Northern Star Resources to outsource at Kundana gold

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Northern Star Resources is due to put its Kundana gold operation up for tender, with pundits predicting a bidding war among prospective contractors.

Westbusiness reported an internal review was underway which may see the company decide to forgo owner-operator mining, once incoming tenders have been evaluated.

In addition, it was presumed that the existing workforce would be offered continuity of employment, however Northern Star Resources has not commented on the rumours.

Northern Star has gone from strength to strength in recent years, with prices on an increasing incline since breaking through the dollar barrier in early 2014.

The company has seen exponential growth in value this year, gaining 33 per cent in the last month, from $3.04 to $4.04 at close of trade on March 1.

The Kundana operations, being the Raleigh and Rubicon-Hornet underground mines, are expected to produce 100,000 to 110,000 ounces this year.

Northern Star has been a beneficiary of the WA Exploration Incentive Scheme, and last year posted profit increases of 573 per cent, achieving solid production results after paying down all debt.