Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Goldman Sachs Gold Day 2013
15 slides from Northern Star Resources's conference presentation, May 30, 2013
Slide 1: Proving that low costs pay dividends
For personal use only Proving that low costs pay dividends 12,178gpt intersection at Paulsens GOLDMAN SACHS GOLD DAY PRESENTATION – 30 MAY 2013
Slide 2: Disclaimer
Disclaimer Competent Persons Statements • The information in this announcement that relates to Paulsens and Ashburton mineral resource estimations, exploration results, data quality, geological interpretations, potential for eventual For personal use only economic extraction and estimates of explora
Slide 3: Team with a track record
Team with a track record Shares Options Board - Successful record in discovering and developing mines For personal use only Total 424M 5.13M BILL BEAMENT Managing Director (Mining Engineer) * As at 28 May 2013 Non Executive Chairman – Independent CHRIS ROWE (Barrister and Solicitor) Share price: A$0
Slide 4: Northern Star: an abridged history
Northern Star: an abridged history Acquired Paulsens Gold Mine in Western For personal use only • Australia for A$40M in July 2010 • At the time Paulsens had an eight-month life based on a mine plan of 45,000oz • Repaid full A$40M acquisition from cashflow within 7 months • Mine has been producing e
Slide 5: Paulsens – Productivity Drive
Paulsens – Productivity Drive • Changed out Mining and Crushing Contractors with in-house team (Northern Star Mining Services Division) For personal use only • Increased our productivity by 100% in ore tonnes since change out now mining at 500,000t per annum • Dropped total cost per tonne by 20%, lo
Slide 6: Paulsens: 2012 and Current Status
Paulsens: 2012 and Current Status • Increased Company profit by 57% to A$34.1M for FY2012, great start to FY2013 with A$24.8M for Dec Half For personal use only • Delivered three resource upgrades, taking total inventory to 555,000oz1 – 485% increase since acquisition • Mine and Mill expansion to +1
Slide 7: Voyager & 2: The Paulsens Engine Room
Voyager 1 & 2: The Paulsens Engine Room • Voyager 1 is the flagship lode at Paulsens and has For personal use only produced all the gold under NST ownership • Currently mining this lode 600m below surface; mineralisation drilled to 950m and remains open at depth • Lode runs at a rich 1,250–2,000 oun
Slide 8: Opportunities: Upper Levels
Opportunities: Upper Levels • Orebody has yielded 500,000oz over ≈ 400 For personal use only vertical metres, 7 years of production so far • Large part of mineralised structure not mined by previous owners due to hedging – high graded the mine • Upper Levels will provide additional mill feed for yea
Slide 9: 2013: The year of rising production, falling costs and increasing cashflow
2013: The year of rising production, falling costs and increasing cashflow • Key CY2013 forecasts @ Gold Price A$1,550/oz: For personal use only Total production of 100-115koz Plant capacity expanded by 25% to 450,000tpa Average blended grade to rise 20% from 7gpt to ~8.5gpt Cash Costs C1 of
Slide 10: Exploration: writing the next chapter for Northern Star
Exploration: writing the next chapter for Northern Star • A$20M exploration program; consistent For personal use only stream of outstanding results in 2012 • No other deposit found within 50km radius of Paulsens mine, which is now a +1Moz endowment • Great opportunity as there has been limited regio
Slide 11: Exploration: writing the next chapter – cont'd
Exploration: writing the next chapter for Northern Star – cont’d For personal use only • Paulsens is bounded by a Gabbro unit, traditionally seen as a “fence” around the orebody • Drilling aimed at testing the theory that the mineralisation is deposited on the other side of Gabbro and itself mineral
Slide 12: Exploration: writing the next chapter – cont'd
Exploration: writing the next chapter for Northern Star – cont’d • Great potential on the highly prospective “Paulsens Mine Corridor” part of the Nanjilgardy Fault, 25-40km For personal use only long corridor along the axis of Wyloo Dome • All known orebodies and mineralisation, including the Paulse
Slide 13: Ashburton – a 100,000ozpa stand-alone operation
Ashburton – a 100,000ozpa stand-alone operation • Ashburton Project located within trucking For personal use only distance of Paulsens • Acquired in June 2011 for zero cash payment; royalty payable on production over 250koz • Oxide open pit operation from 1998 to 2004, produced 340,000oz @ 3.3gpt •
Slide 14: Key reasons to invest in Northern Star
Key reasons to invest in Northern Star • Extremely strong cash generation from high-grade and high-margin ounces For personal use only • Growing production to underpin further growth in surplus cash (up to A$85 million CY2013) • Sufficient resources to underpin +5 year mine life, with further extens
Slide 15: Appendix: Gold Mineral Resources and Reserves
Appendix GOLD MINERAL RESOURCES 1 GOLD MINERAL RESERVES1 For personal use only As at December 31, 2012 MEASURED (M) INDICATED (I) INFERRED (Inf) TOTAL (MI&Inf) Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Tonnes Grade Ounces Cut Off As at December 31, 2012 PROVED PROBABLE PROVED and P
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