logo
powered-by-canningspurple
Navigation
logo powered-by-canningspurple
  • Insight
  • Companies
    • Artemis Resources
    • BLK Auto
    • BMG Resources
    • ChemX Materials
    • Core Lithium
    • Dreadnought
    • FBR
    • Finbar
    • Focus Minerals
    • Gold Road Resources
    • Hastings Technology Metals
    • Hyzon Motors
    • Jupiter Mines
    • Lykos Metals
    • Mineral Resources
    • Northern Minerals
    • Northern Star
    • NRW Holdings
    • Paydirt
    • Rand Mining
    • Raven SR
    • Rox Resources
    • St George Mining
    • Sundance Resources
    • Tribune Mining
    • Vimy Resources
    • VRX Silica
  • Industries
    • Broking Firm
    • Clean energy
    • Copper
    • Gold
    • Insight
    • Iron ore
    • Lithium
    • Manganese
    • Mining Services
    • Nickel
    • Oil & Gas
    • Property
    • Rare Earths
    • Silica Sand
    • Technology
    • Uranium
    • Zinc
  • Video
  • About
  • Contact
  • Subscribe

Home / Gold / Northern Star sells company starter, Rox builds company maker

Rox Resources

  • ASX: RXL
    • Au
    • Broking Firm

Northern Star sells company starter, Rox builds company maker

  • Insight
  • 16 April

Northern Star Resources was a small cap in 2010 when it paid $40 million for the unloved Paulsens gold mine in WA’s Pilbara. The decision to purchase, restore and grow this small underground mine proved the foundation for one of WA’s great ASX success stories.

Twelve years on, the $13 billion Northern Star (ASX: NST) said this week it would sell Paulsens along with the Western Tanami gold project for $44.5 million to Black Cat Syndicate (ASX: BC8).

The proposed sale is a milestone in Northern Star’s still young history – and being watched closely by the likes of Rox Resources, which hopes to build a similarly stellar track record founded on the revival of the Youanmi project near Mt Magnet in WA.

Through a new, focused approach to exploration at Youanmi, Rox (ASX: RXL) has grown the total mineral resource to three million ounces. And the company tantalised investors this week with a flurry of announcements and the prospect of a resource upgrade later this month.

Some more Easter news:

  • MinRes runs world’s first autonomous road trains
  • Lykos discovers exciting copper-bearing lode at Cajnice
  • St George hits more nickel-copper sulphides in extensional drilling at Stricklands
  • Core acquires another lithium asset near Finniss
  • Shoring up the supply chain next piece of decarbonisation puzzle
  • A basket full of goodies: Investor Insight 20 outperforms during turbulent Q1

Northern Star expects to complete the sale of Paulsens and Western Tanami – for cash and some scrip in Black Cat – in June, subject to Black Cat raising $25 million and gaining shareholder approval.

Northern Star managing director Stuart Tonkin said the sale of the two assets, which are in care and maintenance, was part of the company’s five-year strategy to divest non-core assets and maximise shareholder value through active and disciplined portfolio management.

“We are delighted that Black Cat, which has a proven track record as a responsible operator and successful explorer, intends to undertake extensive exploration at each operation to provide a potential future redevelopment path,” Mr Tonkin said.

Paulsens was a company starter that laid the foundations for Northern Star’s position today as one of the world’s leading gold producers.

The Alex Passmore-led Rox is pursuing its own journey though, in common with Northern Star, is hopeful a bespoke approach to an old asset will deliver sustained shareholder value.

In January, Rox upgraded Youanmi’s mineral resource to three million ounces at an average grade of 3.78 g/t gold, pushing the company up the leaderboard of the ASX’s next producers. The resource upgrade consolidated underground resource drilling results from 2021 and added 1.34 million ounces.

This week, Rox flagged another resource upgrade for later this month that will consolidate results from near-surface drilling in 2021-2022, including the latest round of high-grade results from the Link prospect announced on Tuesday.

The company’s other big news this week was the appointment of MACA Interquip to complete feasibility level test work for both the Youanmi underground and open pit resources and produce design and costings for a dual-purpose processing plant (to scoping-level accuracy).

Mr Passmore said while sulphide mineralisation from the underground resource could achieve very high extraction rates through various available processes, free-milling pit feed would make up 60 per cent to 70 per cent of total feed tonnes. This meant larger processing plant options were now being considered to reduce the amount of sulphide material in the total feed.

“Our plan includes a dual-purpose plant for oxide and sulphide feed material, which is now included in the scope for processing plant design and costing,” he said.

Mr Passmore will host an investor webinar next Wednesday to discuss Rox’s joint focus of further, systematic exploration alongside completing feasibility studies.

Peter Klinger

  • Contact

Share

  • LinkedIn
  • Twitter
  • Facebook

Most Read

  • 1 November

Nickel, cobalt anomalies at Sockovac; large new gold, copper anomalies at Sinjakovo

  • ASX:LYK
    • Ni
    • Cu
  • 28 September

Core Lithium – Primero Group Awarded EPC Contract for Finniss DMS Plant

  • ASX: CXO
    • Li
    • Clean energy
  • Insight
  • 26 June

Picking winners – the portfolio approach that offers blue-sky potential

  • ASX: ARV
    • Clean energy
    • Cu

Related

  • 25 May

Focus updates on Coolgardie Gold Project

  • ASX: FML
    • Au
  • 25 May

St George kicks off drilling in the Paterson

  • ASX: SGQ
    • Au
  • 25 May

St George kicks off drilling in the Paterson

  • ASX: SGQ
    • Cu
    • Au
  • 24 May

Focus Minerals announces Patricia Jean & Jolly Briton Mineral Resources

  • ASX: FML
    • Au

NEWSLETTER

Get news, as it happens

Sign up to receive our weekly roundup, and releases of interest, as they happen.

  • This field is for validation purposes and should be left unchanged.
logo

Investor Insight, powered by Cannings Purple, delivers the stories that matter to the people who matter – across your preferred communications platform.

From breaking news to analysis, opportunities and thought leadership, Investor Insight is your window into some of Australia’s most exciting listed and non-listed companies.

  • Insight
  • Companies
    • Aeris Resources
    • Altrad
    • Argonaut
    • Artemis Resources
    • BLK Auto
    • BMG Resources
    • Buru Energy
    • Catalyst Metals
    • ChemX Materials
    • Core Lithium
    • DDH1 Drilling
    • Dreadnought
    • FBR
    • Finbar
    • Focus Minerals
    • Gold Road Resources
    • Hastings Technology Metals
    • Hyzon Motors
    • Jupiter Mines
    • Lykos Metals
    • Mineral Resources
    • Northern Minerals
    • Northern Star
    • NRW Holdings
    • Paydirt
    • Rand Mining
    • Raven SR
    • Rox Resources
    • St George Mining
    • Sundance Resources
    • Torrens Mining
    • Tribune Mining
    • Vimy Resources
    • VRX Silica
    • Westgold Resources
    • Zenith Minerals
  • Industries
    • Broking Firm
    • Clean energy
    • Copper
    • Gold
    • Insight
    • Iron ore
    • Lithium
    • Manganese
    • Mining Services
    • Nickel
    • Oil & Gas
    • Property
    • Rare Earths
    • Silica Sand
    • Technology
    • Uranium
    • Zinc
  • Video
powered-by-canningspurple
  • About
  • Contact
  • Subscribe
  • Cannings Purple
  • Privacy Policy
  • Disclaimer

Copyright 2022 Cannings Purple