NSM.V NSMSF
THESE ARE MY NOTES GLEANED FROM INTERNET POSTINGS BY THE COMPANY AND OTHERS. 'i' DOES not REFER TO ME
The Midway property hosts the past producing Malartic Goldfields mine, which produced over 2,000,000 ounces of gold. A three compartment, 2700 foot deep production shaft, (Malartic Goldfields shaft #1) is located on the property and is being used for access for exploration and development purposes.
In 1936, J.-P. Norrie made the original discovery at Malartic Goldfields, which then sunk two 2,900 foot deep vertical mining shafts, some 2,600 feet apart.
Malartic Goldfields mined 2,000,000 ounces from 23 zones for approximately 450,000 tons per zone. (Average dimensions were 600 feet long, 600 feet high and 15 feet wide)
12/16
They have all the mining team in place, 2 senior mine management out of Val D'Or plus all the senior mining supervisors. The website is way out of date as they have been going nuts the past 3 months getting everything in place.
This will be the 4th mine this mine manager has operated, a french name and I didn't ask him how to spell it for research. Said all the senior people are from Val D'or and will never leave there.
Some points:
- $9million cash
- 60million shares FD @ $0.47 = $28 million MC
- 2 mills within 5km who are already contracted to mill all the ore for $52/T and the rock value is $110/T
- Cannacord & Boulder have dumped over $6million worth of shares on the market since August 1st - and the share price has risen. They are pissed at NSM as they were cut out of the last financings done by MGI Securities because they have done absolutely nothing for the company for all previous financings they have been given. They are almost out of shares now.
- shaft is dewatered to below 550' and from that level they will be drifting over to 650,000 tons of ore grading .28 oz/T
- 2006 test mining to produce 25,000 oz gold ($12.5Million)
- 2007 - 65,000 oz gold ($32Million)
- 2008 100.000+ oz gold projected production ($50Million+)
According to John their grades are a lot higher than established successful mines in the area, and much higher than Agnico Eagle who are close by.
Sounds excellent to me, I will be watching closely, and maybe buying some. Institutions (Sprott and others) own 50%, insiders 10%
12/21
Spent some more time reviewing Northern Star Mining and may hold off adding to my 14,000 shares until they progress more, ie - begin mining. A lot of warrants @ .50 will likely cap share price appreciation until the project moves up a notch.
The good news is I do not think they will have to dilute much more as I think they have all infrastructure in place - head frame, hoist etc.
www.nsmgold.net/index.php?option=com_content&task=view&id=17&Itemid=33
AUTHORIZED SHARES: 100,000,000
ISSUED SHARES: 60,250,752
STOCK OPTIONS: 2,325,000
WARRANTS: 8,453,783
FULLY DILUTED: 71,029,535
Warrant Breakdown: 1,666,250 @ $0.80 expires April, 2006
4,750,033 @ $0.50 expires October, 2006
2,037,500 @ $0.50 expires November 3, 2007
* Capitalization information above is accurate as of November 30th, 2005
The website is a bit crappy also which is a turn-off to me.
I really like the wide veins, it should be easy mining,
www.nsmgold.net/index.php?option=com_content&task=view&id=22&Itemid=0
but the proof is in the pudding so NSM - lets get mining!
December 21, 2005
NORTHERN STAR ANNOUNCES UPDATE ON MIDWAY GOLD PROJECT
Northern Star Mining Corp. (TSX-V: NSM) (the “Company”) is pleased to announce an update to its continuing development of its Midway Gold project, located 16 km west of the city of Val-d’Or, Quebec, 1 km south of the Transcanada Highway.
The 10 foot diameter Nordberg double drum hoist has been transported and installed on its foundation. Actual lowering and installation of the hoist onto its previously molded bearing set and foundation structure was accomplished in less than 2 hours, an engineering accomplishment considering the size and weight of
the hoist drum (68 tonnes) and the precision and accuracy involved (fit tolerances were within a few millimeters). The engineering work on site and design was carried out by the engineering staff and employees of Northern Star. The combination hoist - head frame tandem allows Northern Star to reach depths in excess of 5500 feet.
Surface construction and mine access is almost complete: the service tunnel from the hoist building and compressors station has been completed, installed, and is ready for use. Electric power grid and transformers substations have been installed and the mine site now runs off the provincial hydro power grid.
Dewatering is ongoing and performing well: we have reached 210 feet and have passed the first level of the Malartic Goldfields mine. The dewatering pond is also performing better than originally expected. We monitor dewatering using measuring water output devices and video surveillance in the shaft. Air circulation in the mine has also begun as the company has also accessed vent raises at surface that are open and again in use.
The Company’s approach of careful methodical engineering during the installation of the mining equipment at Midway (hoist, head frame, service buildings, maintenance shop, compressors and electrical substation) has allowed us to circumvent and plan for possible problems and delays, without affecting our overall
installation schedule.
The Company has also adopted a very lean approach to personnel, installation and purchase costs with overhead remaining at a minimum. Installation costs to date are under the previously estimated budget; significant savings were made by the turnkey approach to the purchase of all the necessary surface mine equipment (hoist, compressors, buildings, transformers, head frame, electrics and so on). Replacement costs of the equipment alone would be significantly higher than the amount actually paid by the Company. The Company will also begin surface drilling aimed at obtaining geotechnical, geological and gold mineralization information at depths below 3000 feet. The information from this program will allow us to examine the rock parameters needed for engineering and mine plan purposes, to examine the structure of the Cadillac zone at these depths below the previous workings of the old Malartic Goldfields mine, and to discover new gold mineralization horizons. Since the surface drilling is to be carried out from marshy terrain, it is more cost effective for the Company to begin this program upon freeze up ($575,000).
Evidence suggests continuation of gold mineralization below these depths with a possible thickening of the porphyry and shear structures which control mineralization. Mines in the immediate area show that mineralization is persistent below 3000 feet (Agnico-Eagle La Ronde mine and Lapa deposit). All of the above is part of the Company’s engineering studies and work towards dewatering of Northern Star’s shaft no. 1 and exploration and development of the Midway - Malartic Goldfields project from underground.
The decision to begin underground exploration and development was taken in light of the significant and persistent results obtained since the start up of the surface drill program. Gold assays are consistent to date over all 58 holes, with the amount of gold observed directly proportional to the pyrite percentage in the drill holes assayed to date; continuing to prove an excellent tool in the exploration of the Midway Project.
Previous production came from approximately 23 gabbroic and mafic lenses similar in nature and character to those encountered during the present drilling, straddling the Cadillac Break.
To date, drilling in the present exploration program, which began in late 2003, has resulted in the discovery of new gold mineralized zones that, with the four previously known zones, bring the total known individual gold zones at the project to at least ten with the potential for further discoveries. The different gold zones
remain generally open along strike and at depth. For example, the Upper Halet zone has been traced along strike for at least 700 feet and remains open at both ends.
The present drilling has been concentrated on a small portion of the Midway - Malartic Goldfields project located between the two production shafts of the Malartic Goldfields mine complex, on an area that was previously occupied by the mining town of Halet, Quebec and has revealed gold zones open at depth with the results (e.g. hole NSM 04-50) demonstrating mineralization continuity below a depth of 1,600 feet. It must be emphasized that the gold mineralization at the Midway is not contained within any of the workings at the Malartic Goldfields mine. The Company is using only the shaft for access to its gold mineralization, which lies in the opposite direction from the old workings. The Company will seal off access to the old workings, apart from those required for ventilation, as they are encountered as we go down. The Midway Project is located some16 km west of the city of Val-d’Or and 1 km south of the Trans Canada Highway. The property hosts the past producing Malartic Goldfields mine, which produced over 2,000,000 ounces of gold. A three compartment, 2700 foot deep production shaft, (Malartic Goldfields shaft #1) is located on the property and is being used for access for exploration and development purposes.
The Midway Project straddles the prolific Cadillac tectonic break, associated with most of the gold and base metals deposits of the Abitibi Mining camp. Total gold produced in the Abitibi camp to date is in excess of 60 million ounces.
The Company continues with its construction at Midway, and is in the final stages of planning its future underground and surface exploration and development program at its Midway project. The Company is also pleased to announce that it has retained the services of AGORA Investor Relations Corp. ("AGORA") - agoracom.com - to provide investor relations services. The objective of this agreement is two-fold. First, to create effective communication between Northern Star , it's shareholders and the retail investment community through AGORA’s Internet based investor relations system. Effective immediately, a customized and monitored Northern Star IR HUB (http://www.agoracom.com/IR/NorthernStar) will allow both Northern Star and AGORA to communicate
with all investors simultaneously, anytime and in real-time, while providing shareholders with equal access and complete transparency to all investor relations communications. The IR HUB will also provide oneclick access to the Northern Star’s Broker Fact Sheet, Company Profile, five most recent press releases, email
list registration, latest stock quote & chart information and an executive audio address updated quarterly.
AGORA will be fully responsible for creating, implementing and executing an investor relations strategy, the consolidation of which will save management a considerable amount of time, effort and expense, allowing them to focus on core business operations, while significantly improving shareholder communications.
For all future Northern Star retail investor relations needs, investors are asked to visit the Northern Star IR Hub at agoracom.com where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to NSM@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time. The terms of the agreement are as follows: Duration - 12 months. Monthly Cash Compensation - $2,500. Stock Options - 200,000 shares at $0.49. This agreement has been negotiated entirely at arm's length. AGORA is located in Toronto, Ontario. This agreement is subject to regulatory approval.
Contact:
AGORA Investor Relations
agoracom.com
NSM@agoracom.com
4/26
Wednesday I visited Northern Star’s CEO Michel David in Val D’Or, in the Belle Province of Quebec. Northern’s Malartic mine produced 2 million ounces of gold from the Cadillac Break between 1936 and 1960. Two shafts had originally been sunk on the property to 3,000 feet. Mr. David is de watering one in an effort to mine by later this year. I think we might see gold production of 20,000 ounces from this mine by late this year.
Northern Star drilled 50 holes and he says they have “proved” up about 450,000 ounces though these are not 43-101 certifiable. The intercepts were all uniformly between .25 ounces per ton and .5 ounces per ton over true widths of 20 to 50 feet and at depths of not more than 600 to 800 feet. There is also plenty of additional gold potential. There is more exploration to be done on the property (owned 100% by Northern Star). There could be between 1 and 2 million ounces of gold to be yet discovered with modern exploration techniques on the property. Mr. David also purchased all the equipment for a mining operation for less than a million dollars from one of the companies in the area. Northern was in the final stages of installing this infrastructure when I visited this week. The de watering is now down to 400 feet and miners will be working very soon. Mr. David thinks the mine has the potential to produce 150,000 ounces per year at a cash cost of $50 per ounce by 2007 - 2008. But even if production is much lower or cash costs much higher, this is a very interesting Discovery investment. As Mr. David told me in my day with him on Wednesday, “you never really know a mine till it is closed down.” That would appear to be the case with Northern Star’s Malartic mine on the famous Cadillac break, which is elephant country for gold in Quebec and Ontario. There is still significant execution (mining) risk in this opportunity. But after meeting Mr. David and his mining team and viewing the progress on the project I think there is near term upside potential for gold production on this property. I have more due diligence to perform, but this opportunity seems like a very good Discovery Investment. There should be very little capital required because Mr. David has put that in place. There are 75 million shares out, fully diluted. Please have a look and perform your own due diligence. I own shares in Northern Star Mining.
5/2
Dewatering and water impounding are continuing well, water level is below the second level at some 355 feet approaching our initial target drift level of the third station (425 feet).
Shaft rehabilitation is also well underway, the third compartment manway is repaired and functional to the 150 feet level, and the three top sets in the shaft have been replaced; because of the excellent condition of the shaft collar and liners, further rehab shaft work should be relatively minor in nature.
Installation costs to date are under the previously estimated budget; significant savings were made by the turnkey approach to the purchase of the entire necessary surface mine equipment (hoist, compressors, buildings, transformers, head frame, electrics and so on). Replacement costs of the equipment alone would be significantly higher than the amount actually paid by the Company.
The Company has also begun surface and underground exploration at the project. From surface, a deep drilling program has begun. The initial drill hole is targeted to a depth of 7500 feet to obtain geotechnical, geological, alteration and gold mineralization information at depths below 3000 feet (underneath the bottom workings of the old mine).
Evidence suggests continuation of gold mineralization below these depths with a possible thickening of the porphyry and alteration structures that control gold mineralization. New mines in the immediate area show that mineralization is persistent below 3000 feet (Agnico-Eagle La Ronde mine and Lapa deposit).
The company has budgeted approximately $5,000,000 in exploration expenses over the next year. The work will include final installation, continuous dewatering of the shaft, drifting at the 425 foot level followed by drilling and sampling.
Exploration work will also begin on the Thompson River group claims, which adjoin Agnico Eagle’s Goldex mine to the north, and will consist of geology, geophysics and drilling. The company has budgeted approximately 100,000 on the project for 2006.
7/4
I own a bunch of shares and like it a lot. Stockhouse BB's are not a very good source of info for the most part. Judy talked to them at the Vancouver show and they should start producing in August probably around 5,000 oz. au. per month. This kind of play has some risk and is not for everyone but it is way under the radar and is very undervalued IF they can execute the plan as laid out. This one fits nicely into my basket of Jr. gold stocks just coming into production in "safe" countries.
Here is a good interview with the CEO from last Feb.
media.richmondclub.com
<<<<The idea is to drill and mine Gold underneath the mined depth (below 2800 feet). The previous mine owner decided not to mine below 2800 feet even back in the 1970s and 1980s when Gold was as high as today.<<<<<
Not exactly correct. They are opening up new areas using the existing mine shaft to access areas not explored by the prior operators. They do think there is very good exploration potential below 2800 ft BUT will be mining ore much closer to surface.
<<<<) Agnico-Eagle Mines (AEM) owns mines in the vicinity of the Midway project. AEM is going to invest 250 Million to increase production but almost none of the spending will be in northern Quebec. This suggests the mines do not have much Gold remaining. <<<
Again, not exactly correct.
money.canoe.ca
"It fits their needs," he said, adding Finland, Mexico and Quebec are "places you want to be in terms of mining." Last month, the miner said it would spend $210 million US to build the LaRonde 2 gold project in northern Quebec, an extension of its original LaRonde mine, Canada's largest gold deposit.
This is "next door" to the Midway project so seems Agnico thinks there is still a lot of gold to be mined on the Cadillac Break.<<<<<<
3) Northern Star has not yet released any hard data. No reserve size estimates, no production ramp up data. It appears that they are planning on deep mining where they will find very high gold content Ore that seemingly has not been mined yet.
>>>
NSM does have a poor IR dept. and it has been hard for us to get a lot of information. The contacts we have had with the company seem to indicate they are just not very interested in promoting it at this point and there is very little coverage. Is that a red flag or a "under the radar" opportunity????? Time will tell but worth the punt for those of us that do this sort of thing.
<<<<4) There are almost no technical discussions on the Stockhouse NSM board. The discussions are on technical support and resistance points and
there are many pumpers on the board.>>>
IMHO, what is on a Stockhouse BB is less than meaningless.
<<<If anyone has a more positive view of Northern Star, please post it.>>>
Look at the interview if you are interested. It seems obvious to me this project is the CEO, Michel David's , life work and he is pretty passionate about it.
That does not mean it will work but IMHO, ( and I have looked at a lot of these ) this project has a very good chance of being a profitable mine.
more info at the presentation
nsmgold.com
nsmgold.com
7/18
Northern Star Mining Corp. (TSX VENTURE:NSM - News) is pleased to announce that Britannica Resources Corp. has made a gold discovery on the Revillart property located 10 km northwest of the town of Malartic, Quebec, on a property subject to an option/joint venture agreement (see press release March 21, 2006).
Following initial reconnaissance work, magnetic and induced polarization surveys were carried out over a portion of the property, resulting in the discovery of a magnetic anomaly coincident with a number of I.P. anomalies. The anomalous zone is over 900 meters in length and 300 meters in width and appears open in both strike directions.
Britannica reports that it undertook an initial stripping and trenching program over a small portion of the anomalous zone.
Exploration work revealed an intensely altered and sheared zone consisting of chloritic, ankeritic and silicate alteration and enrichment, exhibiting both stockwork and boudinage structures, over a minimum width of 30 meters. The stripping was carried out only where bedrock was easily accessible, therefore the zone remains open in all directions.
The zone appears to be coincident with the Blake River/Kewagama formations contact, an important mineralization horizon in this portion of the Abitibi gold Belt.
Mineralization within the shear zone consists of pyrite, chalcopyrite and fine free gold.
An initial series of rock samples spaced approximately 6 meters apart
across the width of the shear zone returned the following gold values:Sample # Gold glt
-------- --------Rev 06-01 17.60
Rev 06-02 11.63
Rev 06-03 3.33
Rev 06-04 4.065(1) All assays were done using a standard 50 gram AA finish at
Bourlamaque Assay laboratories in Val-d'Or.
Mr. Robert Gagnon, p.geol is the qualified person under the
Canadian Standard 43-101.
The project is located on an important contact horizon (Kewagama/Blake River) which, some 10 km to the west contains the following producing gold and base metal mines: Laronde (Agnico Eagle), Bousquet, Doyon and a number of past producing mines including O'Brien, Kewagama, and Cadillac. To the east the past producing Camflo Gold Mines is also located on this horizon.
A Quebec government report states "...the Eastern Blake River group emphasizes the strong gold potential in these rocks. This also shows that certain areas located very near established mining camps, such as the Doyon-Bousquet-Laronde camp, still remain unexplored" (ref. M.R.N. report 2004 32 D/7).
The Revillart project is a joint venture consisting of 21 claims comprising 880 hectares (see news release March 21, 2006).
The property is located in the Blake River volcanics straddling the contact horizon of the Blake River Group.
The property is easily accessible, as the TransCanada highway crosses the southern portion. Numerous roads allow year round access to all parts of the property.
Northern Star is very excited by this new gold discovery on one of its properties, as the exploration work and expenditures carried out by Britannica allows Northern Star to concentrate on the development of its Midway Gold project located straddling the Cadillac Break, whilst at the same time allowing exploration discoveries to be made on its other gold projects of the Abitibi Gold Belt.
On the Midway project, exploration and development work consisting of deep drilling (depths greater than 3000 feet); dewatering, access, and development of the Malartic Goldfields no.1 shaft (3000 feet in depth) and new levels; surface exploration and development, and the start up of a bulk sampling program continues.
An update on the Midway project will be released shortly. |
