www.norsemangold.com
Norseman Gold Plc operates Australia’s longest continuously running gold mining operation, which has produced over 5.5 million ounces of gold over a period of more than 65 years from the Norseman field in Western Australia.
In addition to the two producing high-grade underground gold mines, the Company has a portfolio of highly perspective, advanced exploration targets to support continued future production. The Company has a strong management team with extensive experience in the resource, as well as considerable knowledge in corporate and strategic planning, acquisitions and finance.
Norseman Gold leaves 2010/11 production guidance unchanged despite lower Bullen output
Norseman Gold (AIM, ASX: NGL) has revised its production guidance for the current year down to 65,000 from the previous targets of 75,000 to 80,000 oz as production from the Bullen Decline continued to disappoint, though the production forecast for the next financial year was left unchanged at between 105,000 and 110,000 oz (ounces).
Diamond drilling at the Bullen Decline has delineated less resources than expected with smaller than anticipated areas of high grade ore accessed. Norseman’s resources, personnel and equipment are currently being relocated to the Harlequin and Ok declines in an effort to maximize production. Bullen is unlikely to return to its full production profile before June 2010, while the Harlequin and OK declines have limited capacity to increase production to make up for the expected Bullen shortfall.
The first analysis of the Star of Erin orebody has been completed, giving it an initial reserve of 17,000 oz to up the total reserve at the OK Decline by 30%. Drilling into the orebody continues with more than 10,000 metres of drilling to be completed, which the company said will lead to the delineation of further resource.
The company currently has three operating mines: Bullen, Harlequin and the developing OK Decline, with two more potential mines being explored and developed to fulfil the company’s strategy to fill its treatment plant to capacity, which is currently 60% utilized.
The company has reported progress from its fourth potential mine, North Royal, where the first round drilling on the southern end of the pit has returned promising results particularly around a footwall structure with follow-up extensional and infill drilling will commence this month. Mining is expected to commence by the last quarter of the 2010 calendar year.
Surface drilling operations that have recently commenced at the fifth potential mine, Crown Reef, intersected a structure in the expected position in the initial drill holes with assay results currently pending.
The OK Decline is expected to ramp up to full production as the Bullen Decline production is set to recover, leading the company to leave its production guidance for the year commencing 1 July 2010 unchanged.
Recent drilling results from the Harlequin Decline included 1.9m at 22.3 g/t gold from 26.5m including 0.3 metres at 45.6 g/t (grammes per tonne) gold, 1.7 metres grading 9.7 g/t gold including 0.5 metres at 19.2 g/t gold and 1.6 metres at 37.3 g/t gold including 0.5 metres at 105.5 g/t gold and 1.3m at 4.1 g/t gold.
Results from drilling at the Bullen Decline included an intersection of 2.4 metres grading 10.3 g/t gold including 0.8 metres at 29.4 g/t gold. Diamond drilling at the OK Decline focused on Star of Erin included intersections of 0.9 metres at 42.6 g/t gold, 0.4 metres at 22.9 g/t gold and 1.7 metres at 7.8 g/t gold including 0.2 metres at 40.3 g/t gold and 1 metre at 30.2 g/t gold.
Resource and reserve analysis work has been completed on the current Star of Erin data and has resulted in an initial reserve of 110,000 tonnes at 4.8 g/t gold for 17,000 ounces of gold. This has resulted in the reserve at OK Decline being increased by over 30% to 75,000 ounces.
