PERTH (miningweekly.com) – Gold miner Northern Star Resources on Thursday told shareholders that infill drilling at the recently acquired Central Tanami project, in the Northern Territory, has supported the company’s strategy to establish a 125 000 t/y operation.
Assay results for the first 22 infill diamond drill holes at the Groundrush deposit were in line with those recorded by the project’s previous owners. The drilling aimed to establish Northern Star’s confidence in the Central Tanami project in the lead-up to a decision to start refurbishing the project’s processing plant, and to start production in 2018.
Northern Star was currently sole-funding the drilling campaign and would refurbish the processing plant in order to earn a 60% interest in the Central Tanami project from fellow-listed Tanami Gold.
Northern Star issued 4.29-million of its own shares, along with A$11-million in cash to Tanami Gold, to acquire an initial 25% interest in the Central Tanami project, which could produce at a rate of 150 000 oz/y.
The gold miner has earmarked the Central Tanami project as one of the sources of organic growth to lift annual production to 700 000 oz/y by 2018.
Edited by: Creamer Media Reporter
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