Update on Northern Star Mining NSM-TSXV/Robert A. Young/RAYA Group
Canada�s next gold producer? Northern Star Mining NSM-TSXV
Robert A. Young/the RAYA Group reports�.Northern Star Mining expects to be producing gold from their Midway project at the old Malartic gold site 15 kilometres west of Val D�Or, Quebec.
Points of Note:
- Quebec was voted #1 place to go mining in the world according to the Fraser Institute (geopolitically/geologically).
- Results will be out soon from drilling at three sites on the property. Assays done with quick turn around time from Thunder Bay (approx 2 weeks) and Timmins, Ontario (about 3 weeks).
- One drill rig is drilling the porphyry (similar rock to what Osisko OSK-TSXV has been drilling next door); another rig is drilling the northern contact where the Blaker and the Cadillac fault systems intercept each other. Some of the highest gold grade in Quebec is on Northern Star�s property where these two faults/breaks intercept each other (average grade 6 to 8 grams). A third rig is drilling high grade gabbroic lenses (14 of these mineralized lenses have been discovered). These lenses are believed to contain about 90,000 to 100,000 ounces of gold each (as was historically found at the old Malartic mine).
- A 43101 resource should be out in about a month or so.
- A �decline� is being developed to the 600 foot level by Dumont Contracting. Dumont sunk the shafts for the Goldex and LAPA mines (owned by Agnico Eagle). I am told that they are doing a tremendous job in keeping with their reputation as Quebec�s top mining contractor.
- Ore is being stockpiled to be shipped to NSM�s mill on the other side of Val d�Or starting at the end of June.
- The first pouring of gold is expected to happen the first two or three weeks of July.
- In 2009, the company expects to get back a rebate of $9 million dollars (from the Quebec government) from development costs spent in 2008.
- The cost of gold production is expected to be under $300.00/ounce.
- Potential to mine 10,000 tons/day from our decline and existing Shaft #1. The company would need a much larger mill. If we had a much larger mill (NSM�s mill currently has the potential to mine up to 2000 tons per day) 350,000 to 400,000 ounces of production a year is feasible. Majors will be interested in Northern Star Mining because majors like scenarios where a large number of ounces of gold can be produced per year.
- We are expecting a lot of news in the next 60 days from Northern Star Mining.
Northern Star�s website is www.nsmgold.com.
Best Regards,
Robert A. Young/RAYA Group
Cell 604-307-7797
Office 604-682-5123