NSM's Malartic-Midway Project

The Midway property lies within one of Canada’s most prolific mining districts, the Abitibi Gold Belt, Quebec, and the mineral claims entirely cover the Malartic Goldfields mine (a past producer of 2 million ounces of gold).

An active mining district with mining infrastructure, local ancillary services and skilled labor in place, Midway’s location could not be better as its potential is advanced by ongoing exploration and development work.

The Malartic-Midway project is a former producer (1939 to 1965), two shafts, production of 2,000,000 ounces of gold at a recovered grade of 5.85 g/t Au.  Mining was conducted from surface to about 1,000m vertical, structures are open at depth and current technology permits mining to a depth of 3,000 meters.

The project was worked intermittently after the closing of the mine and systematic surface and underground exploration started in 2003 with the first surface drill hole by Northern Star. By the end of 2007 a total of 117 surface diamond drill holes were completed for a total of 40,000 linear meters. Significant gold intersection of economic interest  over mining width were encountered and this led to a 43-101 compliant resource estimate completed in June 2008 and filed on SEDAR.

Two different types of gold mineralization are now recognized on the Malartic Midway project , the higher grade gold mineralized gabbros (7.00 g/t Au), and the larger volume lower grade mineralized porphyries (2.50 g/t Au).  These structures were evaluated from surface to a vertical depth of 350 m and remain open at depth for additional tonnage.  One Deep drill hole (NSM 06-64), probed the depth extension of the mine.  At a depth of 1.5 km the structures are still well mineralized (9.61 g/t over 12.0 m true width).

The resource estimate was completed on the Briar sector, the Chabela sector and the South Porphyry sector.  Beside the recent resource estimate, there are still other gold mineralized structures on Northern Star mining properties hosting “historical resources” for an additional 245,000 ounces of gold.  The company is not treating these historical estimates as current mineral resources as defined under NI 43-101.  A limited amount of surface drilling will permit the re-classifying of these resources into current mineral resources.   

The report recommended carrying out surface and underground exploration.  A total of 75,000 linear meters of drilling was recommended, to date over 10,000 meters have been completed and results are pending. A decline started last March, has currently reached horizontal length of 800 meters and is aimed at the Chabela and Briar zones for bulk sampling.

The drilling is oriented to extend the known mineralized structure to significantly increase the resources.  The area has potential to host multi-million ounces gold deposits.  The better than average grade of 7.00 g/t Au is less dependent from the variations in the price of gold.

Building on over 50,000 feet of surface drilling, the Company utilized one of the two existing mining shafts on the property and rehabilitated Shaft No.1. This was completed with equipment acquired from Louvicourt Mines.

Northern Star also owns a fully operational 900-1800-ton-per-day gold milling facility, including the past producing Beacon Gold Mine and all its infrastructures.

The construction of a 1,800 meter (5,800 feet) long decline began in March 2008. The decline will access, explore, develop and bulk sample gold mineralized zones located northwest of the decline Portal (entrance), initially to the 450-foot level (Chabela Zone), then extend further  towards the Briar Zone and accessing other gold bearing targets, as well as drilling for new gold structures.

In March 2009, the decline had advanced over 930 metres and reached its initial planned depth of 150 metres, including an additional 240 metres in the Chabela branch. The Chabela branch of the decline will be extended about 170 metres in a north-northwest direction to reach the “L” zone discovery.

Presently work has begun on the two areas of bulk sampling to be carried out in the Chabela zone, the sublevel and raises are complete, with the remaining long hole blast holes to be completed shortly. The Briar branch of the decline continues in a west-northwest direction to reach the Briar and Midway zones at a planned depth of 250 metres. As of October 2009, over 2.1 kilometres of Decline construction has been completed and has now reached the North Briar zone area. The Decline is within the North Briar porphyry, where mineralization has been encountered. Visible gold within quartz veins in the porphyry have been intersected in the Decline advancement face. Development to the Briar gold mineralized zone is underway.

The decline has dimensions of 5.0 meters (16.4 feet) in width by 4.7 meters (15.4 feet) in height with loading (remuck) bays located approximately every 110 meters. The surface Portal (entrance) is located some 1,220 meters (4,000 feet) southeast of the Company’s 915 meter (3,000 feet) deep shaft # 1.

In December 2008, Northern Star announced (drill hole MC-08-160) the discovery of the “L” zone. This unanticipated result increases the potential of the Malartic-Midway project and demonstrates the potential of bonanza-type, high-grade gold intersection. The zone is located midway between shaft 1 and the Chabela zone approximately 500 feet east of shaft 1 and appears to be the eastern extension of the G zone, a significant gold-bearing zone that was previously mined at Malartic Goldfields shaft No. 1. Historical records of Malartic Goldfields indicate that the G zone returned high-grade material of over 10 grams per tonne.

Northern Star has budgeted approximately 12 million dollars for exploration for 2009. The Company will continue its evaluation of its other gold projects; including continuation of the drill program on the Piché-Harvey projects, the continuation of the drill program on the Callahan project, as well the evaluation of the Beacon gold project (Beacon Mill). Planned exploration consists of drilling from the surface, sampling, drilling, underground drilling, and geological mapping and interpretation from underground.