Northern Star extends Voyager and increases Paulsens mine life
THE DRILL SERGEANT: Northern Star Resources has given the market a heads-up in regards to a possible increase in margins and mine life at its Paulsens gold mine in Western Australia.
The announcement came on the back of drilling at the main Voyager 1 lode, which returned results that indicated the extension zone in the current Voyager 1 Resource is set to run at an average grade of about 14 grams per tonne gold compared with Voyager 1’s life to date head grade of about 8gpt.
Results from Voyager 1 drilling include (uncut):
– 33.0 metres at 24.8 grams per tonne gold (true width 4.0m) from 455 metres;
– 2m at 101.1g/t gold (true width 2.0m) from 380m;
– 0.7m at 121.0g/t gold (true width 0.7m) from 411m;
– 1m at 43.7g/t gold (true width 0.6m) from 440m; and
– 6.3m at 40.4g/t gold (true width 1.5m) from 431m.
Northern Star said it expects mining to intersect this extension zone in the December Quarter, 2012, meaning the sharply higher-grade ore will boost the project’s cash margins.
As a result of the drilling intersections it has received since last December’s resource estimate, Northern Star indicated it is planning a mid-year resource upgrade which will take into account the in-fill and resource definition drilling in the high-grade Voyager 1 extension zone.
Long section view of drill results for Voyager 1 extension. Source: Company announcement
The revised resource estimate will also include the results released to date from the Voyager 2 lode at Paulsens.
“These high-grade results will translate directly to increased cash margins, cashflow and mine life,” Northern Star Resources managing director Bill Beament said in the company’s announcement to the Australian Securities Exchange.
“It means we are set to make more money from Paulsens due to the production increase to 100,000 ounces per annum and the rise in the head grade on the back of the Voyager 1 extension zone.
“In the process, we will increase the mine life and will continue to drill the extension zone at depth and down plunge.”
Northern Star is currently increasing production at Paulsens from approximately 80,000ozpa to around 100,000ozpa, with the higher rate expected to kick-in at the end of 2012.
The Voyager 1 lode is currently the main ore source at Paulsens and has produced 150,000 ounces over the past two years.
This is the fourth time in three years that the company has extended the down plunge extent of this lode.
The Voyager 1 lode continues to be open down plunge and the company believes this lode will continue to grow and be the mainstay for production for a number of years.