PERTH (miningweekly.com) – Gold miner Northern Star Resources has tripled its reserves to 3.5-million ounces, following exploration work at its Jundee and Kalgoorlie operations, in Western Australia.

The ASX-listed miner on Thursday reported that total reserves increased by 2.3-million ounces, to 3.5-million ounces, despite a depletion of 546 000 oz in the 2017 financial year.

Northern Star’s total resource estimate increased by 2.7-million ounces to 10.2-million ounces of gold, supporting an estimated mine life of ten years at forecast production rates.

Northern Star executive chairperson Bill Beament told shareholders that the increased inventory would generate significant production growth with 2019 production targeted at between 550 000 oz and 600 000 oz, growing to between 575 000 oz and 625 000 oz from 2020 onward.

“Northern Star now has mine life visibility of ten years. Our production rate will grow to 600 000 oz/y or more with scope for further significant increases as we bring our Central Tanami project on line, and revitalize Paulsens through the impending exploration programme there.”

Beament noted that the company would achieve this production growth while also reducing its expansionary capital outlay to A$60-million in 2019, and A$40-million in 2020.

“This will help ensure our overall costs remain at or around current levels, positioning us for further substantial increases in free cash flow.”

Beament told shareholders that the Jundee and Kalgoorlie operations each had the capacity to become a 300 000 oz/y center over the next two years, which would see the assets join an exclusive club of gold mines around the globe.

Reserve estimates at Jundee doubled to 1.45-million ounces, while resources were up 155% to 3.2-million ounces, while the Kalgoorlie reserves were up 117% to 2-million ounces, and resources were up by 25%, to 4.5-million ounces.

The revised reserve estimation did not include the new Zodiac discovery at Jundee, where recent drilling intersected multiple mineralised intersections over a 200-m downhole interval.

Beament said on Thursday that an exploration budget of A$35-million in 2018 was expected to underpin further reserve replacements as well as potential for future growth.