Can Pantoro Sustain Growth Amid Ambitious Norseman Underground Expansion?

Pantoro Gold Accelerates Norseman Expansion

Pantoro Gold Limited (ASX:PNR) has announced plans to commence development of its third underground mine at the Norseman Gold Project in Western Australia, marking a significant step in its growth trajectory. The company intends to begin work on the high-grade O’Briens Reef early in the 2027 financial year, following the completion of dewatering and rehabilitation of the existing Bullen Decline.

This development is expected to yield the first ore by the December 2026 quarter, with average diluted mill grades projected to exceed 6 grams per tonne over the life of the current Mineral Resource. Shortly after, in March 2027, Pantoro plans to initiate development of the Crown South ore zone, both areas remaining open for further exploration as drilling continues to test extensions.

Strong Drilling Results Bolster Confidence

Extensive underground diamond drilling has confirmed multiple high-grade mineralised zones within the Mainfield, supporting Pantoro’s strategy to expand underground mining operations. Notably, drilling results from O’Briens and Crown South have returned impressive gold intersections, including assays as high as 263.61 g/t Au over short intervals. These results have not yet been factored into the current economic analysis but provide strong confidence in resource growth potential.

The company has also scheduled the arrival of a fifth underground drill rig in April 2026 to accelerate exploration efforts across the Mainfield, including ongoing work in the Crown Reef area where additional decline development is anticipated within the next 12 months.

Economic Viability and Mining Methodology

Feasibility studies conducted by Pantoro’s in-house technical team have confirmed the economic viability of the O’Briens Mineral Resource, which currently stands at 130,000 tonnes at 9.57 g/t gold for 40,000 ounces. The selected mining method is an Inclined Room and Pillar approach, designed to maximise ore extraction from relatively flat-lying lodes. The potential introduction of paste fill technology is also under consideration to further enhance recovery once multiple mine areas are operational.

This high-grade underground ore is expected to displace lower-grade material currently processed from open pits and stockpiles, thereby increasing overall mill feed grades and production output.

Looking Ahead: Resource Updates and Production Targets

Pantoro plans to update its Mineral Resources and Ore Reserves for the Crown, Crown South, and O’Briens areas during the September 2026 quarter. These updates will inform a revised mine plan and long-term production strategy, aligning with the company’s goal to establish at least two additional underground mining areas in FY27. The aspirational target is to grow annual gold production to 200,000 ounces, a significant increase from current levels.

Managing Director Paul Cmrlec emphasised the alignment of these developments with Pantoro’s growth strategy initiated in 2024, highlighting the scale and potential of the Norseman Mainfield as a key driver for future expansion.