Northern Star Resources Ltd
Northern Star Resources Ltd
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Depletion of high-grade stockpiles and harder ore from the Wiluna East-West pit contributed to March qtr (Q3FY19) gold production falling at West Australian miner Blackham Resources’ Matilda-Wiluna mine to 15,296oz, from 19,016oz in the previous period.
AISC rose to $A1,757/oz (Q2: $1,606/oz), including $94/oz sustaining capital costs related mainly to a tailings dam lift.
Blackham has again lowered its own FY19 production guidance to 66,000-68,000oz at AISC of $1,700/oz, 20% below its July 2018 forecast.
After a decline in March quarter performance, Australian miner Northern Star confident the Pogo project in Alaska will provide the bounce it needs to achieve its record production target for the coming period.
It’s going to take a record fourth quarter performance, but Australian-based Northern Star is maintaining its FY19 group guidance at 850,000-900,000oz after March qtr (Q3) production slipped to 186,255oz, from 193,252oz in the previous period.
The key will be the Pogo gold project in Alaska, USA, where exec chairman Bill Beament says NST is seeing a turnaround following its introduction of new mining methods and equipment.
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.