Why is the Northern Star share price smashing the market today?

Why is the Northern Star share price smashing the market today?
Why is the Northern Star share price smashing the market today?

The Northern Star Resources Ltd (ASX: NST) share price is shining brightly on Tuesday.

In afternoon trade, the gold miner’s shares are up over 3% to $11.83.

Why is the Northern Star share price rising?

While most gold miners are pushing higher today, the Northern Star share price is having a much stronger than average day.

This appears to have been driven by the release of an update on the company’s exploration activities this morning.

According to the release, more than 130,000 meters of drilling in FY 2024 to date has extended organic growth optionality across all three production centers. Management notes that this exploration success supports potential long-term growth strategies beyond its 10+ year group ore reserves.

Drilling results

At the KCGM project, drilling from underground drives generated strong results that may provide future potential mill feed sources outside of the current mineral resource. In addition, there was significant progress at Red Hill, Mt Percy and Hercules, which may provide meaningful optionality. It also highlights the potential across the broader region.

Over at Yandal, drilling has continued across operational, growth and discovery projects. It delivered high-grade intercepts, highlighting future potential growth opportunities along this highly prospective belt.

Finally, at Pogo, exploration has extended the mineralized footprint of the Star discovery, just 1.3km south of the mine.

Northern Star’s managing director, Stuart Tonkin, said:

Our team has made excellent exploration progress this financial year to advance operational, growth and discovery projects that aims to support long-term, value-creating strategies across our global portfolio. With more than 10 years of a Reserve-backed production profile, Northern Star continues to seek opportunities to further improve margins and extend mine lives.

The Northern Star share price is now up 18% over the last 12 months.

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