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

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

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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.

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

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.

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