Northern Star, Saracen flag $126m for exploration

Northern Star Resources and Saracen Mineral Holdings have budgeted $76 million and $50 million towards exploration for this financial year, respectively, as the gold miners seek to continue to boost their record level of reserves.

Northern Star said it budgeted a record amount for exploration in the current financial year as it aimed to build on a more than 30 per cent increase in reserves and resources over the past 12 months. 

The company said progress at its Pogo mine in Alaska was a key reason behind a 31 per cent increase in resources to 20.8 million ounces for the year, and a 35 per cent rise in reserves to a record 5.4 million ounces.

Northern Star has set aside $116 million for expansionary capital this financial year.

Today, Saracen announced its reserves increased by 32 per cent to an all-time high 3.3 million ounces.

In addition to spending $50 million on exploration this fiscal year, Saracen also intends to outlay $112 million for expansionary capital.

Saracen said the exploration spend would increase its reserves to underpin its goal of producing 400,000oz for at least the next seven years.

Shares in Northern Star sank 5.5 per cent to $12.29 at noon, while shares in Saracen fell by 3.1 per cent to $4.06 at noon.