12/11/2014 - 13:57

Northern Star strikes gold at Millennium

12/11/2014 - 13:57

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Gold miner Northern Star Resources has outlined plans to spend $50 million next year on exploration activity, after announcing a high-grade gold discovery on the Millennium tenement at its Kundana project near Kalgoorlie.

Northern Star managing director Bill Beament.

Gold miner Northern Star Resources has outlined plans to spend $50 million next year on exploration activity, after announcing a high-grade gold discovery on the Millennium tenement at its Kundana project near Kalgoorlie.

Northern Star said the discovery was made 200 metres from the surface and was situated next to its dormant Centenary mine.

“Millennium has so far been defined over a 500-metre strike and remains open to the North and at depth,” the company said in a statement.

“It would be accessible from either the dormant Centenary mine or the North pit located on the opposite side, meaning the capital cost of any development would be reduced.”

Northern Star said it fully owns the Kundana tenement which hosts Millennium.

Managing director Bill Beament said the discovery was made using a similar theory that led to the ore discovery at the company’s Pegasus deposit three weeks ago.

“This theory suggested that there are gold shoots with multiple plunge orientations rather than a single plunge direction,” he said.

“The intersections to date suggest Millennium is a high-grade deposit which can be developed at a low cost thanks to its proximity to existing mine infrastructure.

“The low cost-nature of such a deposit is made even more attractive by the fact that this ground is 100 per cent owned by Northern Star.”

The company said another two holes had been drilled, with one containing visible gold.

Meanwhile, at the company’s annual general meeting today, chairman Chris Rowe described the 2013-14 financial year as a very exciting time and a period of rapid growth for Northern Star.

“This year saw Northern Star transition from a 100,000 ounces per annum gold producer to one which now targets 550,000 to 600,000oz per annum from our five production centres, and has become the second-biggest ASX-listed gold miner,” Mr Rowe told shareholders.

“To help ensure we achieve this next target, the board has approved a $50 million exploration budget for the coming year.”

Mr Rowe said recent falls in the gold price meant there was a need to maximise productivity and minimise costs.

Northern Star recorded a 36 per cent increase in underlying profit for the 2013-14 financial year to $38.6 million, earned from record revenue of $297 million.

In a series of acquisitions over the last year, Northern Star purchased the Plutonic and Kanowana Belle gold mines from Barrick Gold for $100 million, and bought the Jundee mine from Newmont Mining for $82.5 million.

Northern Star’s share price closed 5 per cent higher at $1.05 per share.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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