JOHANNESBURG (miningweekly.com) – ASX-listed Northern Star Resources has increased its total exploration budget for the 2018 financial year by A$10-million to A$45-million, owing to a series of exploration results showing that the gold producer is set to establish a ten-year life at its 10-million-ounce endowed Jundee gold project in Western Australia.

The increased exploration budget is to facilitate accelerated drilling programmes in the Jundee goldfield, which the company said on Tuesday was emerging as “one of the greatest gold fields in Australia”.

Northern Star has made multiple new discoveries in a 35-km radius of the mine. These discoveries are characterised by “extremely high grades” and they extend over significant dimensions of up to 2 km each.

The discoveries include the Zodiac discovery 800 m to the east of the Jundee mine, where results include 0.5 m at 765 g/t. Northern Star is now drilling what will be one of the deepest holes in Australian gold history, targeting two additional seismic reflectors below Zodiac.

Northern Star executive chairperson Bill Beament said that the results of its exploration programme were set to change the way Jundee goldfield was viewed.

“With production of seven-million ounces over the past 22 years, Jundee has been an exceptional mine by any measure,” he noted.

Beament said the Zodiac discovery was a game-changer of “enormous proportions”, describing the 765 g/t intersection from the seismic reflector as “nothing short of spectacular, particularly when the huge potential along strike is considered”.

The company is yet to intersect the second reflector.

“The 2.5-km-long Armade trend also continues to grow, and we are extending the known mineralisation in a host of places in and around the mine. Around the same time, the regional potential of the Jundee gold field is becoming clearer with the Ramone discovery demonstrating the wider upside,” Beament explained.

Northern Star is now confident that the company will be able to grow Jundee’s 1.4-million-ounce reserve base significantly, thereby adding years to its mine life.

The company has also enjoyed significant ongoing exploration success at its Kalgoorlie operations, where resource drilling continues to extend the known mineralisation in numerous places.

“We have long-stated that Kalgoorlie is a tier-one asset, and these results support our view,” Beament said.

He further added that the company was well on track to establishing Jundee and Kargoorlie as 300 000 oz/y producers, with long lives and low costs.

“And given that this is being driven from organic resources, our growth will flow without damaging our sector-leading financial returns,” he commented.

Meanwhile, Northern Star reported net profit after tax of A$79.1-million for the six months ended December 31, down 7% from the previous corresponding period. Revenue increased by 14% year-on-year to A$435.3-million.

The miner sold 267 278 oz of gold at an average price of A$1 678/oz at an all-in sustaining cost of A$1 043/oz.

Northern Star is aiming to produce 525 000 oz to 575 000 oz at an AISC of A$1 000/oz to A$1 050/oz in the full year.