announcement issued 35 mt pci grade coal, page-11

Here we are, from Jan - buy at 67c:

Norton Gold Fields Ltd NGF Wednesday, 16 January 2008

Deal of the century - two mills, reserves and gold price heading north

Recommendation Speculative Buy

Overview
Following a review of its extensive database, NGF has announced an increased
mineral resource for its Paddington project of 54.5 million tonnes averaging 1.8
g/t and containing 3.17 million ounces of gold. The resource is contained within
10 separate deposits within the project’s 1,200 sq km of tenure. Within this
resource is a mining reserve of 18.1 million tonnes averaging 1.7 g/t and
containing 1.0 million ounces of gold. The Paddington mill is located 30 km north
west of Kalgoorlie and its replacement value is estimated at $150 million.
NGF acquired the project from the Barrick Group in August 2007 for a
consideration of $45 million. The acquisition included the Paddington gold
treatment plant that commenced operation in 1985 and was upgraded to 3.0
million tonne per annum capacity in 1994 at a cost of $70 million. At the time of
acquisition resources were estimated at 1.4 million ounces. Also included in the
transaction was the 0.7 million tonnes per annum Kundana gold treatment plant
that the company intends to relocate to its Mount Morgan tailings project in
Queensland. That project has an initial target of treating 4 million tonnes of
tailings at an average grade of 1.69 g/t to produce 180,000 ounces of gold over
five years. The tailings dam and mullock dumps contain approximately 8 million
tonnes of material that is available for reprocessing, with further potential from
mineralised slag dumps. The project is located 35 km from Rockhampton.
NGF effectively reduced the purchase price of the Paddington acquisition to $39
million by on selling tenements that contained refractory gold for a consideration
of $6 million. It subsequently paid $3.7 million for all gold in circuit. The
acquisition was funded by an equity raising of $35 million and a further $40
million in convertible notes. The company has a hedging commitment of 330,000
ounces of gold at a price of A$875 over five years.
The Paddington database that was acquired upon purchase contained details
from approximately 60,000 drill holes. It reflected 69 previously drilled deposits
and more than 100 known orebodies contained within a 40 km radius of the
Paddington plant.
Since the acquisition of the project a total of 63,020 ounces of gold were
produced in the 18 weeks to 31 December 2007 representing annual production
in excess of 150,000 ounces per year.
NGF has an ongoing extensive drilling program representing an investment of
more than $5 million per year.
The company also has advanced gold and copper projects, including Norton and
Many Peaks in central Queensland.
Impact
When NGF acquired the Paddington project from the Barrick Group on August
24, 2007 the gold price was US$660.85 per ounce (London PM Gold Fix). Today
the gold price has increased by 36% leaving the company in the enviable
position of being able to lower cut off grades leading to increased ore continuity
and subsequently increased contained gold. Yesterday the company reported a
mineral resource of 3.17 million ounces of gold, up considerably on the 1.4
million ounces that were on the table at acquisition. Performance since the
handover appears to be clockwork with an impressive 63,020 ounces produced
to the end of 2007. The acquisition included a second gold treatment plant that
will be put to good use retreating tailings in Queensland with an anticipated
production rate of 50,000 ounces per year.
Snapshot
Last Price $0.67
Market Cap (m) $217.3
52 Week High $0.675
52 Week Low $0.075
Sector Metals & Mining
Investment Fundamentals
Cash reserves $36 million
Shares on issue 324.4 million
Options on issue 8.29m listed 20 cent Oct’2010
61.8m unlisted options
Directors Anthony McLellan (Chairman)
Tim Prowse (Managing)
Jon Parker (Non exec)
Mark McCauley (Non exec)
Major shareholders BPI Norton Pty Ltd 19.95%

Business Description
NGF has recently become a significant Australian gold
producer with a plant and reserves capable of sustaining a
production rate in excess of 150,000 ounces per year. This is
likely to be supplemented by an additional 50,000 ounces per
year from a tailings retreatment operation. The company has
active gold and copper exploration projects.