Pantoro Ltd (ASX:PNR)'s latest update to mineral resources and ore reserves at Green Lantern deposit, part of the Scotia Mining Centre, represents the opportunity to increase mine life at the Norseman Project.
The update is informed by the additional 18,898 metres of drilling the company has completed recently, taking the total to 56,450 metres of drilling at the project.
Highlights
The Green Lantern mineral resource now stands at 10 million tonnes at 1.2 g/t gold for 395,000 ounces with 76% in the indicated category.
Some of the drill results included in the mineral resource include, among many others:
- 38 metres at 5.85 g/t gold from 134 metres;
- 11 metres at 15.23 g/t from 259 metres;
- 4 metres at 13.32 g/t from 100 metres;
- 10 metres at 3.33 g/t from 158 metres; and
- 5 metres at 9.1 g/t from 92 metres.
This resource update represents a 27% increase – 83,000 ounces – inclusive of a 68% increase in indicated material.
Reserves increase
The total Scotia Mining Centre mineral resource is now 1 million ounces while the updated ore reserve for Green Lantern stands at 4.3 million tonnes at 1.3 g/t gold for 185,000 ounces at a 0.89 g/t gold cut-off grade.
The current pits have been reviewed using actual contract mining and other costs to account for current industry-wide cost escalations.
Green Lantern adds 24% to the Norseman Project ore reserve, which substantially increases the mine life. The Green Lantern open pit has a strike length of about 1,150 metres and a stripping ratio of 8:1.
Pantoro has calculated that its discovery and delineation cost is roughly $12.86 per ounce from 56,450 metres of drilling.
"Long-term ore source"
Managing director Paul Cmrlec said: “This latest upgrade to the Green Lantern deposit cements the Scotia Mining Centre as a long-term ore source for the Norseman Project.
“The Scotia Mining Centre mineral resource now stands at one million ounces and the ore reserve stands at 535,000 ounces.
“Mineralisation remains open both along strike and at depth and Pantoro is confident that the ore reserve will continue to grow with additional work in the future.
“Mining is underway in both the Green Lantern and Scotia open pits ahead of first gold production later this quarter.”
No sign of an end to strike
Green Lantern is around 270 metres to the southeast of the Scotia Open Pit, and is open at depth and along strike to the south – the company sees no evidence that the system is weakening along strike at the southernmost drill line.
Ongoing drilling has continued to increase resource confidence infilling multiple lodes and refine understanding of the controls on mineralisation.
The updated Green Lantern block model was used in conjunction with updated costs using the current contract rates and diesel price to confirm open pit economics.
Additional delineation drilling to expand the mineral resource along strike and at depth will continue.