ASX-listed Pantoro has decided to accelerate the start of development of the Scotia underground mine at its Norseman project, in Western Australia.
Development of the underground mine is now expected to start early in the June quarter – about four months earlier than previously planned.
This follows the review of the company’s mining strategy, which determined that significant improvements to production and cost profile can be achieved through implementation of a revised plan, which involves the development of the underground at Scotia earlier than originally forecast.
Bringing forward underground development reduces site costs by removing further openpit high stripping ratio cutbacks, nearly halving monthly openpit movements. Projected project cash flow is also improved under the revised strategy.
A tender process for the Scotia underground mine is under way and Pantoro expects to award the mine development contract in March. Portal excavation is scheduled to start in April and ore development in July.
Production stoping is slated to start in the third quarter of this year, while steady-state output of about 450 000 t/y is expected to start in the first quarter of 2025.
Gold production at the Norseman project is expected to increase from 77 000 oz/y this year to 114 000 oz/y in 2028.