SEPTEMBER 2012 QUARTERLY REPORT - ASX ANNOUNCEMENTLevel 1, 1...

SEPTEMBER 2012 QUARTERLY REPORT - ASX ANNOUNCEMENT
Level 1, 1 Puccini Court, Stirling WA 6021 Tel: +6 8 6188 2100 Fax: +6 8 6188 2111
Email: [email protected] Website: www.nsrltd.com
Northern Star Resources (ASX: NST) is pleased to announce that record mine physicals in the September
Quarter has put the Company on track to deliver on its forecasts of increases in production and surplus
cashflow in 2013. CY2013 guidance is production between 100,000-115,000oz generating surplus cash of
$65-$85 million at $A1,550/oz gold price (current gold price A$1,650/oz).
Northern Star Managing Director Bill Beament said the results were important because not only did they
show the Company was achieving significant growth in all the key areas, but it was rapidly building a
reputation as a blue-chip gold miner which delivered on its forecasts.
"These results show that our strategies for delivering growth in production, cashflow and resources are
working while at the same time our policy of meeting our guidance to the market is being executed," Mr
Beament said.
During the Quarter, the Company announced a 25% increase in the Paulsens Resource to 403,000oz1.
This included the maiden resource grade of 25gpt for the Voyager 1 extension zone and 11.4gpt for the
Voyager 2 lode. The increased inventory is sufficient to underpin a mine life of at least 5 years at Paulsens.
Northern Star mined 23,312oz in the September Quarter as it continued to de-risk its flagship Paulsens
Gold Mine in WA.
Measures taken to de-risk its operations in the Quarter included fast tracking capital development and
opening up a number of production sources, substantially increasing gold inventory/stockpiles on the
surface to over 9,000ozs, upgrading ventilation capacity and surface facilities and the installation of a new
mobile mining fleet which is dramatically improving productivity.
As a result of these steps, Northern Star is now well on track to grow production from 80,000oz to more
than 100,000ozpa in CY2013. The extent to which this plan is on track is shown by the number of record
mine physicals achieved during the September Quarter. The mine is producing at an annualised rate in
excess of 500,000 ore tonnes, which is more than even the mill will be able to process once the expansion
is complete.
It has now been less than 18 months since Northern Star established its Mining Services Division. This
division continues to dramatically improve the productivity of the mine, with ore tonnes mined exceeding
June quarter site record by 20% and further improvements are expected in the December Quarter.
This Division is now starting to generate significant cost savings as demonstrated in the September
Quarter, when $1.65 million was saved compared to previous Contractor's rates. The Company expects
savings of more than $7 million for the full financial year.
By the end of the Quarter, Northern Star had cash, bullion and listed investments on hand of $67 million.
This was after spending $10.6 million on a maiden dividend and $3.6 million in tax. It also paid $6.3 million
on exploration, $3.0 million on the project's expansion and outlayed the remaining $1.3 million for Venturex.
Achievements for September Quarter;
• 25% increase in Resource ounces at Paulsens Project
• Mine expansion to over 100koz pa ahead of schedule and on budget for year end
• Mining physicals hit +500,000 ore tonnes annualised rate ahead of schedule
• Record mine physicals achieved in all major areas, boding extremely well for the expanded capacity
o 127,529 tonnes mined, 20% above previous record
o 1,625 metres of development, 13% above
o 90,581 tonnes processed, 2% above