History

Navigator Resources completed its acquisition of the Bronzewing Gold Project in September 2009, purchasing the mine from the Administrators of View Resources Limited, which went into administration in February 2008. Navigator purchased Bronzewing for A$9.55 million, and assumed environmental bond obligations of A$6.45 million. The Bronzewing resource at acquisition was 850,000oz of gold representing a purchase value of ~A$11/oz Au or ~A$20/oz including the environmental bonds.

The acquisition included 1,000km² of mining tenements; an 850,000oz gold resource; a 2.3 Mtpa processing plant including a 3.5MW SAG mill, crushing circuit, stripping circuit and gold room; airstrip, power station, fuel farm, water supply infrastructure and access roads; miscellaneous plant, equipment, light vehicles and consumables; a 280 person accommodation village and recreational facilities; and surface workshops, mine offices and assay laboratory.  The Project facilities have been independently assessed at a replacement value of A$218 million.

The Bronzewing gold deposit was discovered in 1992 by Great Central Mines NL who developed the Project at an initial cost of US$59 million with production commencing in 1994.  Mining had been previously commenced at Mount McClure in late 1991 by Arimco Mining Pty Ltd (Australian Resources Limited).

Great Central Mines was taken over by Normandy Mining in 1998 and at much the same time Normandy purchased the nearby Mt McClure operation, which had just closed down. Normandy operated the Bronzewing-Mt McClure project until they in turn were taken over by Newmont Mining in 2002. The Project was then sold to View Resources in 2004, and by this time the Bronzewing and Mt McClure mines had produced more than 3 million ounces of gold.  In April 2007, View Resources started a combined open pit and underground operation that included mining at Central/Discovery, Cockburn, Success and Venus, but were forced to close the Project in February 2008 due to underperformance at the underground operations, inadequate working capital and tight operating margins with gold at A$950/oz, considerably below today’s levels.

The above slide showing the discovery drill hole at Bronzewing demonstrates the tenor of mineralisation that can be associated with very significant gold deposits.