Northern Star Resources Ltd. announced significant growth in reserves and resources, led by a substantial increase at Kalgoorlie Consolidated Gold Mines (KCGM). On the back of exploration programs across the combined Northern Star-Saracen portfolio, Northern Star’s total reserves have risen 8% to 21 million ounces (oz) and resources have risen 15% to 56.5 million oz. These estimates reflect Northern Star’s combined asset base, including 100% of KCGM’s reserves and resources.
Northern Star Executive Chair Bill Beament said the company had maintained its outstanding record of organic growth. “This latest significant increase in our inventory strengthens Northern Star’s unique position in the global gold industry,” Beament said. “We own 56 million oz of resources, including 21 million oz of reserves, in tier-1 locations. This exceptional inventory will underpin our production growth to around 2 million oz/y over coming years. This enviable position is against a backdrop of falling global gold inventories, particularly in tier-1 locations. It is also the product of organic growth, which means we stand to maintain our record of generating the strongest financial returns in the Australian gold industry and indeed the Australian Securities Exchange.”
Beament said the growth in the KCGM inventory demonstrated the significant growth potential in what is one of the world’s most spectacular mineralized systems.
As of March 31, the group mineral resource estimate is 848 million metric tons (mt) at 2.1 g/mt gold (56.5 million oz). Resources for the Australian operations were estimated using an assumed gold price of A$2,250/oz. Resources for the U.S. Pogo operation were calculated using an assumed gold price of $1,500/oz.
The group ore reserve estimate is 387 million mt at 1.7 g/mt gold for 21 million oz. Reserves for the Australian operations were estimated using an assumed gold price of A$1,750/oz. Reserves for the U.S. Pogo operation were estimated using an assumed gold price of $1,350/oz.