Wednesday, 07 November 2012 10:08
Northern Star Resources is celebrating some outstanding results from drilling in shallow areas of its Paulsens gold mine which have revealed intersections of up to 857 grams per tonne.
The company said exploration of significant areas of unmined mineralisation at Paulsens, on the border of the Pilbara, could boost cashflow and production for the next five to seven years.
Previous owners of Paulsens did not mine large portions of the lower zone of the deposit due to financial conditions, scheduling and a lack of drilling expenditure.
Northern Star re-assessed prior exploration drilling to further validate these fresh results and to investigate other potentially mineralised areas. This uncovered a number of additional areas where high-grade intercepts where achieved outside of the current mining shapes.
Some of the areas which have generated the latest results contain previously known mineralisation while others have until now been considered barren or uneconomic.
“This gold stands to be a significant bonus to Northern Star's production and cashflow for many years,” said Northern Star managing director Bill Beament.
“These areas contain high-grade gold and accessing them will require no capital and only a little amount of mine development, meaning they will be a rich source of cheap additional ounces. They have significant potential to alter the economics and life of Paulsens.”
The company is installing a paste fill plant to enable total extraction of the orebody and further drilling is planned next year.
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