Northern Star Resources Ltd
Northern Star Resources Ltd
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Venturex is funded to progress long lead items, final designs, project finance and permitting for its 100%-owned Sulphur Springs copper-zinc project in Western Australia after receiving firm commitments for $A3.65M via a placement of 16.1M shares at 22cps.
MD AJ Saverimutto says strong support from new institutional and sophisticated investors enables Venturex to maintain high momentum with the Sulphur Springs implementation plan while also resuming exploration.
(CONTRACTING)
The award of the initial infrastructure and mining contract for the Ramone deposit at Northern Star Resources’ Jundee mine marks a significant return to West Australian gold mining by the up-for-offers BGC Contracting. John Feary reports
West Australian gold miner Northern Star has gone with BGC Contracting to provide initial infrastructure and mining services for the openpit development of its Ramone project, 35km SE of its Jundee gold mine near Wiluna.
The 18-month contract, worth $A30M, will include installation of site facilities, dewatering, drill and blast, load and haul mining together with construction of internal haul roads, establishment of site workshop, explosive compound and magazines, associated earthworks and site preparations.
Gold miner Evolution Mining has acquired 19.9% of Tribune Resources (11.05M shares) and its 36.75% stake in 2.06Moz gold resources/1.24Moz reserves East Kundana development project near Kalgoorlie in Western Australia for $A41.3M cash.
The E Kundana tenements, held in a J/V between Northern Star Resources (51% and operator), Rand Mining (12.25%) and Tribune (36.75%), are adjacent to Evolution’s 1.7Mtpa Mungari processing plant, 20km W of Kalgoorlie.
Strong performance by its Australian mines has enabled Northern Star to increase underlying net profit for the Dec half (H1FY19) by 11% to $A89.1M, from $79.1M in H1FY18, after record exploration and growth investment of $83M that included $10M on the Pogo gold project in Alaska, USA.
Statutory net profit was $82.1M ($79.1M) and EBITDA $2218M ($2091.8M) after revenue grew to $633.5M (H1FY18: $443.7M) on gold sales of 423,243oz (267,278oz) at an average $1,700 ($1,678/oz).
West Australian miner Coolgardie Minerals is still struggling with significantly lower than expected grades at its 70%-owned Geko gold project despite mine plan changes in Dec 2018 to rectify grade variability and mine dilution issues.
CM1 says ore mined last month has again fallen below the grades specified in its sale agreement with Northern Star Resources.
Australian-based NST is relying on a much stronger second half in maintaining its 850,000-900,000oz gold guidance for the year to June 2019 after delivering 400,852oz in the first half. AISC guidance rises 6.8% to $A1,125-1,225/oz after H1 costs reached $1,295/oz.
H1 production at NST’s WA projects was 140,252oz (H1FY18: 135,386oz) at AISC of $978/oz ($863/oz) at Jundee and 156,020oz (109,435oz) at $1,363/oz ($1,189/oz) at Kalgoorlie while its Pogo Gold Operations in Alaska, USA delivered 104,480oz at $1,586/oz.
CM1 has begun mining second stage, higher-grade oxide mineralisation at its Geko gold mine 25km NW of Coolgardie in Western Australia.
Under a 3-stage mine plan adopted after low grades disrupted its original ore sales deal with Northern Star, CM1 aims to mine 260,000t @ 2.23g/t for 18,640oz in the current phase.
It hopes NST will acquire about 50,000t @ 2.75g/t or higher to NST, with the rest stockpiled pending decisions on ore sales or toll milling.
West Australian miner Northern Star’s bid to clean up ownership of its East Kundana gold mine 25km NW of Kalgoorlie has been rejected by its linked targets Tribune Resources and Rand Mining.
NST last month offered $A150M cash for their combined 49% stake (Tribune 36.75% and Rand 12.25%) in the long-lived underground mine, which retains proved and probable reserves of 630,000oz.
After having its first two ore parcels rejected because of lower-than-promised grades, CM1 has completed a $A1.7M sale of a third parcel of ore from its newly developed Geko gold project to fellow West Australian Northern Star Resources.
Mined grade for the 7,980t parcel was 5.94g/t, 35% above the 4.4g/t reserve grade. CM1’s first 2 parcels of 10,000t in Nov-Dec fell below its 2.75g/t agreed minimum.