Hits of up to 150gpt reinforce forecasts for increased grades, production and cashflow

Transcription

1 Hits of up to 150gpt reinforce forecasts for increased grades, production and cashflow Fresh results come from high-grade zone at heart of projected CY13 cash surplus of $65-85 million ASX ANNOUNCEMENT 24 AUGUST 2012 Australian Securities Exchange Code: NST Board of Directors Mr Chris Rowe Non-Executive Chairman Mr Bill Beament Managing Director Mr Michael Fotios Non-Executive Director Mr Peter Farris Non-Executive Director Mr Peter O Connor Non-Executive Director Ms Karen Brown Company Secretary Issued Capital Shares M Options 20M Current Share Price $1.135 Market Capitalisation $465 million Cash/Bullion in Bank: 30 Jun 2012 $75 million Projects Paulsens Ashburton Range Emull Commodities gold gold gold, silver Zn, Cu, gold Investments Commodities Venturex (15%) Cu, Zn, Ag & gold Highlights Outstanding results of up to 150gpt provide more firm evidence that Northern Star will deliver on its CY2013 strategy for increases in grade, production and cashflow Latest results come from recently-discovered high-grade extension zone at Paulsens Voyager 1 lode which underpins CY2013 forecasts The results increase the confidence of the zone s 25gpt resource grade, which compares with Voyager 1 s historical grade of ~8gpt First ore from extension zone intersected ahead of schedule. Average 12gpt development grade so far Mine and processing upgrade on track. This will start increasing Paulsens production from ~80,000ozpa to 100, ,000ozpa in CY2013 Record Mining physicals achieved in July Significant results from Voyager 1 include (uncut); g/t gold (true width 6.0m) 534mRL UZ including g/t g/t gold (true width 7.5m) 513mRL UZ including 88.6 g/t g/t gold (true width 0.7m) 561mRL UZ g/t gold (true width 4.3m) 521mRL UZ g/t gold (true width 1.4m) 432mRL LZ g/t gold (true width 0.5m) 411mRL g/t gold (true width 5.3m) 535mRL UZ g/t gold (true width 3.5m) 531mRL UZ 36.5 g/t gold (true width 8.8m) 610mRL UZ g/t gold (true width 2.2m) 512mRL UZ g/t gold (true width 2.3m) 518mRL LZ g/t gold (true width 3.8m) 496mRL UZ 17.6 g/t gold (true width 7.0m) 508mRL UZ g/t gold (true width 5.7m) 578mRL UZ g/t gold (true width 6.2m) 578mRL UZ Further assays pending for Voyager 1

2 Northern Star Resources (ASX: NST) is pleased to announce that fresh drilling results of up to 150gpt have provided more firm evidence that it is well on track to deliver the sharp increases in production and cash generation it has forecast for This latest batch of outstanding infill and resource drilling results from the recently announced 25gpt extension zone at Paulsens' flagship Voyager 1 lode show that grades at Paulsens are set to increase substantially in 2013 from the current head-grade of ~7gpt (see Figure 1). This increase in head grade will in turn help drive a rise in production to as much as 115,000oz, lowering costs and resulting in surplus cash generation of $65-$85 million next calendar year. Northern Star has intersected the extension zone ahead of its initial timeframe of the December Quarter 2012, meaning the sharply higher-grade ore will boost the project's production profile sooner. The first development level in the extension has been underway for the past month with face grades averaging 12gpt so far. The first extension zone level is one of the highest grade levels ever developed in the seven-year history of Paulsens. Future head-grade is also expected to be boosted by the fact that historical mine performance indicates stoping/production grades are normally higher than development grades. The Voyager 1 lode is currently the main ore source at Paulsens and has produced 170,000 ounces over the past two years. The 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. The high-grade extension zone formed the major part of Northern Star's recently released resource upgrade on the Paulsens Project to 403,000oz 1 (see ASX release 02 August 2012). All these latest drilling results from Voyager 1 are excluded from the new resource estimate of 403,000oz 1. Figure 1 - Long Section View of Significant drill results for Voyager One including the Extension zone

3 These results provide more evidence that the grade at the key Voyager 1 lode continues to increase with depth (see Figure 2). The figure is a long section view of the Voyager 1 lode and shows that the Extension zone has a significantly higher grade than past and present mining areas. Figure 2 - Long Section View of Voyager One Lode with the Extension zone development grade averaging 12gpt Plans to increase the mine and processing plant capacity to 450,000 tonnes per annum by the end of the year are on track. The major capital upgrade to the mine ventilation is nearing completion, the 600m raisebore has broken through to the surface and the new fan is expected to be operational in September. The new mobile mining fleet is further improving the mine productivity, with record ore tonnage and development metres achieved in the month of July. 38,742 ore tonnes were mined, 465,000t annualised. "These latest drilling results reinforce our strategy to deliver sharply higher production and cashflow next year," Northern Star Managing Director Bill Beament said. "At the same time, we have a multi-pronged exploration program underway in and around Paulsens and at our neighbouring Ashburton project. "We are confident that these programs will be generating substantial growth in our inventory and further increases in mine life, production and cashflow." Further announcements will be released regarding the ongoing underground diamond drilling as results become available. Assay results from underground diamond drilling completed on Voyager 1 since the last release on 04 th July 2012 are listed in the attached tables.

4 Yours faithfully, Bill Beament Managing Director Northern Star Resources Ltd Measured Indicated Inferred Total Tonnes Grade Tonnes Grade Tonnes Grade Tonnes Grade Oz Au 30 June 2012 (,000) (g/t) (,000) (g/t) (,000) (g/t) (,000) (g/t) (,000) Open Pit Paulsens Upper Levels Voyager Voyager 1 Extension Voyager Paulsens Stockpiles 11 Belvedere Merlin Mt Clement JV Total Table 1 - Paulsens 2.5g/t Au Lower Cut-Off Underground and 1.0g/t Au Lower Cut-Off Open Pit Competent Persons Statements The information in this announcement that relates to Paulsens Project and Ashburton mineral resource estimation, exploration results, data quality, geological interpretations, potential for eventual economic extraction and estimates of exploration potential, is based on information compiled by or under the supervision of Brook Ekers, (Member AIG), who is a full-time employee of Northern Star Resources Ltd. Mr Ekers has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Ekers consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Forward Looking Statements Northern Star Resources Limited has prepared this announcement based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this announcement. To the maximum extent permitted by law, none of Northern Star Resources Limited, its directors, employees or agents, advisers, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this announcement or its contents or otherwise arising in connection with it. This announcement is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any security, and neither this announcement nor anything in it shall form the basis of any contract or commitment whatsoever. This announcement may contain forward looking statements that are subject to risk factors associated with gold exploration, mining and production businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimations, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.

5 Downhole Intersection Est. True Thickness VOYAGER ONE RESOURCE DRILLING Gram/mts (cut) Ore zone and comments PDU Vein in dyke 451mRL PDU Vein in Gabbro 438mRL PDU VOY1 UZ2 453mRL PDU VOY1 UZ 535mRL PDU Vein in Gabbro 489mRL PDU VOY1 UZ 524mRL PDU VOY1 UZ 521mRL PDU Vein in gabbro 483mRL PDU Vein in gabbro 462mRL PDU veins in gabbro 439mRL PDU Veins in gabbro 441mRL PDU qtz/varb vein in seds 439mLR PDU VOY1 UZ 508mRL PDU VOY1 UZ 489mRL PDU VOY1 UZ 483mRL PDU VOY1 LZ 458mRL PDU VOY1 UZ 512mRL PDU VOY1 UZ2 508mRL PDU Vein in dyke 501mRL PDU VOY1 UZ 513mRL including PDU VOY1 UZ 494mRL PDU Qtz/carb vein in gabbro 443mRL PDU Vein in Gabbro 422mRL PDU Vein in Gabbro 414mRL PDU Vein in Gabbro 411mRL PDU Vein in Gabbro 371mRL PDU VOY1 UZ 496mRL PDU VOY1 UZ2 483mRL PDU VOY1 UZ 459mRL PDU VOY1 UZ 456mRL PDU VOY1 UZ 449mRL PDU VOY1 UZ2 443mRL PDU VOY1 LZ 432mRL PDU2115 NSR PDU VOY1 UZ Extension 478mRL PDU gabbro in quartz 466mRL PDU Quartz in gabbro 459mRL PDU Quartz in gabbro 455mRL PDU Quartz in gabbro 404mRL PDU Quartz in gabbro 413mRL PDU Quartz in gabbro 363mRL PDU VOY1 UZ Extension 476mRL PDU Vein in Gabbro 451mRL PDU Vein in Gabbro 446mRL PDU Vein in Gabbro 435mRL PDU Vein in Gabbro 417mRL PDU VOY1 UZ Extension 452mRL PDU VOY1 UZ Extension 447mRL PDU VOY1 UZ 2 440mRL PDU Vein in Gabbro 431mRL

6 PDU Vein in Gabbro 426mRL Downhole Est. True Gram/mts Ore zone and Intersection Thickness (cut) comments PDU Veins in Dyke 414mRL PDU Veins in Dyke 411mRL PDU2122 NSR PDU2123 NSR PDU Quartz in gabbro 520mRL PDU Quartz in gabbro 529mRL PDU VOY1 UZ Extension 531mRL PDU VOY1 UZ2 Exyension 527mRL PDU Vein in gabbro 513mRL PDU VOY1 UZ Extension 550mRL PDU2156 NSR PDU VOY1 HW SPLAY 409mRL PDU Vein in HW seds 400mRL VOYAGER ONE GRADE CONTROL DRILLING Downhole Intersection Est. True Thickness Gram/mts (cut) Ore zone and comments PDU VOY1 LZ 839mRL PDU VOY1 UZ2 872mRL PDU VOY1 UZ 870mRL PDU VOY1 UZ2 855mRL PDU VOY1 LZ 857mRL PDU Gabbro ore 870mRL PDU VOY1 LZ 284mRL PDU VOY1 UZ 517mRL PDU VOY1 LZ 503mRL PDU VOY1 UZ 523mRL PDU VOY1 UZ 526mRL PDU VOY1 UZ 541mRL PDU Quartz vein in FW seds 492mRL PDU Vein in Gabbro 463mRL PDU Vein in Gabbro 462mRL PDU VOY1 UZ 551mRL PDU Quartz vein in FW seds 528mRL PDU Quartz vein in FW seds 525mRL PDU VOY1 UZ 561mRL PDU Qtz in FW seds 551mRL PDU VOY1 UZ 544mRL PDU VOY1 UZ2 539mRL PDU VOY1 UZ2 548mRL PDU VOY1 UZ SPLAY 566mRL PDU VOY1 UZ 539mRL PDU Vein in dyke 537mRL PDU VOY1 UZ 529mRL PDU VOY1 UZ 553mRL PDU vein in gabbro 539mRL PDU qtz in gabbro 537mRL PDU qtz in gabbro 534mRL PDU qtz carb vein 533mRL PDU vein in gabbro 504mRL PDU VOY1 UZ 528mRL

7 Downhole Intersection Est. True Thickness Gram/mts (cut) Ore zone and comments PDU VOY1 LZ 579mRL PDU VOY1, b/n UZ & LZ qtz. 579mRL PDU VOY1 UZ 578mRL PDU VOY1 LZ 559mRL PDU VOY1 LZ 551mRL PDU VOY1 UZ 532mRL PDU VOY1 LZ 570mRL PDU VOY1 UZ 561mRL PDU Vein in dyke 523mRL PDU VOY1 UZ2 558mRL PDU VOY1 UZ 517mRL PDU VOY1 UZ 519mRL PDU VOY 1 UZ 849mRL PDU VOY 1 UZ 844mRL PDU VOY1 UZ2 872mRL PDU VOY1 LZ 861mRL PDU VOY1 LZ 864mRL PDU2122A VOY1 LZ 879mRL PDU VOY1 LZ 868mRL PDU VOY1 LZ 893mRL PDU VOY1 LZ 579mRL PDU Qtz UZ & LZ VOY1 578mRL PDU VOY1 UZ 578mRL PDU dyke 578mRL PDU VOY1 UZ 567mRL PDU VOY1 UZ 566mRL PDU VOY1 LZ 568mRL PDU VOY1 UZ 564mRL PDU VOY1 LZ 566mRL PDU VOY1 UZ 563mRL PDU VOY1 UZ 615mRL PDU VOY1 LZ 616mRL PDU VOY1 UZ2 609mRL PDU VOY1 LZ 608mRL PDU VOY1 UZ 615mRL PDU VOY1 LZ 619mRL PDU VOY1 UZ 610mRL PDU VOY1 UZ Extension 506mRL PDU VOY1 UZ2 494mRL PDU HW splay 531mRL PDU HW splay, qtz/carb vein 527mRL PDU VOY1 UZ Extension 522mRL PDU VOY1 UZ Extension 525mRL PDU VOY1 UZ 534mRL including PDU VOY1 UZ 526mRL PDU Quartz in gabbro 516mRL PDU Quartz in gabbro 652mRL PDU VOY1 UZ Extension 559mRL PDU VOY1 UZ Extension 556mRL PDU Qtz/carb vein in HW seds 578mRL PDU VOY1 UZ Extension 570mRL

8 Downhole Intersection Est. True Thickness Gram/mts (cut) Ore zone and comments PDU VOY1 UZ Extension 522mRL PDU VOY1 UZ2 Extension 513mRL PDU VOY1 UZ 566mRL PDU HW splay 571mRL PDU Quartz in gabbro 569mRL PDU Quartz in gabbro 570mRL PDU Quartz in gabbro 573mRL PDU Quartz in gabbro 559mRL PDU VOY1 LZ 575mRL PDU Mineralisation in Gabbro 569mRL PDU VOY1 LZ 560mRL PDU VOY1 LZ 549mRL PDU Quartz in gabbro 518mRL PDU Quartz in gabbro 503mRL PDU VOY1 UZ 518mRL PDU VOY1 LZ 518mRL PDU HW splay 554mRL PDU VOY1 UZ Extension 553mRL PDU Vein in gabbro 531mRL PDU Mineralised fault contact 528mRL PDU VOY1 UZ Extension 571mRL PDU VOY1 UZ2 Extension 569mRL PDU Qtz/pyrite in FW SEDS 568mRL PDU HW splay 583mRL PDU VOY1 UZ Extension 580mRL PDU VOY1 UZ 587mRL PDU VOY1 LZ 583mRL PDU VOY1 LZ 579mRL PDU VOY1 UZ 578mRL PDU VOY 1 LZ 582mRL PDU VOY1 UZ 588mRL PDU VOY1 LZ 582mRL PDU VOY1 UZ 585mRL PDU VOY1 UZ 579mRL PDU VOY1 HW SPLAY 579mRL At a nominal 3g/t lower cut off and a 150g/t upper cut off NSR means no significant result Quality Control Paulsens, All core is logged and whole core samples (if LTK60 size, NQ2 sized core is cut and half cored) are marked and prepared for shipping at the Paulsens Mine Property and sent to an independent Laboratory for assay. The remaining half core is stored on site. All samples from which information in this document is derived were received by ALS Chemex Australian Laboratory Services Pty ( ALS ) Limited in Perth, Western Australia. Samples are weighed and crushed to 70% passing -6mm mesh. The crushed material is split and a portion is pulverised. A 100-gram pulp is sent to ALS Perth, Western Australia for assay. A 30-gram portion of the pulp is treated by fire assay method with atomic absorption finish (Au-AA25). Sample rejects are discarded after 90 days. Limit samples (>100 grams per tonne gold) are re-analysed using ALS dilution method (Au-DIL). Northern Star Resources inserts one standard in each hole, and one blank is now inserted in each ore zone. Laboratory standards and blanks are inserted by ALS and several pulp duplicates are also assayed as a determinant of mineralisation variability. ALS has AS/NZS ISO 9001:2000 certification in Perth.