Northern Star claims new discovery at Kundana

THE DRILL SERGEANT: Northern Star Resources (ASX: NST) has claimed to have made another high-grade gold discovery on the company’s 100 per cent-owned tenements at the Kundana project on the outskirts of Kalgoorlie.

The company has completed a first round of drilling at the Millennium target, which has returned results of:

15 metres at 6.2 grams per tonne gold, including 4m at 14.7g/t gold;

3.2m at 26.6g/t gold;

3m at 11.2g/t gold; and

2.3m at 7.9g/t gold.

Northern Star explained the Millennium discovery was made just 200m from surface and is located immediately adjacent to the dormant South/Centenary mine, which produced 309,000 ounces of gold until production stopped in 1999.

The Millennium deposit has so far been defined over a 500m strike and remains open to the North and at depth.

 

Millennium long section showing high-grade drill intersections. Source: Company announcement

 

According to Northern Star it would be accessible from either the dormant Centenary mine or the North pit located on the opposite side, which would bring down the capital cost of any development.

The company believes Millennium has a number of parallels with its Pegasus deposit, which is located only 3.5 kilometres to the south and also on the K2 structure at Kundana.

Pegasus hit first ore in development three weeks ago and is due to come into production by the middle of CY2015.

It is expected to initially contribute 50,000 ounces of gold to Northern Star’s annual production.

Northern Star said it had discovered Millennium by applying the same geological theory which led to the Pegasus discovery – a theory which supposes there are gold shoots with multiple plunge orientations rather than a single plunge direction.

“This is a highly significant discovery for several reasons,” Northern Star managing director Bill Beament said in the company’s announcement to the Australian Securities Exchange.
 
“The intersections to date suggest Millennium is a high-grade deposit which can be developed at a low cost thanks to its immediate proximity to existing mine infrastructure.

“The low-cost nature of such a deposit is made even more attractive by the fact that this ground is 100 per cent-owned by Northern Star.

“The encouraging side of the Millennium discovery is that it could lead to further discoveries on 100 per cent-owned Northern Star tenements.”

Northern Star indicated another two holes have intersected the prospective structure with one containing visible gold with assays pending.

Further drilling with a surface diamond rig is underway both along strike to the North and down dip from current intersections.

Email: info@nsrltd.com

Website: www.nsrltd.com