Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Investor Presentation (September 2010)
19 slides from Northern Star Resources's investor presentation, Sep 15, 2010
Slide 1: Emerging Australian Gold Producer and Explorer
For personal use only Emerging Australian Gold Producer and Explorer Company Presentation September 2010
Slide 2: Disclaimer
DISCLAIMER Competent Persons Statements For personal use only The information in this announcement that relates to exploration results, data quality, geological interpretations and potential for eventual economic extraction, is based on information compiled by or under the supervision of Brook Ekers
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 277M shares on issue 79M options ($6.0M funding platform) Market Capitalisation $33.2M (14 September 2010) (Undiluted & @ 12.0 cents per share) SUBSTANTIAL SHAREHOLDERS Top 20 52.3% Top 100 78.0% InvestMet Limited 19.8% InvestMet Supporters 28.
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: Investment Highlights
Investment Highlights Purchased Paulsens – high grade, high margin gold mine For personal use only operational gold mine in WA with high grade 128,700oz Indicated and Inferred Resource (pre-mining Voyager) fully developed, including all capital expenditure Stage 1 mine plan of 65,000 oz established
Slide 7: Paulsens History – For the Record
Paulsens 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 2010 per
Slide 8: Resources
Resources Voyager 1 Zone - 314,000t @12.8g/t for 128,700 oz (pre-mining) For personal use only Indicated 204,000t @ 13.7g/t for 89,700 oz (4g/t cut-off) Inferred 110,000 @ 11.0g/t for 39,000 oz (4g/t cut-off )
Slide 9: Stage 1 – Pay off Acquisition
Stage 1 – “Pay off Acquisition” Details For personal use only Mine Plan 65,000 oz, generates $44M surplus Milling from June 2010 to Early 2011 Mine 65,000 oz from Voyager 1 lode 766 to 705 level, payout all debt and Intrepid Mines Include more of the Indicated Voyager 1 resource into the stage 1 min
Slide 10: Stage 1 – Status (End of Aug 2010)
Stage 1 – Status (End of Aug 2010) Stage 1 Mine Plan is now 65,000 oz, exceeds acquisition model by over 10,000 oz For personal use only Gold mined of 36,597 oz, 21% above acquisition model Gold poured of 26,022 oz, 25% above acquisition model Gold sold of 23,011 oz @ A$1,356/oz for $31.2M 20% posit
Slide 11: Stage 1 - Finance and Acquisition Details
Stage 1 - Finance and Acquisition Details $40M total consideration, re-payment milestones; For personal use only 70% of Intrepid Mines consideration paid $15M upfront payment upon settlement - completed $9.6M performance based payments - completed $3M of instalments, July and October 2010 – complete
Slide 12: Stage 2 – Maintain Profitable Production
Stage 2 – “Maintain Profitable Production” Stage 2 is the depth extension of the Voyager 1 lode between the 705 and 600 level For personal use only Currently comprises an Inferred Resource of 110,000t @ 11g/t for 39,000 oz Allocated $5.5M to extend mine life via decline development and a purpose bui
Slide 13: Stage 2 – Status (Sep 2010)
Stage 2 – Status (Sep 2010) Extending capital development to enable mining from 705 to 600 level – decline at 685RL For personal use only Developing the 705 drill drive (bottom of stage 1) – Underway (50% complete) Drilling to test down plunge resource extensions of Voyager 1– Underway (550m so far)
Slide 14: Stage 3 – Find and Develop Mine Life
Stage 3– “Find and Develop 5 year mine life” Target Voyager 2 lode, which is the plunge extension of the mineralisation at Paulsens For personal use only Recently completed preliminary drilling (1,750m) with significant assay result of; 3.4m @ 1.5g/t (true thickness 2.4m) inc. 0.44m @ 5.99g/t Inters
Slide 15: Potential to Grow – Other In Mine Areas
Potential to Grow – “Other In Mine Areas” Unmined & Remanent resources left behind when modelled at A$627/oz For personal use only Lower Zone non-mined resources Limbs of hinge zones Top 100m of ore body has not been mined, potential additional mill feed Repetitions above and below current mine work
Slide 16: 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: Belvedere (unclassified resource) Camp vein, Paulsens East, Apollo extn
Slide 17: Exploration – Artemis (Mt Clement JV 20%)
Exploration – Artemis (Mt Clement JV 20%) Indicated Resource of 526,000 t @ 2.4g/t Au for 40,600oz located only For personal use only 35km from Paulsens processing plant on granted Mining Leases Gold Resource contained in a flat - lying oxidised strata bound horizon within 50m of surface; mineralisa
Slide 18: Exploration – Cheroona Gold/Copper
Exploration – Cheroona Gold/Copper Located 80km from Sandfire Resources DeGrussa VMS copper-gold For personal use only discovery in the Bryah Basin; an emerging VMS camp Similar geological setting to DeGrussa, including 18km strike of the Narracoota Volcanics Highly prospective for VMS style Au-Cu w
Slide 19: Emerging Australian Gold Producer and Explorer
For personal use only Emerging Australian Gold Producer and Explorer Bill Beament – Managing Director info@nrsltd.com www.nsrltd.com Ph (08) 6241 1866
Northern Star Resources — Investor Presentation (September 2010) on 6ix