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Paddington Gold Mine (100%)                  

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Location:

Product:

Mining method:


Treatment rate:


Processing:

Began operation:

Production:







~ 30 kilometres north of Kalgoorlie, Western Australia

Gold

Current:  open cut and underground mining


Nominal:  3.0 Mtpa 
Actual:       3.3 Mtpa since Norton ownership

Conventional carbon-in-pulp (CIP) circuit

1985

Current:    140,000 oz pa 


Paddington produces gold doré bars (~75% gold) for delivery to the refinery and sale into the bullion market.





Overview

Norton owns and operates the Paddington Gold Mine which produced 140,000 oz pa of gold from open cut and underground operations FY2010. Mine life is more than 10 years.

The acquisition of Bellamel Mining Limited in October 2008 added significant gold resources and early access to higher grade oxide ore.

Reserves and Resources

The Paddington geological database acquired by Norton included data from ~60,000 drill holes and appraisal work undertaken over more than 25 years. The project area of 1,100 square kilometres included 69 previously drilled deposits and more than 100 known ore bodies within a 30-kilometre radius of the Paddington mill.

Norton's review of the geological database and subsequent drilling and assessment identified 5.5 M oz of Mineral Resources including 1.20 M oz of Ore Reserves as at 30 June 2010 as defined under the JORC code. Paddington's remaining mine-life is now well in excess of ten years. The Life of Mine Plan as at July 2009 is available by clicking on the following link>Life of Mine Plan

In late 2008, Norton added the Kalgoorlie West tenements to its portfolio as part of the acquisition of Bellamel.

Since then, Paddington has completed a re-assessment and data validation program to re-calculate Bellamel Resource estimates based on Paddington resource modelling, and incorporating strong geological domaining as well as drawing on more than 20 years’ experience in developing and operating mines in the local area.

The Navajo Chief project in the Kalgoorlie West area will be our first development from the Bellamel tenements. We have advanced it to Reserve status and it will be developed in January 2010 to provide an additional feed source for the Paddington mill as part of our ramp up schedule.

Recent work has involved drilling of the Mount Pleasant and Kalgoorlie West areas, updating the Golden Cities and Kalgoorlie West deposits, and continuing to target near-mine, shallow, and oxide ore extensions to known mineralisation.

Paddington's Reserve and Resource position is updated progressively updated as assessments are completed.

Processing

The 3.3Mtpa Paddington mill, based on conventional carbon-in-pulp technology, is large, efficient, low cost and a strategic asset in the Goldfields.  Mill performance has been excellent since Norton took over with availability for the year better than planned.

The plant comprises a cone crusher, a ball and SAG mill grinding circuit, gravity recovery and cyanide leaching. Gold is extracted from slurry in the leaching circuit and onto activated carbon before pumping the carbon to an elution column to wash gold into a solution. The gold-bearing solution is then passed through a series of electro-winning cells that deposit the gold onto stainless steel cathodes. The cathodes are rinsed to yield a gold sludge that is dried then smelted into gold doré bars containing ~75% gold. The bars are sent to the mint for refining into gold bullion.

Production

Historical gold production is summarised below:


Ore treated (kt)
Grade (g/t)
Recovery (%)
Cash cost (A$ per oz)
Gold produced (koz)

1999
2,438
2.2
94
400
162
2000
1,619
2.7
94
352
132
2001
2,689
1.8
95
376
148
2002
3,192
2.3
95
383
225
2003
3,128
3.2
94
498
308
2004
3,029
2.6
94
478
244
2005
2,834
2.6
94
576
243
2006
3,001
2.9
94
501
259
2007
3,011
2.2
94
N/A
214
2008
3,135
1.5
92*
754
126
2009
3,208
1.4
91*
791
135
 

* lower recover reflects the successful carbonaceous trial

Note: Periods 2004 to 2008 represent calendar years. This includes a period of ownership by the Barrick Group. 2009 represents the financial year

Paddington No. 1 and No. 2 open cut pits were mined until 2002.  Exploration and acquisitions have underpinned the pipeline of mill feed since the original Paddington open cut was mined out in 2002. The Paddington open void cut now serves as an in-pit tailings storage facility with a capacity of over 20 years.

A merger with Delta Gold in 2001 gave several potential sources of mill feed, for example, the Red Hill deposit which was completed in June 2007. Prior to Norton's ownership, the Mount Pleasant and Ora Banda properties were acquired from the administrator of Centaur Mining Limited and the Golden Cities property was acquired from AMX. These projects are now being developed.

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