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Northern Star targets A$50m exploration spend in next year

Northern Star targets A$50m exploration spend in next year

Photo by Bloomberg

4th August 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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KALGOORLIE (miningweekly.com) – Gold miner Northern Star Resources on Monday reported that its campaign to increase the mine life of its operations was off to a good start, after strong drilling results were recorded at its Pegasus deposit and Paulsens mine, in Western Australia.

The miner noted that the latest results from the Pegasus deposit, which forms part of the Kundana project, had indicated that known mineralisation extended to 100 m below the current resource, while also expanding the strike length by 150 m, to 850 m.

A June resource estimate placed the Pegasus resource at 2.1-million tonnes, grading 11.4 g/t gold for 763 000 oz. It was expected that the mine would cost some A$10-million to develop, with first production scheduled for the end of this financial year.

Pegasus would contribute 50 000 oz to Northern Star’s yearly production from the middle of 2015.

Meanwhile, drilling at the Voyager 2 lode and Titan high-grade discovery, at the Paulsens mine, also returned significant assays and confirmed that the mineralisation continued.

Northern Star MD Bill Beament reiterated that growing the mine life at each of the company’s five assets was now the gold miner’s main focus.

“We have achieved our goal of growing and diversifying our asset base. Now that we have bedded down those acquisitions, our next objective is to extend the mine life at each of those assets,” he told delegates at the Diggers & Dealers conference, in Kalgoorlie.

Northern Star was expected to spend some A$50-million over the next 12 months on exploration in the pursuit of extending the life of its operations.

“This reflects our real strong belief that there is an enormous amount of high grade, high profit gold in and around our current assets. And if we get this right, which we will, for every additional year we add to our company’s mine's lives, our company’s valuation increases by 30c a share,” Beament said.

Edited by Creamer Media Reporter

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