Northern Star Resources Share Price to Benefit from CSIRO Discovery
Shares in the $10 billion-capped Aussie gold miner Northern Star Resources Ltd [ASX:NST] are up 5.96% this morning. Thanks to some interesting news from Australia’s national science agency.
NST has almost managed to claw back losses made during the week thanks to a depressed gold price.
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Coming off a high of $15.11 on Monday, NST’s share price sank to $13.46 but has now rebounded to $14.57.
With no news out of the company, the bump in share price could be due to newly discovered geological exploration techniques by the CSIRO.
NST share price (blue) and gold price in AUD (red) over 12 months
Unlocking Archean gold
CSIRO’s discovery relates to a new understanding of mineralisation in the Yilgarn Province in WA.
The research shows formation of ancient gold deposits during the Archean period also produces distinctive patterns of chemical alteration in the surrounding rocks.
CSIRO believes this could greatly assist exploration in the Eastern Yilgarn region.
In layman’s terms, the newly discovered patterns make it faster and more efficient for exploration companies to identify potential new deposits.
The Eastern Yilgarn region, which shares its Archean geology with the highly-endowed Eastern Goldfields, has produced fewer gold discoveries to date than would be expected.
If you follow our coverage on gold exploration here at The Daily Reckoning Australia, then you’ll know we often discuss companies’ drilling results as they attempt to identify gold deposits.
CSIRO believe their new approach could be a more productive alternative that has potential for use globally.
Why is NST up then?
NST, along with a host of other Australian gold miners including Ramelius Resources Ltd [ASX:RMS] and Evolution Mining Ltd [ASX:EVN], sponsored the project.
Jamie Rogers, General Manager of Exploration for Northern Star, had this to say:
‘The new approaches developed from the project have challenged conventional wisdom, established new models… Northern Star sponsored the project to help fast track and ultimately benefit from the development of new mineral exploration tools and technologies.’
The research is of obvious significance to NST as their Jundee and Kalgoorlie operation are situated with the Yilgarn region (geologically known as the Archean Yilgarn Craton).
The new exploration technology could help explorers and miners within the Yilgarn Craton identify new areas with gold potential and expand their known gold systems.
There are no announcements out this morning from NST, RMS, or EVN regarding renewed exploration plans in light of CSIRO’s advancements.
But if you’d like to stay up to date with news from NST and other Aussie miners and explorers, make sure to subscribe to The Daily Reckoning Australia, it’s a great way to stay ahead of the curve when it comes to Australian miners. It’s free too. Subscribe here.
For The Daily Reckoning Australia