For personal use only

Transcription

1 Company Presentation The year Northern Star catches up with its peers as a gold mid- cap producer April 2012

2 Disclaimer Competent Persons Statements The information in this announcement that relates to Paulsens and Mt Olympus mineral resource estimation, exploration results, data quality, geological interpretations, potential for eventual economic extraction and estimates of exploration potential, is based on information compiled by or under the supervision of Brook Ekers, (Member AIG), who is a full-time employee of Northern Star Resources Ltd. Mr. Ekers has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". The information in this announcement that relates to Exploration Results, Mineral Resources or Ore Reserves in the Exploration section of this report is based on information compiled by Mr Jason Boladeras, who is a Member of the Australian Institute of Geoscientists (AIG) and Exploration manager and casual employee of Northern Star Resources. Mr Boladeras has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Boladeras consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Information in this announcement that relates to the Ore Reserves has been compiled by Shane McLeay, Principal Engineer Entech Pty Ltd, who has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Shane McLeay is a Member of the Australasian Institute of Mining and Metallurgy and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 4 Exploration Potential The information in this announcement that relates to exploration and production targets refers to targets that are conceptual in nature, where there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. The information on exploration targets in this presentation are based on a conceptual range of targets as follows: Tonnage range: 350,000 to 600,000 tonnes range: 9 g/t Au to 13 g/t Au Ounces: 100,000 to 250,000 Resource Tables attached in Appendix 1 Forward Looking Statements Northern Star Resources Limited has prepared this announcement based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this announcement. To the maximum extent permitted by law, none of Northern Star Resources Limited, its directors, employees or agents, advisers, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this announcement or its contents or otherwise arising in connection with it. This announcement is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any security, and neither this announcement nor anything in it shall form the basis of any contract or commitment whatsoever. This announcement may contain forward looking statements that are subject to risk factors associated with gold exploration, mining and production businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimations, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates. 2

3 Corporate and Asset Overview +80,000oz Western Australian Gold Producer Market cap: $360m based on 402m shares at $0.90, plus 25m options Cash/Bullion on hand: $84m as 31 Mar 12 Enterprise Value $276 million Debt free and un-hedged Top 20 hold +50%, new large UK institutions Key production asset: Paulsens Gold Mine near Paraburdoo in WA, acquired in July 10 Paulsen s Project JORC resource 318,000oz 1 Maiden Reserve of 113,000oz 2 at Paulsens Ashburton Gold Project, 2 nd Major Production centre (resource upgrade to 1Moz 3 ) Company Resource base 1.3Moz 3

4 Paulsens Corner Stone Asset Paulsens started production in 2005 has produced 500,000oz in 6.5 years to 2011 at an average gold production of 70-80,000ozpa Life of Mine Cash Cost of $560/oz Average monthly total site cost of $5M or 3,000oz to breakeven Acquired by Northern Star in July 2010 for $40 Million Repaid full acquisition from cashflow within 7 months Record 2011 financial year performance, 87,069oz recovered Delivered second resource upgrade of 318,000oz in 18 months Further exploration success achieved and more results pending Discovered quartz lode in gabbro offset, adjacent to Paulsens mineralisation In-house mining services division has reduced total cost per tonne by 30% 4

5 Paulsens Corner Stone Asset (continued ) Changed out Mining and Crushing Contractors with in-house team Dropped total cost per tonne by 30%, lowered underground cut-off to 2.5g/t 5

6 Paulsens Corner Stone Asset (continued ) Exceeded 2011 guidance by 15%, generated $46M surplus CY2012 guidance 75-80,000oz at $ cash cost, generating $35M surplus cash even after $15M expansion capital expenditure New Resource of 318,000 oz, underpinned by key Voyager 1 Deepest intersection g/t, 180m below current production level Voyager 2 lode has an exploration target 4 of 100, ,000oz Deepest intersection received in the mine 412g/t inc. 3,390 g/t Voyager 2 lode maiden resource expected mid-2012 Combination of Voyager 1 and 2 gives Paulsens a five year outlook 6

7 Paulsens Plan to Substantially Grow Mine Life Orebody has yielded 500,000oz over 400 vertical meters, 7 years of production so far Target ore body vertical metres below current workings Potential to extend mine life 7-10 years Deep Navigational drilling commencing 2 nd week of April 7

8 Growing production to 200,000ozpa Two staged approach to 200,000oz per annum Stage 1 - Grow Paulsens to 100,000ozpa by year end Increase plant capacity from 350,000 to 450,000tpa Rapid capital development now underway Expansion funding is secured Most major lead time items have been sourced and ordered Stage 2 100,000ozpa Ashburton sulphide stand-alone operation Past oxide open pit, 1998 to 2004 of 3.3g/t Project contains 2.7g/t resource, 1/3 oxide and 2/3 sulphide Maiden free milling Reserve of 53,000oz 4 Metallurgical testing underway, feasibility to commence 96.4% gold recovery from concentrate Most likely to be feed from multiple high-grade underground s Drilling Commenced February 2012, results pending 8

9 Significant Exploration Upside No other sizeable deposit within 50km radius of the Paulsens mine which has now exceeds a 750,000oz gold deposit yrs of no regional exploration Paulsens near mine or regionally Re-assessing the $30M Ashburton Geological data base $20M exploration/drilling program is underway, delivering results 9

10 Significant Exploration Upside (continued ) Found two Gabbro Offset positions similar geology as Paulsens Potential to replicate the Paulsens orebody which has produced 500,000oz Ore grade intercepts up to 14gpt received to date, early days but very encouraging Intersected up to 13m wide quartz lode consistently over 250m down plunge Drilling for structure/geological understanding, then focus on mineralisation Targeted surface diamond drilling program to come in May 10

11 Board of Directors Successful record in discovering and developing mines BILL BEAMENT Managing Director (Mining Engineer) Former General Manager Operations for 12 mines across WA, including 3.5 years involvement at Paulsens overseeing the incumbent mining contractor. Established over 15 new mining operations across Australia. CHRIS ROWE Non Executive Chairman (Barrister and Solicitor) Barrister and solicitor - previous chairman or director of a number of public listed mining and oil and gas related companies in both Australia and North America MICHAEL FOTIOS Non Executive Director (Geologist) Chairman of InvestMet Limited. Former Managing Director of Galaxy Resources. Held senior positions with Homestake and Sons of Gwalia. Involved in the discovery of 4 million ounces of gold. PETER FARRIS Non Executive Director (Business/Corporate Advisory) Highly Credentialed Businessman with extensive experience in the Perth real estate industry and corporate advisory services. DISCIPLINES TO OPERATE A MINING BUSINESS ARE COVERED 11

12 Senior Management BERNIE SOSTAK General Manager of Geology Geologist with over 20 years in the Gold Industry with extensive experience in mine geology, resource estimations, planning and general operations management in underground and open pit. Held senior management roles with WMC, Broken Hill Metals and Coolgardie Gold. Most recently as Barrick s Director of Resource/Reserve Strategy based in Toronto managing reserve replacement programs on 4 continents. RAY PARRY General Manager Finance and Commercial Experienced Finance Executive with over 25 years experience in the mining and banking industry. Previously held the position of Commercial Manager with St Barbara Ltd overseeing the recommencement of mining and processing at the company s Gwalia, Tarmoola and Southern Cross operations. PHIL TORNATORA General Manager Exploration Geologist with over 20 years of exploration experience in the mining industry. Held Senior management roles with AngloGold Ashanti managing exploration projects in Australia, Philippines and West Africa. Has been involved in a number of new discoveries. CRAIG JONES General Manager (Paulsens) Mining Engineer with previous roles at Barrick Lawlers Gold Mine and Western Metals Lennard Shelf Operations. Extensive experience in numerous mining methods and contract mining. EXCESSS MANAGEMENT CAPACITY TO CATER FOR AGGRESSIVE COMPANY GROWTH 12

13 Ten Reasons to Follow Northern Star 1. Exceeded CY2011 guidance by 15%, generated $46m surplus cashflow, CY2012 to deliver $35m surplus after expansion capital 2. Debt-free (minor equipment HP), un-hedged and $84m in cash and bullion 3. Outstanding drilling results at Paulsens have increase the Project s resource base to 318,000oz, further increases in resources and mine life in Clear, low-cost and low-risk strategy to increase production to 100,000ozpa by year end 5. Accelerating the second stand-alone 100,000ozpa operation at Ashburton, lifting total Company production to 200,000ozpa 6. Significant potential to grow the Company resource base of 1.3Moz 13

14 Ten Reasons to Follow Northern Star 7. Significant exploration potential with a $20M program over the next 12 months, yielding early result such as new gabbro offsets 8. Strong cashflow/balance sheet means NST is ideally placed to capitalise on falling asset values and uncertain market conditions 9. Highly experienced board and management team which will maximise acquisition and development opportunities 10. Key three-year target: $1-1.5B mid-cap gold producer, through exploration, organic growth and acquisition 14

15 Appendix 1 Measured Indicated Inferred Total 31 December 2011 Oz Au Open Pit Paulsens Upper Levels Voyager Paulsens Stockpiles 5 Belvedere Merlin Mt Clement JV Total Table 1 - Paulsens 2.5g/t Au Lower Cut-Off Underground and 1.0g/t Au Lower Cut-Off Open Pit Proven Probable Total 31 December 2011 Oz Au Open Pit Paulsens Upper Levels Voyager Paulsens Stockpiles GIC and CIT 4 Total Table 2 - Paulsens Reserves Underground and Open Pit Measured Indicated Inferred Total 31 December 2011 Oz Au Mt Olympus 1, , , , Peake Waugh Zeus , Electric Dingo Romulus Total 1, , , , ,007 Table 3 - Ashburton Mineral Resources Inclusive of Reserves - 0.7g/t lower cut used for Mt Olympus and 0.9g/t lower cut for others. Proved Probable Total 31 December 2011 Oz Au Mt Olympus Peake Waugh Zeus Electric dingo Romulus Total Table 4 - Ashburton A$1600 gold price based on oxide/transitional material only (free milling) 15