Central Norseman Gold Corporation has made 33 staff redundant as Australia's longest continuously-running gold mining operation faces an uncertain future.
Central Norseman Gold Corporation has made 33 staff redundant as Australia's longest continuously-running gold mining operation faces an uncertain future.
CNGC, which is owned by listed company Norseman Gold Plc, said the redundancies came in the wake of a comprehensive review of its operations.
The Norseman project in the Eastern Goldfields has been active since Western Mining Corporation began mining there in 1935.
CNGC has been undertaking remnant mining operations at the Norseman project, which includes the North Royal open cut mine and Bullen and Harlequin underground mines, for a number of months and said in September last year that the discovery of a significant new ore body was required for the company to continue as a going concern.
The company sold 6,757 ounces of gold in the six months to December 2013 for total gross proceeds of just less than $9.5 million.
It sold 8,746 ounces of gold at an average price of $1,445 per ounce from the Norseman project during the 2013 financial year.
The company last month flagged a possible restructure as an exploration company and has conducted a scoping study at a potential magnetite zone on its tenements but has identified a need to source additional working capital to support exploration activities.
CNGC was sold by former owner Croesus Mining to AIM-listed Davos Resources for $66 million in 2007.
Davos subsequently changed its name to Norseman Gold and listed on the ASX in 2009 with a $9 million initial public offering, while Croesus would later go on to become Sirius Resources after the company signed a deal with prospector Mark Creasy.
Norseman has since delisted from the AIM and has been suspended from the ASX since it was placed into voluntary administration in October 2012.
The company emerged from administration six months later when shareholders endorsed a deed of company arrangement proposed by Norseman and major shareholder Tulla Resources Group.
During its period in administration, the company reduced its employee numbers from more than 250 to about 70.
The company's remaining staff numbers could not be verified as Norseman Gold could not be reached for comment.
