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

This gold miner has been digging in all the right spots.

| More on:
a man wearing a gold shirt smiles widely as he is engulfed in a shower of gold confetti falling from the sky. representing a new gold discovery by ASX mining share OzAurum Resources

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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 metres of drilling in FY 2024 to date has extended organic growth optionality across all three production centres. 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 mineralised 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.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Gold

A man standing in a red rock mine is covered by a sheet of gold blowing in the wind.
Gold

Why this ASX 200 gold stock is 'the BHP of gold mining'

The ASX 200 gold stock owns some of the top mining assets in the world.

Read more »

Rising price of gold represented by a share price chart and gold bars.
Gold

ASX 200 gold stocks in focus as gold price smashes record highs

The gold price has soared into new record territory. But why?

Read more »

rising gold share price represented by a green arrow on piles of gold block
Share Gainers

Guess which ASX gold stock just rocketed 92% on this 'outstanding' new discovery

Investor are snapping up the ASX gold stock as excitement over its gold and silver project surges.

Read more »

ETF written in yellow gold.
Gold

Should you buy ASX gold ETFs right now?

Is gold a 2024 fad or still a good long-term investment?

Read more »

rising gold share price represented by a green arrow on piles of gold block
Gold

Guess which ASX 200 gold stock is marching higher on a 'significant resource upgrade'

ASX 200 investors are bidding up the Aussie gold miner following a sizeable estimated resource increase.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Gold

2 under-the-radar ASX gold shares shining 11% brighter on Friday

These shares are having a golden finish to the week. But why?

Read more »

St Barbara share price Minder underground looks excited a he holds a nugget of gold he has discovered.
Gold

2 ASX gold shares making big news today (one up 300%!)

How is this ASX gold share up more than 300% right now?

Read more »

Calculator and gold bars on Australian dollars, symbolising dividends.
Gold

This ASX 200 gold stock can rise 30% and could be a takeover target

Bell Potter thinks investors should be snapping up this gold miner before it's too late.

Read more »