PERTH (miningweekly.com) – Gold miner Northern Star Resources has reported a slight decline in gold sales for the March quarter, compared with the December quarter, as production at the Kalgoorlie operation was impacted by mill availability.

Northern Star sold 380 075 oz of gold during the three months to March, at an all-in sustaining cost of A$1 656/oz. This compared with the December quarter sales of 392 655 oz at an all-in sustaining cost of A$1 631/oz.

Gold production from the Kalgoorlie operations declined from the 244 915 oz delivered in the December quarter, to 212 820 oz, while Yandal production increased from 102 163 oz to 109 766 oz in the same period.

Gold production at the Pogo operation increased from 45 577 oz to 57 489 oz in the same period.

We have sustained our strong safety performance across our three production centres while working hard to protect our workforce from the pandemic and keep our sites operating as the world continues to live with Covid-19,” said MD Stuart Tonkin.

“During the quarter, Kalgoorlie was impacted due to unplanned mill downtime events while Yandal performed in line with expectations. As foreshadowed, higher mining inventory at Pogo is delivering a better milling outcome but we have more work to do to deliver on Pogo’s potential.

“Group-wide and against a challenging operating backdrop, we continue to safely advance the foundation of our five-year profitable growth plan. One year in, we have significantly lifted material movement volumes at Kalgoorlie Consolidated Gold Mines (KCGM), working through the OBH cutback, almost completed the Thunderbox mill expansion and successfully commissioned Pogo’s expanded mill.”

Northern Star’s 2022 guidance for its Australian operations, which account for 85% of the Group portfolio, remains unchanged despite input cost and ongoing Covid-related workforce challenges. Improved KCGM plant availability and sustained high grades at Yandal will be the primary drivers of planned improved performance in the June quarter.

The Kalgoorlie operations are expected to deliver between 900 000 oz and 950 000 oz during the full year, with Yandal to contribute between 430 000 oz and 450 0000 oz.

Tonkin noted that while Pogo has responded to several productivity initiatives and is on track to operate at a run rate of some 240 000 oz/y for the second half of the year, 2022 production is now expected to be lower at between 205 000 oz to 220 000 oz, instead of the previous estimate of between 220 000 oz and 250 000 oz.

Tonkin said that given the need to accelerate mine productivity to optimise its future cost profile, Pogo will temporarily incur an elevated cost structure.

Northern Star’s 2022 gross growth capital and exploration guidance remains unchanged. Lower development receipts, due to earlier than expected commercial production at Thunderbox and KCGM, results in higher net growth capital guidance.

The miner is expected to spend some A$261-million at Kalgoorlie during the full year, a further AR$351-million at Yandal and A$70-million at Pogo.