Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Shareholder Meeting (July 2010)
17 slides from Northern Star Resources's shareholder meeting presentation, Jul 26, 2010
Slide 1: Entering the Australian Gold Business
For personal use only Entering the Australian Gold Business EGM Presentation July 2010
Slide 2: Disclaimer
DISCLAIMER Competent Persons Statements The information in this report that relates mineral resource estimation for Paulsens is based on work completed by Mr Jonathon Abbott who is a full time employee of Hellman and Schofield Pty Ltd and a member of the Australasian Institute of Mining and Metallur
Slide 3: Our Vision
Our Vision… For personal use only “To build a quality mining & exploration company focused on creating profits for shareholders...”
Slide 4: Company Profile
Company Profile CAPITAL STRUCTURE For personal use only ¾ 205.9M shares on issue ¾ 102.5M options ($6.0M funding platform) ¾ Market Capitalisation $12.4M (26 July 2010) ¾(Undiluted & 6.0 cents per share) SUBSTANTIAL SHAREHOLDERS ¾ Top 20 52% ¾ InvestMet Limited 21.7% ¾ Investmet Supporters 18.5% ¾ D
Slide 5: Quality Management with Strong Backing
Quality Management with Strong Backing Successful record in discovering and developing mineral resources. For personal use only Bill Beament (Managing Director) appointed 20 August 2007 th Mining Engineer with 15 years experience. Former General Manager - Operations for 12 mines across WA, including
Slide 6: Asset Acquisition: Paulsens Gold Mine
Asset “Acquisition” Paulsens Gold Mine For personal use only Operational Gold Mine Western Australia mining address High Grade 128,700 oz resource Updated Stage 1 mine plan 55,000 oz $44M surplus from Stage 1 (8 months, @ A$1,400/oz) Upside to continue production beyond stage 1 365km2 of regional ex
Slide 7: History – For the Record
History – “For the Record” Mid 2004, Project Establishment For personal use only Mid 2005, full scale production Hedged @ A$627/oz until Dec 2008 2009, generated A$39M EBITDA Past mine production 1.5Mt @ 7.6g/t, 365koz (end 2009) Life of mine cash cost A$538/oz, Total Cost <$650/oz
Slide 8: Resources
Resources Voyager Zone - 314,000t @12.8g/t for 128,700 oz (Hellman & Schofield) For personal use only ¾Indicated 204,000t @ 13.7g/t for 89,700 oz (4g/t cut-off) ¾Inferred 110,000 @ 11.0g/t for 39,000 oz (4g/t cut-off )
Slide 9: Potential to Grow – In Mine
Potential to Grow – “In Mine” Resources open down dip, Voyager 1 extension and Voyager 2 definition For personal use only Unmined & Remanent resources left behind when modelled at A$627/oz ¾ Lower Zone non-mined resources ¾Limbs of hinge zones Top 100m of ore body has not been mined, potential addit
Slide 10: Potential to Grow – Regionally
Potential to Grow – “Regionally” Extremely unusual for no other sizeable deposit within 50km radius of the For personal use only Paulsens mine “lone soldier” Acquisition includes 365km2 of Tenements Numerous targets 100% owned: ¾ Belvedere (unclassified resource) ¾ Camp vein, Paulsens East, Apollo e
Slide 11: Stage 1 – Pay off Acquisition
Stage 1 – “Pay off Acquisition” Details For personal use only ¾ Mine Plan 55,000 oz, generates $44M surplus ¾ Milling from June 2010 to Early 2011 Mine 55Koz, payout all debt providers and Intrepid Mines (end 2010). Review unmined & remnant resources due to hedge @ A$627/oz (underway) Review in/near
Slide 12: Stage 1 Mine Plan – Status (June 2010)
Stage 1 Mine Plan – Status (June 2010) Stage 1 gold sales to date of 7,000 oz @ A$1,430/oz For personal use only Mine conformed well to the acquisition cashflow model Infill drilling results improve confidence of Stage 1 mine plan Capital Development completed for Stage 1 mine plan, decline at the 6
Slide 13: Stage 2 – Maintain Profitable Production
Stage 2 – “Maintain Profitable Production” Current Stage 2 - Inferred Resource of 110,000t @ 11g/t for 39,000 oz For personal use only ¾ Limited drilling to date due to orebody plunge and no substantial drill platforms Allocating $5.5M for; ¾ Extending capital development for Stage 2 mining to 630 l
Slide 14: Stage 3 – Find and Develop mine life
Stage 3 – “Find and Develop 5 year mine life” Details - Voyager 2 extension of Paulsens mineralisation For personal use only 4 deepest holes drilled to date, results are; ¾ 28.9m @ 31.0 g/t ¾ 5.9m @ 4.4 g/t ¾ 10.3m @ 4.0 g/t ¾ 1.5m @ 4.7g/t Exploration & resource drilling to outline the Voyager 2 mi
Slide 15: Acquisition Details
Acquisition Details – Stage 1 (55,000oz) $40M total consideration, broken down into stages; For personal use only ¾ $15M upfront payment upon settlement ¾ Reimbursement for Stage 1 capital already invested ¾ $335/oz performance based royalty payments up to 51Koz ¾ Stage 1 royalties total $17M ¾ $3M
Slide 16: Financing
Financing $15M debt finance by RMB; For personal use only ¾ Draw down fully at July 30 settlement $4M via equity, mandated to Viridian; ¾ $1.75M placement ¾ $1.5M SPP, shortfall to be placed if required ¾ $0.75M options to be exercised $6.0M of option funding available; ¾ $1M via 2.5c options (expir
Slide 17: Entering the Australian Gold Business
For personal use only Entering the Australian Gold Business Bill Beament – Managing Director info@nrsltd.com www.nsrltd.com Ph (08) 6241 1866
Northern Star Resources — Shareholder Meeting (July 2010) on 6ix