The results further demonstrate that high grade mineralisation extends well beyond the current mine plan.
Highlights include: 1.7 metres at 258.8 g/t gold; 1.9 metres at 9.54 g/t gold; and 2.1 metres at 11.21 g/t gold.
Paul Cmrlec, managing director, commented: "Very high grades continue to be encountered in direct extensions to the current Ore Reserve at Nicolsons."
"Through our drilling and mine development programs we have rapidly increased understanding of the controls to mineralisation, and believe that there is very strong potential for a much larger and more productive mine than we have previously contemplated."
Nicolsons Gold Mine
First production of gold was achieved in September 2015 and the production profile continues to grow as Nicolsons looks to become one of the lowest cost, highest grade underground gold mines in Australia.
The Nicolsons underground mine has consistently overcalled the reserve at an average of 186% on the first three levels mined.
The total Ore Reserve was recently upgraded to 109,220 ounces of gold, a 32% increase on the original Ore Reserve.
Strong potential exists for continued Mineral Resource and Ore Reserve upgrades as mining and underground diamond drilling progresses into the deeper levels of mine.
Recent drill results
The drill results came from the Hall, Anderson and Johnston lodes at Nicolsons.
The result of 1.7 metres at 258.8 g/t gold demonstrates the bonanza style grades which can exist at the mine and further drilling is planned to continue to test for southern extensions to the Hall lode.
1.9 metres at 9.54 g/t gold was drilled at the northern end of the Johnston lode outside of the current Ore Reserve and demonstrates the continuity of the mineralisation in the previously untested areas of the lode.
The intersection of 2.1 metres at 11.21 g/t gold came from between the Hall and Anderson lode Ore Reserve area and it appears that the mineralisation between the zones is continuous and that the interpreted gap in the Ore Reserve may not exist.
These drill results demonstrate Pantoro's ability to further upgrade the Mineral Resource and Ore Reserves at Nicolsons, which in turn can extend the mine life.
The stock continues to have a strong trading year up 95% in 2016 to $0.125 per share.
Pantoro sees significant growth opportunities for the mine which reached a 30,000 ounces of gold per annum feasibility run rate during April 2016.
Significant opportunity exists for Pantoro to increase grade and plant throughput to ramp up future production to 50,000 ounces of gold per annum.
The plant is currently operating at 150,000 tonnes per annum and is expandable to 200,000 tonnes per annum.
Furthermore, the ore grade within the recently remodelled zone has increased from 6.17 g/t gold to 9.81 g/t gold.
With gold currently trading at A$1,800 per ounce, and the all in sustaining costs (AISC) on track to be A$1,000 per ounce of gold, this is a high margin mining operation.
The company maintains broker coverage from Hartleys, who have a 'Speculative Buy' rating and $0.19 price target; and Patersons Securities who recently initiated coverage with a 'Speculative Buy' rating and $0.19 price target.
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