Tulla Resources Plc (ASX:TUL) recently marked an important milestone by starting construction of a processing plant at the iconic Norseman Gold Project (50% Tulla) near the town of Norseman in the Goldfields of Western Australia.
The other 50% in the project is held by Pantoro Ltd (ASX:PNR) via a farm-in and joint venture agreement signed in 2019.
The Norseman Gold Project comprises 148 near continuous mining tenements (including pending applications) over ~70 kilometres of strike covering about 750 square kilometres.
Norseman has produced more than 5.5 million ounces of gold since 1935 and is considered one of the highest-grade large-scale gold projects in Western Australia.
The current attributable Mineral Resource is 21 million tonnes at 3.4 g/t for 2.3 million ounces with an attributable ore reserve of 357,000 ounces (50% basis) with the majority of resources on granted mining leases.
Many of the Mineral Resources defined to date remain open along strike and at depth, and many of the resources have only been tested to shallow depths.
In addition, there are numerous anomalies and mineralisation occurrences that are yet to be tested adequately to be placed into resources, with a number of highly prospective targets already identified.
The project is serviced by existing infrastructure supported by the local Shire and State infrastructure, although the existing processing plant will be replaced by the new 1 mtpa (million tonnes per annum) carbon in leach processing plant prior to the recommencement of production.
The Norseman Gold Project boasts a high-grade mineral endowment across its prospective mining tenements.
Construction of the new carbon in leach processing plant has commenced with the following highlights:
- The old processing plant demolition and site clean-up has been completed with the site prepared for immediate construction
- Processing plant constructor GR Engineering Services has substantially mobilised to site with work underway
- The new Co-Living village in Norseman owned and operated by Resource Accommodation Management Pty Ltd is operational with construction personnel being accommodated in the new facility
- About 65,000 tonnes of gold-bearing ore was recovered from the foundations of the old processing plant and is on the ROM for processing
A definitive feasibility study (DFS) for the Norseman Gold Project was released by Pantoro in October 2020 underpinned by an initial 7-year phase 1 project life.
The project has a phase 1 mine plan of 610,000 ounces gold from 5.9 million tonnes at 3.2 g/t (580,000 ounces after metallurgical recovery of 95%).
Notable, only less than 30% of the in-situ global resource was considered in the initial life of mine (LOM) with a Mineral Resource to Ore Reserve conversion cost of $22.53 per ounce.
The JV’s strategy is to double Ore Reserves to ~1.2 million ounces by June 30, 2022.
Annual production by source.
Phase 2 drilling is currently underway aiming to double ounces available for inclusion in the mine plan.
The Phase 2 drilling focusses on high-grade areas including:
- Scotia extensions – depth and strike extension to known mineralisation, plus development
- Green Lantern
- Mainfield – Main source of high-grade ore historically with mined grades and shallow depths by WA standards
- Additional options at Polar Bear and Buldania – potential for additional large open pits
Project development timeline.
Tulla’s Strategy
Tulla’s strategy is focused on bringing the Norseman Gold Project into production, and then acquiring other resource assets to provide commodity and geographical diversity.
