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Company Statement
Norseman Gold Plc operates Australia’s longest continuously running gold mining operation, which has produced over 5.5 million ounces of gold over a period of more than 65 years from the Norseman field in Western Australia.
In addition to the two producing high-grade underground gold mines and lower-grade open pit stockpiles, the Company has a portfolio of highly perspective, advanced exploration targets to support continued future production. The Company has a strong management team with extensive experience in the resource, as well as considerable knowledge in corporate and strategic planning, acquisitions and finance.
Current Operations
The Norseman Project
Overview
The Norseman Project, located 725 km east of Perth, Western Australia, is Australia’s longest continuously running gold mining operation. Gold was first found on the Norseman field in 1894 and over the last 65 years it has produced over 5.5 million ounces of gold. The mine is producing at a rate of around 80,000 ounces per annum, sourced from two high-grade narrow-vein underground mines - the Bullen and the Harlequin. Currently, it has a total resource inventory of 2.1 million tonnes at a grade of 5.4 g/t gold for 3.6 million ounces, with a reserve inventory of 1.2 million tonnes at a grade of 8.2 g/t gold for 310,000 ounces.
The exploration potential of the Central Norseman area is considered good at both the Brownfield and Greenfield level, with targets identified both along strike and at depth of the existing mines as well as advanced targets located close to infrastructure that have the potential to become future ore sources.
The tenements cover a 745 sq km area centred on the Norseman Township. The landholding comprises 179 contiguous tenements consisting of 13 Exploration Licences, 106 Mining Licences, 45 Prospecting Licences, 15 Miscellaneous Licences and 29 Mining Lease Applications.
The Norseman Project contains key strategic infrastructure including a 700,000 tonnes per annum CIL treatment plant, administration offices and housing. The operations are well serviced with power, water and access via the sealed Kalgoorlie-Esperance Highway. The operation has approximately 200 employees and contractors.
The Company’s strategy is focused on extending the mine life through the conversion of resources into reserves and identifying additional resources. Management aims to increase the reserves at the mine through exploration drilling from the current level of 310,000 ounces to 500,000 to 750,000 ounces within the next two years, thereby providing a mine life of approximately five years. Thereafter, the Company will be seeking to expand the mine life to 10 years.
Resources and reserves
The total resource reported is 14.7 million tonnes at an average grade of 4.1g/t Au for 1.9 million ounces of contained gold, which includes 5.6 million tonnes at an average grade of 1.3g/t Au of Measured Resource, 4.9 million tonnes at an average grade of 6.8g/t Au of Indicated Resource and 4.1 million tonnes at an average grade of 4.5g/t Au of Inferred Resource. This resource figure includes stockpiles which contribute 0.3 million tonnes at an average grade of 1.7g/t Au of Measured Resource.
The total resource is comprised of 34 deposits plus the stockpiles. The most significant underground deposits, in terms of contribution to the Ore Reserves, are located in the Main Fields and the Harlequin regions of the mining camp. The Main Fields region deposits can potentially be accessed from the Bullen decline. The Harlequin decline provides access to the Harlequin deposits. In total, six underground deposits and six surface deposits contribute to the Ore Reserve.
Harlequin region
The Harlequin mineralisation can be broadly grouped based on the host rock and mineralisation style. Mineralisation is either associated with structures passing through granodiorites/porphyry/basalt contact, for example the HV6, HV5A, and Salamander Reefs, hosted within coarse grained gabbroic host rocks, as is the case with the HV1 and HV1 East Reefs, or localised at the intersection of large NNE structures and shallow dipping tensional veins (HV5F and HV5B).
Main fields region
The Main Fields region encompasses the Bullen, St Patricks, Norseman, Mararoa, O’Brien and Crown (Regent) deposits. St Patricks and Norseman are the most significant contributors of these deposits to the reserve base.
Gold mineralisation in the Main Fields region is typically hosted within narrow vein quartz reefs. The Mararoa and Crown Reefs, that have historically hosted the bulk of the mineralisation, strike north-south and northeast-southwest respectively. The Norseman Reef is also hosted by a major north south striking structure, however, is less mineralised than Mararoa and Crown Reefs. All three reefs dip towards the east.
East west striking structures or ‘cross link’ structures have also been found to host quartz reefs and gold mineralisation. The Bullen Reef (including Bullen West) is hosted in a cross link structure between the Crown and Mararoa Reefs and dips towards the south. The St Patricks Reef is hosted in a cross link structure between the Mararoa and Norseman Reefs and dips towards the south. The O’Brien Reef is hosted in a north south striking and east dipping structure between the Crown and Mararoa Reefs.
Exploration potential
Very good exploration potential has been identified both along strike and at depth of the existing mines and there are advanced targets located close to infrastructure that have the potential to become future ore sources.
The Company’s exploration programme is focused on the Main Field orebodies and the Harlequin orebodies, while at the same time undertaking resource drilling on development projects such as Harlequin South, Scotia Underground and North Royal to add overall mine life. In addition, a regional exploration programme will be undertaken to generate new targets and find new ore sources to add to the mine life.
Geographical Spread
All licences are centred around the town of Norseman, Western Australia. Norseman is the main town of the Shire of Dundas, which covers an area of some 93,000 sq km. While the main industry is gold mining, there are also vast sheep properties and the shire also boasts the largest semi arid woodland in the world.
Board of Directors and Key Management
| The Board | |
| Vincent Pendal | Chairman |
| Barry Cahill | Chief Executive Officer |
| David Steinepreis | Executive Director |
| Michael de Villiers | Non-Executive Director |
| Gary Steinepreis | Finance Director |
| Key management | |
| Russell McBeath | Principal Mining Engineer |
| Kelvin May | General Manager - Finance |
| Corey Doust | Manager Mining |
| Michael Reed | Resident Manager |
| Damien Taplin | Mill Superintendent |
| David Thomas | Exploration Manager |
Company AddressLevel 1, 33 Ord Street
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Additional Address/Key ContactNorseman Gold Plc |
CapitalTotal issued share capital; 151,860,000
|
Year End30 June |
Nominated BrokersJoint Broker: | Nominated AdvisorsBlue Oar Plc |
Major Shareholders
| Name | No. of ordinary shares | Percentage |
| JP Morgan Asset Management (UK) Limited | 16,765,133 | 11.04% |
| Ocean Equities Limited | 3,050,000 | 3% |
| UBS Global Asset Management | 4,803,635 | 3.29% |
| Argos Greater Europe Fund | 3,200,000 | 4.01% |
| SVM Asset Management Limited | 7,448,000 | 4.9% |
| Globersel BCM Multi Asset Class | 4,125,000 | 5.17% |
| Majedie Asset Management Limited | 10,250,000 | 7.02% |
| Sprott Asset Managementl | 14,250,000 | 9.4% |
Related News
06/08/09 - Norseman Gold Announces Record Production Rates And Record Low Costs, For The Third Quarter In A Row22/04/09 - What’s Driving Norseman Gold’s Share Price?
04/03/09 - Norseman Gold Sees Blue Skies Ahead With Its Finances Sorted And Production Costs On The Way Down
22/09/08 - Cast Prejudice Out Of The Window And Take A Close Look At Norseman Gold
14/05/08 - Love It Or Hate It, Norseman Gold Will Soon Be Producing Over 100,000 Ounces Per Year
19/03/08 - Norseman Gold Has To Rid Itself Of All Memories Of The Past And Avoid Future Blips
Most Recent Statement
10/03/10 - Operations Update - March 201024/02/10 - Interim Report for the half year ended 31 December 2009
28/01/10 - 31 December 2009 Quarterly Report
28/01/10 - Director/PDMR Shareholding
29/10/09 - OK Decline Approval and Exploration Update
25/09/09 - Operations Update