 | Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here! |
(Kitco News) - Northern Star Resources (ASX: NST), a senior global gold producer, yesterday announced Board approval for the development of the A$1.5 billion (~US$1.02 billion) Kalgoorlie (KCGM) mill expansion project in Western Australia.
The company said the capacity of KCGM's processing circuit, centered on the Fimiston processing plant, will increase from 13Mtpa to 27Mtpa, adding that targeted average annual gold production capacity at steady state, which is forecast to be achieved in FY29, is 900 thousand ounces of gold per annum.
KCGM processes gold-bearing ore mined from the Fimiston open pit and Mt Charlotte underground mines. The existing Fimiston processing plant has a milling capacity of 13Mtpa and is supplemented by the nearby Gidji processing plant.
The company noted that the KCGM mill expansion project will deliver a simplified Fimiston processing plant flowsheet with increased ore processing capacity. Consequently, the Gidji processing plant will be decommissioned.
"Feasibility study demonstrates that the project is financially compelling and delivers a post-tax IRR of 19% and 4.6 year payback (A$2,600/oz gold price). The project will deliver sustained lower cost base and significant increase in free cash flow," the company said.
"Expanding the processing capacity of KCGM will strengthen Northern Star's portfolio, materially increase our free cash flow generation and progress our long-term strategy to be within the 2nd quartile of the global cost curve," it added.
Located in Kalgoorlie, Western Australia, the KCGM operation is one of the world's largest and most significant gold mines with a mineral resource of 28.3Moz and an ore reserve of 12.2Moz.
Northern Star acquired 50% of KCGM from 1 January 2020 and assumed 100% control of KCGM as a result of the merger with Saracen Mineral Holdings, which was implemented on 12 February 2021.
Northern Star is a global-scale Australian gold producer that owns and operates three gold production centers (Kalgoorlie, Yandal and Pogo), located in prospective geological settings in the low sovereign risk jurisdictions of Australia and North America.
|
| Anglo American reports 'softer' demand for De Beers rough diamonds in fifth sales cycle of 2023 |
