Production rose 28% from the December quarter to 44,053 ounces of gold.

Gold shipped for the quarter was 43,351oz at an average gold price of $A1560 per ounce, compared to 34,101oz at $1641/oz in the previous quarter.

The C1 cash cost for the March quarter dropped 25% quarter-on-quarter to $1033/oz due to improved productivity of the open cut mines and increased grade of ore mined.

Operating costs should decrease further in coming quarters with the arrival and utilisation of the owner mining equipment.

Norton managing director and chief executive Dr Dianmin Chen said the company was pleased to deliver its best results since Zijin Mining took control in August last year.

“This significant positive change reinforces Norton’s strategy of increasing gold production to drive costs down,” he said.

“We expect further improvements throughout 2013.”

Norton’s open cut mining operations continued at Navajo Chief, Green Gums and Violet, as well as at Catherwood under the right-to-mine agreement with Phoenix Gold.

First ore from Catherwood was mined then treated in January.

The effects of cyclone Rusty were felt at Navajo Chief where a wall failure occurred, while Green Gums was temporarily flooded.

Dewatering of Green Gums is ongoing but just three shifts were lost at Navajo Chief.

The Homestead underground mine achieved record monthly production in March with 6120oz.

The Paddington mill processed 891,000 tonnes of ore at a head grade of 1.65 grams per tonne gold, with a 93% recovery.

Norton said gold production was on track to meet guidance, with estimates it would be between 154,000oz and 162,000oz.

The company is still considering options for the Mount Morgan project, including divestment.

At the end of March, Norton had $34 million cash at bank with an additional $22 million in cash-backed environmental bonds.

Norton shares were untraded this morning at 18c.