Northern Star Resources is fast tracking an aggressive growth strategy at its Western Australian gold operations.
The gold miner, which today released its December 2017 quarterly results, has launched plans to become a 600,000 ounce a year (oz/y) producer from its gold mines.
Northern Star ramped up its growth strategy during the December 2017 quarter, bringing forward $5 million in expansion expenditure to increase its overall three-month spend to $28 million.
The company’s short-term target is to produce between 525,000–575,000oz of gold in the 2018 financial year.
It set a strong foundation for reaching this guidance in the December half, producing 267,278oz during the six months at a cost of $1043/oz. In the December quarter, Northern Star’s output reached 128,819oz at $1067/oz.
Bill Beament, Northern Star chairman, said the company had met its operational targets for the quarter while also executing the growth strategy.
“Our production and costs were in line with our targets, ensuring we remain well on track to meet our full-year guidance on both fronts,” Beament said.
“This was a particularly strong achievement given we expedited what was already a heavy program of expansion.”
Beament said the decision to accelerate the growth strategy was made partly in light of the strong exploration results achieved by the company.
He explained the exploration results “are creating opportunities to continue growing our inventory and also providing more development options down the track.”
“We anticipate being in a position to provide further details of our exploration activity in an update next month,” Beament added.
Northern Star’s top producing mine during the December quarter was the Jundee operation near Wiluna with 66,673oz. Its Kalgoorlie gold operations delivered 61,289oz and the Paulsens mine 11,602oz.