Pantoro Ltd (ASX:PNR) is progressing construction of the gold processing plant at its jointly-owned Norseman Gold Project (Pantoro 50%) in WA’s Eastern Goldfields.
Earth works, concrete and tank construction were well advanced by the end of the December 2021 quarter, with the construction crew taking a two week break during the Christmas/New Year period.
Site works recommenced on January 5, 2022.
Mining works to commence in May 2022
Site works within both the processing plant and broader project areas are progressing in accordance with the project schedule, with first production expected in Q3 of calendar year 2022.
Open pit and underground mining tenders were sought during the quarter with strong interest from multiple contractors.
Tenders were received at the end of December 2021, and award of both contracts is planned in the March 2022 quarter with mining works to commence in May 2022.
Exploration and resource drilling
Pantoro has continued drilling at Norseman utilising five rigs throughout the December 2021 quarter.
The majority of the work has been concentrated on the Scotia Mining Centre ahead of planned mineral resource and ore reserve updates later in the March 2022 quarter.
Drilling in the area was focused on Scotia Deeps and the Green Lantern Deposit.
Some of the better drill results reported during the quarter included:
- 4 metres at 25.32 g/t gold from 203 metres;
- 2 metres at 7.16 g/t gold from 146 metres;
- 2 metres at 8.99 g/t gold from 258 metres; and
- 1.3 metres at 14.09 g/t gold from 396.7 metres.
Drill results from both Green Lantern and Scotia have resulted in ongoing extensions to the limit of known mineralisation, and as a result drilling will be ongoing during the upcoming quarter.
Lithium development partnership
Last month, Pantoro entered a binding term sheet for a lithium development partnership with Mineral Resources Ltd (ASX:MIN) and Tulla Resources Plc (ASX:TUL), to explore and develop lithium deposits across the Norseman Gold Project.
As part of the deal, Mineral Resources will front exploration costs on Norseman's Buldania lithium tenements and can earn up to 65% of the project's lithium rights if it funds the project up until first production.
Mineral Resources is a leader in the construction and operation of hard rock lithium mines in Western Australia, and brings technical, operational and financial experience to the Norseman joint venture and the Pantoro-Tulla team.
The agreement is effective across the Norseman Gold project tenure, and Pantoro expects that Mineral Resources will commence drilling of lithium targets during the March 2022 quarter.