THE BOURSE WHISPERER: Northern Star Resources (ASX: NST) is gearing up for a big time at the annual Diggers & Dealers conference next week after declaring it anticipates increasing the mine life at its Jundee gold mine in Western Australia.
The rise in the company’s expectations stem from an increase to the project’s total JORC Resource estimate by 68 per cent, taking it to 851,000 ounces.
Northern Star said the outlook for Jundee, which recovered 75,319 ounces in the June Quarter, has been strengthened by its Reserve component remaining almost steady at 383,000 ounces.
This is despite 138,000 ounces of gold being produced in the six months following the previous Reserve estimate in December 2013.
The new Resource estimate for Jundee comprises 4.2 million tonnes at 6.4 grams per tonne gold for 851,000 ounces of gold, including Reserves of 2.5 million tonnes at 4.8g/t for 383,000 ounces.
Jundee Resources. Source: Company announcement
Northern Star also indicated an in mine Exploration Target in addition to the above stated Mineral Resource in the range of one to 1.5 million tonnes at eight to 12g/t gold.
The company said further drilling will be required over the coming twelve months to test and validate the Exploration Target that sits within the same geological setting hosting the Jundee deposit.
“The increased Resource estimate demonstrates the potential for substantial additions to Jundee’s mine life,” Northern Star Resources managing director Bill Beament said in the company’s announcement to the Australian Securities Exchange.
“We have identified numerous target areas around existing resources as part of our strategy to grow the mining inventory at Jundee.
“We also have many new areas which we believe are highly prospective, providing further scope to grow the resource base and mine life.
“The scale of production, its high grade, low costs and strong exploration upside will allow Jundee to make a substantial contribution to Northern Star for many years.”
The Jundee resource upgrade follows the substantial increase of the resource at the company’s othe recently-acquired Pegasus deposit at the Kundana mine, also in WA, to 763,000 ounces at 11.4g/t gold.