Northern Star CEO Bill Beament
Photo by: Bloomberg
PERTH (miningweekly.com) – Gold miner Northern Star Resources is poised for a record quarter of production during the three months to June, as the Pogo mine, in Alaska, gears up to increase its output.
Northern Star on Wednesday reported that gold production in the March quarter reached 186 255 oz, down slightly from the 193 252 oz produced in the first quarter.
During the March quarter, the Jundee operation delivered 81 089 oz of gold, while the Kalgoorlie gold operations delivered 84 492 oz. The Pogo mine provided the balance of 39 750 oz.
However, Northern Star pointed out that the new mining method of long-hole stoping started only late in the March quarter at Pogo, representing 11% of the quarter’s processed tonnes.
For the June quarter, the Pogo mine is forecast to produce some 50 000 oz, with Northern Star expecting group production to reach between 235 000 oz and 260 000 oz in the June quarter.
“The introduction of a new mining method and late delivery of some equipment reduced production at Pogo [during the quarter], which in turn temporarily drove up the cost per ounce,” said Northern Star executive chairperson Bill Beament.
“But these changes are starting to pay dividends, as the results of the months of March and April show. As well as ramping up tonnage from the long-hole stoping towards the end of the quarter, we cut site expenditure to an average $18.5-million, a month in the March quarter, from an average of $22.5-million a month in the previous two quarters.
“This will deliver significant benefits to the all-in sustaining costs (AISC) at Pogo as production rises,” said Beament.
AISC for the March quarter reached A$1 369/oz, up from the A$1 365/oz in the December quarter. However, for the June quarter, AISC were projected to be at between A$1 075/oz and A$1 175/oz for the group.