Western Australia-based gold miner Northern Star Resources (ASX: NST) has announced a two-stage plan to increase production from 75,000 ounces per annum to 200,000ozpa.
In stage one, Northern Star will spend $10 million to upgrade the Paulsens mine from 350,000 tonnes per annum to 450,000tpa, lifting production from 75,000-80,000ozpa to 100,000ozpa.
Stage one will also involve further exploration at the neighbouring Ashburton project, which will ultimately be split into two parts; the Asburton Free-Milling project and the Ashburton Sulphide project.
The Ashburton Free-Milling project will be developed under stage one.
Stage two will begin with a feasibility study on the Ashburton Sulphide project, where preliminary indications show its potential as a stand-alone operation producing 100,000ozpa.
Most major lead-time items for the Paulsens expansion have been ordered.
The first production increases from the expansion are expected to take effect in the December quarter of 2012.