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.
The Nicolsons site has a track record of positive reconciliations, and the company is confident that it will see substantial increases in the Wagtail ore reserve as development proceeds.
This has been the case at Nicolsons underground mine, and in the Wagtail open pits. The company has reported many very high grade drilling results from Wagtail including:
• 2.34 metres at 63.12 g/t gold, including 0.9 metres at 83.65 g/t gold;
• 1.75 metres at 20.19 g/t gold, including 0.98 metres at 34.4 g/t gold;
• 0.8 metres at 17.51 g/t gold;
• 1 metres at 18.51 g/t gold;
• 1.05 metres at 14.77 g/t gold; and
• 0.6 metres at 22.30 g/t gold.
These results suggest that some zones of very high grade mineralisation will be encountered underground.
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 commencing from the Wagtail North Open pit, with development from the Wagtail South pit shortly afterward.
Site work has commenced
The company has now received final environmental approvals from the Department of Mines, Industry Regulation and Safety, with all other required approvals in place.
Work has commenced to support the open pit walls in the area around the underground decline portal locations. The company will commence development once the support works are completed.
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.
“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.”