Northern Star Resources has hailed its new gold operation at Paulsens Gold Mine a success with gold poured in July exceeding budget.
Northern Star completed the purchase of Paulsens from Intrepid Mines for $40 million late last month.
In a statement to the Australian Securities Exchange Northern Star said it recorded a record 10,546 ounces of gold in July.
"This result compares with the budget forecast of 8,707 ounces set at the time Northern Star agreed to acquire Paulsens," the statement said.
Northern Star managing director Bill Beament said "the results for July highlighted the potential for Paulsens to outperform the targets set by the Company in coming months."
Following the announcement Northern Star shares were even at 10 cents.
See full company statement below:
Northern Star Resources (ASX:NST) is pleased to advise that it has enjoyed a bumper start to its ownership of the Paulsens Gold Mine in Western Australia, with gold poured in July exceeding budget at a record of 10,546 ounces. This result compares with the budget forecast of 8,707 ounces set at the time Northern Star agreed to acquire Paulsens. It also compares well with the Project's previous monthly record of 9078 ounces achieved in mid 2006. The record achievement in July was assisted by some late June production which carried into the following month and made all the more significant as the processing plant was only available to mill for 80% of the month.
Northern Star Managing Director Bill Beament said "the results for July highlighted the potential for Paulsens to outperform the targets set by the Company in coming months."
The underground operation produced 10,529 ounces from 26,898 tonnes @ 12.2 g/t, this figure includes 4,212 tonnes of low grade material @ 1.3 g/t. This tonnage is the third best monthly production since mining began 6 years. As at the end of the month the surface stockpiles ready for processing contain 10,679 ounces of gold.
It is NST's intention to report monthly over the coming months as to the performance of the Paulsens Operation.