Northern Star Resources Limited (ASX: NST) has provided an exploration update on its FY24 program, which is designed to extend organic growth optionality across all three production centres.
Northern Star is the largest gold producer listed on the ASX. Its production centres are Kalgoorlie and Yandal in Western Australia and Pogo in Alaska, US. The Perth-based company will provide its Annual Mineral Resource and Ore Reserves Statement, for the 12 months ended 31 March 2024, in 2H24.
Key points:
- Consistent in-mine and near-mine exploration success supports potential long-term growth strategies beyond Northern Star’s 10+ year Group Ore Reserves
- At KCGM, drilling from underground drives generated strong results that may provide future potential mill feed sources outside of the current Mineral Resource
- Elsewhere at Kalgoorlie, significant progress at Red Hill, Mt Percy and Hercules may provide meaningful optionality and highlights the potential across the broader region
- At Yandal, drilling has continued across operational, growth and discovery projects with high-grade intercepts highlighting future potential growth opportunities along this highly prospective belt
- At Pogo, exploration has extended the mineralised footprint of the Star discovery – just 1.3km south of the mine
- FY24 exploration spend of A$28M to date is in line with FY24 budget of A$150M
Commenting on the progress of the FY24 exploration program, Northern Star managing director Stuart Tonkin said:
“Our team has made excellent exploration progress this financial year to advance operational, growth and discovery projects that aim to support long-term, value-creating strategies across our global portfolio. With more than 10 years of a Reserve-backed production profile, Northern Star continues to seek opportunities to further improve margins and extend mine lives.
“Exploration and capital investment in our largest asset, KCGM, is generating and enhancing returns for our shareholders. We are rapidly growing near-mine opportunities close to underground infrastructure, which has the potential to add higher-margin ounces to the existing Reserve profile that underpins strong economic returns for our mill expansion. Dedicated exploration efforts by Northern Star at this global-scale asset have delivered excellent results so far, which highlight the growth potential that exists at KCGM and across the broader Kalgoorlie region.
“At Yandal, we are seeing encouraging results at key deposits and other prospects to potentially support mine-life extensions and further enhance value from the recently expanded Thunderbox processing plant. At Pogo, drilling results continue to impress with near-mine opportunities underpinning the mine life and investment thesis for this operation.
“The disciplined and returns-based approach we take to exploration continues to yield results. Importantly, the continued success demonstrates the significant organic optionality at all stages across our portfolio.”
