Pantoro Ltd (ASX:PNR) has received high-grade gold results in drilling of the Scotia, Daisy South and Gladstone-Everlasting prospects at Norseman Gold Project which indicate possible extensions to the deposits.
Best result at Scotia was 5 metres at 15.91 g/t from 54 metres with a best of 3 metres at 12.13 g/t from 59 metres at Daisy South and 7 metres at 8.67 g/t from 46 metres at Gladstone-Everlasting.
The company has completed around 23,000 metres of reverse circulation (RC) and diamond drilling since August 2019, returning a number of intersections that confirm thick high-grade mineralisation outside existing mineral resources.
Existing open pits at Gladstone and Scotia were mined at average grades of greater than 4.0 g/t historically and represent large-volume, high-grade surface mining opportunities with strong metrics relative to many peers within the Australian resource sector.
The mineral resource at Scotia is around 1-kilometre in length and the current estimate is 1.46 million tonnes at 4.84 g/t for 227,000 ounces.
Other strong results from the recent drilling include:
- 8.7 metres at 9.89 g/t from 115.9 metres;
- 2 metres at 10.62 g/t from 105 metres; and
- 2 metres at 6.55 g/t from 27 metres.
The highlight 5-metre intersection is 250 kilometres west of the current resource and may represent the discovery of a new high-grade parallel lode system, not previously identified by shallow sterilisation drilling.
Pantoro plans to conduct additional drilling to further define the structure.
Results from Daisy South
The mineral resource at the Daisy South deposit is currently estimated to contain about 140,000 tonnes at 3.48 g/t for 16,000 ounces.
New results indicate an extension to the lode system further north toward the previously mined Daisy pit.
The results are within an interpreted structural step north of the main Daisy South ore body and where drilling in January identified a large dilation returning 31 metres at 3.75 g/t and Pantoro believes there is potential to grow the existing resource.
Best results are:
- 4 metres at 4.32 g/t from 58 metres;
- 3 metres at 4.93 g/t from 56 metres; and
- 1-metre at 40.7 g/t from 63 metres.
At Everlasting deposit, the new results indicate a southern extension to mineralisation which has not been previously tested and these extensions remain open to the south.
Other encouraging results are 3 metres at 4.57 g/t from 58 metres and 7 metres at 3.08 g/t from 50 metres.
The current resource at Gladstone-Everlasting, which is around 7 kilometres east of the Norseman processing facility, is around 1.5 kilometres in length and is estimated to contain approximately 2.7 million tonnes at 2.9 g/t for 250,000 ounces.
There are five drill rigs in operation at Norseman - three on surface undertaking diamond and RC drilling programs focused on resource development; one undertaking exploration on Lake Cowan; and one underground at the OK mine.
These programs are expected to be completed during the March quarter with mineral resource estimates and ore reserve calculation to follow soon after.
Pantoro will then progress towards a development plan for the project with operations initially supporting annual production of around 100,000 ounces, expanding to 200,000 ounces during the following years once additional ore reserves are established.
Despite the gold price falling overnight, shares in the company are up more than 4% on the news to 9.5 cents.