Northern Star Resources Limited (ASX: NST) is happy to make an announcement regarding its Pogo gold mine Alaska JORC 2012-compliant Resource which is 8.8 million tonnes at 14.7gpt for 4.15 million ounces, with a cut-off grade of 6.2gpt. Northern Star along with the independent mining consultants CSA Global, has completed an overall re-estimation of the Pogo in-mine Resource. This estimation is in line with the non-JORC and based on JORC-2012 compliant. These estimates are not included the 765,000oz in Pogo satellite deposits which were included in the 4.1 Moz at 12.2gpt non-JORC resource at the time of Northern Star’s acquisitions. Moreover, there has been an increase in the Pogo mine area of 4.15Moz by 24% (~0.8Moz). The outcome is based on remodeling and interpretation called mineralization the estimation of the new Resource will lay the foundation for the mine planning and the optimization of the operations at Pogo. An assumption is made regarding the management control for the Pogo operation by the Northern Star on 28 September 2018. In relation to this, there is a budget of A$15-20 million for FY2019 that will be used for exploring and drilling at Pogo. As per the announcement made on 19 September 2018, the equity ownership of the Central Tanami Project (CTP) by Northern Star has been increased by up to 40% through an option exercise of $20M. A total of 12.3Mt @ 2.8gpt for 1.1Moz is there as equity resources in the CTP. As per the Pogo Resource and the increased ownership of CTP, Northern Star’s Group Resources position itself at 188Mt @ 3.4gpt for 20.5Moz. As per the revised JORC-compliant Ore Reserve following the policy of Northern star, the estimate will be published following FY2019 closure.
The result is important because it has exceeded the expectation of the Pogo mine beyond its potential. Mr. Bill Beament feels satisfied to see the results of POGO to match its previous 4.1Moz non-JORC resource excluding the 765,000oz resources which were the part of the satellite deposits in the original estimate. On the whole, the in-mine resources have gone up by 24%. Mr. Beament said that the management control of POGO on September 28, 2018 would now be focusing on resource definition and programs related to extensional drilling activities. Currently, POGO is having eight diamond drilling rigs which are in operation, with an expected investment of A$15-20 million for FY2019. The four undergoing rigs are Four of these rigs in the north zone are focusing on resource definition drilling and within the fun, zone Leise vein system is targeting resource extensions. The exploration of new lateral and downdip extension to the main Leise vein system adjacent to the Fun Zone production area is taken care by the remaining four diamond drill rigs.
Throughout the journey of the Northern Star, the performance of the company of 28329.12%. The 6 months performance is 40.38%. The YTD performance is 43.32%. The 1 year, 5 years and 10 years performance data of the company is 73.5%, 1000.47%, and 30913.58%. The company has made a net profit of A$193.825 million. The company has total assets worth A$1,216.870 million and total liabilities of A$395.434 million showing the company’s strong ability to clear its long-term obligations. The current asset of the company is A$558.074 million and total current liabilities worth A$200.101 million indicating that the company has a potential to even meet its short-term obligations. The shareholder's equity is worth A$821.436 million. The market price of the share of the company is A$9.055 (AEST 2:23 pm) with the market capitalization worth A$5.69 billion and PE ratio of 27.73x. As per the charts, we see that the moving average convergence divergence line has cut the signal line from the below and is moving in an upward direction indicating the price to be bullish in nature.
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