Pantoro Ltd (ASX:PNR) has received new high-grade drill results from the Rowdies deposit within the Halls Creek Gold Project in Western Australia.
Notably, the intersections which included 2.15 metres at 42.33 g/t gold, were drilled outside the recent Ore Reserve area for the Wagtail Mine.
This demonstrates strong potential for continued expansion of the deposit.
READ: Pantoro commissions new equipment to step up gold production at Nicolsons
Pantoro’s managing director Paul Cmrlec said: “These new results are a clear demonstration of the continuation of high grade mineralisation beyond the current Ore Reserve at Wagtail.
“The similarities to Nicolsons are compelling, and the actual scale of this deposit will be revealed as we access the first ore levels and deeper drilling platforms.
“As we said of the Nicolsons deposit several years ago, we believe that the drilling completed at Wagtail to date is accessing the tip of the iceberg.”
Current quarter production 10,600 to 11,400 ounces
Due to a number of factors, production during the current quarter is expected to be in the range of 10,600 to 11,400 ounces compared with 13,385 ounces in the previous quarter.
Production during the quarter has been affected by several short-term factors which are not expected to affect operations in subsequent quarters.
Pantoro will recover a portion of the production missed during April and May during June, however, the 13,000 ounces target for the quarter is unlikely to be met.
Full year production still within target range
Total production for the full year is expected to exceed 50,000 ounces and is within the target range set for the year.
Cmrlec added: “Whilst production during this quarter is slightly below our long-term plan, the site is in great shape with a large capital re-investment in the operation during the quarter set to deliver the production upgrades and unit cost reduction that we have planned for.
“Projects undertaken during the quarter include a major processing capacity increase through installation of the ore sorter, development of a new surface ventilation raisebore at Nicolsons, a major tailings facility lift and commencement of mining works at Wagtail.
Remain focused on attaining 80,000 to 100,000 ounces per annum
“All of these projects under-pin delivery of our overall development strategy during the coming quarters and we remain focused on attaining an 80,000 to 100,000 ounce per annum production rate by the end of 2018, with the first full period at the extended rate in the March 2019 quarter as previously advised.”