Despite divesting assets and general mine depletion, Northern Star’s gold resource increased to 57.4 million ounces (Moz), and ore reserves kept steady at 20.2Moz.
Growth of 3.5Moz came from exploration success across multiple sites. In particular, a maiden mineral resource of 1.2Moz was defined near the Kanowna Belle gold mine in Kalgoorlie.
Northern Star also made a new gold discovery with the Hercules prospect, near the company’s Fimiston Plant in WA.
First drilling began at the Star prospect near Pogo mine in Alaska. Star returned exceptional assay results.
Additionally, the Fimiston Open Pit Reserve increased to 8.1Moz, up from 7.8Moz in March 2022, despite depletion of 237 thousand ounces (koz).
The overall increase in gold resource was achieved despite mine depletion and divestment of the Paulsens mine and Western Tanami gold assets, which reduced Northern Star’s gold resource by 754koz.
Northern Star managing director Stuart Tonkin said the company’s ability to replace volumes of gold mined is a testament to the high-quality and focused work of its team.
“Northern Star’s three production centres – Kalgoorlie, Yandal and Pogo – come with incredible and genuine world-class mineral endowments that provide us with the confidence to plan organic and profitable growth of the Company’s production footprint,” he said.
“Our team continues to excel at discovering new gold mineralisation near our existing operations, particularly in the Kalgoorlie district. The Hercules discovery is a good example of this type of new find that will provide us with additional growth options as we continue to unlock the potential of our assets by matching gold resources with processing capability.”
Northern Star recently released its March quarterly, reporting mixed results owing primarily to interruptions at Kalgoorlie consolidated gold mines and Pogo.
The company sold 191,031 ounces (oz) of gold from its Kalgoorlie production centre. Gold here was produced at an all-in sustaining cost (AISC) of A$1781 per ounce. Northern Star has revised its financial guidance for the year, raising the AISC estimate at Kalgoorlie from 1560 – 1660 up to 1700 – 1735.
Northern Star sold 46,978oz gold at an AISC of US$1668 per ounce. The gold company has since revised down 2023 gold production targets at Pogo from 260 – 290 to 225 – 240. The company also raised the AISC.
Extended mill downtime is understood to be the cause of lower production from these two sites.
But it was business as usual at the Yandal production centre, which sold 125,072oz of gold at an AISC of A$1627 per ounce. Yearly targets at Yandal remain unchanged.