Pantoro Gold has unveiled a sweeping operational overhaul at its Norseman gold project in Western Australia, navigating a challenging fiscal year 2026 to position itself for a stronger, multi-source production ramp-up.
The company reported fiscal 2026 gold production of 77,408 ounces, anchored by 18,028 ounces in the June quarter.
While open-pit operations progressed to plan, underground production fell short of expectations due to acute skilled labour shortages and contractor underperformance at both the OK and Scotia underground mines, alongside unexpected seismic activity at OK.
Other contributing factors to the underperformance included increased ground pressure and the resultant unexpected seismic activity in the deeper levels of the OK Underground mine.
Given the trajectory of production performance, the board and management initiated a comprehensive operational review.
The miner has replaced its previous contractor at the OK mine with Redpath Australia, approved higher operator pay rates to attract staff, and expanded its recruitment drive beyond the state borders.
To ensure productivity, the contractor’s pay structure is being renegotiated to heavily reward variable output over fixed rates.
Financially, Pantoro remains debt-free and on solid footing, growing its cash and bullion reserves from AU$175.8 million to AU$223.4 million over the year, while deploying AU$14.8 million into an on-market share buyback.
Looking ahead, Pantoro has issued conservative fiscal 2027 production guidance of 90,000 to 105,000 ounces at an all-in sustaining cost (AISC) of AU$2,800 to AU$3,400 per ounce.
The upcoming year represents a deliberate stabilisation phase, with production weighted toward the second half as new ore sources come online.
To bolster near-term mill feed, the board approved the re-commencement of open-pit mining at Green Lantern and development of a new underground operation at O’Briens Reef. A lucrative partnership with Mega Resources will also inject high-grade ore into the processing blend.
Managing Director Paul Cmrlec is still optimistic of the long-term outlook for its Norseman project despite the challenging year.
“Importantly, the view has not changed – the longer-term opportunity at Norseman remains compelling, with the board continuing to view Norseman as a unique tier one growth asset,” he said.
