Norseman Gold Regulatory News (NGL)

26 Jul 2007 11:34

Norseman Gold PLC26 July 2007 Norseman Gold plc / Epic: NGL / Index: AIM / Sector: Mining & Exploration Norseman Gold plc ("Norseman Gold" or the "Company") August Company Overview Norseman Gold plc, the AIM listed Australian gold production company, providesthe following Company overview ahead of its planned London investor road show,which commences today. Asset Position: • Norseman Gold Mine Fully operational mine with 700,000 tonnes per annum CIL plant and equipment with extensive infrastructure and 687 square kilometres of prospective contiguous landholdings in proven gold field at Norseman, Western Australia, 186 kilometres south of Kalgoorlie. • NGL owned production began 1 May 2007 of Australia's longest continuously running gold operation of over 65 years which has produced in excess of 5.5 million ounces of gold. Production • Quarterly results to be announced.Profile: • Projected Production for year to 30 June for - 2008 is 100,000 ounces - 2009 is 125,000 ounces - 2010 is 150,000 ounces • Projected cash cost for 30 June 2008 is approximately $A500 prior to cost reductions. • Projected cashflow operating surplus of over $A20 million to 30 June 2008. Cost Reduction: • Alternative power. • Replacement of old hire equipment with modern plant for efficiency and cost reduction. • Supply contracts renewal subsequent to administration. JORC Compliant 1,200,000 tonnes of ore at 8.0 grams per tonne for 333,000 contained ounces of gold based on A$720.Reserve: Total JORC 14,900,000 tonnes of ore at 4.0 grams per tonne for 1,900,000 ounces of gold.CompliantResources:Mine Life: Three year mine life with strong base for future growth. Exploration: • Mine Recommenced exploration diamond drilling and expect reserve and resources increase with initial growth to further extend mine life to 5 years. • Surface Re-commenced surface exploration of extensive landholdings. Growth • Increase production to 150,000 ounces per annumStrategies: • Reduce production cash cost per ounce to below A$500. • Initially extend mine life to 5 years. • Surface exploration on extensive contiguous land holdings around mine. • Farm-out or spin-off other known minerals of nickel, platinum and uranium. • Acquisition. Issued Capital: 397,800,000 Ordinary Fully Paid Shares AIM Symbol: NGL Share Price 12.25 pence (24 July 2007) Market £48.7 millionCapitalisation: Directors Vince Pendal - ChairmanManagement: Barry Cahill - CEO David Steinepreis - Executive/Finance Michael De Villiers - Independent Directors • Current SharesHoldings: 15,200,004 million representing 3.82%. • Management Shares 30,750,000 to be issued on 1 May 2009. Options: • 16 million 3 year options exercisable at 12.5 pence to director and senior management. • 10 million 3 year options exercisable at 10 pence to key employees. • 3.3 million options exercisable at 6.25 pence to 23 October 2009 to Nomad and David Steinepreis interests. Convertible A$20 million as follows:Notes: Face Interest Conversion Redemption Date Price Value Yield A$5 million 7% £0.20 per share 1 year from date of issue A$5 million 7% £0.25 per share 2 years from date of issue A$5 million 7% £0.35 per share 3 years from date of issue A$5 million 7% £0.50 per share 4 years from date of issue Nomad/Broker Blue Oar Securities Plc. Joint Broker: Ocean Equities Limited. Major %Shareholders: JP Morgan 11.26 Carmignac Gestion 9.42 UBS AG 6.28 Blackrock 5.03 Canaccord 5.03 Majedie 5.03 Credit Suisse 5.03 HSBC 5.03 BoNY 3.39 Director Vince Pendal - ChairmanSynopsis: Extensive experience in banking and corporate finance in industry and mining in Australia. Chairman of ASX listed Bandrill Ltd and director and major shareholder of Oakvale Capital Ltd. Served as Chairman of ASX listed Austral Coal Limited and Perilya Limited and is a foundation/life member of the Kalgoorlie Hall of Fame. Barry Cahill - CEO Mining engineer with 20+ years experience in operational mining and management in Australia. Extensive experience in management of underground and open pit mines as mining contractor and operator, including the Leinster nickel mine and Broken Hill base metal mine. Area or expertise is recovery of poorly performing operations to a profitable standard. Director of several public companies including MD of Australian Mines Limited. David Steinepreis - Executive Director Chartered Accountant. Director/adviser/major shareholder of several listed companies in the gold/diamonds/oil/mining/ technology sectors. Director of ASX listed Black Fire Energy Ltd, Toodyay Resources Ltd, RMG Limited, WAG Ltd, AIM listed North River Resources plc, Leopard Minerals plc, Chairman Ascent Capital Pty Ltd. Michael De Villiers Michael de Villiers qualified as a Public Accountant with Ernst & Young in Cape Town. He is the finance director of Mercator Gold plc listed on AIM. He gained his experience as financial manager at mining and chemicals operations in Namibia, Botswana, Ghana and Bulgaria. He was previously the finance director of Oxus Gold plc and Navan Mining plc, companies listed on AIM. He is currently a director of Ariana Resources plc, Mercator Gold plc and Island Gold plc. For further information visit www.norsemangoldplc.com or contact: David Steinepreis Norseman Gold Plc 07913 402727 Romil Patel Blue Oar Securities Plc 020 7448 4412 Guy Wilkes Ocean Equities Ltd 020 7786 4370 Hugo de Salis St Brides Media & Finance Ltd 020 7242 4477 This information is provided by RNS The company news service from the London Stock Exchange