Wagtail North and Rowdies deposits.
READ: Pantoro extends gold mineralisation at Wagtail underground mine
The first ore development at Wagtail underground is expected early in the December 2018 quarter.
The ore reserve is to be accessed by decline development with portals in both the Wagtail North and Wagtail South open pits.
Pantoro is planning to commence from the Wagtail North Open pit, with development from the Wagtail South pit shortly afterwards.
Site work set to commence shortly
The company is currently awaiting the imminent final environmental approvals from the Department of Mines, Industry Regulation and Safety, with all other required approvals in place.
Work is planned to commence as soon as possible with all required equipment on site.
Installation of the ore sorter and associated infrastructure for the processing plant upgrade is nearing completion.
The ore sorter and all associated infrastructure are expected to be fully operational by the end of this month.
READ: Pantoro has consistent strong gold production in March quarter
The company produced a solid 13,385 ounces of gold in the March quarter from its 100% owned Nicolsons Gold Mine within the Halls Creek Project.
Pantoro managing director Paul Cmrlec said “The development of an underground mine at Wagtail has formed part of our long term growth strategy for the Nicolsons project for some time.
“While the current Mineral Resource and Ore Reserve is relatively modest, it displays many similarities to the pre-mining model at Nicolsons."
Ramping production to 80,000 - 100,000 ounces per annum run rate
Cmrlec added “Mining Wagtail in parallel with Nicolsons will allow optimisation of mill feed including the use of the ore sorter which is in the final stages of installation and commissioning.
“While the minor delays in approvals and finalisation of the ore sorting circuit are frustrating, the focus on ramping production to 80,000 - 100,000 ounces per annum run rate by the end of 2018 remains unchanged.”