asx announcement ngf lowers costs

Norton resets operating platform at Paddington

Key points
1. Revised mine plan resulting in a lower strip ratio and a reduction in mobile mining fleet
2. Lower earthmoving rate means mining workforce to be reduced by 25 people
3. Expected to result in lower operating costs whilst maintaining ore production capacity
4. Lowering production costs to underpin profitability

Norton Gold Fields Limited (Norton) (ASX code: NGF) today announced a restructuring of its mining operations at Paddington. Principal changes are a reduction in the mining fleet, replacement of the 24/7 mining roster with a continuous 12/7 roster, and a reduction in the workforce of around 25 people.

These changes are practicable following the completion of the prestrip of both the Robinsons and Havana Pits that has led to lower ongoing strip rates; we are now able to source around 85 per cent of mill feed from primary ore. The balance of mill feed will be from mineralised stockpiles.
These changes continue the process initiated by Norton following the acquisition of Paddington to manage operating costs whilst preserving operating capability. Norton is making these changes and taking other actions to ensure the profitability in a wide range of circumstances.

With the successful acquisition of Bellamel Mining Limited announced today, a priority is to bring forward the development of the Bellamel tenements to improve the grade of ore delivered to the Paddington mill and develop a profitable heap leach operation.

Starting in the first week of October, Paddington will conduct a one week production-run, processing stockpiled carbonaceous shale material. This offers the potential for an alternative source of mill feed, stockpiled 500 metres from the mill. The stockpile could provide gold output similar to that of ore from open cut operations but at zero mining and minimal haulage cost.

In excess of one million tonnes of carbonaceous shale suitable for milling is contained in stockpiles near to the mill. Results will be reported in the September Quarterly.

GREAT NEWS... THE TEAM KEEPS DELIVERING. Rennies.