Pantoro Ltd (ASX:PNR) has achieved full year gold production of 52,203 ounces at the Nicolsons mine, within its targeted range of 50,000 – 55,000 ounces.
Nicolsons is located within the company’s multi-faceted Halls Creek Project in the Kimberley Region of Western Australia.
The Nicolsons processing plant continued to operate reliably with 54,998 tonnes processed during the quarter at an average recovery of 92%.
Processed tonnes were slightly below the previous quarter due to minor delays associated with tie in of the new ore sorter and crushing circuit.
The minimal disruption was an excellent result considering the magnitude of the upgrade.
Notably, Pantoro held $14.9 million in cash and gold at the end of the quarter following the final debt repayment early in April.
The Nicolsons operation is well positioned to substantially grow Pantoro’s cash position now that several major projects and their associated expenditure requirements have been completed.
Installation and commissioning of the Steinert ore sorter was completed during June.
READ: Pantoro commissions new equipment to step up gold production at Nicolsons
The ore sorter will be the primary facilitator of continued production increases during the coming year.
Pantoro is expected to realise the full benefit from the ore sorter as ore development and production from the Wagtail underground mine ramps up.
READ: Pantoro high-grade drill results bode well for mine life extension
Wagtail development is progressing well in accordance with the site plan. The first substantial ore development is expected during the December 2018 quarter.
Importantly, a combination of Wagtail ore with the existing Nicolsons feed is expected to result in the ore sorter and processing plant being fully utilised by the end of the year.
In May 2018, Pantoro reported the maiden underground indicated and inferred resource of 126,000 gold ounces and a probable ore reserve of 62,000 gold ounces at Wagtail.
READ: Pantoro has an upgraded gold resource as it prepares to ramp up mining and production
An annual resource and ore reserve update for Nicolsons is expected to be completed during the coming weeks.
Managing Director Paul Cmrlec said “The June 2018 quarter was a defining period in the preparation for continued growth at Nicolsons.
“The operations team achieved an excellent outcome in delivering several major capital projects while maintaining production at the mine.
“The project’s undertaken are key to our growth plans, and we look forward to delivering production rates of 80,000 to 100,000 ounces per annum in the near term.”