Northern Star’s Exploration Success Raises Stakes on Resource Growth and Cost Control
Northern Star Resources commits A$225 million to its FY26 exploration program, revealing promising drilling results and new prospects across key assets including Kalgoorlie, Yandal, Pogo, and the newly acquired Hemi Development Project.
- Sustained A$225 million FY26 exploration budget focused on near-mine growth and resource conversion
- Significant mineralisation extensions at Fimiston South and new Golden Goose prospect at Mt Charlotte
- Encouraging drilling results at Ballarat-Last Chance, Hercules, and high-grade zones at Pogo and Yandal
- Integration of Hemi Development Project underway with resource statement expected in May 2026
- Exploration success supports industry-leading low cost of resource addition at A$19/oz
Robust Exploration Investment Drives Portfolio Growth
Northern Star Resources Ltd (ASX – NST) has reaffirmed its commitment to organic growth through a sustained exploration investment of A$225 million for FY26. This budget, unchanged from prior guidance, underscores the company’s strategic focus on near-mine opportunities and the conversion of extensive mineralised systems across its global portfolio.
Managing Director Stuart Tonkin highlighted the balanced approach Northern Star is taking, prioritising resource definition and conversion while advancing regional targets. The company’s exploration efforts span its three major production centres, Kalgoorlie, Yandal, and Pogo, as well as the recently acquired Hemi Development Project in Western Australia’s Pilbara region.
Kalgoorlie – Deep Extensions and New Prospects
At the Kalgoorlie Consolidated Gold Mines (KCGM) operations, drilling has extended the Fimiston South mineralisation footprint to depths of up to 800 metres below the existing resource, revealing significant growth potential. Additionally, the Mt Charlotte underground mine has yielded a new prospect named Golden Goose, with encouraging intercepts such as 73.1 metres at 1.9 grams per tonne and 25.6 metres at 4.0 grams per tonne, indicating the potential for new resource discoveries.
Further west, the Ballarat-Last Chance project near Kalgoorlie has returned promising drill results, while the Hercules discovery continues to build confidence with thick, high-grade intersections including 21.3 metres at 6.1 grams per tonne and 12.9 metres at 9.7 grams per tonne. These results reinforce Kalgoorlie’s status as a key growth hub for Northern Star.
Yandal and Pogo – Extending Mine Life and Unlocking High-Grade Targets
In Western Australia’s Yandal Production Centre, exploration has identified mine life extension opportunities proximal to existing infrastructure. At Jundee, new extensions to productive zones such as Deakin and Barton have been confirmed with narrow, high-grade intersections outside current resources.
Meanwhile, the Pogo mine in Alaska continues to demonstrate its world-class scale. Extensional drilling at East Deep and surface programs at the Star prospect have confirmed thick, high-grade mineralisation zones, with intercepts like 9.2 metres at 33.1 grams per tonne and 5.1 metres at 33.9 grams per tonne. These findings support ongoing efforts to unlock further value from this prolific system.
Hemi Development Project – Integration and Growth Potential
Following its acquisition in May 2025, the Hemi Development Project is being integrated into Northern Star’s resource base. The project, one of the largest undeveloped gold deposits in a tier-1 jurisdiction, features multiple mineralised zones including Aquila, Crow, and Diucon. Recent drilling between the Diucon and Crow deposits has returned high-grade intercepts such as 3.6 metres at 19.4 grams per tonne and 2.2 metres at 37.5 grams per tonne, confirming significant growth potential.
Northern Star plans to include Hemi’s Mineral Resources and Ore Reserves in its Annual Statement scheduled for release in May 2026, following comprehensive technical reviews.
Maintaining Low Cost and Long-Term Value Creation
The company’s FY26 exploration program builds on an industry-leading cost of resource addition of A$19 per ounce for the 12 months ending March 2025. By focusing on high-quality brownfield projects within existing mine footprints and surrounding districts, Northern Star aims to extend mine life and enhance portfolio quality sustainably.
Exploration success across the portfolio, including near-mine extensions and new discoveries like Hercules, Golden Wonder, and Star, continues to underpin Northern Star’s growth trajectory and shareholder value creation.
Bottom Line?
Northern Star’s disciplined exploration strategy and strong drilling results set the stage for continued resource growth and operational resilience into FY27 and beyond.
Questions in the middle?
- How will the integration of Hemi’s resources impact Northern Star’s production profile and cost structure?
- What timelines are anticipated for converting recent high-grade discoveries into mineable reserves?
- How might ongoing exploration success influence Northern Star’s capital allocation and potential M&A activity?