St Barbara Ltd [ASX:SBM] shares are up today after the gold miner announced its estimated ore reserves and mineral resources.
The Australian gold miner has operations in Australia, Papua Guinea, and Canada.
Estimated ore reserves down
St Barbara is estimating their total ore reserves are at 97.8 Mt @ 1.8 grams per tonne for 5.8 million ounces of gold. This is down by 460,000 ounces since 30 June last year.
The main reason for the decrease is that they’ve implemented an open-pit mining approach to their Tower Hill mine along with the subsequent removal of Tower Hill Underground Reserves.
St Barbara said they’ll be revising Tower Hill’s ore reserves after they complete the pre-feasibility study in the first quarter of fiscal year 2023.
The company also released its total mineral resource estimate, which is 215.8 Mt at 1.9 grams per tonne of gold for 13.5 million ounces of gold.
Gold miners surge along with gold prices
At time of writing, St Barbara shares are trading 1.7% higher after the announcement, at $1.49.
But much of the jump in the share price is probably to do more with the price of gold instead of the statement released today. Gold prices went up to hit close to $2,650 an ounce overnight, the highest since November 2020.
In fact, while the S&P/ASX 200 is down today, many gold miners, like St Barbara, are up.
At time of writing, Northern Star Resources Ltd[ASX:NST] is up 2.44% and Newcrest Mining Ltd [ASX:NCM] shares have increased by 1.89%
Gold prices have jumped on tensions between Russia and Ukraine as more investors look for safety.
Markets have been looking quite shaky recently with inflation rising and the US Federal Reserve getting ready to raise interest rates.
But while there’s a lot of uncertainty out there, it’s no reason to panic. As editor Greg Canavan writes in his new report ‘How to Find Bargain-Priced ASX Superstars after a Big Sell Off’, this maybe the time to be greedy instead.
To find out more and access this free report, click here.