The Newswire

Your daily serving of financial goodness

Strong Results from Central Tanami Infill Drilling Program

Strong Results from Central Tanami Infill Drilling Program
Jan 20, 2016 By Matthew Dibb Tags: NST

Gold Miner Northern Star Resources (ASX:NST) has announced relatively pleasing results, with regards to the Northern Territory based Central Tanami infill drilling program.

The assays (being the preliminary tests) for the latest 23 diamond holes at the project’s Groundrush deposit are in line with the first 22 holes, along with those recorded by Tanami Gold NL (ASX:TAM), their partner in this project.

The drilling is aimed at providing confidence in the Central Tanami project, and being in the lead up to a decision to start the gradual refurbishing the project’s processing plant, in order to start production in FY18.

Moreover, this project is being solely funded by Northern Star, as part of its agreement with Tanami Gold NL (ASX:TAM), in which they earn the revenues of 60% of the project.

The current infill program, which is around 80% completed, has a particular focus on signifying the flow of mineralisation to a vertical depth of 300m below the surface. In turn, providing Northern Star with the knowledge and confidence necessary to design an underground mining operation, by the declines from the existing Groundrush open pit.

With the Central Tanami mine potentially being a 125,000ozpa operation, Northern Star has considered it to be a good source of growth. Significantly contributing to their ‘Organic Growth’ strategy, which aims to increase production to 700,000ozpa by FY18.

The remainder of the drilling program is expected to be completed in late January, with final assays being finalized by the end of the Q12016.

Northern Star had recently announced that they had a 30% increase in cash and cash equivalents, to A$226 million, along with having no outstanding bank debt.

Despite the positive announcement, NST is down over 1.6% (as at 10.59am), to $3.04. However, in part to the recent surges in the gold price, NST has gained over 9% in 2016.

Share this article

Matthew Dibb Author: Matthew Dibb Jan 20, 2016

Matthew has an extensive track record in equity markets and derivative advisory. Spanning a career in several investment banks and prviate wealth groups including Macquarie Bank, his specialist knowledge relates to capital market advisory and equity market analytics. Matthew has a diploma in Financial Advisory, Applied Finance and is ADA 1 & 2 accredited.

Frontier Diamonds a rare gem for ASX investors?

Diamonds were a scarce resource until 1866 when the first discovery of the Eureka Diamond near Hopetown, South Africa sparked a dramatic increase in global production of gemstones

Author: Simon Herrmann Nov 22, 2017

Errors

Sign Up for Free Trial
Subscribe
Recent Tweets
Recent News