Northern Star Resources (ASX: NST) has intersected high grade gold from initial reverse circulation (RC) drilling at the Peake Prospect within its Ashburton Project, highlighting potential for it to become the company's second major production project.
Highlights include:
- 5 metres at 8.3 grams per tonne (g/t) gold, including 3 metres at 11.3 g/t;
- 8 metres at 6.5 g/t gold, including 4 metres at 10.1 g/t gold;
- 3 metres at 7.8 g/t gold; and
- 6 metres at 7.2 g/t gold.
Importantly, high-grade mineralisation remains open along strike, down plunge to the west and also down-dip and Ashburton could now potentially produce alongside Northern Star's highly profitable Paulsens Gold Mine.
The Ashburton Project has a resource of 668,000 ounces outlined in the Mt. and West Olympus Prospects and is within 200 kilometres trucking distance of Paulsens.
Bill Beament, managing director, said "the Peake Prospect offers potential to deliver both oxide and high grade underground sulphide resources which will add to the overall mineral inventory for the company."
"In-under 12 months Northern Star has delivered two corporate transactions, generated substantial profits and is now growing the business organically through successful exploration."
The drill program targeted down-dip and along strike potential of mineralisation at the historic Peake Open pit, where 18,700 ounces (oz) at 6.5g/t was produced. Further assays are pending and metallurgical testing is underway on these drill samples.
Preliminary RC drill holes have been completed at Ashburton’s historic Mt Olympus pit, targeting extensions of existing high-grade mineralisation where assays are also pending.
Northern Star is on track to beat its calendar 2011 forecasts for Paulsens of 75,000oz in production and $40 million in surplus cash. It has also set a $12.5 million exploration budget this financial year for the Paulsens-Ashburton region.