Friday, 16 November 2012 09:38
Northern Star Resources has plans to become a 200,000 ounces plus Western Australian gold producer, having been further boosted by a successful drilling program at its Ashburton Project.
The drilling at Ashburton's flagship Mt Olympus deposit returned significant results, some of which extended the known limits of the mineralisation by another 400m down plunge.
Two holes were drilled down plunge with one intersecting 7m of sulphides with visible gold and 26m of sulphides, with assays pending.
The drilling also returned high grade resource infill results such as 4.4m at 17.4gpt, including 1m at 74gpt and 8.5m at 9.3gpt, including 3m at 17gpt gold.
Northern Star expects to increase the one million ounce resource at Ashburton early next year as a result of the successful drilling program.
It also hoped to calculate a maiden sulphide reserve, subject to ongoing economic studies.
This will mark a key milestone in the company's plan to establish a standalone 100,000 ounces per annum operation at Ashburton, which would operate in parallel with Northern Star's current plus 100,000 ounces per annum operation at Paulsens.
The prime focus of the geological team has been on developing a structural/lithological model of the controls on mineralisation that allows accurate prediction of ore shoot positions and efficient targeting of drilling.
The drilling results coupled with the geological modelling together with the recently released metallurigcal test work for sulphide orebodies indicate a total gold recovery of 80-90 per cent, significantly strengthening the viability of the Ashburton Project.
"These results are pivotal for Northern Star for three reasons," Northern Star managing director Bill Beament said.
"They reveal there is substantially more gold at Mt Olympus than previously demonstrated, they highlight the significant scope to find a lot more and they show that our plan to double the company's production by building a 100,000 ounces per annum operation at Ashburton is rapidly moving towards fruition."
Northern Star Resources
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