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Researched by Industrial Info Resources Australia (Perth, Australia)--Volatile gold prices have affected another Australian company after they fell to approximately $1,200 an ounce in the past few weeks, which is the lowest recorded level in almost three years. Northern Star Resource Limited (ASX:NST) (Perth) is temporarily suspending exploration and project development activities, specifically with its Ashburton gold project.
Northern Star is a mid-tier exploration and mining company with a diversified portfolio of gold projects across Western Australia. Based on impressive gold prices in previous years, Northern Star was reported to have had record production and profits in the 2012-13 fiscal year. The company earned about $5 million in profits compared to the previous financial year, with an overall result in excess of about $24.87 million (AUD$27million) for 2013 from a record 88,614 ounces.
However, current gold prices led Northern Star to make its recent decision on the Ashburton project, which is located near the township of Tom Price, Western Australia. The project will be retained by the company for the interim, as it remains a valuable resource. It has an estimated 100,000-ounce-per-annum deposit and an estimated life of 10 years.
"We have sought to strike the right balance between the need to ensure our business continues to generate satisfactory returns for shareholders, while retaining the assets needed to grow over the longer term," said Northern Star Managing Director Bill Beament.
Part of the Ashburton project is the Mount Olympus Mine, which was acquired by Northern Star in early 2011. The project is the company's second-largest, with the flagship operation being the Paulsens gold mine and processing facility near Paraburdoo. The Paulsens project hosts an impressive underground operational mine, delivering approximately 70,000 to 80,000 ounces per year from the 350,000-tonne-per-annum processing facility.
The company will continue its efforts with the Paulsens project, with some potential productivity expansions in the next 12 months. Exploration and proposed operations will resume when the commodity price becomes favourable to resume activates.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Northern Star is a mid-tier exploration and mining company with a diversified portfolio of gold projects across Western Australia. Based on impressive gold prices in previous years, Northern Star was reported to have had record production and profits in the 2012-13 fiscal year. The company earned about $5 million in profits compared to the previous financial year, with an overall result in excess of about $24.87 million (AUD$27million) for 2013 from a record 88,614 ounces.
However, current gold prices led Northern Star to make its recent decision on the Ashburton project, which is located near the township of Tom Price, Western Australia. The project will be retained by the company for the interim, as it remains a valuable resource. It has an estimated 100,000-ounce-per-annum deposit and an estimated life of 10 years.
"We have sought to strike the right balance between the need to ensure our business continues to generate satisfactory returns for shareholders, while retaining the assets needed to grow over the longer term," said Northern Star Managing Director Bill Beament.
Part of the Ashburton project is the Mount Olympus Mine, which was acquired by Northern Star in early 2011. The project is the company's second-largest, with the flagship operation being the Paulsens gold mine and processing facility near Paraburdoo. The Paulsens project hosts an impressive underground operational mine, delivering approximately 70,000 to 80,000 ounces per year from the 350,000-tonne-per-annum processing facility.
The company will continue its efforts with the Paulsens project, with some potential productivity expansions in the next 12 months. Exploration and proposed operations will resume when the commodity price becomes favourable to resume activates.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
