Northern Star hits gold at Paulsens

Subiaco-based gold producer Northern Star Resources says high-grade drilling results at its Paulsens gold mine near Paraburdoo point towards a significant increase in resources and mine life.

In a statement today, the company said it was moving from the Voyager 1 lode to Voyager 2 at Paulsens, which has intersected high-grade gold, the most significant being seven metres at 118 grams per tonne gold.

“The results from the latest exploration drilling program at Paulsens have extended the known length of its high-grade Voyager 2 lode by 300 metres down plunge,” the company said.

“The mineralisation remains open and will continue to be tested with ongoing drilling.”

Northern Star said the move from Voyager 1 would allow it to benefit from the high grades and low costs associated with the rich lode at Voyager 2.

Managing director Bill Beament said the Voyager 2 results were the most significant achieved at Paulsens since drilling established the magnitude of Voyager 1 five years ago.

“These results are absolutely crucial because they underwrite the future of Paulsens as a high-grade, low-cost gold mine,” he said.

“It is becoming clear that the Voyager 2 lode emulates Voyager 1 in respect to its grade, the continuity of the mineralisation and the production rates it can sustain.”

Paulsens, which was the first mine Northern Star acquired, has a JORC resource of 414,000 ounces.

“Drilling at Voyager 2 is ongoing as part of our strategy to update the Paulsens resource estimate in the June quarter,” Mr Beament said.

“At the same time, development of Voyager 2 will gain pace in preparation for production in mid-2015.”

Shares in Northern Star were 5.2 per cent higher at $1.81 per share at 12pm.