Northern Star’s new $67 million gold project

Northern Star Resources has announced the purchase of the Millrose gold project from Strickland Resources for $67 million. The deal comprises $41 million in cash and 1.5 million fully paid shares in Northern Star.

The WA gold project has a known mineral resource of 346 thousand ounces of gold at a grade of 1.80 grams per tonne.

Millrose is located 40km to the east of Northern Star’s Jundee operations. According to the company, Millrose will become a supplementary feed source for the Jundee mill in the medium term, complementing Jundee’s underground base load.

Jundee underground operations currently source roughly 1.8 million tonnes of ore each year.

Northern Star managing director Stuart Tonkin reacted to the agreement.

“The acquisition of the Millrose gold project presents a very compelling development opportunity that is accretive to the Jundee life of asset plan as it should deliver us a sizeable low cost, high grade supplementary resource feed.

“This bolt-on acquisition, which also comes with significant brownfields exploration upside, will provide us with further confidence to plan organic and profitable growth for Jundee, which already is the lowest cost asset in our tier-1 portfolio.”

Strickland has advised its shareholders of exactly how it intends to spend its new funds.

Within the first twelve months, Strickland plans to undertake 3500m of diamond drill and 25,000m of reverse circulation drilling. The company also intends to upgrade its portfolio of gold prospects to mineral resource status, as well as continue base metal exploration at its Iroquois zinc-lead project.

In the same announcement, Northern Star indicated that it was strengthening renewable energy at its Jundee operation. The company has entred into a long-term power supply agreement with Zenith Energy, which incorporates 40 megawatts of wind and solar generation.

Once completed, this will provide 56 per cent of the mine site’s power.

Northern Star Resources set to expand the Super Pit

金矿商Northern Star计划开发价值15亿澳元项目扩展

金矿商 Northern Star（ASX：NST）已决定批准在西澳大利亚州卡尔古利（Kalgoorlie）开发价值15亿澳元的KCGM工厂扩建项目。

【澳股资讯平台 – 61 Financial 6月23日讯】金矿商 Northern Star（ASX：NST）周四发布公告称，其已决定批准在西澳大利亚州卡尔古利（Kalgoorlie）开发价值15亿澳元的KCGM工厂扩建项目。

根据更新，Northern Star预计该开发将进一步加强北极星的关键资产和公司的整体投资组合。预计KCGM的处理能力将从1300万吨/年增加到2700万吨/年，并实现现代化。

根据每盎司2600澳元的金价（当前金价约为2850澳元），公司预期如下：

税后内部收益率（IRR）为19%；
项目投资回收期4.6年；
黄金平均年产量为90万盎司；
平均每年全部维持成本（AISC）为每盎司1425澳元（全公司AISC目前为每盎司1766澳元）。

公司透露，为期三年的建设阶段现已开始，并已订购了长期领先的项目。

Northern Star预计，产量将从2027财年开始增加，到2029财年达到2700万吨/年的稳定产量。

此外，这想开发将完全由该公司手头现金和预测现金流提供资金。因此，公司的股息政策将得以维持。

公司股价一年走势回顾：

text 【更多NST公告和股价走势请点击NST个股页面】

消息来源：

公司公告KCGM Mill Expansion Financial Investment Decision

Northern Star Resources set to expand the Super Pit

ALEXANDRA EASTWOOD

The Northern Star Resources board has approved the expansion of the Fimiston Mill, part of the Kalgoorlie Consolidated Gold Mines’ (KCGM) Super Pit.

The expansion from 13 million tonnes per annum (Mtpa) to 37Mtpa is set to cost $1.5 billion and is due to be completed in 2026.

Located at the centre of the Kalgoorlie goldfields, the Super Pit is one of Australia’s largest open pit gold mines and includes the Mt Charlotte underground mine and the Fimiston and Gidji processing plants.

“Today is an exciting day for Northern Star and a historic new chapter for this world-class asset,” Northern Star managing director Stuart Tonkin said.

“The board’s decision to approve the KCGM mill expansion and optimisation represents the next stage to revitalise our largest asset as well as the surrounding district for decades to come.

This project is financially compelling, and a significant enabling step towards delivering our strategy to generate superior returns for our shareholders.”

Northern Star has had a productive start to the year at the Super Pit, increasing gold resources to 57.4 million ounces (Moz) and keeping ore reserves steady at 20.2Moz.

Tonkin said the company is confident the site will continue to produce significant value.

“Our confidence in the economics of KCGM to remain a long-life, low-cost gold mine has been further reinforced through the feasibility study phase,” he said.

“Expanding the processing capacity of KCGM will strengthen Northern Star’s portfolio, materially increase our free cash flow generation and progress our long-term strategy to be within the 2nd quartile of the global cost curve.

“Further, the project is important in our sustainability journey and will also sustain hundreds of local jobs, economic and social investment, and local procurement opportunities in the Goldfields region.”

Rio Tinto to invest in stronger US copper supply

ALEXANDRA EASTWOOD

Major miner Rio Tinto is looking to invest more in its Kennecott operation near Salt Lake City, Utah, in a bid to strengthen its copper supply in the US.

To do so, Rio will increase production from underground mining at the site while also improving the health of key assets.

A total of $US498 million in funding has been approved to deliver the increase in production and is expected to commence in 2024.

Rio said the production will ramp up steadily over two years from 2024 in order to deliver 250,000 tonnes of additional mined copper over the next 10 years.

“We are investing to build a world class underground mine at Kennecott and strengthen our processing facilities, to meet the growing demand for copper in the United States, a key material for domestic manufacturing and the energy transition,” Rio Tinto Copper chief operating officer Clayton Walker said.

“This investment will position Kennecott to continue the strong contribution it has made as part of the Salt Lake Valley community for 120 years, injecting about $1.5 billion annually to the local Utah economy.”

Rio will also invest $300 million for a rebuild of the Kennecott smelter, the largest in the history of the site.

The investment is the latest in a series copper investments, signalling the growing importance of the resource.

Earlier this week, Glencore finalised the sale of its CSA copper mine in NSW to Metals Acquisition Corp (MAC) for $US1.1 billion ($1.64 billion), while Evolution Mining extended its Ernest Henry mine life to 2040.

Regis Resources sees gold

OLIVIA THOMSON

Mid-tier Australian gold producer Regis Resources has released its annual mineral resource and ore reserve update for the 2022 calendar year.

The company said its mineral resources and ore reserves show progress against its long-term strategy, as well as provides a solid platform to launch the next phase of growth.

Highlights from the report include underground reserves outpaced depletion for the second year in a row as new results highlight underground life extensions at the Duketon gold project and the Tropicana joint venture, which Regis Resources chief executive officer Jim Beyer said was pleasing to see.

“We are extremely pleased that our underground mines at both Duketon and Tropicana have outpaced depletion for the second year in a row. We have spent the last two years investing in these mines and it is very satisfying to deliver reserve growth on these investments over this short time horizon,” Beyer said.

“It is still early days in the maturity of these undergrounds and we look forward to the continuing growth potential as we mine deeper. Our long reserve life of eight years and located wholly within Australia provides a strong platform to deliver on our long-term growth objectives and achieve superior returns for our shareholders.”

Other highlights from the report includes group ore reserves of 3.6 million ounces (Moz) and group mineral resources of 7.0Moz, both as of 31 December 2022.

There was an increase in new ore reserves of 210,000 ounces (koz) and an increase in new mineral resources of 400koz, both offset by the 2022 calendar year depletion.

Long term gold price assumptions for the calculation of reserves and resources were updated but remain at moderate levels at a weighted average of $1800 per ounce for reserves and $2430 per ounce for resources.

Additionally, early results from the Garden Well exploration decline at the Duketon project has reinforced the potential for a new production front and growth in ounces per vertical metre. The underground site also established an exploration target.

WA Government releases green steel report

OLIVIA THOMSON

The Western Australian (WA) Government has released a new report which details the State’s potential to join the rapidly growing global green steelmaking value chain.

(The report is available via the MRIWA website at: https://www.mriwa.wa.gov.au/minerals-research-advancing-western-australia/focus-areas/green-steel/ )

The Minerals Research Institute of Western Australia (MRIWA) said that the State has played a central role in the growth of the global steel industry for over 60 years.

“Steelmaking is a very energy intense process resulting in the global steel industry being one of the largest carbon emitters in the world… it is important to understand the significant challenges steelmakers are facing to reduce emissions in their operations,” the MRIWA said.

As a response to this issue, the MRIWA and the WA Government created the Western Australia’s Green Steel Opportunity report. It maps five ways in which WA iron ore can be used to reduce emissions from steelmaking.

The report considers the size and scale of the capital requirements and infrastructure needed for these pathways, and it identifies the State’s access to natural gas and renewable energy resources as key to supporting emissions reductions in steelmaking.

WA Premier Roger Cook said the report will help position the State as an investment destination for low-emissions steel opportunities.

“Our State’s abundant renewable energy resources alongside our world-leading iron ore industry puts WA front and centre in the global push towards green steel. Moving up the green steel value chain will diversify our economy and create more local jobs right across the State,” Cook said.

Mines and Petroleum Minister Bill Johnston said the State Government has a comprehensive understanding of the challenges facing the steel industry in its decarbonisation efforts and opportunities.

“The transition option of using natural gas has the potential to reduce emissions from iron making by 65 per cent and is technically feasible today. This information can be used to support investment attraction into Western Australia,” Johnston said.

Glencore closes sale for Cobar copper mine

ALEXANDRA EASTWOOD

After selling its CSA copper mine in Cobar, New South Wales, to Metals Acquisition Corp (MAC) for $US1.1 billion ($1.64 billion) earlier this month, Glencore and MAC have officially closed the sale.

Under the transaction, Glencore has received $US775 million in cash and $US100 million in shares, along with:

$US75 million deferred payment to be paid within 12 months
$US150 million payment contingent upon future copper prices
1.5 per cent life of mine net smelter return royalty

Glencore will offtake 100 per cent of the copper concentrate produced and MAC will assume ownership and the full operation of the mine.

“The acquisition of CSA represents a strong strategic fit for MAC. Our management team’s operational expertise, understanding of regional operations and relationships with local stakeholders uniquely position us to identify and realise the full potential value of the asset,” MAC chief executive officer Mick McMullen said in 2022.

“We believe that copper has favourable fundamentals that will continue to support an elevated copper price.

“Copper is expected to play a key role in the global energy transition ‘megatrend’, with approximately one million tonnes per annum of new supply required from 2024 onwards in order to meet the surging demand forecast.

“With few new projects globally in the pipeline, increasing permitting issues and jurisdictional risk, and declining copper grades across the industry, we believe that there are significant challenges ahead to close the projected supply deficit.”

True North Copper begins ASX trading

OLIVIA THOMSON

Australian near-term copper producer True North Copper will commence trading on the Australian Securities Exchange (ASX) as of today.

The news arrives as Truth North Copper’s (TNC) merger with Duke Exploration was completed June 7 2023, after being first announced February 28 2023.

Prior to its listing, TNC completed an underwritten capital raising, and a priority offer to existing Duke Exploration shareholders, raising a total of approximately $37.3 million (before costs) at $0.25 per share.

TNC is a copper, cobalt and critical minerals mining company based in Queensland, Australia. Its principal assets include the copper-gold Cloncurry project and the high-grade copper cobalt Mt Oxide project.

The company aims to be Australia’s next copper producer through its Queensland-based portfolio of copper and cobalt assets. TNC managing director Marty Costello described the ASX listing as the latest step towards reaching this goal.

“Our ASX listing is the latest milestone in our transformation into Australia’s next copper producer,” Costello said.

“With funds raised via our offer and our recently completed acquisition of the high-grade Mt Oxide copper-cobalt-silver project, we have all the assets in place to achieve this. This timing is excellent given the current price cycle for copper and expected supply deficit in the next few years.

“We have a large combined indicated, measured and inferred JORC resource base containing 326,000 tonnes of copper as well as significant cobalt, gold and silver and infrastructure including a copper concentrator, solvent extraction plant and copper sulphate crystallisation plant.

“We plan to move into production in the second half of (2023), subject to successful technical studies and further financing if required, while we will continue to explore our projects for opportunities to expand our resource base, with drilling commenced at Mt Oxide’s vero resource underway.”

Four benefits of Edge AI in mining

ALEXANDRA EASTWOOD

The benefits of artificial intelligence (AI) are being seen in the mining industry in various forms such as in automated trains, automated drills, and the algorithms that enable predictive maintenance.

With Edge AI – which marries edge computing with AI – AI is feasible at a much larger scale in mining than ever before. This is because the AI is working via machine learning algorithms located and stored locally, as opposed to relying on constant communication with the cloud.

The four benefits of Edge AI include:

1. Speed

Edge AI can help mining companies process large amounts of data at the edge of their networks – closer to where the data is being generated.

Devices make near-instant decisions without having to upload or download data from the cloud or data centre. This reduces latency and enables real-time decision-making, which can improve operational efficiency, productivity, and safety.

2. Savings

As the AI is located on the ‘edge’ the network costs for running AI applications are significantly lower as they require less internet bandwidth. This amplifies other savings that mining companies can see from adopting AI to optimise operations and minimise waste.

For instance, edge AI can be used to enhance the performance of drilling and blasting operations, reducing the amount of energy and resources required. It can also be used to optimise the routing of mining vehicles to reduce fuel consumption and wear and tear on equipment.

3. Smart

The AI gains knowledge by tapping back into the cloud-based network whenever it can’t adequately answer or perform a task, meaning it will keep learning, but only when it needs to. This makes AI for predictive maintenance more viable on a large scale – predictive formulas can be hosted on the edge, but the AI will continue to get smarter.

4. Secure

As Edge AI devices analyse real-world information and store confidential data locally without uploading to the cloud, they offer a mining operation more security and privacy of data.

Additionally, AI can be deployed to detect and prevent cyberattacks or breaches.

Thinking about integrating Edge AI technology? Choosing the right platform is key to performance in a mining environment. The Australian-owned Backplane Technology Systems has been providing Australian mining companies with industrial computing systems for over 30 years. The company is exclusive suppliers of the Neousys Edge AI GPU (Graphics Processing Units) which are designed to function in industrial and extreme conditions.

“Our lineup of Neousys embedded edge AI GPU platforms are powered by NVIDIA GPUs and share common features such as a patented thermal design to ensure wide working temperatures, a patented damping bracket to withstand serious shock and vibration and an adaptive GPU bracket to support various cards in the system,” Backplane chief executive officer Kristy Comb said.

“These embedded GPU systems have been optimised to support complex deep learning computations and ensure efficient and effective AI training. In particular, our Neoysys SEMIL series have certain features that make them ideal for mining environments.”

The Neousys SEMIL series is an Edge AI platform specifically engineered for the rugged environmental conditions experienced in mining sectors.

Key features and benefits of Neousys SEMIL series:

Water, dust, and corrosion proof
Perfect fit for rugged environments where shock, vibration and humidity are experienced.
Fanless GPU computers
MIL-STD-810G and EN 50155 certified
Highly power efficient
Can operate in temperatures that range from -25°C to 70°C

Interested to understand the value that Edge AI can bring to your mining operation in more detail? Download the free white paper ‘Harnessing the benefits of AI in mining’.

Rio Tinto, China Baowu work to decarbonise steel

ALEXANDRA EASTWOOD

Rio Tinto has commended the Federal Government’s emissions-reduction policy for providing support to heavy industry.

Major miner Rio Tinto has joined forces with steelmaker China Baowu to explore ways to decarbonise the steel value chain in China and Australia.

Under a recently signed Memorandum of Understanding (MoU), the two companies will advance specific decarbonisation projects including:

Researching, building and demonstrating a pilot-scale electric melter, enabling low-carbon steel making
Optimising pelletisation technology for low-carbon shaft furnace-based direct reduction
Expanding China Baowu’s HyCROF technology, which can mitigate CO2 emissions
Jointly studying opportunities for the production of low-carbon iron in WA.

The MoU was signed in Shanghai by Rio Tinto chief commercial officer Alf Barrios and China Baowu vice president Hou Angui.

“Rio Tinto and China Baowu are united in a commitment to accelerating the delivery of low-carbon solutions for the entire steel value chain,” Barrios said.

“This MoU aims to address one of the biggest challenges faced by the industry – developing a low-carbon pathway for low-to-medium grade iron ores, which account for the vast majority of global iron ore supply.

“China’s commitment to curbing emissions and promoting high-quality green development is strongly aligned with our own position where climate change and the low-carbon transition are at the heart of our strategy.”

Rio chief executive of iron ore Simon Trott said the company is proud of its 40-year relationship with China Baowu.

“We look forward to progressing this study into the potential of low-carbon iron making in Western Australia as we work to ensure a positive future for Pilbara ores in a green steel world,” Trott said.

China Baowu said the company is committed to working with Rio Tinto now and into the future.

“With the mission of building an industrial ecosystem to promote the progress of human civilisation, China Baowu is committed to working with Rio Tinto to jointly study and provide low-carbon and green comprehensive solutions for the steel value chain, help the low-carbon transformation and upgrade of the steel industry chain, and support the world to address the challenge of climate change with pragmatic actions,” the company said.

Glencore sells copper mine for $US1.1 billion

ALEXANDRA EASTWOOD

Image: Glencore CSA Mine

Coal miner Glencore will sell its CSA copper mine in Cobar, New South Wales, to Metals Acquisition Corp (MAC) for $US1.1 billion ($1.64 billion).

CSA is an established, high-grade producing, long-life underground copper mine with an estimated current mine life of over 15 years, and MAC has identified opportunities to further extend it, subject to exploration success.

The sale is the latest indicator of copper’s growing importance, after Evolution Mining extended its Ernest Henry mine life to 2040 earlier this week.

Similarly, South32 is looking to grow its portfolio, identifying a copper mine that could be an M&A fit. The copper outlook continues to be supported by the rising decarbonisation narrative, with the commodity a highly efficient conduit for renewable energy systems such as solar, wind, hydro and thermal energy.

The Glencore/MAC deal has been on the table for some time now, with the companies entering into an agreement back in March 2022.

“We believe that copper has favourable fundamentals that will continue to support an elevated copper price.

“Copper is expected to play a key role in the global energy transition ‘megatrend’, with approximately one million tonnes per annum of new supply required from 2024 onwards in order to meet the surging demand forecast.

MAC will acquire 100 per cent of the issued share capital of Cobar Management from Glencore. Cobar Management owns and operates the mine.

The company has made arrangement for the copper streams with Osisko Gold Royalties in the US.

“CSA is a high-grade, long-life asset, with significant upside that can be unlocked by the MAC management team,” Osisko president and chief executive officer Sandeep Singh said.

“We are pleased to see this important transaction nearing completion, and look forward to having both the silver and copper streams contribute to our near-term cash flows.”