Over the three months ended June 30, Pantoro reported production of 8880 ounces of gold at all-in sustaining costs of $1570/oz from its Halls Creek project in Western Australia.

This was up on the March quarter's 8429oz at AISC of $1644/oz when heavy rain impacted production.

The stronger results in June were due to improved mining performance and good mill head grades.

However, it is still down on December production of 10,143oz.

Pantoro reported free cashflow from Halls Creek of $3.1 million - in line with guidance of between $1.4-4.4 million.

At the end of June, the miner had $49.2 million cash in the bank, down from $54.4 million in March.

The majority of expenditure was on exploration at its Norseman gold project which it shares in a 50:50 joint venture with recently listed Tulla Resources.

Norseman has an estimated resource of 35 million tonnes grading 3.8gpr for 4.24Moz with an ore reserve of 602,000oz.

This resource is expected to double thanks to exploration drilling currently underway.

The mine is expected to produce around 100,000oz per annum when brought into production in mid-2022.

Drilling at Norseman so far has delivered bonanza grades such as 4.5m at 159 grams of gold per tonne within 8.7m at 83.3gpt from 23m at the Lord Percy deposit.

Other results included 4m grading 10.83gpt from 437m at the Scotia area.

Pantoro shares dropped 2.3% in morning trade to 21.5c giving the company a $309 million market cap.

Bell Potter Securities analyst David Coates maintained a buy rating and lifted his price target by 1c to 28c.