Exploration Success Drives 50% Reserve Growth at KCGM, Hemi Project Pending
Northern Star Resources reports a substantial 9.4 million ounce increase in group Mineral Resources to 70.7 million ounces and a 1.4 million ounce rise in Ore Reserves to 22.3 million ounces as of March 2025, excluding the newly acquired Hemi Project.
- Group Mineral Resources increase to 70.7Moz, up 9.4Moz after mining depletion
- Group Ore Reserves rise to 22.3Moz, up 1.4Moz after mining depletion
- KCGM Mineral Resources doubled and Ore Reserves up 50% since acquisition five years ago
- Hemi Project resources and reserves excluded pending review
- Strong exploration success at Kalgoorlie, Yandal, Pogo, with maiden resources at Hercules and Golden Wonder
Northern Star's Resource Growth
Northern Star Resources (ASX: NST) has unveiled its annual Mineral Resources and Ore Reserves update for the year ending 31 March 2025, revealing a significant uplift in its gold inventory. The Group's Mineral Resources have increased to 70.7 million ounces, a rise of 9.4 million ounces after accounting for mining depletion. Similarly, Ore Reserves have grown to 22.3 million ounces, up 1.4 million ounces post depletion.
Stuart Tonkin, Managing Director, highlighted the company's strategic focus on exploration as a key value driver, noting the low cost of adding ounces through drilling and the robust performance across its portfolio. The Kalgoorlie Consolidated Gold Mines (KCGM) asset, Northern Star's largest, has seen its Mineral Resources double and Ore Reserves increase by 50% since acquisition five years ago, underscoring the success of ongoing exploration efforts.
Excluding Hemi Project for Now
Notably, the update excludes the Hemi Project, a world-class discovery recently acquired through the De Grey Mining Ltd transaction. Northern Star plans a comprehensive review of Hemi's data and expects to incorporate its resources and reserves in the next annual statement by March 2026. This cautious approach reflects the company's commitment to rigorous evaluation before integrating new assets.
Exploration Highlights Across Key Operations
Exploration success has been widespread. At Kalgoorlie, KCGM's Mineral Resources increased by 7.2 million ounces, driven predominantly by growth at the Fimiston Underground. The Hercules discovery near Kalgoorlie delivered a maiden Mineral Resource of 0.9 million ounces and an Ore Reserve of 0.25 million ounces, with promising high-grade intercepts extending mineralisation at depth.
In the Yandal region, Jundee's Mineral Resource rose to 6.4 million ounces, supported by ongoing development at the Griffin discovery. Thunderbox's satellite deposit, Golden Wonder, also saw resource growth and declared a maiden Ore Reserve. Meanwhile, Pogo in Alaska maintained high-grade Mineral Resources and increased Ore Reserves, supported by improved milling throughput and promising drilling results in the Central Link project.
Robust Technical and Environmental Framework
The report provides extensive technical details on sampling, drilling, resource estimation, and mining assumptions, reflecting adherence to JORC 2012 standards. Quality assurance and control measures are robust, with multiple layers of validation and peer review. Environmental considerations are integrated, with ongoing approvals and management plans in place across operations.
Northern Star's strategic asset base, spanning tier-1 locations in Australia and the USA, combined with a disciplined approach to exploration and resource management, positions the company well for sustained growth and value creation.
Bottom Line?
With a strong resource base and promising exploration pipeline, Northern Star is poised to integrate Hemi and extend its gold production profile.
Questions in the middle?
- How will the integration of the Hemi Project reshape Northern Star's production and reserve profile?
- What are the key risks in sustaining exploration-driven resource growth at mature assets like KCGM?
- How might evolving gold price assumptions impact future resource and reserve evaluations?
