Name of the Project
Hemi gold project.

Location
Pilbara region of Australia.

Project Owner/s
Australian gold miner Northern Star Resources announced the A$5-billion acquisition of De Grey Mining, which secures control of the highly sought-after Hemi gold development in Pilbara on December 2, 2024.

Project Description
Hemi comprises the Aquila, Brolga, Crow, Diucon, Eagle and Falcon deposits for total mineral resources of 236.5-million tonnes grading 1.3 g/t gold.

Mining will start with the Brolga starter pit, which drives high rates of initial yearly gold production. Mining will be undertaken by a contract miner and conducted using large-scale openpit mining equipment.

The project is expected to have a ten-million-tonne-a-year throughput, with an 800 000 t/y pressure oxidation circuit. Production envisaged at 553 000 oz of gold in years 1 to 5 and 530 000 oz in years 1 to 10. Peak production of 570 000 oz is expected in Year 2. Total recovered gold over the life-of-mine is estimated at 5.7-million ounces.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at a 5% discount rate, of A$4.2-billion and an internal rate of return of 45%, with a payback of 1.5 years.

Capital Expenditure
A$1.35-billion.

Planned Start/End Date
Full construction activities are expected to start in the second half of 2024 and, based on an estimated two-year construction period, first gold pour is targeted for the second half of 2026.

Latest Developments
A final investment decision (FID) is still pending, subject to finalising environmental approvals and project debt financing.

In the interim, Northern Star plans to continue optimising the Hemi development plan. This will include applying insights gained from the KCGM mill expansion to enhance project efficiencies. The company intends to update the project’s metrics ahead of the FID to ensure a robust and value-driven development path.

Northern Star has signalled its intention to retain much of De Grey's existing management and operational staff, ensuring continuity in the development of the Hemi project.

Following the deal’s closure, De Grey’s shareholders will also gain substantial exposure to Hemi and become 19.9% shareholders in Northern Star, which will enable them to benefit from the broader portfolio of assets within the combined company.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Northern Star Resources, tel +61 6188 2100 or email info@nsrltd.com.