Northern Star Mining NSM-TSXV
Update ?September 4, 2009
Northern Star Mining (NSM-TSXV) is preparing to take its 100% owned Malartic Midway gold project in northern Quebec into production (late September/early October 2009). The company is fully-permitted and has the entire necessary infrastructure in place to begin mining, including a 1000 tonne-per-day mill and extra capacity from two other mills nearby.
Northern Star?s property; the Malartic Midway project; is immediately west of Val d?Or, Quebec, and is Quebec?s highest grade mine, historically, at 7 to 10 grams. The property lies within the Abitibi Volcanic Belt; over 180 million ounces have gold have been mined from this belt, between Val d?Or, Quebec and Timmins, Ontario, making it the second largest gold camp in the world (behind South Africa). Quebec has been voted the #1 place to go mining in the world, by the Fraser Institute, in terms of geopolitics and geologic potential.
The new mine will be an underground mine with two 3000 foot shafts (inherited from the old Malartic mine) and a decline recently completed by our contractor, Dumas. They have completed almost 2 kilometres of underground at about a depth of 600 feet. A decline has been started on the western part of the property next door to where Osisko has drilled off 10 million ounces of gold in low-grade porphyry (1 gram to 1.5 grams/tonne gold).
The Malartic Midway project features two different types of gold mineralization: the higher grade gold mineralized gabbros and the larger volume lower grade mineralized porphyries (like Osisko, above). Fourteen of these near-surface (containing about 90,000 ounces of gold each) mineralized lenses have been drilled off. The lenses have been drilled from surface to 1500 feet. One hole drilled in 2007 intercepted a mineralized lens at 5300 feet; at this depth, the mineralized area has seven zones (several high grade breccias and several porphyry lenses). Mining engineers really like Northern Star?s near surface mineralized lenses because of their impressive widths and grade (ranging from 12 feet to 77 feet running 8 to 10 grams/ton). In the old Malartic mine, substantial amounts of one ounce plus material was mined at the 2200 foot level. NSM?S new discovery called the ?L? zone, where a drill hole intercepted 16 feet of 2.5 ounces/ton gold should boost margins and initial mining profitability. The initial year of production should be in a range of 30,000-50,000 ounces of gold with the goal of achieving 300,000 to 500,000 ounces/year 3-5 years from now. For every three ounces of gold mined, roughly one ounce pays for costs and the remaining two ounces pay for administrative costs/debt reduction/budget for mine expansion and bottom line profits.
After last months? $25 million dollar financing, the company was able to clean up its balance sheet and reduce debt by $15 million. Northern Star Mining currently has $15 million of cash in the bank. On September 3rd, 2009, Northern Star closed an $8 million dollar royalty financing with Anglo Pacific Group PLC, further adding to their treasury (NR Sept. 3rd).
Best Regards, Robert A. Young and Heather A. Conley, Bsch Geo
The RAYA Group
Vancouver, B.C.
Tel: 604-682-5123
Mobile: 604-307-7797
Tollfree for North America: 1-877-626-2121
Email: raya@telus.net
Bruce Scafe/the RAYA Group ? 1-250-748-4309