Pantoro Ltd (ASX:PNR) continues to make strong progress with construction work at the Norseman Gold Project in Western Australia as it targets first gold production in August 2022.
The company has provided an operations update at Norseman in the WA Goldfields as well as its its Halls Creek operation in WA's north.
Construction advances
Construction works are advancing quickly at Norseman, in which PNR holds 50%, with the company remaining on track for first production in August 2022.
All equipment from international sources has been received and construction is advancing in line with the project schedule.
Hampton Mining & Civil Services has been selected as the preferred open pit mining contractor and WestAuz Mining as the preferred underground mining contractor.
Both contractors have been selected based on key criteria which includes recent experience in the style of mines to be operated at Norseman, ready access to key personnel already recruited, and agreement to commit new plant and equipment to the project.
The contracts are expected to be finalised in the coming weeks, with mobilisation to site planned in late March 2022.
Drone photography of the processing plant site, administration, workshop and stores buildings.
Drilling at Norseman has continued to focus on the Scotia Mining Centre where the company is preparing to upgrade mineral resources and ore reserves late in the current quarter.
Modelling work incorporating drill data generated in the last six months is also underway.
Lithium drilling
Pantoro has been advised by Mineral Resources Ltd (ASX:MIN) that drilling for lithium deposits is planned to start in early March 2022, with a 5,000 metre RC drill program to be undertaken.
COVID impacts at Halls Creek
Mining operations at Halls Creek continue to be impacted by the effects of the pandemic.
Staffing throughout the first half of the quarter has been substantially lower than projected, with a large portion of the underground workforce based in the Northern Territory, unable to enter Western Australia.
The tight labour market in WA has also impacted attraction of new operators to the site.
These low workforce levels have resulted in lower rates of capital development and production activities being completed in this period.
The Halls Creek operation is not expected to meet guidance for the quarter and Pantoro will not make further production projections until the labour situation is better understood when the borders reopen.
The planned Western Australian border reopening in March 2022 is expected to assist in bringing personnel back to normal rosters, and in addition Pantoro has initiated additional actions to attract new operators to the mine.
Wagtail South operations delayed
In addition to manning shortages, a planned ventilation raise bore from surface to the completed Wagtail South orebody access has been delayed due to the contractor failing to mobilise on time.
The delay was due critical equipment not being delivered from the eastern states due to the railway closure between eastern and Western Australia.
Mobilisation of the contractor is expected during March 2022. Development to the Wagtail South area has been completed, and access to the ore zone is continuing at a reduced rate.
Lamboo PGE drilling
An extensive drill program at the Lamboo PGE deposit is set to commence soon with drilling contractors confirmed and ready to mobilise once the wet season subsides.
Pantoro plans to complete 20,000 metres of drilling in its next campaign at Lamboo with a significant portion of the work expected to be completed in the current financial year.
Work completed to date has demonstrated widespread mineralisation from surface and the major upcoming program aims to identify mineralisation over the majority of the interpreted +20 kilometres of strike length of the system ahead of detailed infill drilling once the location of prospective ore zones is fully understood.
- By Duncan Bailey