12th Jun 2007 08:30
Norseman Gold PLC12 June 2007 Norseman Gold plc / Epic: NGL / Index: AIM / Sector: Mining & Exploration 12 June 2007 Norseman Gold plc ("Norseman" or the "Company") Central Norseman Gold Mine Update Norseman Gold plc, the AIM listed Australian gold production company, is pleasedto announce that it has implemented an aggressive reorganisation programme atits recently acquired Central Norseman Gold Mine, Australia's longestcontinually running gold operation. Additionally, the Company is in the processof compiling an updated resource statement, which is expected to be completedand released to the market within the next two weeks. Production is currently sourced from two underground mines and processed througha carbon-in-leach processing plant with a capacity of approximately 700,000tonnes per annum ('tpa'). As part of its strategy to increase processingthrough the mill from the current rate of approximately 400,000 tpa to 600,000tpa, the Company has initiated exploration programmes to identify a third mineat Norseman, which is focused on its portfolio of advanced exploration targets.Drilling will be undertaken by outside contractors so as not to detract from dayto day operations. The Company will release the results of such drillingprogrammes to the market when they have been properly assessed and reviewed. The Company has also been successful in recruiting and expects that it will havea full complement of miners by the third week of June 2007. It hopes toannounce shortly the appointments of other key personnel including a chiefgeologist and senior mining engineer. Moreover, the mining fleet is beingupgraded and early indications are that no delays in delivery are to beexpected. Additionally, discussions have commenced with potential gas providers to replacethe Company's existing diesel power generation method with gas power generationsystems. This is expected to deliver significant cost benefits to Norseman.Furthermore, negotiations are in progress with the Company's major supplierswith a view to achieving more favourable terms of trade than those achievedwhile the mine was in administration under the previous owners. Going forward, it is the intention of the Company to release quarterly operatingstatements at the end of each July, October, January and April. Norsemancurrently expects that it will produce approximately 24,000 ounces of gold perquarter (circa 90,000-100,000 ounces of gold per annum) during the financialyear ending 30 June 2008. The final settlement of the acquisition of the Central Norseman Gold Mine fromthe administrators of Croesus Mining NL is scheduled to take place on 15 June2007 when the overlapping creditor refunds are due from the administrator. TheCompany has been in control of the operations of the mine since 1 May 2007. Norseman Executive Director David Steinepreis said, "Developments at Norsemanare going extremely well and the reorganisation programme is on schedule toraise throughput in the mine and subsequently increase gold production. We areactively looking to increase the mines long-term potential and throughexploration have already identified further areas to mine. These will be drilledas soon as possible. The release of the resource statement will hopefullyindicate to investors the huge potential at Norseman, which should reward themfor their investment." * * ENDS * * For further information visit www.norsemangoldplc.com or contact: David Steinepreis Norseman Gold Plc 07913 402727Olly Cairns Blue Oar Securities Plc 020 7448 4400Guy Wilkes Ocean Equities Ltd 020 7786 4370Hugo de Salis St Brides Media & Finance Ltd 020 7242 4477 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Norseman Gold