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Highlights
- Northern Star recorded 20.7Moz of ore reserves.
- The company has delivered growth across Pogo and Kalgoorlie production centres.
- Northern Star’s mineral resources reported growth of 4.3Moz.
Gold explorer, Northern Star Resources Limited (ASX:NST), has shared mineral resources and ore reserve report for 12 months on Tuesday through ASX announcement. Northern Star reportedly said in a statement that results demonstrate its capability of organic production growth, mine life extension and more cash flow.
Northern Star share price continued its previous day's fall and was spotted trading 1.56% low to AU$9.47 apiece at 10:44 AM AEST. The share prices are in line with the benchmark index, ASX 200 Materials, trading 0.47% low at 11:05 AM AEST. One of the reasons for the share price fall can be the continuous decline in gold prices.
Related article: GOR, SBM & NST - Three ASX gold stocks that followed gold slump today
Key highlights of Northern Star's mineral resource and ore reserve update
Ore Reserve
Northern Star highlighted that the group ore reserve inventory underpins its profitable growth strategy for the five years.
The company recorded 20.7Moz of ore reserves during the year. It comprises exceptional growth at Kalgoorlie operations and Pogo. These results underpin the potential for organic growth opportunities and mine life extension.
The sale of Kundana assets during these 12 months resulted in 0.6Moz of ore reserves reduction.
Mineral Resources
Image source: © Dragunov1981 | Megapixl.com
During the 12 months (for the period ending 31 March 2022), the mineral resources were stable at 56.4 million ounces (Moz). Mineral resources were stable despite portfolio optimisation and mining depletion.
The company reported 4.3Moz growth from the exploration across operating centres, namely, Goodpaster and Fimiston Underground mineral resources. ASX-listed materials company said that 4.3Moz of mineral resources growth demonstrates the value generated through sustained exploration investment. The company added that the results reinforce its strategy to locate growth opportunities in endowed geological terrains.
The mineral resources decreased by 2.4Moz as Northern Star sold Kundana assets in an AU$400 million transaction.
Exploration highlights
Image source: © 2022 Kalkine Media®
At Kalgoorlie production centre, Northern Star reported a 20% increase in the Fimiston Underground to 5.0Moz. At Carosue Dam, Qena's exploration drilling delivered 310koz (thousand ounces) of maiden inferred mineral resources.
Now moving onto the Yandal production centre. The company reported some exception drilling results after infill drilling at Corboys project and exploration drilling at the north of Bannockburn ore reserve.
At last, talking about the production centre in Alaska – Pogo. Pogo ore reserves surged to 1.8Moz, a 20% increase. Also, at Goodpaster, the company declared a maiden mineral resource.
On the development, the managing director of Northern Star, Stuart Tonkin, commented that,
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