The contracted engineers produced three options regarding the processing infrastructure and also produced a scoping study with cost estimates.
The option that was selected for cost estimates was the reconstruction of the processing facility with the same configuration at a new location using a combination of refurbished existing major equipment and new structures, piping, electrical and services in a new location.
The cost estimate for the scope of work identified is $25.55 million ±30%.
The next step in the planning for reconstruction of the processing plant is to complete detailed design and cost estimation to an accuracy of ±10%.
Planning for this work is underway.
Work provides a clear path forward at Norseman
Pantoro’s managing director Paul Cmrlec said: “The outcome of this study provides Pantoro with a clear way forward for reconstruction of the Norseman processing facility.
“The large amount of existing infrastructure at the site provides a major reduction in capital costs for the project, and the review confirms our pre-acquisition cost assumptions.
“We look forward to commencing the definitive plant design and cost calculation in the new year.
“The project is advancing as expected as we progress towards re-commencement of production.”
Norseman acquisition to grow on Halls Creek operations
While Pantoro continues to profitably produce gold from its Halls Creek Project, it completed the acquisition of 50% of the Norseman Project in early July 2019.
Norseman contains JORC-compliance resources measuring 2.1 million ounces grading 15.3 g/t gold underground and 2.3 million ounces grading 2.34 g/t near the surface.
Pantoro has a two-pronged approach at Norseman, developing existing resources to a mine-ready status, and, exploring for new resources through drilling.
The mining centres to be targeted first for near-term development include:
- Gladstone/Everlasting (open pit);
- Maybelle (open pit);
- Scotia (open pit/underground);
- Princess Royal/Slippers (open pit);
- Cobbler (open pit); and
- OK (underground).