Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Resources Rising Stars September 2011
17 slides from Northern Star Resources's conference presentation, Sep 26, 2011
Slide 1: Project 200: step-by-step strategy to a 200,000ozpa gold producer
For personal use only Project 200 The clear step- step-by- by-step strategy to make Northern Star a 200,000ozpa gold producer Resources Rising Stars September 2011
Slide 2: Disclaimer: Competent Persons Statements
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: Corporate and Asset Overview
Corporate and Asset Overview For personal use only +80,000oz Western Australian Gold Producer Market cap: $150m based on 349m shares at 43c, plus 29m options Cash/Bullion on hand: $30m as 27 Sep 2011 Top 20 hold 50% (inc InvestMet with 17.5%) Key production asset: Paulsens Gold Mine near Paraburdoo
Slide 4: Corporate and Asset Overview (continued)
Corporate and Asset Overview (continued…) Have grown Company resource base from 30k oz to ≈ 1M oz in For personal use only less than 12 months through exploration and acquisition Mt Olympus 1000 Acquisition 900 800 700 600 500 Paulsens 400 Resource Update 300 Paulsens 200 Acquisition Inferred Golden
Slide 5: Paulsens – Corner Stone Asset
Paulsens – Corner Stone Asset Paulsens started production in 2005 has produced 450,000oz in 6 For personal use only years to Mid-2011 at an average gold production of 70-80,000ozpa Life of Mine Cash Cost of $552/oz Average monthly total site cost of $5M or 3,000oz to breakeven Acquired by Northern S
Slide 6: Paulsens – Corner Stone Asset (continued)
Paulsens – Corner Stone Asset (continued…) 2011 mine plan forecasts surplus cashflow of $40m through the For personal use only production of 75,000oz. Currently exceeding this guidance Current Resource underpinned by key Voyager 1 lode that is being mined in-excess of 1000oz per vertical metre. Deep
Slide 7: Stage 1 – Growing production to 100,000ozpa
Stage 1– 1– Growing production to 100,000ozpa For personal use only Organically grow Paulsens production to 100,000oz per annum Incrementally increase plant capacity from 350,000 to 450,000tpa Rapid expansion to cost just $10M Install gravity circuit $1.5M Increase ventilation capacity $5M Increase
Slide 8: Stage 1 – Ore feed Sources
Stage 1– 1– Ore feed Sources Numerous feed sources to maintain this expanded capacity for at For personal use only least the next 6 to 7 years. Base load production will be sourced from; Voyager 1, current resource of 120,000oz with a further update in 2012 Voyager 2, exploration target1 of 100,000-
Slide 9: Stage 2 – Growing production to 200,000ozpa
Stage 2– 2– Growing production to 200,000ozpa Will potentially be a 100,000ozpa sulphide stand-alone operation, For personal use only feasibility to commence Relies on the recently acquired Ashburton Gold Project; Past oxide open pit production, 1998 to 2004 of 340,000oz @ 3.3g/t Project contains 66
Slide 10: Stage 2 – Growing production to 200,000ozpa
Stage 2– 2– Growing production to 200,000ozpa Ashburton’s 668,000oz resource is 3g/t at a 0.9g/t cut-off grade, If a For personal use only cut-off of 3g/t is applied more akin to an Underground cut, then; Resources are 2M tonnes at 6.1g/t for 386,000oz 10
Slide 11: Significant Exploration Upside
Significant Exploration Upside No other sizeable deposit within 50km radius of the Paulsens mine For personal use only 1,300km² of Tenements, numerous targets 100% owned and JV’s No other operational gold processing plant within 400km radius Cheroona copper/gold project, 80km from Sandfire discovery
Slide 12: 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. Establ
Slide 13: Senior Management
Senior Management BERNIE SOSTAK – General Manager of Geology For personal use only 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 w
Slide 14: Ten Reasons to Follow Northern Star
Ten Reasons to Follow Northern Star On track to beat forecast for CY2011 of ~75,000oz production at For personal use only 1. $620/oz cash cost, generating $40m surplus cashflow in 2011 2. Debt-free (minor equipment HP), un-hedged, $30m cash in bank and no foreign country sovereign risk 3. Outstandin
Slide 15: Ten Reasons For Wise Men to Follow a Northern Star
Ten Reasons For Wise Men to Follow a Northern Star 7. Significant exploration potential with a $20M program over the For personal use only next 12 months 8. Strong cashflow and balance sheet means NST is ideally placed to capitalise on falling asset values/bear market conditions 9. Highly experience
Slide 16: Bill Beament, Managing Director
For personal use only Bill Beament Managing Director www.nsrltd.com [email protected] (08) 6241 1866
Slide 17: Appendix: Resource Tables
Appendix 1 For personal use only Indicated Inferred Total 31 December 2010 Tonnes Grade Tonnes Grade Tonnes Grade Oz Au (,000) (g/t) (,000) (g/t) (,000) (g/t) (,000) Open Pit 471 2.9 200 3.3 671 3.0 64.5 Paulsens Upper Levels 110 7.5 23 5.0 133 7.1 30.2 Voyager 1 230 9.9 234 6.3 464 8.1 120.2 Paulse
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