Pilbara gold rush good for explorers: Beament NORTHERN Star...

Pilbara gold rush good for explorers: Beament

NORTHERN Star Resources executive chairman Bill Beament says time will tell if the Pilbara conglomerate gold story is the real deal, but the interest in exploration is good for the sector.

Speaking to analysts and media this morning, Beament noted that he was a mining engineer, not a geologist, so it was hard to judge the potential.
“We’re obviously a large producer in WA, so it’s fair to say we keep an eye on all the ground in the state,” he said.
“We’ve got a 20% stake in Venturex, which probably has some of the best ground in my view…certainly better than some of the names you’re seeing in the mainstream media.”

Venturex announced yesterday that a field review had confirmed an extensive strike length of gold-prospective lower Fortescue conglomerates at its Whim Creek copper-zinc project. “It’s gone largely unnoticed in my view,” Beament said.

Still, Beament said time would tell on whether the region was really another Witwatersrand Basin.
“The drill bit will test all theories and is the best lie detector in the industry,” he said.
Meanwhile, Northern Star reported a strong quarter, one that Beament described at the “first in a new chapter of growth”.
Group output was 138,459 ounces of gold at all-in sustaining costs of A$1021 an ounce, within full-year guidance of 525,000-575,000 at AISC of $1000-1050/oz.
The $18 million mill expansion at Jundee was completed ahead of schedule and under budget, while the 50,000oz per annum Millennium mine at Kalgoorlie was also completed under time and budget, with first ore delivered ahead of commercial production early next year.
Beament said Northern Star was past its capex peak, but would spend $65 million this financial year on expansionary capital and $35 million on exploration.
Despite August’s major resource and reserve upgrade, Beament said there was still plenty of scope for further growth in the company’s gold inventory.
Northern Star closed the quarter with $443 million after paying $36 million dividends.