An independent expert appointed to assess Northern Star’s $5 billion bid for De Grey Mining has found the offer, the highest ever for an undeveloped gold project in Australia, is above the company’s valuation.

The soaring price of gold – it is approaching $US3000 an ounce, buoyed by global economic uncertainty and a push by central banks to diversify reserves away from US dollar – has encouraged miners to pay premiums to expand their resources and increase production.