News

The combination of a low Australian dollar and rising gold prices has pushed the Australian Gold Prices above AUD 2000 this morning. The rising gold price is a welcome boost to the Australian gold sector, which has helped lift leading Australian gold miners to record share values. Market leaders, including Northern Star and Evolution have seen intraday gains of over 7%.
In 2019, Mining Employment Services has seen a surge in labour needs in the gold sector in both gold exploration and gold production-based roles. The most significant job increases have been in Western Australia, where demand is outstripping supply.

Novo Resources Corp announced today that it has entered into a US $30 million farm-in and joint venture agreement with Sumitomo Corporation of Tokyo, Japan, and its wholly-owned Australian subsidiary in order to advance Novo’s Egina project located approximately 80 km south-southwest of Port Hedland.
“Novo’s Egina project is an early-stage, high-potential gold project,” commented Dr. Quinton Hennigh, Chairman and President of Novo Resources Corp. “Sumitomo, upon conducting their own technical review, has developed a similar opinion. It is remarkable for an exploration company to team up with a world-class finance partner like Sumitomo. With Sumitomo’s financial backing, we aim to quickly advance Egina through exploration and test-extraction phases with the ultimate goal, should results prove favourable, of setting the project on a path to production. Novo has been developing the relationship with Sumitomo for many years, built on a foundation of mutual trust and respect. The combined teams have the technical capacity to advance this unique gold deposit and we are honoured to work with Sumitomo’s capable technical team.”

Kirkland Lake Gold Ltd. announced overnight that the Company has revised and increased its consolidated three-year production guidance and improved its unit-cost guidance for 2019. The Company also announced today Mineral Reserve and Mineral Resource estimates for December 31, 2018, which include growth in Mineral Reserve ounces and average grades at both Fosterville and Macassa, as well as on a consolidated basis.
Key Highlights of the Production Guidance and Mineral Reserve Estimates Include:

Potential for a million ounces in 2019 with three-year production guidance increased to 920,000 – 1,000,000 ounces for this year, 930,000 – 1,010,000 ounces for 2020 and 995,000 – 1,055,000 for 2021;Fosterville three-year guidance revised to 550,000 – 610,000 ounces for 2019 and 2020, with production guidance for 2021 remaining unchanged at 570,000 – 610,000 ounces, respectively; Production to resume at Holloway, with 20,000 ounces expected in 2019 increasing to 50,000 ounces by 2021
Consolidated unit-cost guidance for 2019 improved, with operating cash costs per ounce guidance revised to $300 – $320 from $360 – $380 previously, with AISC per ounce sold improved to $520 – $560 compared to previous guidance of $630 – $680; Fosterville’s 2019 operating costs per ounce sold guidance improved to $170 – $190 from $200 – $220 previously
Consolidated Mineral Reserves increase 1.1 million ounces or 24% to 5,750,000 ounces @ 15.8 grams per tonne (“g/t”) at December 31, 2018 (total additions of 1,860,000 ounces before depletion of 750,000 ounces)
Fosterville Mineral Reserves increase 1,020,000 ounces or 60% to 2,720,000 ounces @ 31.0 g/t at December 31, 2018 from 1,700,000 ounces @ 23.1 g/t (total additions in 2018 of 1,386,000 ounces before depletion of 366,000 ounces); Growth in Mineral Reserves at December 31, 2018 reflects 34% increase in average grade and 19% growth in total tonnes, to 2,720,000 tonnes from 2,290,000 tonnes at December 31, 2017
Mineral Reserves at Macassa increase 11% to 2,250,000 ounces @ 21.9 g/t from 2,030,000 ounces @ 21.0 g/t at December 31, 2017 (total additions of 464,000 ounces before depletion of 244,000 ounces)

Tony Makuch, President and Chief Executive Officer of Kirkland Lake Gold, commented: “Since November 2016, Fosterville has been transformed into one of the world’s highest-grade, most profitable gold mines, which has greatly benefited Kirkland Lake Gold and its shareholders. The completion of Fosterville’s December 31, 2018 Mineral Reserve and Mineral Resource estimates, with the related revisions to its life of mine plan and production profile, have taken that transformation to an even higher level, with the potential for much more to come. Largely driven by the 34% increase in the Fosterville Mineral Reserve grade, we are now on track to achieve significantly higher levels of production at Fosterville in 2019 than previously expected and could reach one million ounces of annual gold production as early as this year. Just as encouraging as the growth in ounces, is the fact that with a higher average grade at Fosterville, as well as at Macassa, our Mineral Reserve ounces are more valuable, which means improved unit costs and increased cash flow per ounce going forward based on current gold prices.
“Looking at our Mineral Reserves in more detail, the 24% increase in consolidated Mineral Reserves is a testament to the effectiveness of the infill drilling programs at Fosterville and Macassa. At Fosterville, there is considerable potential for further Mineral Reserve growth at a number of areas, including the Swan Zone, other parts of the Lower Phoenix system, Harrier and a number of other targets, like Robbin’s Hill, where early exploration results demonstrate the potential for attractive economic orebodies. Turning to Macassa, we converted close to half a million ounces of Mineral Resources to Mineral Reserves in 2018 and have a number of high-potential areas in and around the South Mine Complex (“SMC”) that we are targeting for future growth in Mineral Reserves and Mineral Resources.”

Panoramic Resources Limited announced today that first shipment of bulk nickel/copper/cobalt concentrate from the Company’s recently recommissioned Savannah Project in the Kimberley region of Western Australia has departed Wyndham, bound for Lianyungang, China.
The MV Heemskerkgracht departedwith 7,735wmt of nickel/copper/cobalt concentrate on-board, with a preliminary invoice value of approximately A$ 8.6million.
Commenting on this milestone, Panoramic’s Managing Director, Peter Harold said “it is wonderful to see Savannah concentrate being shipped again from Wyndham. This is a significant milestone in the recommissioning of the mine and processing plant at Savannah and I would like to thank the team at Savannah for their efforts to get the project going again."

Northern Star today reported its financial results for the six months to December 31, 2018. The results reflected a combination of the strong performance at Northern Star’s Australian mines and the significant investment the Company made in its next round of growth, particularly at the Pogo gold mine in Alaska.
The Pogo acquisition, which was included in Northern Star’s accounts from September 28, 2018, helped underpin a 43 per cent increase in revenue from the previous corresponding period to A$633.5 million. This led to a 33 per cent increase in the interim dividend to A6¢, fully-franked, which is in keeping with the Company’s policy of paying dividends equal to 6 per cent of revenue. Underlying net profit was up 11 per cent from the same time last year at A$89.1 million and statutory net profit was 4 per cent higher at A$82.1 million.
Northern Star Executive Chairman Bill Beament said it was a solid result which was driven by the strong performance of the Australian operations and the upfront investment made in Pogo.
“We generated an industry-leading return on equity of 20 per cent excluding the Pogo acquisition, which is particularly exceptional when compared with the Van Eck GDX index 5-year average of negative 2.9 per cent,” Mr Beament said.
“At the same time, we invested a record A$83 million in exploration and expansionary capital, A$10 million of which was at Pogo.
As yesterday’s announcement demonstrated, the exploration results we are generating at Pogo are world-class and will help us achieve our objective of growing mine life, production and cashflow there.
But those sorts of results don’t come for free. We need to invest in Pogo in the same way as we have invested in our other Tier-1 operations and based on what we are seeing, I have no doubt we will reap significant returns from that investment at Pogo in the same way or better than we have done at Kalgoorlie and Jundee.”

Bardoc Gold Limited announced today that it has received highly encouraging initial results from a program of extensional drilling at the Zoroastrian deposit, part of its 100% owned 2.6Moz Bardoc Gold Project, located 55km north of Kalgoorlie in Western Australia.

High-grade hits of up to 17g/t Au confirm down-plunge extensions as successful testing of new exploration model opens up an important new resource growth opportunity

Bardoc said the results were significant because they have confirmed immediate opportunities to grow the existing Resource inventory at Bardoc, highlighting the significant exploration upside within the Project area.
Resource extension and upgrade drilling programs commenced at the Zoroastrian South and Blueys South deposits during the December quarter, as part of the Company’s strategy to expand and upgrade the existing resources within the newly-consolidated Bardoc Gold Project. Results have now been received for the first four holes of the program and were reported in the announcement.
Bardoc Gold Managing Director, Mr John Young, said the successful drilling program followed the application of a new geological model based on the analysis of historical datasets and the application of state-of-the-art computer modelling.
"We have been able to transform our thinking about the Zoroastrian deposit compared with the original interpretation based on limited open pit mining undertaken at the deposit by Excelsior Gold," he said.
"This recent work has allowed us to successfully define and explore the target host dolerite unit at depth, resulting in a decision to change the angle of our drilling in order to intersect all of the mineralised lodes at depth, within the favourable host dolerite."
"This is a very exciting development, which suggests that this deposit could well and truly open up downplunge with multiple high-grade lodes. In light of this, we have decided to extend the current drilling program in order to lay the foundations to expand the Bardoc Resource in this area."

International lead and zinc smelting company, Toho Zinc will invest $90M for a 40% ownership interest in Galena’s currently wholly-owned subsidiary AMPL, which owns Abra Base Metals Project in Western Australia. Toho and Galena each have a right to off-take their percentage share of Abra production on arms-length, benchmark terms, and then on-sell to third-parties.
Managing Director, Alex Molyneux commented, “This is a great transaction that provides the equity required to develop Abra, recognising the strategic value of the Project. Furthermore, Toho is a key player in the global lead and zinc industry and an experienced miner, so we look forward to the benefits of a true partnership in the development of Abra.”

RNC Minerals announced a new high-grade gold discovery at its Beta Hunt Mine.
Over the past week, approximately 9,250 ounces of high-grade gold was produced from a 44 m3 cut (130 tonnes) on 15 level at the Beta Hunt Mine (equal to over 70 ounces/tonne or 2,200 grams/tonne).
The high-grade gold (coarse gold and large gold-containing specimen stones) includes approximately 190 kg of specimen stone, the largest of which is 95 kg with an estimated gold content of 2,440 ounces and a second large specimen stone of 63kg with an estimated gold content of 1,620 ounces.
Final ounces will be determined once the coarse gold is processed and/or sold over the next week which is expected to yield approximately $16 million in cash. All of the high-grade coarse gold is hand-picked, direct ship ore and immediately sent directly to the Perth Mint.

Bellevue today announced their latest drill results which confirms the significance of the new >800 metre strike length discovery in the Tribune Footwall directly below the Bellevue underground workings - The Viago Lode.

4.3 m @ 58.8 g/t gold a result of over 250 gram metres (refer figure 1).
Nearest drill holes are:

3.4 m @ 10.4 g/t gold & 0.3m @ 44.4g/t gold step-out drill hole 150 metres to the north in hole DRDD059 (refer ASX 17/07/2018)
11.4 m @ 9.6 g/t gold step-out drill hole 150 metres to the south in DRDD060 (refer ASX 17/07/2018)1
The latest drill result is considered highly significant by the company given the exceptional tenor of mineralisation and the wide spacings of the current drill grid (~240 metres). The result is very reminiscent of the high-grade bonanza ore shoots at the historical Bellevue mine in geology, grades and width.
Executive Director Mr Steve Parsons said, “We are very pleased with how this new discovery continues to firm up, with the latest drill result confirming the Viago Lode to be another significant discovery for the Company. To have intercepted visible gold mineralisation in all but a single hole with scout drilling over 800 metres of strike length is quite exceptional and now with the receipt of this latest bonanza grade intersection, the potential of the Viago Lode is starting to become clear.
To have a second, high-grade gold discovery in such a short period of time points to the quality of the Bellevue Lode system. We are very excited to add another drill rig and anticipate we will upgrade the recent maiden resource estimate in Q4 of this year.”

Northern Star Resources announced today that the Company yesterday hit its production rate target of 600,000ozpa. Production for the June quarter to date is 150,000oz. This takes the total for the financial year to date to 540,000oz, meaning Northern Star is on track to beat the top end of its FY2018 guidance of 540,000-560,000oz. All-in sustaining costs will be within the guidance range of A$1000-1050/oz. Northern Star Executive Chairman Bill Beament said the Company was poised to maintain the growth trend on the back of its highly successful exploration strategy and increased processing capacity.
“The recent acquisition of the 1.2Mtpa South Kalgoorlie mill, combined with our ongoing exploration success, will underpin continued production growth in our Kalgoorlie operations,” Mr Beament said. “This additional milling capacity provides increased flexibility in Kalgoorlie, where we have also just declared commercial production at the Millennium mine. “At Jundee, we are experiencing a similar scenario, with the processing plant now running at the rate of 2Mtpa on fresh underground ore.” Northern Star will provide production and cost guidance for FY2019 as part of its wider Strategic Update in early August.