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TSX Venture SYMBOL: NSM
May 18, 2010
Northern Star Closes Gold
Off-Take Presale and Announces Drill Results
Val d’Or, Quebec – May 18, 2010 – Northern Star Mining Corp (NSM: TSX-V) is pleased to
announced that it has closed a gold off-take presale (the “Offtake Presale”) with Red Kite Explorer Trust (“Red Kite”) to fund the further
development of the Company’s Malartic-Midway gold project in Malartic, Quebec
(the “Midway Project”). Under the terms of its current off-take
agreement with Red Kite, the Company has pre-sold a total of 6,050 ounces of
gold from its Midway Project for gross proceeds of $6,222,924. Pursuant to the Offtake Presale, the Company
is required to deliver 550 ounces of gold per month to Red Kite for a period of
11 consecutive months commencing on September 2, 2010 for a total of 6,050
ounces of gold, provided that Red Kite may, at its discretion, elect to receive
a cash payment of US$605,000 in lieu of any monthly gold delivery upon prior
notice to the Company.
The Company also
has the right to repay the full amount of the Offtake Presale, without bonus or
penalty, on or before the second scheduled monthly delivery date for a cash
payment equivalent to 5,500 ounces (6,050 ounces if the payment is made prior
to the first scheduled delivery date) times the then current market price of
gold.
The net proceeds
from the Offtake Presale will be used to fund specified capital expenditures,
exploration and related working capital purposes in regards to the Midway Gold
Project.
An upfront 6% cash
fee was paid to Red Kite in connection with the Offtake Presale
Drill Results from McKenzie Break
The Company is also
pleased to announce surface drill results from its McKenzie Break Gold Project,
a joint-venture with Britannica Resources Corp. The McKenzie Break property
consists of 10 contiguous claims comprising 366 hectares, located in Fiedmont
and Courville townships, approximately 35 km north of
The goal of the present drill program is to expand the known gold structures; outlined by previous drilling and presently the object of an underground exploration and bulk sampling program.
Results are as follows:
|
HOLE
# |
From (m) |
To (m) |
Core length (m) |
Grade (g/t Au) |
|
|
|
|
|
|
|
161 |
33.20 |
41.40 |
8.2 |
6.8 |
|
Including |
33.20 |
33.60 |
0.40 |
87.98 |
|
Including |
34.30 |
35.60 |
1.30 |
16.74 |
|
|
47.70 |
48.20 |
0.5 |
37.25 |
|
|
|
|
|
|
|
166 |
42.10 |
43.20 |
1.1 |
26.5 |
|
|
|
|
|
|
|
167 |
37.70 |
38.60 |
0.9 |
10.23 |
|
|
|
|
|
|
|
170 |
19.50 |
20.50 |
1.0 |
8.23 |
|
|
|
|
|
|
|
171 |
42.60 |
53.75 |
11.15 |
5.05 |
|
|
|
|
|
|
|
172 |
48.55 |
49.80 |
1.25 |
8.77 |
|
|
|
|
|
|
|
173 |
43.65 |
47.10 |
3.45 |
7.83 |
|
|
|
|
|
|
|
175 |
54.10 |
56.50 |
2.40 |
5.91 |
Construction of the decline for underground bulk sampling is presently complete to the initial targeted zone, the “Murray Zone”; a near surface mineralized zone.
Initial bulk sampling will test this zone beginning at a vertical depth of 20 meters to approximately 90 meters from surface.
Presently, the Murray Zone branch of the decline has advanced 700 meters and has reached in its initial targeted depth of 80 meters.
Development in the mineralized zone consists of drifting and cross cutting prior to blasting/mining (sampling) operations presently underway.
Gold mineralization encountered is presently being stock piled on surface.
The decline will also continue towards the deeper lying No 4 zone, located approximately 400 meters laterally and at a depth of 150 meters.
ON BEHALF OF THE BOARD
“
Neither
TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
FOR FURTHER INFORMATION PLEASE CONTACT: Northern Star Mining Corporation TOLL FREE (800)
460-5031 or (819) 825-8088, (FAX) (819) 825-1199
Website:
www.nsmgold.com
Or
Renmark Financial Communications Inc.
Barry Mire: bmire@renmarkfinancial.com
christine stewart: cstewart@renmarkfinancial.com
www.renmarkfinancial.com
This news release contains forward-looking statements,
which relate to future events or future performance and reflect management’s
current expectations and assumptions.
Such forward-looking statements reflect management’s current beliefs and
are based on assumptions made by and information currently available to the
Company. Investors
are cautioned that these forward looking statements are neither promises nor
guarantees, and are subject to risks and uncertainties that may cause future
results to differ materially from those expected. These forward-looking statements are made as of the date hereof and,
except as required under applicable securities legislation, the Company does
not assume any obligation to update or revise them to reflect new events or
circumstances.
THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN
LAWS, IS NOT FOR DISTRIBUTION TO