The Northern Star Resources Ltd (ASX: NST) share price is charging higher today.
At the time of writing, the gold miner is trading at $7.41 apiece, a more than 5% gain on the previous session.
In broad market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is also up 3% today.
What's up with the Northern Star share price?
Investors are bidding up the Northern Star share price amid a company announcement on its KCGM Mill optimisation pre-feasibility study (PFS).
The KCGM Super Pit is one of the world's largest and most significant gold mines, the release says. It has a mineral resource of 27.4 Moz and an ore reserve of 11.9 Moz. It is located in Kalgoorlie, Western Australia.
Northern Star acquired 50% of KCGM on 3 January 2020. It then assumed 100% control of the asset following the merger with Saracen Mineral Holdings Ltd back on 12 February 2021.
Since then, the company says it has further understood the resource base. As a result, it presented 3 mill expansion options that were evaluated in the KCGM mill optimisation PFS.
"All three mill expansion options are financially compelling (post tax) and deliver meaningful operational benefits," the release noted.
Management commentary
Commenting on the update, Northern Star Managing Director, Stuart Tonkin said:
The PFS outcome confirms the enormous opportunity on offer at KCGM, a truly world-class gold asset. Since we moved to 100% ownership of KCGM a little over a year ago, we have diligently and efficiently worked through potential options to create further value for all stakeholders.
We believe Northern Star's powerful combination of continued operational excellence, the strongest asset portfolio in our history and a commitment to deliver social value, will enable us to provide attractive returns and long-term value growth.
The update contrasts with Evolution Mining Ltd (ASX: EVN)'s full-year production guidance downgrade this week.
