Northern Star Announces Corporate Update
18.06.2010 | Marketwire
VAL-D'OR, QUEBEC -- (Marketwire) -- 06/18/10 -- Northern Star Mining Corp. (TSX VENTURE: NSM) (OTCQX: NSMSF) (Northern Star Mining or the 'Company') is pleased to announce the following update on our activities and plans for the balance of the 2010 year and beyond. CEO George Pirie has, since commencing employment in April 2010, reviewed all of the Company's operations, budgets, assets and balance sheet information and is now in the position to begin to set goals for the Company in 2010 and beyond.Production Plan
Northern Star had previously set an objective to achieve production from its Midway and Mackenzie Break deposits by late 2010. This is not a credible objective nor realisable goal this year.
New geological interpretation of the Mackenzie Break deposit, including the discovery of more gold bearing veins will require that a detailed geological review be made of the deposit.
Additionally it is imperative to complete interpretation of all historical and current drilling on the Mackenzie Break and Midway properties to develop current geological models and resources.
Revised Resource Calculation
The first priority of the Company will be to deliver a revised resource estimate, in 43-101 format, by no later than December 2010, for each of MacKenzie Break, the Callahan and the Midway deposits. It is estimated this will cost $8,000,000 and will be directed under the leadership of Eddy Canova PGeo. The scope of work is as follows:
Midway: This project will require the update of more than 30,000 meters drilled on the Midway project alone. An additional 30,000 meters of drilling from both underground and surface is required to reclassify the historical reserve on the project and follow up on previously released results both historical and current.
Callahan: The exploration model being followed here is 'Goldex' style mineralisation. The drilling planned here is 14,500 meters to reclassify historical drilling and follow up on targets in eleven separate zones.
MacKenzie Break: There is 6,000 meters of diamond drilling planned for this property to update the historical 200,000 ounce resource. Reinterpretation of historical drilling and interpretation of current drilling indicates that an open pit model be investigated on the deposit.
The data will be compiled and models created in Gemcom.
Capital Restructuring and Raising
NSM has a current and long term debt balance of over $43 million, fully secured by the Companies assets and payable within fourteen months. Management believes this is an unsustainable obligation considering the stage the Company is at with respect to its production plans. Accordingly, the Company will seek to restructure and reduce its debt in the near future.
The Company announces that it has retained Cormark Securities Inc. and Toll Cross Securities to assist it in restructuring its outstanding debt and raising capital in support of the engineering and drilling programs.
ON BEHALF OF THE BOARD
George Pirie, CEO
This press release contains certain 'Forward-Looking Statements' within the meaning of Section 21E of the United States Security Exchange Act of 1934, and involves a number of risks and uncertainties. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the TSX Venture Exchange and the British Columbia Securities Commission. All statements, other than of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.
Contacts:
Northern Star Mining Corp.
George Pirie, CEO
(416) 629-2418
www.nsmgold.com