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Northern Star more than doubles March quarter output

Northern Star more than doubles March quarter output

Photo by Bloomberg

29th April 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Australian gold miner Northern Star Resources has more than doubled its recovered ounces during the three months to March, compared with the previous corresponding period.

The miner reported on Tuesday that 61 501 oz of gold was mined during the quarter under review, with 50 219 oz recovered. This compared with 23 817 oz recovered during the three months to March 2013.

The increase in production reflected the higher output from the Paulsens gold mine, in Western Australia, as well as the acquisition of Barrick Gold mines, including the Plutonic, Kanowna Bell and East Kunduna operations,  which it acquired in February and March.

During the quarter under review, the Paulsens operation recovered 22 342 oz of gold, and Plutonic recovered 12 778 oz. The Kanowna Bell and Kundana operations, both also in Western Australia, recovered 7 618 oz and 7 482 oz of gold respectively.

Northern Star MD Bill Beament said on Tuesday that the strong quarter left no doubt that the company was on track to achieve its production goal of 350 000 oz/y this year.

“Given the inevitable issues surrounding major asset handovers, these results are extremely pleasing. As we continue to drive productivity at each of our new operations and bring the Pegasus deposit at Kundana into production, it will become clear that we will meet our production and cost guidance.”

Beament said that Northern Star was also confident that the company could grow the Pegasus resource through further exploration, with the aim of increasing the maiden resource of 350 000 oz to well over one-million ounces.

“As we bed down these acquisitions, Northern Star will generate substantial growth in its free cash flow while enjoying a conservative balance sheet and outstanding growth potential. These traits are all consistent with our objective of making Northern Star an Australian gold producer which attracts global investors,” he added.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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