PERTH (miningweekly.com) - Gold miner Northern Star Resources has, again, reported a successful quarter, after production at its Paulsens gold mine, in Western Australia, increased during the three months to December.

Northern Star reported on Monday that gold production for the December quarter reached 20 515 oz, with production costs decreasing to some A$604/oz. The strong production results were achieved despite the Paulsens mill being closed for nine days to enable the plant upgrade to be completed.

The increase in the processing capacity meant that Northern Star was set to produce more than 100 000 oz at the Paulsens mine during 2013, and with the increased production and higher head grades, as well as the lower cash costs, the company was on track to generate some A$85-million in surplus cash during the full year.

During the three months to December, gold sales reached 19 728 oz, generating a revenue of some A$32.9-million.

“The results for the December quarter highlight the extent to which Paulsens has become a cash generator,” said MD Bill Beament on Monday.

“The fact that we can increase production and cut costs despite shutting down the plant for the upgrade highlights how well this mine is performing. But more importantly for investors, these results show that Northern Star is now set to generate outstanding returns in 2013, which will be characterised by a rise in production to more than 100 000 oz, even lower costs and increased cash generation.”

Beament said that, at the same time, Northern Star would continue with its aggressive exploration campaign in and around Paulsens, to grow its resource and mine life.

Meanwhile, Northern Star also reported that the Paulsens operation had achieved a number of half-yearly records during the six months to December, including a 33% increase in the tons mine, which reached 254 774 t during the period under review, and a 5% increase in the number of tons processed, which reached 179 825 t over the same period.

The Paulsens mine was now producing at an annualised rate of more than 500 000 t.