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Norseman Gold working towards OK Decline restart

Norseman Gold (LON:NGL, ASX:NGL) has updated investors regarding the ongoing suspension of mining operations at the OK Decline - one of the three underground gold mines that make up the Norseman mine  - following a fatality on 5 August 2010.

An investigation is currently underway to determine how the incident occurred. Today, Norseman said that whilst these investigations continue, it is now working to recommence operations in a "timely and prudent manner".

Norseman highlighted that the other two underground mining operations, the Bullen and Harlequin declines, have been unaffected and they continue to operate as normal.

In the company’s most recent result, Q4 interims, which were released just one week before the incident, Norseman reported production of 14,469 oz (ounces) – most of which coming from the two unaffected declines.

In the three-months ended 30th June 2010, just 561oz of gold were produced from the OK Decline, meanwhile Bullen and Harlequin produced 4,170oz and 9,641oz respectively.

The OK Decline is the newest of the three declines, and the company has been ramping up production since OK began producing early this year. On 30 July, Norseman said it expected the OK Decline to steadily increase its production profile with more ore development undertaken and stoping.