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Market:	ASX
Sector:	General Mining
EPIC:	NSR

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Northern Star Resources

Northern Star Resource’s (ASX: NST) key asset is the high grade, high margin Paulsens Gold Mine in the Ashburton/Pilbara Region of Western Australia.

Northern Star Resources has record gold production month at Paulsens in August

Monday, September 06, 2010 by Andrew McCrea

Northern Star Resources (ASX: NST) has enjoyed another record month at its recently-acquired Paulsens Gold Mine in Western Australia, with the project beating both internal budgets and previous records on all key benchmarks.

Gold recovered at Paulsens in August totalled 11,269oz compared with the budget level of 7,643oz. Results included 28,981 t @ 12.5 g/t with 97% recovery.

Gold poured was 10,823oz compared with the budget of 7,261oz and gold sold totalled 10,553oz.

Importantly, the budget figures were those set at the time Northern Star agreed to pay Intrepid Mines $40 million for Paulsens.

The record 10,555oz gold sales in August at A$1,328/oz for $14 million.

21,369oz has been poured in the September quarter to date. Surface stockpiles at 31 August contain 7,867oz. The mine has again exceeded Northern Star’s acquisition model.

Bill Beament, managing director, said the latest results highlighted the potential for Paulsens to perform well especially during the first quarter under new ownership.

"We are exceeding our own production targets by a substantial margin and at the same time enjoying significant exploration success which has already shown the potential for Paulsens to operate well beyond the current mine plan."

"The results by every benchmark are better than we could have wished for and we have every reason to believe that the best is yet to come."

These results follow July's then record gold pour of 10,546 oz. The fresh record for August was made more impressive by the fact that it was not boosted by any production hanging over from July.

Northern Star amended the milling roster run by Intrepid immediately after settlement from campaign milling three out of four weeks to continuous operation around the clock.

The underground operation produced 8,811 ounces from 21,714 tonnes @ 12.6 g/t. As at the end of the month there were 3,012 ounces gold in transit, 2,708 ounces gold in circuit and the surface stockpiles contain 7,790 ounces of gold ready for processing.

Paulsens is a high grade, low cost mine which has yielded more than 370,000 ounces at an average cash operating cost of less than A$550/oz since commencing production in 2005.

Northern Star acquired Paulsens Gold from Intrepid Mines (ASX: IAU), providing Northern Star with an operational gold mine located 190 km west of the mining town of Paraburdoo within the Pilbara region of Western Australia. It has a Mineral Resource estimate of 314,000 tonnes @ 12.8g/t for 128,700 ounces of gold.

Northern Star has a current market capitalisation of A$26.4 million.

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