Thanks everyone for coming along today. Pantoro Gold, for those of you that don't know it, holds 100% of the Norseman Goldfield in Western Australia. We're approximately 200 kilometers south of Kalgoorlie. We have a large resource base of just under 5 million ounces of gold. When we inherited this resource through the initial acquisition of 50% of the project, we had a zero reserve base. We drilled, we took it to a million ounces of reserve, developed a new processing plant, and then took it into production. Today we're operating at about 100,000 ounces per annum. We have a serious growth strategy in place to take that to 200,000 ounces over the next couple of years. We have a great balance sheet. We closed the quarter, all Australian dollars that you're looking at here, but we closed the quarter with $176 million in cash and gold.
We also paid out the remainder of all of our debt in the previous quarter. We're essentially unhedged. We've got 1,000 ounces a month through until the end of this year. Beyond that, we're completely unhedged. We've got a great team. I think what we need to talk about in the team here is that the Senior Management crew that you see at the bottom of the page and myself as the Managing Director have worked together in some way since the very early 2000s in various companies. We all came back together in the development of a mine called Halls Creek with Pantoro back in 2015, and we've all rolled through to Norseman. The other notable thing here is earlier this year we added Stuart Matthews to our board. Stuart was the Head of Gold Fields Australia for the best part of the decade before he retired.
We went after him and managed to acquire his services. You'll see as we go through the presentation that I think his experience in very similar terrain at Camp Bouder will be very valuable for us. Heading into this next year, we see the production staying at about the same level. We've got it at 100,000 to 110,000 ounces. We've managed to keep a very good handle on costs. That all-in sustaining cost, we achieved just under $2,000 Aussie all-in sustaining in the last quarter. Those numbers are very real. Outside of that, we intend to spend $55 million on exploration during this year. The vast majority of that is drilling. We've got about $14 million in mine rehabilitation and development of pure exploration assets, but everything else outside of that is drilling. In total, we'll do in the order of 250,000 meters over this year.
The Norseman project is right at the southern end of the Norseman Goldfield at the Greenstone Belt. It's produced 6 million ounces of gold historically. It has been the longest running gold mine in Western Australia. It was developed large scale in 1935 by Western Mining and operated by them right up until the late 1990s when they decided to exit the gold space. I showed the St. Ives assets held by Gold Fields Australia to the north there in camp bouder and ours in red. The reason I do that is a great comparison for Norseman with the remainder of Western Australia, I think. You've seen the last few presentations where there's mines that have been going for a long time. They've had big ongoing investment right through that period. Norseman, when sold by Western Mining, went to a couple of small companies.
The result of it is that until we stepped in in 2019, there was effectively no exploration from the mid-1990s right through until 2019. That's 25 years without any drilling. There's our tenure package on the right-hand side. We have 70 kilometers from north to south. When we started, we picked the six things that we felt were the least capital and the least time to get to production, by no means the highest grade operations. We built that million ounce reserve on the back of that. We built a new processing plant on the back of it. We said at that time that phase two was getting into the Mainfield, which is right where that processing plant is in the middle of our tenure. The Mainfield's produced over half of that 6 million ounce historical production.
We're very active in there again now, drilling and preparing ourselves to start some additional underground mines. The operations that we're running now, the OK underground mine is just three kilometers south of the processing plant. It's been a great success for us. In the feasibility study, we had it doing 25,000 ounces a year. Mining the two lodes, so the yellow one, the O2 lode, and the Star of Erin in green, Star of Erin had a plan of sort of 20,000 ounces to tide us over while we dewatered the existing workings at O2 and rehabilitated them. To date, I think we've mined around 50,000 ounces out of that Star of Erin lode. All of the development you see on that side is ours. We've still got about the same in the mine plan going forward.
Every single year that we've been operating, we have fully replaced our mine depletion and made the reserve slightly bigger here at this mine. The drilling that I show here shows that it is narrow mineralization, but it is very high grade. We're achieving that circa six grams per ton. That drilling sits about 100 meters below our current measured and indicated boundary. You can see there that this mine is very likely to continue for the next several years, like most good Western Australian mines do. I'll move right down to the southern end of our tenure package now and to the Scotia mine. The Scotia mine's the largest operation that we have rolling at the moment. We mined the pit, and the pit was a challenge from 2022 through until late last year. Getting underground has made mining that deposit much, much easier. We're understanding the geometry well.
We're picking up a number of additional lodes and substantially within that mine plan increasing the tenor. We're mining at a rate of about 550,000 tons per annum out of this mine now. We are ahead of schedule on that overall tonnage. This is a really big growth area for us and a big part of our growth plan as we move forward. On the right-hand side there in the north, you can see that in the feasibility study, we drilled to just over 500 meters below surface. We have very good widths and grades down there. On the southern side, we only drilled to 200 meters below surface, knowing that we would get into the underground mine relatively quickly after starting mining and being able to really reduce that drilling cost.
Cash was very tight through that feasibility stage, and you know we probably would have drilled more of it from surface if we're in the position we are now. We see real opportunity here to double the tenor between the south and the north, and the result of that should see this mine going from the 60,000 ounces a year that it's operating now up to sort of 100,000 to 120,000 ounces. The small open pits that we're mining at the moment, again, focused on the future. These pits, we started in March, we will finish in December, and then we move on to another pit mining area called Gladstone, which is actually a two and a half year life. The reason we've mined these pits first is it gives us great access to the North Royal area.
There is good underground potential beneath this Princess Royal pit, but you can see the North Royal mine on the right-hand side there historically produced 1.8 million ounces of gold at 17 grams a ton mined grade, quite phenomenal. For most of the mine, it was doing 5,000 ounces of vertical meter. It is just under 350 meters deep, so not deep at all. Quite unbelievably, below that level, there are literally three lines of drilling. A fair number of the holes in that drilling have pretty damn good grade, and it has not been fired up beyond that. While it is not in our immediate growth plan, our exploration plan will see roughly 10,000 meters going to it initially this year, and we will see how rapidly we take it from there.
Mining this open pit gives us the access to develop a new decline and access into that mine where I think we have probably the most exciting exploration prospect there. A processing plant we do not need to talk a whole lot about. It is operating very, very well. Over the last two years, we have achieved just over 97% utilization in that mill, which is quite a spectacular result. We are operating at 1.2 million tons per annum. We have tested it up to just under 1.5 million tons per annum, and with some very minor changes, we are comfortable we can take that there on a sustainable basis. Our strategy here is to replace open pit material with underground material.
The open pit you see here in gray, undergrounds in red. It is important to note here that FY26, as it is shown, we have open pit material to continue that feed right through beyond 2030 if those additional underground mines were not developed. You will see why we are so confident about that as we move forward in a moment. I should point out as well that right in this plan, we have the OK underground mine finishing in FY28. I am very confident that when our resources and reserves come out this year, that plan will go out to 2030 and beyond. The Scotia underground mine, you can see for this year, we had just under 400,000 tons. We will take 550,000 tons out of it this year and continue to grow from there.
The red hashed area on the right-hand side represents what we plan to be at least two additional underground declines to replace that open pit material, aiming to take it ahead grade, which is sitting at sort of mid-twos to three grams at the moment, up somewhere between five and seven grams a ton. That delivers that 200,000 ounce run rate that we are chasing. A big part of that is the Mainfield. The Mainfield sits right in the middle of the tenure package where the picture of the plant was on that previous slide. It's six kilometers long. Most of that production has come from those two bold sort of reefs that are shown there, the Crown Reef and the Mararoa Reef. 500,000 tons of it was taken from the Bullion Mine, which is shown with the black dot to the side.
The Bullion Mine is a great testament to how little exploration has been done at Norseman historically. Western Mining used to push their shaft down on the ore bodies, develop laterally, mine bottom up, push the shaft down again. They did very little drilling. They mined the Mararoa Reef for 50 years before they stumbled upon Bullion, which was sitting literally three meters away from where they were mining. There has been very little drilling here. We're very confident that we're going to find a lot more of those cross-linking structures. For now, the Crown Reef is our primary target. The great benefit of Bullion being discovered late in the piece was that it was developed with a conventional underground decline. That's given us access to the entire length of the Mainfield now. We're about two-thirds of the way through rehabilitating that mine.
We've rehabilitated over five kilometers of decline so far. We've also developed about 300 meters of drilling platforms, and we're drilling in that southern area. The area on the right-hand side of your screen, that drilling has started. I'd expect you'll start seeing results from that over the next month. This is a long view of the Crown Reef, and it's quite amazing. It's produced 1.1 million ounces of gold at a mined grade of 11 grams. All of that gold's come from those really high-grade stoking areas that are shown there. The area outside of it in gold right now sits outside of our resource and outside of our reserve. The development that is in the bottom half of that lode looks very much the same as the development grades in the top half of the lode.
The area out to the south, that was over three kilometers from the shaft. It was logistically very challenging. Some of the highest grade stuff that they mined, that's the area that we're drilling first of all. To the south, off the left-hand side of your screen there, it is completely open. When we talk about two additional declines, you've got two and a half kilometers of strike here. That's a minimum of three declines potentially for. It is fully permitted, so we can start from a statutory point of view tomorrow. Moving on to the southern end of the Mainfield, this is right at the southern end of that six kilometers. We're drilling extensions to what's been known previously. That Mararoa Reef is that main reef that's produced through the Mainfield historically. You can see a whole bunch of grade dots going on a northwesterly strike there.
Those northwest structures have been discovered by us in that drill out, and Pasco's cross-linking. We've just released two results so far, but we've continued to drill that and it looks very, very good. It's anomalous to the Bullion deposit and it strikes out towards the OK underground mine. We've tracked high-grade gold to within 400 meters of the OK underground mine now. Once again, with a development off of OK, we're fully permitted and ready to go here. We've been drilling here nonstop for the last nearly 12 months and have some great areas to go ahead and mine. We see this as being something that's likely to be the same sort of size as the OK underground mine is now. Hopefully that shows you why we're so confident about starting some additional underground mines in the very near term and taking that production up to 200,000 ounces.
The last thing I want to talk about is our regional exploration. Norseman has had a really small amount of regional exploration. The salt pan areas that are shown there, you can see in the photo and then they're in white on the plan on the right-hand side. Western Mining started drilling in 1990. In 1991, they discovered a mine called Harlequin on the edge of that lake. They downed tools and everything else and they mined 800,000 ounces at 10 grams a ton out of Harlequin. Outside of that program, before they stopped that regional work outside of Harlequin, they defined about a dozen different targets there that have got a really small amount of drilling. All of those targets have got hits of plus 10 grams a ton in them. Very fertile area, ready for us to go and attack.
Part of that 250,000 meters that we'll drill this year is about 60,000 meters of air core across those lakes, and then we step in and hone in on those areas as we take them forward. Thank you very much for your time today. I think we're in a great position and look forward to coming and giving an update again next year.