Pantoro Ltd (ASX:PNR, OTC:PNTOF) continues to improve gold production on a monthly and quarterly basis as the Norseman Project in Western Australia’s Goldfields approaches nameplate production levels.
During December monthly production improved to 6,113 ounces, up from 5,865 ounces in November, despite a number of challenges with COVID-19 cases and personnel attendance around the festive season.
This took gold production for the December quarter to 18,185 ounces, representing a 275% increase since the first quarter of 2023 when 6,631 ounces were produced.
Quarterly production to June 30, 2023, was 10,345 ounces and to September 30, 2023, was 13,145 ounces.
Balance sheet strengthened
The company sold 18,074 ounces at an average gold price of $3,054 during the quarter and, importantly, remains unhedged with full exposure to the strong gold price.
As well as these sales, Pantoro has strengthened its balance sheet significantly through the sale of lithium and base metal rights with $49.7 million in cash and gold at the end of the quarter.
Managing director Paul Cmrlec said, “We are pleased with the progress that the Norseman Project is now making.”
More improvements expected
Further improvements are expected as open pit ore availability continues to improve substantially with stripping ratios continuing to decrease in both the Scotia and Green Lantern open pits. There are large ore stockpiles available at Scotia for haulage to the processing plant.
"Importantly, we are seeing expected grades in the Scotia open pit now that it is advancing beneath the old voids,” Cmrlec said.
"Access to this area should see production and cash flow meet expectations and place Pantoro in a strong position for the coming year.”
Flexibility continues to improve at the OK Underground operation with high-grade development achieved during the quarter in the Star of Erin and O2 orebodies.
Processing successes
The processing plant at Norseman continues to operate above nameplate capacity with quarterly throughput of 271,893 tonnes at 2.24 g/t and 92.8% recovery.
Grades are expected to continue to increase as the Scotia open pit depth increases during 2024.