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19 May 2008 07:00
Norseman Gold plc / Epic: NGL / Index: AIM / Sector: Mining & Exploration
NORSEMAN GOLD PLC
("Norseman Gold" or the "Company")
Norseman Gold Extends Regional Tenement Holding
Norseman Gold, the AIM listed Australian gold production company, announces it has successfully completed the purchase of Mawson West Limited's (ASX:MWE) Norseman Project ("the Project") through the purchase of their wholly owned subsidiary Pangolin Resources Pty Ltd.
The Project is less than 20km to the south of the Company's treatment plant located in the township of Norseman and comprises more than 30 tenements covering an area of 57 square kilometres in the highly prospective Archaean Norseman greenstone belt. All tenements in the project are 100% owned, with the exception of four tenements which each have a 10% external interest. The Project contains two advanced areas, Maybell and Lord Percy, with Maybell containing a JORC compliant resource of 36,270 ounces and Lord Percy at a near resource stage.
The Company sees this acquisition as an important strategic addition to the current Norseman landholding. The Project has the potential for near surface resources, including those existing at Maybell and Lord Percy, which will add another option to the Company's strategy of identifying a third ore source to feed into the treatment plant from 2009. There are also additional opportunities in the Project area to host an underground resource.
The consideration paid for the acquisition of the Project was:
cash of A$288,400, and
800,000 shares in Norseman Gold plc
Application will be made for the 800,000 shares to be admitted to trading on AIM. Following admission of these shares there will be 80,590,000 ordinary shares in issue.
The Company expects to take control of the tenements later in May 2008, at which time it will develop and finalise detailed work programmes.
Competent Persons - Consent for Release
The information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on data generated by employees of Central Norseman Gold Corporation Limited (a wholly owned subsidiary of Norseman Gold) who have the relevant experience and qualifications to qualify as competent persons.
The parts of this report that relate to Exploration Results, Mineral Resources and Ore Reserves were compiled by Barry Cahill using that data. He is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". He has consented to the inclusion in the report of the matters based on this information in the form and context in which it appears.
Forward-Looking Statements
This regulatory news release contains certain forward looking statements, which include assumptions with respect to future plans, results and capital expenditures. The reader is cautioned that assumptions used in the preparation of such information may prove to be incorrect. All such forward looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Please refer to the Company's Admission Document available from the Company's web site for a list of risk factors. The Company's actual results could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive therefrom. All subsequent forward-looking statements, whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release.
* * ENDS * *
For further information visit www.norsemangoldplc.com or contact:
David Steinepreis Norseman Gold Plc Tel: 44 7913 402 727
Guy Wilkes Ocean Equities Ltd Tel: 020 7786 4370
Olly Cairns Blue Oar Securities Plc Tel: +61 (0) 8 6430 1631
Romil Patel Blue Oar Securities Plc Tel: 020 7448 4400
Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7236 1177
Victoria Thomas St Brides Media & Finance Ltd Tel: 020 7236 1177
Note to editors:
Norseman Gold plc is an AIM listed Australian gold production company, which acquired the Norseman Gold Project in May 2007, Australia's longest continually running gold operation. The Norseman Gold Project is located in the Eastern Goldfields of Western Australia in the highly prospective Norseman-Wiluna greenstone belt, 725km east of Perth and 186km from Kalgoorlie.
Gold was first found on the Norseman field in 1894 and over the last 65 years it has produced over 5.5 million ounces of gold. The mine is currently producing from two high-grade narrow-vein underground mines - the Bullen and the Harlequin. Currently, it has a total resource inventory of 1.9 million ounces of gold at an average grade of 4.1 g/t.
The tenements cover a 687 sq km area centred on the Norseman Township. The landholding comprises 146 contiguous tenements consisting of 10 Exploration Licences, 102 Mining Licences, 20 Prospecting Licences, 14 Miscellaneous Licences and 29 Mining Lease Applications.
The Company's strategy is focused on extending the mine life through the conversion of resources into reserves and identifying additional resources and obtaining additional ore for the operating mill through re-treatment of tailings or acquisitions of alternative sources of ore.
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