Northern Star Resources Limited (ASX: NST) has released its annual resource, reserve and exploration update, highlighting a stable group Mineral Resource of 56.4Moz and Ore Reserve of 20.7Moz despite mining depletion and portfolio optimisation.
The group Ore Reserve inventory provides the foundation for Northern Star’s five-year profitable growth strategy.
Mineral Resource growth of 4.3Moz from exploration showcases the value generated by the company’s sustained exploration investment, more than offsetting mine depletion and divestments. In addition, it reinforces Northern Star’s strategy to identify growth opportunities within strongly endowed geological terrains that can deliver maximum returns to shareholders.
Highlights include:
- A maiden 1.1Moz Mineral Resource at 10.3g/t defined at Goodpaster, 2km west of the Pogo mill – for an overall lift in Pogo grade; and
- The Fimiston underground Inferred Mineral Resource increased by 1.0Moz – for a first glimpse of a new world-class system at KCGM
“Our ongoing exploration success highlights the significant opportunity that exists within our Tier-1 asset portfolio to grow the gold resource base, particularly through the extension of known mineralisation at depth at KCGM. We continue to focus our exploration efforts on extending mine lives and developing our three production centres,” managing director Stuart Tonkin said.
“Despite a challenging year for drilling and assaying capability, Pogo achieved a 20% increase in Ore Reserves at a higher grade and declared a maiden Mineral Resource at Goodpaster reinforcing the enormous growth potential of Pogo.
“Our substantial Mineral Resource base in world-class jurisdictions is what enables Northern Star to stand out in the marketplace. We will continue to explore aggressively and effectively to unlock the enormous potential within, around and below our existing operations. This further supports the replacement of Ore Reserves in coming years.
“Our conservative gold price assumptions combined with our underground mining portfolio provide optionality in a supportive gold price environment to optimise cash flow and shareholder returns as well as ensure downside protection.”
