Northern Star shares shining bright on $225 million gold exploration news

Northern Star is spending big to unearth more gold. Here's what's happening.

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Key points

  • Northern Star Resources Ltd (ASX: NST) shares are rising following a strong FY 2026 exploration update, which outlines plans to spend $225 million across core mining sites.
  • The focus is on near-mine exploration at key locations such as KCGM in Western Australia, alongside the integration of the Hemi Development Project, promising future growth.
  • Recent exploration successes have led to new discoveries and potential, with an “industry-leading” cost of Resource addition.

Northern Star Resources Ltd (ASX: NST) shares are pushing higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) gold stock closed yesterday trading for $26.09. In morning trade on Friday, shares are changing hands for $26.14 apiece, up 0.2%.

For some context, the ASX 200 is down 0.2% at this same time.

This follows the release of an FY 2026 exploration update, which points to strong growth potential for some of the company's core gold mines.

Here's what's happening.

Northern Star shares lift on exploration details

The ASX 200 gold miner said today that it expects to spend $225 million in the full 2026 financial year (FY 2026) on its exploration programs.

Northern Star shares are lifting today with the company confirming it is actively exploring for new gold strikes across its three production centres (Kalgoorlie, Yandal, and Pogo) as well as its recently acquired development project (Hemi) located across Western Australia and Alaska.

Management said that the exploration budget in FY 2026 is "heavily focused" on Northern Star's near-mine opportunities. The miner added that the $225 million spend is weighted to its largest asset, KCGM, located in Western Australia.

The miner said that new underground areas continue to help increased drilling activity, which is intended to provide "near-term optionality and long-term visibility" at the large-scale gold mining operation.

Citing recent exploration successes at KCGM that could provide long-term support for Northern Star shares, the company said the Fimiston South mineralisation footprint has been identified to extend up to 800 metres below the existing Mineral Resource. The miner has also identified a new prospect at Mt Charlotte, labelled Golden Goose.

The ASX 200 gold stock also highlighted that its exploration works come in at an "industry-leading" cost of Resources addition of $19 per ounce for the 12 months to March 2025.

What did management say?

Commenting on the exploration update that's helping boost Northern Star shares today, managing director Stuart Tonkin said, "This update highlights the strong organic growth potential across our global portfolio. Our team continues to balance exploration priorities, from resource definition through to conversion, creating shareholder value by delivering low-cost Resource ounces."

Tonkin added:

At Kalgoorlie, drilling and investment are driving growth, with future options to supply high-margin ore to the expanded Fimiston mill from FY27. At Pogo, new drill drives have enabled extensional drilling, while surface programs advance near mine opportunities, unlocking high priority targets such as Goodpaster, Star and Central Link.

The integration of our recent strategic acquisition, the Hemi Development Project, into our gold inventory is underway, with approvals progressing for what is to become our fourth production centre.

With today's intraday moves factored in, Northern Star shares are up 69% in 2025.

Motley Fool contributor Bernd Struben 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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