Northstar Gold Corp. (CSE:NSG) announced that it has signed a Letter of Intent (LOI) with Novamera to utilize Novamera’s patented Surgical Mining process to extract high-grade copper from Zone 2 of the historic Cam Copper Mine.
The mine is part of Northstar’s 100% owned Miller copper-gold property, located near Kirkland Lake, Ontario.
"Northstar is very pleased to partner with Novamera and employ its innovative mining solution at Cam Copper Mine,” Northstar CEO Brian Fowler said.
“Surgical Mining appears to be perfectly suited to effectively exploit Zone 2 in the near term, with nominal mining dilution and environmental impact.”
Novamera CEO Jim Hollis added that surgical mining is “redefining what’s possible in the mining industry.”
"Our method combines targeted drilling, real-time data, and automation to unlock the potential of properties like the Cam Copper project, while minimizing environmental impact and respecting local communities. This isn't just a new method; it's a new mindset for how mining can and should be done,” Hollis said.
The LOI follows Novamera’s recently completed "Zone 2 Proposed Development and Surgical Mining Evaluation Study" and Northstar’s previously announced Zone 2 Exploration Target, which outlines a near-surface tonnage range of 75,000 to 140,000 tonnes grading between 9% and 18% copper, with a conceptual average of 12% copper.
Novamera’s Surgical Mining technology is currently being deployed at a gold project in Newfoundland and is designed to unlock steeply dipping tabular deposits like Northstar’s Zone 2.
According to Northstar, the method significantly reduces capital costs, shortens the timeline to first production, and minimizes environmental and social impacts.
Under the scope of the LOI, Novamera will evaluate the potential to extract approximately 116,000 tonnes of material from Zone 2 using 93 large-diameter surface-drilled holes over an estimated 31-month period.
Novamera has agreed to assist in identifying financing sources to support the deployment of its Surgical Mining solution at the Cam Copper Project, Northstar said. Preliminary discussions regarding offtake and funding have begun with both government and private sources.
Novamera will earn a 5% revenue share with a buyout option available to Northstar, while the project features a low upfront cost of $1.5 million, off-balance-sheet financing, and efforts to secure non-dilutive funding for a rapid start.
“This proposed production arrangement minimizes upfront financial and operational risk to Northstar and leverages Novamera's extensive network of shareholders, private and government investment agencies, subject to the definition and permitting of an economic deposit,” Northstar CEO Fowler added.
“Recently announced US copper tariffs and a near-record copper price (US$5.71 per lb copper) further enhance this timely proposed mining venture.”
Northstar also plans to commission a NI 43-101 compliant Technical Report and Mineral Resource Estimate on the Cam Copper Project, including details on the Reasonable Prospects for Eventual Economic Extraction.