Northern Star Resources (ASX: NST) has announced that its POGO gold mine in Alaska has shown outstanding exploration results which are even better than initial expectations based on the Company’s due diligence at the time of acquisition. Infill drilling and resource extension has shown a significant increase in the existing JORC Resource of 4.15 mn oz and bodes well for a substantial maiden JORC Reserve in mid-2019. The results stem from aA$35 mn exploration and concentrated infill drilling campaign in the twelve months to Dec 31, 2018, using four underground rigs and four surface rigs.
Another A$15 mn of exploration drilling is budgeted for the second half of FY2019, in line with previously stated FY2019 group exploration spend of A$75-80 mn, with an additional four underground rigs mobilized to the site last month.
The results comprise the discovery of the “Central Lodes” vein system, 800 meters from existing mine infrastructure which has been defined over a strike length of 650 meters and a down-plunge extent of 500 meters.
All the required approvals for exploration and production activities on the Central Lodes are in place. In the review of historic drilling conducted by previous owners, more than 2500 significant unmined intersections (defined as a minimum 2 meters wide at 4gpt Au) outside the current resource has been identified which include 12.0 meters @ 51.5gpt, 7.6 meters @ 66.2gpt, 2.3 meters @ 171.7gpt, 5.9 meters @ 65.5gpt and 4.7 meters @ 50.9gpt.
Northern Star invested heavily in Pogo since its acquisition in October last year as part of its strategy to improve its mine life, cost reduction, production, and cash flow. The Pogo gold deposit is located 60 kilometres north-east of Delta Junction in Alaska, USA. It is located within the world-class Tintina Gold Province and is one of the important series of intrusion-related mineral systems linked with mid-cretaceous intrusive complexes. Mine at Pogo was discovered in 1994 and commenced underground production in 2006. Its total gold production till mid-2018 is 3.8 mn oz at an average grade of 13.6gpt.
Northern Star recently gave a presentation on its site visit to Kalgoorlie Operations, where it mentioned about 5 operating UG mines (Kanowna Belle, Millennium, HBJ, Rubicon-Hornet-Pegasus (51% NST), and Raleigh (51% NST)), and 2 processing facilities (Kanowna Belle – 2Mtpa and Jubilee – 1.2Mtpa).
About the company:
Northern Star Resources Limited is an ASX listed gold producer with its headquarter in Australia. Its projects are located in highly prospective and safe regions of Australia and North America. Its portfolio consists of high-grade gold mines and it endeavours in building a strong asset base through strategic acquisitions and aggressive exploration to extend the mine across its world-class operations. Its net revenue and net profit for H2FY18 increased by 21.46%, and 45.38% respectively as compared to H1FY17.
Northern Star last traded at A$9.010 (up 2.27% as at 3:37 PM AEST, February 12, 2019) with the market capitalization of A$5.63 bn. Its Earnings per share is recorded as A$0.321, and its current PE is 27.450x. Its 52 weeks high has been noted at A$9.800 and 52 weeks low at A$5.680. Its absolute return for 3 months, 1 year, and 5 years are 2.44%, 52.42%, and 749.58% respectively.
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