Northern Star Resources (ASX: NST) continues to intersect bonanza grade gold at the Paulsens Gold Mine in Western Australia, with the latest drilling including intersections of 1135g/t gold and 435g/t.
Highlights from the Voyager 1 lode include:
- 13.1 metres at 66.7g/t gold (true width 7.4 metres) 511 metres RL UZ, including 0.3 metres at 1135 g/t gold; and
- 8.1 metres at 124.0 g/t gold (true width 4.6 metres) 544 metres RL UZ, including 3.4 metres at 166 g/t gold and 1.0 metre at 410 g/t gold
Highlights from the Voyager 2 lode include:
- 2.9 metres at 45.9 g/t gold (true width 2.9 metres) 483 metres RL UZ, including 0.3 metres at 435g/t gold; and
- 11.0 metres at 22.0g/t gold (true width 4.0 metres) 474 metres, RL UZ including 0.3 metres at 245g/t gold.
Additional assays are pending.
Northern Star said that the latest intersections will be included in the upgrade to Paulsens’ current 403,000 gold ounce resource.
Importantly for the company, this increase in grade will combine with the recently completed plant expansion to 450,000 tonnes a year to lift production from around 80,000 ounces to 100-115,000 ounces in calendar year 2013.
Northern Star is on track to generate $65-$85 million in surplus cash for CY2013. This will leave the Company well-placed to back-up its recently paid fully-franked dividend of 2.5c a share for FY2012 and interim 1.0c fully-franked dividend for December Half 2012.
These forecasts are based on a gold price of A$1,550/oz compared with the current price of A$1,560/oz.
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