Navigator Resources Limited (ASX: NAV) has established itself as a mid-tier Western Australian gold producer following the commencement of gold production at its flagship 100%-owned Bronzewing operations in April 2010.
Navigator Resources' Share Purchase Plan to fund gold mines development
Navigator Resources' (ASX: NAV) shareholders will be offered a Share Purchase Plan to acquire $14,960 of Navigator shares (equivalent to 88,000 shares) at an issue price of 17 cents, without incurring brokerage or other transaction costs at a discount to the market price.
The company has re-established itself under managing director David Hatch, as a mid-tier gold producer during the nine months since the acquisition of the Bronzewing Gold Project in September 2009.
Following completion of fundraising activities in mid-December 2009, Navigator has successfully recommissioned the Bronzewing Gold Project and completed the production ramp up.
First gold was poured at the project on 21 April 2010.
Annualised production capacity will be around 100,000oz, operating initially for five years. EBITDA for this operation is A$185 million at an average gold price of A$1,250/oz.
In addition, the company has undertaken a trial mining and milling program at its Leonora Gold Project which it believes has added substantial value to the project and identified a potential second development path.
Both gold projects are well located with respect to regional infrastructure, being in the heart of the northeastern goldfields region of Western Australia. All required mining permits and granted mining leases are in place both at Bronzewing and Leonora.
The company’s medium term objective is to target 150,000oz pa of gold production from these two open pit projects.
David Hatch, managing director, said Navigator now wishes to aggressively fund and further progress its growth development plans by increasing the BGP Mine Life.
Navigator aims to increase BGP mine life from five to ten years. The company will, in the process, seek to discover higher grade, more profitable ore reserves within its highly prospective 1,000km2 tenement holding.
Navigator’s drill program at the Corboys prospect, north of the main Bronzewing mine, in January/February 2010 resulted in a significant 33% increase in the mineral resource to 184,000oz.
Included within the Corboys resource upgrade was a 73% increase in the Indicated category to 135,000oz of gold.
The Corboys ore reserve is being prepared at present, which is expected to result in an increase in mining inventory, thereby extending mine life at the BGP. These results will be released shortly.
The company has commenced new exploration activities on several high priority targets closer to the Bronzewing plant, which include RC drilling beneath high grade surface grab samples at Vulcan and soil sampling to define areas for follow up drilling at the Eagle prospect.
By undertaking the ore mining and processing trial at the company’s LGP, Navigator - under David Hatch has added value to this project.
The Bruno supergene ore from within the Cardinia system milled so far is demonstrating a 60% grade uplift from the initial modelled resource grade.
Navigator is now assessing development of the LGP from two perspectives, a 1.0Mtpa centralised processing facility as conceived in the Company’s PFS announced in March 2009 and a 0.5Mtpa purpose built processing facility located at Cardinia to treat exclusively Cardinia supergene ore.
It will also follow up at Kurrajong North prospect to drill test high grade near surface intercepts and follow up the company’s under-explored 10km southern strike extension of the Mertondale Shear.
Navigator also has an interest in assets in the East Kimberley region of WA, including the 100% owned Cummins Range Rare Earth Project.
