By exercising the options, Cmrlec increases his total interest in Pantoro to 5.38 million shares.
Pantoro’s flagship asset is its 100% owned Halls Creek Project in Western Australia.
The project hosts the producing Nicolsons underground gold mine and the Rowdies and Wagtail open pits where mining has started recently.
Mining recently commenced at the Wagtail North and Rowdies pits.
Nicolsons Gold Mine
First production of gold was achieved in September 2015 and the production profile continues to grow as Nicolsons looks to become one of the lowest cost, highest grade underground gold mines in Australia.
The Nicolsons underground mine has consistently overcalled the reserve at an average of 186% on the first three levels mined.
Strong potential exists for continued Mineral Resource and Ore Reserve upgrades as mining and underground diamond drilling progresses into the deeper levels of mine.
An additional high grade lode, named the Darcy Lode was discovered and developed on three levels during the September quarter.
Recently commenced open pit mining activities have exposed high grade ore in the Wagtail North pit.
The current plan which includes mining of a Probable Ore Reserve of 96,500 tonnes at 5.55 g/t gold, will see mining undertaken over a nine month timeframe.
Open pit ore is planned to be blended with underground feed sources at Nicolsons for a period of 17 months, maximising ore availability and blending capability for the foreseeable future.
The exercise of options by Pantoro’s managing director provides the company with cash funding and shows that senior management believe in the company’s future.
With open pit mining now commenced, the ramp up to 50,000 ounces per annum of gold production by the March quarter of 2017 is well advanced.
Since obtaining final mining approvals for the open pits in September, Pantoro has rapidly engaged its open pit mining plan which will see substantial production benefits from November this year.
The recent grade control drilling within the Wagtail North and South Pit designs has confirmed the presence of very high grade ore zones.
Grade control drilling produced intersections of 6 metres at 26.15 g/t gold and grades up to 49.4 g/t gold.
These assays are rivalling the outstanding results often encountered underground at the Nicolsons mine.
This bodes well for further testing of depth extensions to these ore bodies and the possibility of defining another underground mine similar to Nicolsons.
The stock continues to have a strong trading year up 175% in 2016 to $0.175 per share.