Speaking at Diggers & Dealers 2014 in Kalgoorlie yesterday, Northern Star managing director Bill Beament said every year of additional mine life added would boost the company’s share price by A30c.
 
“This gives great leverage for Northern Star shareholders,” he said.
 
The company announced further drilling results from the Pegasus discovery at Kundana and the Paulsens mine.
 
New hits from Pegasus include 3.2m at 11.5 grams per tonne gold and 1.2m at 18gpt gold and extend the known mineralisation to 100m below surface and expand the strike length by 150m to 850m.
 
The K2 structure that hosts Pegasus will be a major focus of the company’s exploration push.
 
“This really is a corridor of riches,” Beament said.
 
At Paulsens, new results included 2.7m at 48.6gpt gold, 2.9m at 16.7gpt gold, 4m at 33.5gpt gold and 2.9m at 42.6gpt gold.
 
The company believes mine life extensions will follow.
 
It comes as Paulsens, the company’s first mine, had a record June quarter.
 
“This means we didn’t take our eye off the ball even though there were some shiny new toys in the box – and they’re very shiny,” Beament said.
 
Northern Star announced a maiden group resource of 6.2 million ounces at 4.2gpt and a maiden group reserve of 1.2Moz at 5gpt gold.
 
Those numbers are expected to grow with Jundee containing “extensive unclassified mineralisation”