Overview
The Board has approved development of the Mount Morgan Mine
Project subject to funding. We're actively pursuing
funding support, and notwithstanding current uncertainties
in world financial markets, see opportunities to get the project
away soon.
Norton entered an agreement to purchase the project in January
2007 and completed the acquisition in November 2007.
Historically, Mount Morgan was in production from 1883 to
1981 and for a time was the largest gold mine in the world
- over 8 M oz of gold were produced from 41 M tonnes of ore.
Over the period 1981 to 1991, 28 M tonnes of tailings were
re-treated before operations were suspended due to low gold
prices and high cyanide costs. The Mount Morgan tenements
incorporate 30 mining leases of around 677.5 hectares.
Norton has completed a feasibility study which
has confirmed the technical and economic viability of establishing
a tailings re-treatment project processing 1 Mtpa of tailings
and mullock over 12 years. The concept involves development in two
stages:
- Stage 1: production of gold
to achieve sustainable operating cash flow in the shortest
practicable time for the least capital cost.
- Stage 2: production of gold,
copper and pyrite.
In support of the project we have dismantled and refurbished
the Kundana Plant at Paddington and will re-establish this
at Mount Morgan on project go-ahead.
Mineral Resource
A program covering the first three areas for exploitation
has defined a Mineral Resource of 4.0 Mt at 1.6g/t of gold
for 200,000 oz..
A follow up program is underway to better define
the best 8 M additional tonnes to support a 12-year operation.
We estimate there is a total of 12 Mt of tailings, 6 Mt of
slag, and a portion of the 93 Mt of mullock potentially
suitable for processing.
Production
Mount Morgan is planned to be producing 35,000 oz pa of
gold within 12 months of a go-ahead decision.
Future developments
Mount Morgan is a significant development project for Norton.
It is a show case of the company’s technical capability
to design, build and bring into operation a development project
while working effectively with key stakeholders in an environmentally
sensitive location.
Once Stage 1 is up and running the plan is to extend the project
to copper and pyrite (Stage 2).
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