Pantoro Ltd’s (ASX:PNR) operations at Halls Creek is continuing to deliver gold production and the recent Norseman acquisition is expected to provide a large scale platform for growth.
Norseman Gold Project
In May 2019, Pantoro revealed the acquisition of 50% of the Norseman Gold Project and that it would be the sole manager of the unincorporated joint venture.
Norseman brings a rich operating history with about six million ounces produced at an average grade of around 13 g/t gold.
Work commenced at Norseman rapidly after the transaction settled in July 2019, with drilling underway in the first week of August.
Outstanding drilling results
Drilling results from Pantoro’s first program at the historical Princess Royal/ Slippers area have demonstrated the quality of the open pit resources with outstanding results returned.
Ongoing drilling results from existing known resources are expected throughout the year.
Mine planning, ore reserve estimates and production re-commencement plans are expected to follow.
Halls Creek Project
At Halls Creek, the year has been challenging but rewarding with a number of significant advances made across the region’s projects.
A second underground mine was established at Wagtail North and is now delivering into the site production profile.
A small open pit cut back on Wagtail South was commenced ahead of future underground mining and ore sorting was successfully installed and commissioned.
The ore sorter has demonstrated successful upgrading of ore in line with expectation following laboratory test work.
Mining at Nicolsons underground was not without its challenges during the year which is reflected in the cost profile.
Key production and cost data from the operations during the past year
As is common in high-grade narrow vein mines, ore grades and volumes have been variable with some areas returning less gold than expected while other zones have exceeded expectations.
Pantoro continues to drill ahead of development in all of the mines at Halls Creek to ensure that planning can remain in front of mine development and outputs can be accurately predicted.
Ore reserves have been further advanced and now extend to the 1880 level, some 420 metres below surface.
Importantly, Pantoro’s finances are in good shape. The company is debt-free and had a cash and gold balance of $56 million at the end of the financial year.