Northern Star blasts new Mellenium portal as it readies to sell of Plutonic

THE CONFERENCE CALLER: The Resources Roadhouse went back to its Mod roots by Going Underground at the Kalgoorlie operations of local gold producer Northern Star Resources (ASX: NST)

It’s been a while since we ventured beneath the surface and the visit provided time to reflect on what it actually takes for a company – any company – to produce the much-sought after of commodities.

In the week leading up to our visit, Northern Star Resources announced a 33 per cent increase in the company’s gold Reserves, taking them up to two million ounces.

The company declared the increase was a fillip in regards to its stated strategy to grow production to 700,000 ounces a year in 2018.

Norther Star’s Resources increased by 350,000 ounces to 9.25 million ounces with the new Resource estimate containing a 12 per cent increase in the Measured and Indicated category, taking that total to 4.9 million ounces.

The increases will fill the dent the company has made in its current Reserves, having mined some 611,000 ounces since the previous estimate was calculated a year ago.

Before heading off on our underground adventure Northern Star Resources managing director told all present that the revised estimates include just one of the five discoveries made by Northern Star over the past year.

He said the company is now working with the stated goal of bringing the other four discoveries into the JORC estimate.

The day’s activities concluded with the blasting of the portal for its latest Kalgoorlie underground venture – the 50,000 ounce per annum Millenium mine, sitting close by its Kundana operations.

Spectators watched from a safe vantage while sipping celebratory glasses of French champagne.

On day one of the conference, Northern Star announced it would be selling its Plutonic gold mine.