Northern Star reveals ambitious growth plan

Perth-based gold miner Northern Star Resources has announced a plan to increase its annual production from 75,000 ounces of gold per year to 200,000 ounces.

The plan will be split into a two-stage strategy, Northern Star said.

Under the plan, Northern star’s Ashburton project will be split; into the Ashburton free-milling project and the Ashburton sulphide project.

The first stage will also see Northern Star’s Paulsens mill upgraded from its current 350,000 tonne per annum capacity to 450,000tpa, lifting production capacity by more than 100,000 ounces.

The expanded plant would be fed from Northern Star’s Paulsens open pit and the Ashburton free milling project.

Northern Star said the first stage of its expansion strategy would cost approximately $10 million, which was already funded.

The gold miner has a $20 million exploration budget set for the next 12 months and $30 million in cash on hand as of today.

Managing director Bill Beameant said the company was now set to become one of the nation’s leading goldminers, after acquiring the Paulsens project approximately 12 months ago for $40 million.

“Paulsens has provided Northern Star with an outstanding foundation of strong production, low cost and high cashflow,” Mr Beament said in a statement.

“And there is still a lot of gold to be mined and we believe a lot of gold to be discovered at Paulsens.

“This two-staged strategy will enable the company to take even greater advantage of record gold prices in a very short timeframe and for a relatively small capital outlay.

“At the same time, it allows Northern Start to start work on its next substantial growth phase, which will catapult the company into the next league of gold producers.”

At 12:53PM (WST) Northern Star’s stock was down 3 cents, to 43 cents.