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AUSTRALIAN GOLD REVIEW

Norseman gets market backing

by Dominic Piper

antoro Ltd has clear sight on
Pfirst gold from its Norseman
project in Western Australia after
locking in an additional $45 million
of funding in March.
Pantoro completed the placement
to institutional investors in both
Australia and North America
and will now sink the funds into
development at Norseman where
first gold is targeted for August.
Managing director Paul Cmrlec
said the decision was based on
The 1 mtpa Norseman processing plant is expected to be
market uncertainty caused by geopolitics and the need to
commissioned in August
ensure Pantoro was covered through to production.
“We could see the potential volatility in the market with the
Ukraine conflict and it certainly proved the right time because and they started on the Tuesday. They were literally pouring
if we’d waited another week, it could’ve been a different concrete as the tanks were arriving on site.”
outcome,” Cmrlec told GMJ. With labour problems as rampant as Omicron, Pantoro
From an internal perspective, the additional cash will ensure chose to stay local on the mining contractors, appointing
the company is comfortable through to commissioning of the Hampton Mining and Civil Services for the open pit and
$89 million project. WestAuz Mining for underground services.
“We had got to a point where it would be tight by the end “When we were looking at mining contractors, a big part
of construction, so we had to make sure we had enough of the consideration was their ability to manage open pit
liquidity, especially with COVID in Western Australia and in and underground mining,” Cmrlec said. “That is why we
the shortages in labour,” Cmrlec added. “It also ensures we have gone for two smaller, local contractors because both
have capacity to invest in growth at Norseman and the PGE have got tight, long-term crews. The ability to meet labour
discovery at Halls Creek. requirements is much more of a driver than a few years ago
“The market really dislikes companies raising a little bit and when it was just about price.”
then going back for a little bit more a few months later. So, Norseman is projected to produce 110,000 ozpa for the
we raised enough to put that question away.” first seven years of operation from three mines; OK Mine,
The capital raising is certainly no emergency funding Gladstone and Scotia. However, the company is positioning
with construction at Norseman adhering to budgets and itself to deliver a much longer production profile.
schedules. Cmrlec praised EPC contractor GR Engineering “Under the original schedule we were due to wind exploration
Services Ltd for its delivery of the 1 mtpa CIL plant on time and growth back but the capital raising will allow us to keep
so far. rolling through the first year of production and we believe
“Once we were pretty confident approvals were just a we can grow the reserve in the next 12-18 months,” Cmrlec
few months away, we got GR Engineering to start the said. “We are taking large inferred areas and putting them
procurement process, not just the long-lead items but all into reserve. Norseman has never seen that before. Our
construction requirements,” Cmrlec explained. “GR are a 600,000oz maiden reserve is the biggest Norseman has
really impressive organisation and their ability to execute ever had; previously it had always been drilled to keep just a
is second-to-none. We received approvals on the Friday, few years of mine life.”

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