Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Investor Presentation (November 2010)
21 slides from Northern Star Resources's investor presentation, Nov 23, 2010
Slide 1: Emerging Australian Gold Producer and Explorer
For personal use only Emerging Australian Gold Producer and Explorer Company Presentation - November 2010
Slide 2: Disclaimer
DISCLAIMER Competent Persons Statements For personal use only The information in this announcement that relates to exploration results, data quality, geological interpretations and potential for eventual economic extraction, is based on information compiled by or under the supervision of Brook Ekers
Slide 3: Our Vision & Business Model
Our Vision… & Business Model For personal use only “To build a quality mining & exploration company focused on creating profits for shareholders...” “Acquire assets that add value when re-assessed”
Slide 4: Company Profile
Company Profile CAPITAL STRUCTURE For personal use only 292M shares on issue 84M options Market Capitalisation $79M (22 November 2010) (Undiluted & @ 27 cents per share) Cash/Bullion at Bank $10 Million (End of Oct) SUBSTANTIAL SHAREHOLDERS Top 20 50% InvestMet Limited 20% Board of Directors (fully
Slide 5: Board of Directors
Board of Directors Successful record in discovering and developing mines. For personal use only BILL BEAMENT – Managing Director (Mining Engineer) Former General Manager – Operations for 12 mines across WA, including 3.5 years involvement at Paulsens overseeing the incumbent mining contractor. Estab
Slide 6: Senior Management
Senior Management For personal use only BERNIE SOSTAK – Manager of Geology Geologist with over 20 years in the Gold Industry with extensive experience in mine geology, resource estimations, planning and general operations management in underground and open pit. Held senior management roles with WMC,
Slide 7: Paulsens History – For the Record
Paulsens History – “For the Record” Very high grade and high margin gold mine For personal use only Mid 2005 full scale production, project hedged @ A$627/oz until Dec08 365koz from past 5 years production (end 2009), averaged 70-80koz pa CY 2009, generated A$39M EBITDA (A$1,200/oz gold price) Life
Slide 8: Resources
Resources Voyager 1 Zone - 314,000t @12.8g/t for 128,700 oz (pre-mining 2010) For personal use only Indicated 89,700 oz and Inferred 39,000 oz (4g/t cut-off) 1,000 ounces per vertical metre 67% historical conversion of mined vs. resource model Site management has a strong history of extending resour
Slide 9: Stage – Plan "Pay off Acquisition"
Stage 1 – Plan “Pay off Acquisition” Details For personal use only Mine Plan 65,000 oz, generates $44M surplus Milling from June 2010 to Early 2011 Mine 65,000 oz from Voyager 1 lode to 705 level, payout all debt and Intrepid Mines Include more of the Voyager 1 Resource into the current mine plan. L
Slide 10: Stage – Status (End of Oct 2010)
Stage 1 – Status (End of Oct 2010) Gold mined, poured and sold are all +20% above acquisition model For personal use only • 30,602 ounces for September Quarter (site record), 9,906 ounces for October • Cash Cost A$386/oz and Total Expenditure Cost A$478/oz (site quarterly record) 20% positive reconc
Slide 11: Stage – Status (End of Oct 2010) cont'd
Stage 1 – Status (End of Oct 2010) cont’d For personal use only
Slide 12: Stage - Acquisition and Finance Details
Stage 1 - Acquisition and Finance Details $40M total consideration, re-payment milestones; For personal use only 85% of Intrepid Mines consideration has been paid $6.4M performance based payments remaining No further payments after 62,500oz of production – Jan 2011 $15M debt facility, re-payment mil
Slide 13: Stage – Plan
Stage 2 – Plan Contains the depth extension of the Voyager 1 lode below the For personal use only 705 level Currently comprises an Inferred Resource of 110,000t @ 11g/t for 39,000 oz Allocated $5.5M to extend mine life via decline extension, purpose built drill drive at the 705 level and a drilling
Slide 14: Stage – Status (Nov 2010) since takeover
Stage 2 – Status (Nov 2010) since takeover Two levels been confirmed with 15-20koz (royalty free), development is underway For personal use only Decline is 35 metres vertically below the bottom level of Stage 1 (705mRL) 300 metre long 705 drill drive is completed Drilling to test down plunge resourc
Slide 15: Stage 3 – Find and Develop mine life
Stage 3– “Find and Develop 5 year mine life” Target Voyager 2 lode, down plunge extension of the Paulsens mineralisation For personal use only Recent preliminary drilling, hit mineralisation 2m @ 40.5g/t, 175m below Stage 1 Intersection confirms NST’s geological model that mineralisation continues a
Slide 16: Potential to Grow – Other In-Mine Areas
Potential to Grow – “Other In-Mine Areas” Unmined & Remanent resources left behind when modelled at A$627/oz. For personal use only Pre-mining resource contained 600koz only 400koz has been mined. Top 100m of ore body has not been mined, potential additional mill feed Repetitions above and below cur
Slide 17: Potential to Grow – Regionally
Potential to Grow – “Regionally” Extremely unusual for no other sizeable deposit within 50km radius of the For personal use only Paulsens mine “lone soldier” Acquisition includes 365km2 of Tenements Numerous targets 100% owned Only operational gold processing plant in the Ashburton/South Pilbara Num
Slide 18: Exploration – Artemis (Mt Clement JV 20%)
Exploration – Artemis (Mt Clement JV 20%) Indicated Resource 40,600oz located only 35km from Paulsens processing For personal use only plant on granted Mining Leases Gold Resource contained in a flat - lying oxidised strata bound horizon within 50m of surface; mineralisation open in all directions 8
Slide 19: Exploration – Cheroona Gold/Copper
Exploration – Cheroona Gold/Copper Located 80km from Sandfire Resources DeGrussa copper-gold discovery For personal use only Similar geological setting to DeGrussa, including 18km strike of the Narracoota Volcanics Highly prospective for VMS style Au-Cu with historic rock chips up to 10g/t Au and lo
Slide 20: Summary – What to Take Away
SUMMARY – WHAT TO TAKE AWAY Business Model that utilises the skills in the Company (Growth) For personal use only Have a Board/Management team that can and have delivered Great asset, Paulsens Gold mine is very high grade (Top 3 Aus) Great start to ownership, added 30koz already in 3 months Less tha
Slide 21: Thank you
Investor Site Visit - 23 September 2010 For personal use only Emerging Australian Gold Producer and Explorer Thank you
Northern Star Resources — Investor Presentation (November 2010) on 6ix