Northern Star strikes gold

Local gold producer Northern Star Resources has announced a substantial discovery at its White Feather project, near its existing Kanowna Belle gold mine.

The company said the discovery featured hits of up to 5,328 grams per tonne at a depth of 200 metres.

The location is the site of a historic gold mine, which closed in the 1920s.

Northern Star managing director and former 40under40 winner Bill Beament said the company’s business model was predicated on large deposits existing at depth in WA.

“This is why we have established a $50 million exploration budget over the coming 12 months, with more than 20 drilling rigs in operation around Western Australia,” he said.

It follows the company’s announcement of a discovery on its Millenium tenement, near Kundana.

Northern Star has performed strongly in the last 12 months, with a total shareholder return of 123 per cent to June 30, and 137 per cent for the preceding five years.

It more than doubled gold production in the 2014 financial year compared with the previous period, up from 93,000 ounces to 215,000oz.

This took it to number 8 on the BNiQ gold miners list, from 13 in 2013.

Northern Star was up 10.4 per cent to $1.07 at the close.