Northern Star Resources Ltd · ASX:NST
Northern Star Resources — RIU Explorers Conference 2013
15 slides from Northern Star Resources's conference presentation, Feb 13, 2013
Slide 1: 12,178gpt intersection at Paulsens
For personal use only 12,178gpt intersection at Paulsens 2013
Slide 2: Team with a track record
Team with a track record For personal use only Shares Options Board ‐ Successful record in discovering and developing mines Total 424M 3.5M BILL BEAMENT Managing Director (Mining Engineer) * As at Feb 2013 Non Executive Chairman – Independent CHRIS ROWE (Barrister and Solicitor) Share price: A$1.00
Slide 3: 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 • 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
Slide 4: Paulsens – Productivity Drive
Paulsens – Productivity Drive For personal use only • Changed out Mining and Crushing Contractors with in‐house team (Northern Star Mining Services Division) • 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 5: Paulsens: 2012 and Current Status
Paulsens: 2012 and Current Status For personal use only • Increased Company profit by 57% to A$34.1M for FY2012, Great start to FY2013 with A$24.8M for Dec Half • Record December Half with 50,252oz mined, 43,267oz sold and 39,230oz recovered, ahead of budget • Delivered two resource upgrades, taking
Slide 6: Opportunities: Upper Levels
Opportunities: Upper Levels For personal use only • Orebody has yielded 500,000oz over ≈ 400 vertical meters, 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 7: 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 8: 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 approaching the 1Moz endowment • Great opportunity as there has been
Slide 9: Exploration: writing the next chapter for Northern Star – cont’d
Exploration: writing the next chapter for Northern Star – cont’d For personal use only • Northern structure, the “Nanjilgardy Fault” hosts the Paulsens gold mine and the 1Moz1 Mt Olympus deposit along with a host of other prospective targets • The southern structure, the “Baring Downs Fault” conside
Slide 10: Exploration: writing the next chapter for Northern Star – cont’d
Exploration: writing the next chapter for Northern Star – cont’d For personal use only • Great potential on the highly prospective “Paulsens Mine Corridor” part of the Nanjilgardy Fault, 25‐40km long corridor along the axis of Wyloo Dome • All known orebodies and mineralisation, including the Paulse
Slide 11: 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 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
Slide 12: Ashburton – a 100,000ozpa stand-alone operation
Ashburton – a 100,000ozpa stand‐alone operation For personal use only • Ashburton Project located within trucking 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 13: Key reasons to invest in Northern Star
Key reasons to invest in Northern Star For personal use only • Extremely strong cash generation from high‐grade and high‐margin ounces • 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 14: 12,178gpt intersection at Paulsens
For personal use only 12,178gpt intersection at Paulsens • Contact Details: • Bill Beament – Managing Director +61 8 6188 2100 • Email – [email protected] • Website – www.nsrltd.com
Slide 15: Appendix
Appendix For personal use only Measured Indicated Inferred Total Proven Probable Total 30 Jun 2012 Tonne Tonne Tonn Tonne Grade Grade Grade Grade Oz Au s s es s 31 December 2011 Tonnes Grade Tonnes Grade Tonnes Grade Oz Au (g/t) (g/t) (g/t) (g/t) (,000) (,000) (,000) (,000) (,000) (,000) (g/t) (,000
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