Pantoro Ltd (ASX:PNR) is expected to produce about 4,000 to 4,500 ounces of gold per month from the Nicolsons Mine in Western Australia from September 2018 onwards.
A large proportion of the proven reserve lies in the upper levels of the southern Johnston Lode, where stoping has now commenced.
Development at Wagtail has continued to progress, with about 250 metres of development required to commence production on the first ore level.
READ: Pantoro delivers 20% increase in gold reserve, lays platform for continued growth at Nicolsons
Wagtail is expected to produce ore from development during the December 2018 quarter and is an important addition to the ore profile growth targeted by Pantoro.
The benefit of the ore sorting will be fully realised once ore delivered from Wagtail and Nicolsons to the ROM (run-of-mine) exceeds the mill capacity.
With both mines operating, production is scheduled to reach an annualised run rate of 80,000 ounces during the first half of calendar year 2019.
Operations update
Stoping operations at the Nicolsons Underground Mine during the quarter to date have resulted in lower gold production than scheduled, primarily due to the transition from one stoping method to another.
While mine schedules have generally been achieved in terms of tonnes mined, total gold extracted from the mine has been below expectation due to the dilution issues during the transition.
READ: Pantoro high-grade drill results bode well for mine life extension
A total of 3,225 gold ounces was produced in July, with a similar production now expected during August.
Production for the September quarter is expected to be 10,000 to 11,000 ounces.