UPDATE 2pm: Shares in Northern Star Resources firmed after the gold miner announced an 81 per cent upgrade in reserves at its flagship Paulsens project and extended the minelife to more than five years.
Northern Star said reserves now stood at 1.2 million tonnes at 5.3 grams per tonne for 204,000 ounces of gold, up from 113,000 ounces.
Total resources for the Paulsens project stand at 2.9 million tonnes at 5.7 grams per tonne for 555,000 ounces, the company said.
"Paulsens revised inventory does not include a series of outstanding drilling results recorded so far this year, which have been as high as 1135gpt," Northern Star said in a statement.
"These results, along with those from ongoing drilling, will be included in a further upgrade expected later this year."
Last month, Northern Star announced a 66 per cent resource upgrade at its Ashburton project to 1.7 million ounces.
It is planning to develop a stand-alone 100,000 ounce a year operation there.
Managing director Bill Beament said Paulsens was generating substantial surplus cash with total costs of $850-$950 an ounce and had a revised mine life of five years with every prospect of further increases in the future.
"Our plans to establish a second 100,000ozpa project at Ashburton are evolving rapidly and we have significant exploration potential on the 200km stretch which divides the two projects," he said.Northern Star shares closed up eight cents, or 8.74 per cent, at 99.5 cents.
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