Northern Star Resources has posted record gold production of 30,602 ounces for the September quarter at its Paulsens gold mine in the Pilbara.
Northern Star Resources has posted record gold production of 30,602 ounces for the September quarter at its Paulsens gold mine in the Pilbara.
The result was set on record production of 9,233oz during September.
The result means Northern Star has exceeded its budget forecasts.
It has generated revenue of $40.5 million in the quarter, $5.5 million more than budgeted by the company at the time it agreed to buy Paulsens from Intrepid Mines.
The funds have allowed the company to accelerated repayments to both Intrepid and the debt provided by RMB Resources Australia.
Northern Star now owes $15 million on the $40 million acquisition.
Northern Star managing director Bill Beament said the results for each of the three months in the September quarter were outstanding when compared with Paulsens historical performances.
"We expect to again exceed both our own budgets and Paulsens' historical results in the current quarter, though we recognise that matching the September quarter performance will be no mean feat," Mr Beament said.
See company statement below:
Northern Star Resources (ASX:NST) is pleased to advise that bumper gold production of 9,233 ounces in the month of September has enabled it to post record production of 30,602oz for the September quarter at its Paulsens Gold Mine in WA.
The spectacular results mean Paulsens has exceeded all budget forecasts set by Northern Star for the quarter, including the key benchmarks of gold mined, poured and sold.
The stellar operating performance at Paulsens has translated to an outstanding financial result for Northern Star, with revenue of $40.5 million generated in the quarter.
Importantly, this is $5.5 million more than budgeted by Northern Star at the time it agreed to buy Paulsens from Intrepid Mines and has enabled the Company to rapidly accelerate repayment of both Intrepid and the debt provided by RMB Resources Australia. As a result, Northern Star now owes a total of just $15 million on the $40 million acquisition.
Gold recovered at Paulsens in the month of September totalled 9,359oz compared with the budgeted level of 7,628oz. Gold poured was 9,233oz and gold sold totalled 9,808oz.
These results follow record gold pours in July and August of 10,546oz and 10,823oz respectively.
The excellent milling results for September were made more impressive by the fact that 20 per cent of the mill feed was sourced from the surface low grade stockpile (2g/t). Low grade ore was blended with the very high grade (13.4g/t) ore mined during the month to ensure high gold recoveries in the mill were maintained.
Mining at Paulsens in the month of September produced 9,124oz from 21,183 tonnes at 13.4g/t. At the end of the month there were 2,438oz gold in transit, 2,834oz gold in circuit and the surface stockpiles contained 7,229oz of gold ready for processing.
The September quarter at Paulsens was also marked by bumper exploration results (see ASX announcements dated September 2, 2010 and September 28, 2010) which highlight the significant potential for mining to continue well beyond the current Stage One plan.
Stage One provides for total production of 65,000oz by early 2011. However, a host of recent high-grade intersections of up to 38g/t have been recorded below and outside the current mine plan, paving the way for a resource upgrade and underpinning plans for Stage Two.
Northern Star Managing Director Bill Beament said the results for each of the three months in the September quarter were outstanding when compared with Paulsens historical performances.
"We expect to again exceed both our own budgets and Paulsens' historical results in the current quarter, though we recognise that matching the September quarter performance will be no mean feat," Mr Beament said.
"Recent exploration results show Paulsens is set to continue until 2012 and beyond, generating strong ongoing cashflow which will in turn enable the Company to take full advantage of any project and corporate acquisition opportunities that arise."
