Northern Star Resources Ltd (ASX: NST) announced that it has now earned an additional 55% JV interest in the Acra Gold Project with Pioneer Resources, after sole funding $3 million farmin expenditure since October 2016. The group previously purchased an initial 20% stake. With this development, Northern Star now holds a 75% joint venture interest, and Pioneer holds a 25% joint venture interest.
NST is exploring the Acra Gold Project, with target generation work and regional aircore spudding programs at the northern Acra tenements a current focus. The ‘First-pass’ target generation programs have already been carried out across the southern and central regions of the project to-date, which involves geological mapping, geochemical sampling together with aircore, RC and diamond drilling programs.
Northern Star’s Chief Geological Officer, Michael Mulroney, stated that the ongoing exploration programs are aimed at gauging the prospectivity of the Emu Fault structural corridor to host significant gold mineralisation. The exploration outcome will advance the Acra Gold Project to be a part of NST’s Kalgoorlie consolidated operational centre in the Eastern Goldfields of Western Australia.
Pioneer’s Managing Director, David Cook, stated that they are pleased with the increase in the stake to 75% by NST in the Acra Gold Project. They are confident that NST will achieve continued exploration success towards making a mining decision.
The Acra Gold Project involves an area of 340 square kilometre and is located 60 kilometres northeast of Kalgoorlie, WA. Pioneer identified the gold potential of the project with exploration efforts culminating in the successful identification of a 20 kilometre long gold target zone.
In October 2016, Pioneer entered into a Farmin and Joint Venture Agreement with the gold miner, Northern Star, under which, NST agreed to acquire a 20% interest for $500,000 and to earn a 55% interest in the project by sole funding $3 million in exploration activities on the project. The milestone has now been met, and Northern Star has proceeded to the Joint Venture phase.
On the stock information front, at the time of writing (on 15 April 2019 AEST 02:15 PM), the stock of Northern Star is trading at a price of $9.005, down 2.438%, with a market capitalisation of ~$5.9 billion. Its PE multiple stands at 28.84x and its earnings per share was reported at 0.32 AUD, with an annual dividend yield of 1.19%. Today, it touched a day’s high at $9.2, and day’s low at $8.91, with a daily volume of ~1,978,423. Its 52 weeks high stands at $9.97 and 52 weeks low at $6.08, with an average volume of 3,223,743. Its absolute return for five years, one year, six months, and three months are 705.31%, 44.44%, 3.13%, and -1.81%, respectively.
The stock of Pioneer Resources (ASX: PIO) was reported at a price of $0.014, with a market capitalisation of ~$21.1 million (on 15 April 2019 AEST 02:15 PM). Its loss per share was reported at 0.002 AUD. Its 52 weeks high stood at $0.028 and 52 weeks low at $0.014, with the average volume of 781,781. Its absolute return for five years, one year, six months, and three months are 40%, -41.67%, -26.32%, and -22.22%, respectively.