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News

3rd Quarter Results

10 March 2008

Norseman Gold plc / Epic: NGL / Index: AIM / Sector: Mining & Exploration
 
NORSEMAN GOLD PLC
(“Norseman Gold” or the “Company”)
Three Month Report On Activities For The Period Ended 31 January 2008
 
Norseman Gold, the AIM listed Australian gold production company, is pleased to announce a three month progress report 
on its activities for the period to 31 January 2008.  Also included is information related to the first full nine months 
of results since the Company took over operations of the Norseman Gold Mine in Western Australia, the country’s longest 
continuously producing gold mine.
 
Overview
 
•	Total production of 16,111 ounces from 112,601 tonnes treated.  January’s production of 6,026 ounces from 
27,364 tonnes at improved grade of 5.76g/t compared favourably to prior months and produced an operating profit 
and positive cash flow.
 
•	Forecast production for the full year ending 30 June 2008 of between 75,000 and 80,000 ounces, with cash 
operating costs of between A$730 and A$760 per ounce on the bases and assumptions set out below. With operational 
improvements now in place and at higher levels of production relative to fixed costs, cash operating costs should fall. 
 
•	Operations remain un-hedged with a gold price of A$1,053 per ounce at date hereof.
 
•	Continued focus on development to improve production levels including underground drilling producing 
visible gold intersections, and regional exploration programmes for a third mine to allow production to rise to 
the target of 150,000 ounces of gold per annum. Review of previous tailings dump re-processing feasibility study 
also being undertaken.
 
•	The major fleet replacement programme has commenced and this new equipment will enable estimated 
annual operating cost savings of A$3.1 million. 
 
•	Active in corporate development, new senior experienced staff recruited, merger and acquisition 
opportunities being assessed and examining ASX listing process.
 
•	Regional exploration drilling now on-going.
 
Norseman CEO Barry Cahill said, “The last quarter has been an incredibly busy period for the Company.  
Firstly, we have experienced a reduction in production due to encountering an unexpected lower grade 
section at the Bullen mine, however present mining indicates that we should encounter the higher grade 
reef in the coming months, allowing the higher grade stopes to come into the production schedule and 
improve the mine grade. Secondly, slow development rates at Harlequin have delayed the commencement of 
mining of higher grade stoping blocks.
 
“The Company forecasts production for the financial year to June 30th to be between 75,000 and 80,000 ounces 
and we remain committed to increasing production to 150,000 ounces p.a. in the medium term through the 
identification and development of a third mine within the area.
 
“The next three months looks to be an exciting time for Norseman.  Having completed our senior management 
recruitment drive, we are now ideally placed to not only continue with the development of the Bullen and Harlequin Mines, 
but to accelerate the exploration program to increase the Company’s resource and reserve base with an aim to 
commencing a third mine at the operation.”
 
Operating Review
 
Production
 
 	 	3 months to
31 July ‘07	3 months to
31 October ‘07	3 months to
31 January ‘08	9 months to 31 January ‘08
Capital Development	m	401	431	434
 	1,266
 
Ore Development	m	1,122	1,188	1,019	3,329
Development	t	33,033	38,600	32,161	103,794
Grade	gAu/t	4.97	4.89	3.90	4.61
Mechanised Stoping	t	4,167	2,187	5,835	12,189
 
Grade	gAu/t	4.70	6.17	5.07	5.14
Airleg Stoping	t	49,884	45,570	41,138	136,592
Grade	gAu/t	9.62	8.15	7.68	8.55
U/G Production	t	87,084	86,357	79,134	252,575
Treated Tonnes	t	128,002	106,631	112,601	347,234
Grade	gAu/t	5.90	5.76	4.71	5.39
Recovery	%	96.4%	95.1%	94.43%	95.0%
Recovered Ounces	ozs	23,394	18,539	16,111	58,044
 
Gold production from the Norseman mine during the three month period to 31 January 2008 totalled 16,111 ounces.  
For the nine month period to 31 January 2008, total recovered ounces were 58,044.  Of this, the Bullen Mine 
contributed 39,177 ounces, while the Harlequin mine contributed 15,752 ounces and oxide treatment provided 3,115 ounces.  
The gold price received during the three month period to 31 January 2008 ranged between A$875 per ounce and A$1,020 per ounce, 
with an average price achieved of A$935 per ounce. The current gold price is A$1,053 per ounce.
 
The reduced production compared to the previous quarter was due to two main factors.  First, the Bullen mine 
encountered an unexpected low grade section of the Norseman Reef. Drilling in front of current development shows 
the higher grade reef, and this is expected to be developed later in the financial year. This higher grade 
development will allow better grade stopes to come into the production schedule and improve the mine grade. 
 
Second, at the Harlequin mine, slow capital development rates caused a delay in the scheduled commencement 
of the ore development at the Redfin Reef, but this has now started and production is expected to improve over 
the remainder of the current financial year and beyond.
 
On the basis of:
1.	7 months production reported above; and 
2.	the Company forecast of production for the remaining 5 months of the financial year; which forecast 
assumes an improvement in recovery rates from: 
a.	production of higher grade reef at Norseman once reached; which higher grade reef is apparent from forward test 
drilling results; and 
b.	operational improvements in place at both mines; 
the Company forecasts production for the financial year to 30 June 2008 will total between 75,000 ounces and 80,000 ounces.
 
It remains the Company’s objective to increase production to 150,000 ounces per annum in the medium term through 
continued operational improvements and the identification and development of a third mine. To achieve this level of 
production will require resources to be converted into reserves through continued exploration drilling and capital development.
 
To enable the growth strategy to be achieved it has recruited a number of senior positions in particular, 
the Exploration Manager, Principal Mining Engineer, Manager Mining and Finance Manager. The executive team recruitment is now complete.   
 
Operating Costs
  
The nature of costs in underground mines is such that a large proportion are fixed so that any reduction in the 
production profile will raise the cash cost per ounce of production.  Therefore the Company’s operating costs per 
ounce for the quarter increased. The total cost of production met forecast expectations but due to the short term 
operational issues, the recovered ounces have not been produced at the targeted rate. 
 
Company forecasts for the current financial year to date predicted an average monthly production of 8,500 ounces at 
a cash cost of A$580 per ounce, while the actual production has averaged 6,100 ounces which raised cash costs per ounce.  
The increase in operating cash cost per ounce has been partly offset by an increase in the average A$ gold price.  
 
In terms of actual costs and in line with all the operators in Australia, the price of labour continued to 
increase as a result of the mining industry skill shortage. The price of diesel has also put upward pressure 
on power generation costs but the Company is evaluating ways to alleviate this.
 
However, importantly, the Company has continued its cost reduction programmes that have included reducing the use 
of hire equipment and contract labour. Finance has been approved for an equipment package totalling approximately A$9.5 million, 
which will reduce the use of hire equipment, with an expected annual operating cost savings of A$3.1 million when fully implemented.  
Actual equipment deliveries will take place between March 2008 and October 2008. 
 
The Company has also continued to negotiate with its suppliers to improve the prices of their products and services. 
Some of these initiatives have already started to have some effect, with January producing a positive operating result.  
Investigations still continue into the potential of gas power to replace the diesel power station, however the Company has 
not been able to source a supply of gas at an attractive price.  
 
With the operational improvements already in place and on the same bases and assumptions set out above, the Board 
forecasts cash operating costs of between A$730 and A$760 per ounce for the full year ending 30 June 2008.  
 
With operational improvements now in place and at higher levels of production relative to fixed costs, 
cash operating costs should fall.  The Company estimates that if a consistent production level of 8,500 ounces per month 
can be reached, the equivalent cash cost to that forecast above would fall to between A$550 and A$600 per ounce.
 
 
Development
 
The Company continued its focus on the underground development programme. Following the completion of the capital 
development plan at Harlequin mine, the capital development jumbo moved to Bullen to commence a six month programme.
 
At Bullen, ore development continued to drive through the unexpected lower grade section of the upper levels of the 
Norseman Reef.  Diamond drill intercepts to the north of the development faces have confirmed the presence of high 
grade reef but there are still some low grade zones to develop through during the next quarter. The development also 
proceeded to the south in the Norseman Reef footwall with some success, as well as continuing the 319 in-stope ramp 
to the 342 level, where a run of high grade reef was driven.
 
At Harlequin, following management changes and the departure of the capital development jumbo, the focus was on 
developing the Redfin Reef to access the high grade ore zones, as well as increasing the rate at which the ore 
development was occurring.
 
Development Exploration
 
Bullen diamond drilling moved from the Mararoa Reef below the 16 Level to focus on the active workings at the 
Norseman/St Patricks area, particularly the drilling in front of the 250m Level and the 265m Level, and for 
extensional targets on the northern side of the Mt Barker fault.
 
The drilling below the 16 Level Mararoa, particularly down dip, beneath the previously drilled intersections 
was below expectations. The drill rig will have to return to this level, to follow up the potential of a horizontal 
grade trend along strike where more promising intersections occurred. These included 0.80m @ 10.73 g/t gold from 134.75m 
in drill-hole BN443 and 0.80m @ 10.89 g/t gold from 161.65m in drill-hole BN446.
 
The drilling in the Norseman Reef area is to test the low grade area above the 283m Level. This is ongoing with assay 
results still pending. Intersections closer to the Mt Barker Fault have been promising with visible gold logged in a 
number of drill holes including 2.00m @ 69.08 g/t gold from 149.55m and 2.30m @ 3.84 g/t gold from 210.00m in drill-hole BN485.  
Drilling to the north of the Mt Barker Fault intersected some promising narrow reef structures with visible gold, 
but assays have yet to be returned.   
 
At Harlequin, underground diamond drilling completed the testing of the Marlin Reef below the currently working levels. 
The drill rig then moved onto the next levels of the Redfin Reef. The Marlin Reef drilling returned few holes with 
significant assays in the intersected mineralised structure, which means the resource and reserve at the reef will 
be depleted in the future.
 
The current Redfin drilling has been successful with seven out of the eight initial drill holes being logged with 
visible gold present. These include 2.76m @ 10.43 g/t gold from 129.00m in drill-hole HD1687-2. 
The Company is now waiting on assay results for the further drill holes.
 
Regional Exploration
 
A series of regional drilling programmes started in November 2007 with the aim of discovering a third mine at Norseman.  
If successful, this is expected to provide increased production for the years to 30 June 2009, 2010 and beyond.
 
The first programme of surface diamond drilling was planned to target previously defined inferred resource blocks 
(approximately 45,000 ounces) located to the north of the Regent shaft. These are located above the 16 Level and 
were not accessible for underground drilling. The holes were drilled to infill the area to allow an indicated resource 
to be estimated and to extend the blocks towards the 16 Level. In addition to the main target of the Mararoa Reef, 
some of the drill holes were “pushed on” to target footwall reef structures indicated from previous drilling.
 
The programme has been drilled and the significant intersections and assays are listed below;
•	0.60m @ 9.84g/t gold from 158.80m in drill-hole S4547
•	0.40m @16.50 g/t gold from 181.40m and
•	1.70m @ 11.78 g/t gold from 214.00m in drill-hole S4549
•	1.70m @ 5.65 g/t gold from 182.90m in drill-hole S4553
 
The exploration staff are continuing with the analysis of these positive results. Initial indications are that 
there is 1,200m of strike of the Mararoa Reef to be tested above the -200m level.
 
The second programme was surface RC drilling in the North Royal area, designed to target the area between the 
main open pit, the Number 5 pit and the southern extensions (inferred resource of approximately 74,000 ounces). 
The area was targeted due to significant mineralisation previously mined in the area and limited previous 
drilling targeting the extensions. This programme is complete and assay results are pending.
 
The third programme planned is aimed at extending the Lady Miller resource (indicated & inferred resource of 
approximately 42,000 ounces) to the north. The drilling programme will test the extent of mineralisation contained 
in a jasperlite formation that extends up to 800m to the north of the previously mined open pit. Historic drilling 
results along the trend of the jasperlite include 17 metres @ 5.86 g/t gold from 89m, 2 metres @ 3.15 g/t gold from 76m, 
3.6 metres @ 2.83 g/t gold from 92.35m and 8.1 metres @ 2.79 g/t gold from 62.15m. 
 
Drilling is to commence around 11 March 2008 on the Lady Miller area after which the drilling rig will return to the 
Mararoa Reef for approximately 2,500m of drilling.
 
Tailings Storage
 
Government approvals for the construction of its new long term tailings storage facility have also been received.  
Tenders have been issued to a number of interested parties for the construction of the facility, with award of the 
contract and construction expected to commence in the current quarter.  This facility has been designed with a view to 
meeting the needs of the Company for up to 10 years.
 
Tailings Retreatment 
 
The Company is reviewing a previous feasibility study into the retreatment of the large tailings dumps located next to 
the processing plant. This consists of approximately 5,000,000 tonnes at 0.68 g/t of gold for approximately 100,000 ounces of gold, 
currently in the Company’s total resource calculations. Retreatment of these tailings has the potential to generate additional 
ounces at a greatly reduced cash cost, given that the major costs associated with mining, crushing and milling has already been 
incurred by past owners.  Should retreatment prove feasible, the retreatment of tailings would be expected to enhance 
production in the year to 30 June 2010.
 
Cash Balance
 
Cash balance at the end of the period was A$14.5 million with significant capital expenditures during the period on 
exploration (A$1.3 million), capitalised mine development (A$1.22 million) and equipment and other capital items 
(A$0.55 million). Other major cash outflows in the quarter included convertible note interest (A$0.35 million), 
corporate administration (A$0.4 million) and timing differences on accruals for the previous quarter (A$3 million).
 
Corporate Review
 
The Company is working through the process for a dual listing for the Company’s shares on the Australian Stock Exchange 
in order to facilitate an increased shareholder base and to raise Norseman Gold’s profile with Australian investors 
and gold companies alike. It is also continuing to monitor the region for corporate opportunities to add to shareholder value. 
 
Outlook / Conclusion
 
The month of February 2008 has experienced improvements in grades and good progress has continued with mine development. 
Cash costs per ounce are predicted to fall as previously stated as recent cost saving initiatives return positive results 
and production levels return to close to expected levels. Operations for February continue the positive cashflow from January.

The Company continues to advance and expand its drill programmes to increase the reserve and resource base at Norseman and 
hence its production potential.
 
 
Competent Persons – Consent for Release
 
The information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on 
data generated by employees of Central Norseman Gold Corporation who have the relevant experience and qualifications 
to qualify as competent persons.
 
The parts of this report that relate to Exploration Results, Mineral Resources and Ore Reserves were compiled by Barry Cahill 
using that data. He is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is 
relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking 
to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, 
Mineral Resources and Ore Reserves”.  He has consented to the inclusion in the report of the matters based on this 
information in the form and context in which it appears.
 
Forward-Looking Statements.  This regulatory news release contains certain forward looking statements, which include 
assumptions with respect to future plans, results and capital expenditures. The reader is cautioned that assumptions used 
in the preparation of such information may prove to be incorrect. All such forward looking statements involve substantial 
known and unknown risks and uncertainties, certain of which are beyond the Company's control. Please refer to the 
Company’s Admission Document available from the Company’s web site for a list of risk factors. The Company’s actual results 
could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, 
no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, 
or if any of them do so, what benefits the Company will derive therefrom. All subsequent forward-looking statements, 
whether written or oral, attributable to the Company or persons acting on its behalf are expressly qualified in their 
entirety by these cautionary statements. Furthermore, the forward-looking statements contained in this news release 
are made as at the date of this news release.
* * ENDS * *
 
For further information visit http://www.norsemangoldplc.com or contact:
David Steinepreis	Norseman Gold Plc			Tel: 61 (0) 89 420 9300
Guy Wilkes		Ocean Equities Ltd			Tel: 020 7786 4370
Olly Cairns		Blue Oar Securities Plc		Tel: +61 (0) 8 6430 1631
Romil Patel 		Blue Oar Securities Plc		Tel: 020 7448 4400 
Hugo de Salis		St Brides Media & Finance Ltd	Tel: 020 7242 4477
 
Note to editors:
 
Norseman Gold plc is an AIM listed Australian gold production company, which acquired the Norseman Gold Project in May 2007, 
Australia's longest continually running gold operation. The Norseman Gold Project is located in the Eastern Goldfields 
of Western Australia in the highly prospective Norseman-Wiluna greenstone belt, 725km east of Perth and 186km from Kalgoorlie.
 
Gold was first found on the Norseman field in 1894 and over the last 65 years it has produced over 5.5 million ounces of gold.  
The mine is currently producing from two high-grade narrow-vein underground mines - the Bullen and the Harlequin.  
Currently, it has a total resource inventory of 1.9 million ounces of gold at an average grade of 4.1 g/t.
 
The tenements cover a 687 sq km area centred on the Norseman Township. The landholding comprises 146 contiguous tenements 
consisting of 10 Exploration Licences, 102 Mining Licences, 20 Prospecting Licences, 14 Miscellaneous Licences 
and 29 Mining Lease Applications.
 
The Company's strategy is focused on extending the mine life through the conversion of resources into reserves and 
identifying additional resources and obtaining additional ore for the operating mill through re-treatment of 
tailings or acquisitions of alternative sources of ore.
 
 
END