Gold miners Newcrest Mining [ASX:NCM] and Northern Star Resources [ASX:NST] have both revealed quarterly results earlier this morning, listing the highlights for their respective operations for the three months ending 31 March.
Newcrest shared news of exploration target enhancements at East Ridge and gaining higher-grade intercepts while Northern Star Resources outlined the sale of 363,000 pounds at an AISC of $1,813 a pound, while lower than expected production was offset by higher prices.
Year-to-date, NCM has gained 41% in share value, while NST has bumped up 26%:
Source: TradingView
Newcrest quarterly exploration
The gold mining big gun has put out its exploration highlights for the March quarter, focusing on its delivery for global exploration goals, strategies to identify Tier 1 mineral deposits, and ways to provide for long-term operations in emerging copper-gold regions.
For example, the team has explored deep enough at Red Chris and opened a mineral endowment in an emerging, world-class copper-gold province.
Additionally, Newcrest reported that it has been able to enhance its exploration target for East Ridge to between approximately 400Mt at 0.42g/t Au and 0.49% Cu for 5.4Moz Au, and 1.9Mt Cu and 500Mt at 0.39g/t Au and 0.47% Cu.
Newcrest said this target is ‘conceptual in nature’ and abstains from giving a Mineral Resource Estimate at the present time.
Drilling east of the East Ridge exploration target continues with higher-grade intercepts found 66m at 0.53g/t Au and 0.46% Cu.
Recent discoveries at Red Chris show an initial portfolio of seven high-priority porphyry copper-gold targets across the 750 kilometres, suggesting high prospectivity in the area. Mapping, sampling, and drilling is scheduled to begin in the September quarter.
Exploration continues for footprint expansion at Brucejack, the Valley of the Kings deposits, and Spring Peak in Nevada have shown extensions of high-grade veins up dip.
At Havieron, results from growth drilling in the prior period continue to demonstrate the potential for resource additions around the Eastern Breccia, Northern Breccia, and other higher-grade mineralised pods.
Interim CEO Sherry Duhe said:
‘We continue to unlock significant value for Newcrest across our global exploration portfolio consistent with our growth strategy. East Ridge represents a very exciting opportunity for Newcrest and we were pleased to enhance the Exploration Target in March 2023, providing additional future mining optionality at Red Chris.’
Northern Star’s quarterly report
Other gold mining heavyweight Northern Star highlighted the sale of 363,000 pounds at an AISC of $1,813 a pound and AIC of $2,426 a pound.
While the group flagged lower production than expected due to extended mill downtime at KCGM and Pogo, it did assert this is now mostly resolved, and production shortfall was offset by total cost improvements across operations:
Source: Northern Star
Northern Star reported its five-year profitable growth pathway has progressed via material movements tracking well at KCGM, advancing expansions at Thunderbox mill (to deliver 6Mt a year nameplate capacity) and optimisations at Pogo.
During the quarter, NST spent $191 million on growth capital and $34 million on exploration.
The group had net cash of $102 million on 31 March, and cash and bullion of $452 million after $124 in dividend payments.
NST said this was the best quarter for year-to-date cash generated at operations and maintains its FY23 production guidance of 1,560–1,680oz gold sold.
ASIC guidance was revised to $1,730–1,760/oz due to operational impacts at KCGM and Pogo.
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Regards,
Mahlia Stewart,
For Money Morning
