🕐14.05.10 - 09:48 Uhr

Navigator Resources - Leonora Trial Milling Update



Navigator Resources ASX ANNOUNCEMENT ASX Code: NAV 14 May 2010
LEONORA TRIAL MILLING UPDATE Navigator Resources Ltd (ASX: NAV) is pleased to provide the following progress report on the first ore processing trial completed in April 2010 from its 100% owned Leonora Gold Project (LGP). Highlights 8,918 tonnes Bruno open pit ore milled. Excellent gold recovery of over 98%. Reconciled ore grade of 2.83g/t significantly higher than the average grade estimated by the Resource modelling. 796.8oz of gold produced which generated $1 million of revenue. No metallurgical issues identified. Next milling campaign commenced yesterday (13 May). The first parcel of ore in the 75,000 tonne trial mining and milling program was milled through St Barbara Limiteds Gwalia processing plant during the period 13th to 19th April 2010. St Barbaras processing plant is designed for treating predominantly hardrock/primary ore.

However, having regard to the mine schedule and availability of ore, it was decided to process exclusively Bruno supergene ore as the first ore parcel.

This has enabled Navigator to test the grade of the Bruno supergene ore compared to the ore grade as estimated by Resource modelling of material from within the pit design. Significant rain during ore haulage resulted in damp supergene clay ore from Bruno being delivered to the mill.

This resulted in lower throughput rates than would normally be expected from oxide material. Mill throughput averaged less than 100 tonnes per hour, which is below the optimal throughput level of the plant and less than St Barbaras throughput on underground 2 hardrock ore.

Due to the soft nature of the ore and the slow feed rate, the grind was very fine with 100% passing 75 microns with a mean of ~20 microns.

This led to low levels of gold reporting to the gravity circuit and the majority reporting to the leaching circuit. Despite the low amount of gravity gold, recovery through the plant was very high at 98.2% which confirmed that the ore is amenable to normal CIL treatment methods. The average grade of the Bruno ore from within the pit design had been estimated at 1.7g/t gold.

The final plant reconciliation head grade was 2.83g/t gold, thus indicating an overcall of 66% for the gold grade of the processed ore.

The overcall is significant and whilst the Company believes this first parcel of ore was representative of the ore mined to date from the Bruno pit, the next milling campaign will add further information on whether this grade uplift could reasonably be expected over the entire Bruno pit. Results Summary Tonnes Milled 8,918 tonnes Head Grade 2.83g/t Au Recovery 98.2% Fine Gold Produced 796.8oz Sale Value A$1,007,000 NEXT MILLING CAMPAIGN The second milling campaign commenced yesterday (13 May) and it is intended to treat approximately 25,000 tonnes of material which will comprise a blend of Mert 2 hard rock and Bruno soft supergene ore types.

This mix has been selected to provide a better flow of material through the plant which will result in less hang-ups and therefore better throughput rates. Navigator continues to gain valuable information and remove mining and processing uncertainties, thereby obtaining greater confidence in its decision making aimed at the LGP becoming its second producing gold operation.
To view the announcement in full please click here.

http://www.navigatorresources.com.au/files/news/56_100514_NAVASX_Leonora_Trial_Milling_Update_Final.pdf For Further Information David Hatch Managing Director Navigator Resources Tel: (08) 9226 5311 Email: James Harris/Karen Oswald Professional Public Relations Tel: (08) 9388 0944
ABOUT NAVIGATOR Navigator Resources Limited (ASX: NAV) transitioned from explorer to producer in April 2010 and its objective is to build value for shareholders by becoming a highly regarded and profitable gold producer with a pipeline of advanced projects. The Company acquired the Bronzewing Gold Project (located 960km northeast of Perth) in late 2009, and this Project recommenced production in April 2010.

Navigator also continues to pursue development opportunities at the Leonora Gold Project (located 830km northeast of Perth) by initially carrying out a trial mining program. Both gold projects are well located with respect to regional infrastructure, being in the heart of the northeastern goldfields region of Western Australia.

All required mining permits and granted mining leases are in place both at Bronzewing and Leonora.

The Companys medium term objective is to target 150,000oz pa of gold production from these two open pit projects. Navigator also maintains an interest in assets in the East Kimberley region of WA, including the 100% owned Cummins Range Rare Earth Project.
ACN: 063 366 487 Ground Floor, 45 Richardson Street, West Perth WA 6005 Tel: (08) 9226 5311 Fax: (08) 9226 5411 Email: Website: www.navigatorresources.com.au
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