NORTHERN STAR ANNOUNCES CORPORATE UPDATE
VAL-D'OR, QUEBEC, June 18, 2010- 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”
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.
SOURCE: Northern Star
Mining Corporation
Northern Star Mining Corp.
(416)629-2418