Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Investor Presentation (August 2013)
16 slides from Northern Star Resources's investor presentation, Aug 2, 2013
Slide 1: Investor Presentation – August 2013
For personal use only Proving that low costs pay dividends 12,178gpt intersection at Paulsens INVESTOR PRESENTATION – AUGUST 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 5M BILL BEAMENT Managing Director (Mining Engineer) * As at 1 August 2013 Non Executive Chairman – Independent CHRIS ROWE (Barrister and Solicitor) Non Executive Dir
Slide 4: Northern Star: an abridged history
Northern Star: an abridged history For personal use only • Acquired Paulsens Gold Mine in Western Australia for A$40M in July 2010, repaid full acquisition within 7 months • Expanded production rate to 100,000oz/pa • Greatly extended the mine life to +5 years • Purchased 1.7Moz1 Ashburton Project an
Slide 5: Paulsens: Productivity Drive and Cost Cutting
Paulsens: Productivity Drive and Cost Cutting • 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 500,000tpa • De-risked the mine by installin
Slide 6: Paulsens: FY2013 and Current Status
Paulsens: FY2013 and Current Status • Increased Company unaudited net profit after-tax by +30% to A$27M for FY2013 For personal use only • Delivered three resource upgrades, taking total inventory to 555,000oz1 – 485% increase since acquisition • Mine and Mill expansion to +100,000oz/pa completed ah
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 625,000oz over ≈500 For personal use only vertical metres, 8 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 year
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 in FY2012, For personal use only consistent stream of outstanding results • No other deposit found within 50km radius of Paulsens mine, which is now a +1Moz endowment • Great opportunity as there has been limited reg
Slide 11: Paulsens In/Near Mine Exploration: Titan New Discovery
Paulsens In/Near Mine Exploration: “Titan” New Discovery • High-grade “Titan” discovery made just 100m For personal use only from existing mine infrastructure • Discovery hole returned 6.9m at 24.7gpt • Titan runs parallel and immediately adjacent to the producing Voyager 1 and 2 lodes • Discovery h
Slide 12: Gabbro offsets: the gold may be as green on the other side of the fence
Gabbro offsets: the gold may be as green on the other side of the fence • Paulsens is bounded by a Gabbro unit, For personal use only 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
Slide 13: Paulsens Mine Corridor
Paulsens Mine Corridor • Great potential on the highly prospective “Paulsens Mine Corridor” part of the Nanjilgardy Fault, 25-40km long For personal use only corridor along the axis of Wyloo Dome • All known orebodies and mineralisation, including the Paulsens Gold Mine lie inside this corridor • Gr
Slide 14: Ashburton: a 100,000oz/pa stand-alone operation
Ashburton: a 100,000oz/pa 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 15: 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 • Expect FY14 all-in sustaining cost to be ~$1,000/oz • Growing production to underpin further growth in surplus cash • Sufficient resources to underpin +5 year mine
Slide 16: Appendix: Gold Mineral Resources and Reserves
Appendix GOLD MINERAL RESOURCES 1 GOLD MINERAL RESERVES1 For personal use only As at 31 December 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 31 December 2012 PROVED PROBABLE PROVED and PRO
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