Northstar Gold Corp. (CSE:NSG) announced that it has received its first reimbursement of about C$628,000 under the Surgical Mining for Critical Minerals Project, a consortium initiative involving Novamera, Micon International, and DIGITAL – Canada's Global Innovation Cluster for digital technologies.
The payment reimburses eligible project expenditures related to advancing the company's Cam Copper Zone 2 Surgical Mining initiative at its Miller Copper-Gold Property near Kirkland Lake, Ontario.
Northstar said the reimbursement stems from approximately C$2.1 million in approved eligible project expenditures, which generated a DIGITAL co-investment contribution of about C$751,000. After project fees and taxes, the company received a net payment of roughly C$628,000.
The company said it remains eligible for approximately C$1.2 million in additional DIGITAL co-investment funding, subject to completion of approved project activities, eligible expenditures and claim approvals under the Master Project Agreement. It expects further reimbursements over the remaining two-year project.
The Surgical Mining for Critical Minerals Project was previously approved for up to C$3.8 million in non-dilutive co-investment funding as part of an approximately C$11 million consortium-led initiative aimed at advancing technologies for critical mineral extraction.
"Receipt of this initial DIGITAL reimbursement marks an important milestone in the advancement of our Cam Copper Surgical Mining initiative and validates the significant technical, engineering and project development work completed by the project consortium to date,” Northstar CEO Brian Fowler said in a statement.
“This non-dilutive funding strengthens Northstar's financial position while supporting continued advancement of one of Canada's most innovative critical mineral development projects."
The company also provided an update on recent work at the Cam Copper project, saying it has completed quality assurance verification of drill assay data, finalized its geological database, and is completing a three-dimensional geological and block model incorporating recent drilling results.
Northstar said it is also advancing metallurgical testing, rock mechanics studies, environmental planning and permitting activities. The company has received a renewed three-year Ontario Exploration Drilling Permit covering the Miller Copper-Gold Property, while Micon has been commissioned to prepare a NI 43-101 Technical Report and Mineral Resource Estimate.
The consortium is targeting potential small-scale surgical mining copper production at Cam Copper in early 2027, subject to permitting, financing, completion of technical studies and other required approvals. Northstar said it must obtain the necessary permits and project financing before issuing a notice to proceed under its agreement with Novamera.
“The company believes successful deployment of Surgical Mining technologies at Cam Copper has the potential to unlock value from mineralized zones that may not be economically feasible for extraction using conventional mining methods,” Fowler said. “The Cam Copper Project provides a compelling pathway toward future commercialization and shareholder value creation."