NORTON GOLD FIELDS LIMITED - ASX: NGF

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Description

Norton Gold Fields Limited produced a little over 140,000 oz of gold in FY2010 from its open cut and underground operations at Paddington near Kalgoorlie in Western Australia. The current mine life is in excess of 10 years. Development of the Mount Morgan Mine Project will increase gold production by 30,000 to 35,000 oz pa and diversify production. The project has all the requisite regulatory approvals and subject to suitable funding being arranged, can be in production within 12 months.

Paddington Gold Mine

Paddington Gold Mine is 100% owned and operated by Norton. Located 35km north west of Kalgoorlie, Western Australia. The operation produced a little over 140,000 oz of gold in FY2010. Ore is mined from various open cut mines and an underground mine, with all ore processed through the 3.3 Mtpa Paddington mill.

Mount Morgan Mine Project

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 acquired the project in late 2007, completed a detailed feasibility study, and has refurbished the Kundana plant for relocation to Mount Morgan in support of the project.

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 and 345 kt of copper. 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 and is wholly owned by Norton.

Norton Gold Mine (100%) and Many Peaks Copper Project (70%)

The Norton Gold Mine, located in the Boyne Valley, Central Queensland was first discovered and brought into operation in the late 1800s. Records indicate that 16,000 oz of gold were produced from underground workings in the years up to 1900. Open cut mining in the 1990s produced a further 1,285 ounces of gold.

orton reported in its 2005 Prospectus a total measured, indicated and inferred resource of 453,000 tonnes of ore grading 7.4 g/t for 107,000 oz of gold.

Ore from the Norton mine was toll treated at the Gympie plant from November 2005 until operations were suspended in October 2006 due to issues at the Gympie plant. The Gympie plant has since closed.

The Norton Gold Mine is prospective for reopening in circumstances where ore can be treated via the Mount Morgan process plant, subject to the approval of the Queensland Government, or via a tolling arrangement with a third party.

The Many Peaks Copper Project, located ~25 kilometres south of the Norton Gold Mine is a joint venture in which Norton holds a 70% interest. Many Peaks produced over 500,000 tonnes of copper ore from mining operations from the early 1900s. Many Peaks is an exploration project.

Mine For

gold, copper, pyrophylite

Location of operation(s)

Queensland, Western Australia

Address

Level 1, 79 Hope Street
BRISBANE, QLD, AUSTRALIA

Phone

(07) 3846 9200

Email

Website

http://www.nortongoldfields.com.au/

Last Updated

3/3/2011