Northern Star increases Paulsens potential

THE DRILL SERGEANT: Northern Star Resources has received a boost to its production target hopes in the form of high-grade drilling results from a recently discovered fault offset limb running parallel to the main Voyager One lode at the company’s Paulsens gold mine In Western Australia.

Results from the recent drilling at Paulsens include:

–    5.0 metres at 16.4 grams per tonne gold, including 1.15 metres at 44.5 grams per tonne gold;

–    3.2 m at 12.3 g/t gold;

–    4.5 m at 9.5 g/t gold;

–    4.6 m at 9.6 g/t gold; and

–    3.0 m at 6.3 g/t gold.

The new high grade zone is a fault offset of the Voyager One lode immediately adjacent to the area currently being mined.

 

High grade drilling in un-development resource outline of the upper zone offset limb. Source: Company announcement

 

The company is pleased by this as it said it can be included in the 2012 mine plan easily and quickly.

Northern Star said this will help underpin increases in production and mine life.

The company is now targeting an increase in production at Paulsens from around 80,000 ounces of gold per annum to 100,000 ounces of gold per annum.

It also aims to produce a further 100,000ozpa at its neighbouring Ashburton project.

According to Northern Star managing director Bill Beament the latest results continued to highlight the exploration potential at Paulsens, not just at depth, but within the immediate surrounds and, more importantly, in the upper levels where the capital infrastructure has already been spent.

“These are great results by any standards but they are particularly valuable in this case because the mineralisation can be cheaply and easily mined, providing a rapid boost to production and cashflow,” Beament said in the company’s announcement to the Australian Securities Exchange.

As well as adding to the company’s performance forecasts, Northern Star said it considers the results to be important as they highlight potential to find additional gold mineralisation within the existing Paulsens mine area, which has been exposed to little or no exploration and evaluation.

As part of the 100,000oz per annum expansion strategy, the mine will take delivery of a second development jumbo in December.

Once this unit arrives, development out to the offset limb will commence.