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Norseman Gold ahead of gold production targets, with exploration upside


In tandem with its ASX listing, gold producer Norseman Gold (ASX: NGX; AIM: NGL) has re-affirmed the company is on target to achieve production of 75 ‐ 80,000 oz gold for 12 months to June 2009.  This is expected to increase to 100,000 oz gold per annum.

The company's June 2009 Quarterly is due for release on approximately W/E 31st July 2009. Norseman is on target to achieve better than forecast recovered ounces for the quarter.

Norseman's resources base is increasing – "fill the mill strategy" is gaining momentum and resource upgrade drilling programs to commence for reserve calculations for the third mine.  There is upside potential as exploration intensifies of near mine resources to establish a THIRD MINE to take advantage of the under utilised treatment plant capacity.  Significant opportunities exist near to the treatment plant and mine infrastructure for the discovery of a new zone of mineralisation.

EBIT for July 2008 to March 2009 was A$14.6 million.  Cash operating costs are at A$693 per ounce - a reduction of 13% from 2008 financial year.  There is a JORC Ore Reserves & Resources at Norseman of 1.2 million tonnes at 8.2 g/t for 0.3 million contained oz Au and Resource of 21.0 million tonnes at 5.4 g/t for 3.6 million contained oz Au.

Norseman had cash A$20M at the end of the March 2009 quarter, debt free, un‐hedged and positive cashflow.

NGX trades on a forward PE of 2x, one of the cheapest on AIM and the ASX.

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