
TSX Venture SYMBOL:
NSM
September 20, 2007
FOR
IMMEDIATE RELEASE
NEW
PROPERTY ACQUISITION
Northern Star Mining Corp. (TSX.V-NSM)
has signed an agreement to acquire the remaining 27.9% interest in the
Piché-Harvey project, which is located between the Midway-Malartic gold project
of Northern Star to the east and the Canadian Malartic gold project of Osisko
Exploration to the west.
Northern Star originally acquired
72.1% of the Piché-Harvey project in March of 2007, and with the present
acquisition now owns 100% of the project.
The Piché-Harvey gold project is
located in the heart of the well known and prolific Malartic gold camp of the
Abitibi Gold Belt, which has produced over 9 million ounces since 1935. The
most important producers were the East Malartic Mine (88.71 tons Au) and the Malartic
Goldfields Mine (52.95 tons Au) (ref. E. Lemieux, Cambior, report Piché project
1996).
The Piché-Harvey project consists of
37 mining claims comprising 584 hectares, and is located some 16 km west of the
city of Val-d’Or, contiguous with Northern Star’s Midway Malartic project.
The Midway-Malartic project is the
main advanced exploration project of the Company and contains the past
producing Malartic Goldfields Mine (production 1939-1965, 52.95 tons Au) (ref. E.
Lemieux, Cambior, Piché project report 1996). Preparations for a complete
underground exploration project at the site of Malartic Goldfields shaft no. 1
(900 meters total depth) including detailed drilling and bulk sampling are
currently underway. Geological information acquired has resulted in the
planning and start up of a 30,000 meter drill program outside the immediate
mine shaft area, on lateral and depth extensions of known gold bearing
structures and on promising targets such as gold bearing porphyry systems in
the Cadillac Break Deformation zone. Geological information tends to indicate
that these porphyries may be eastern extensions of similar structures being
explored and developed to the west by Osisko Exploration Ltd. (ref.).
Historical work on the Piché-Harvey
project included diamond drilling by Malartic Goldfields Limited (1934-1972)
(49 diamond drill holes for 9,000 meters). This original diamond drilling
located 3 gold zones within porphyries in the southern part of the Cadillac
Break Deformation zone.
North Zone
:
Gold intersections (widths along core
axis) include 4.1 g/t Au over 3.9 m, 9.5
g/t Au over 1.5 m, 5.6 g/t Au over 2.8 m and 5.2 g/t Au over 2.1 m.
Contact Zone : Gold intersection includes 10.3 g/t Au over
1.0 m
South Zone
:
Gold intersections include 2.3 g/t Au
over 5.4 m, 7.6 g/t Au over 6.3 m, 2.9 g/t over 8.0 m, 3.3 g/t Au over 4.2 m.
In 1980-1982, Soquem carried out 9 diamond drill holes (1,650m) and more recently in 2005,
Cambior completed 4 additional drill holes (1,490 m). Both exploration programs
confirmed the existence of these gold-bearing porphyries.
The north contact of the Cadillac
Break Deformation Zone has also been explored in the past with sporadic widely
spaced drill holes (over 100 m) which intersected favorable geology. The holes
were all shallow, however, drilled less than 120 meters in depth. This north
contact represents the western extension of the mining operations of Malartic
Goldfields shaft no.2 (also part of the Midway-Malartic project of Northern
Star). 5 of 11 drill holes intersected anomalous gold values (1.0 g/t Au over
1.0 m) to sub-economic gold values (4.6
g/t Au over 1.5 m) at shallow depths. No exploration has been carried out below
120 meters in depth along this 1.5 km of favorable geological horizon.
Exploration diamond drilling on the
northern part of the property, outside the Cadillac Break Deformation Zone, also
located the eastern extension of the Blake River Group. This geological
formation is known, further to the west, for hosting the Agnico Eagle Laronde, Doyon
and Bousquet mines in a geological environment favorable for gold
mineralization. Two holes drilled 1.0 km apart on the Piché-Harvey project in
the Blake River group returned 15.40 g/t Au over 1.5 m to the west and 4.7 g/t
Au over 1.5 meters to the east.
The Company can acquire the remaining
27.9% of the project from the Succession Lloyd Harvey by issuing 350,000 common
shares of the Company. The acquisition will be incorporated into the original
agreement between Northern Star and Succession Lloyd Harvey. To complete
payment of the acquisition of a 100% interest in the Piché-Harvey
project, the Company must issue 750,000 shares and $50,000 in cash in the
second quarter of 2008, and 750,000 shares and $50,000 in cash in the second
quarter of 2009. Northern Star must also carry out 2 million dollars of
exploration work prior to the third quarter of 2010.
The vendors retain a 3.0% N.S.R.
royalty of which 1.5 percent may be purchased at any time by Northern Star for
1 million dollars.
Pursuant to TSX Venture Exchange
finders fee policy, the maximum allowed in cash and/or shares will be payable
to Geologica Inc., for the purchase of the 27.9% interest in this agreement.
The Company is very pleased with this
acquisition as it adds significant exploration potential to the Midway-Malartic
project. With the addition of the Piché-Harvey
project, the Midway – Malartic project now consists
of 116 claims covering 3,142 hectares (7,763 acres).
The transaction is subject to the approval
of the regularity authorities.
Drilling has begun on the Piché-Harvey
project, and continues using two diamond drill rigs on the Midway project as a
whole. The Company expects to publish results shortly.
In other news, the Company announced
on June 26 a motion to register a royalty agreement against certain mining claims
belonging to Northern Star (press release June 26, 2007). The Company disputes
this allegation.
The original motion was scheduled to
be on July 10, 2007 but has been constantly delayed. The Company has not been
informed of any motion date at this time.
Mr. Claude Larouche,
geol., ing. (OIQ), acts as
the qualified person for the Company and has reviewed the contents of this news
release. The geological, and other information stated conforms to published
reports available to the Company during their due diligence.
ON BEHALF
OF THE BOARD
“Michel
David”
Michel David President
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
THE
TSX VENTURE EXCHANGE HAS NOT REVIEWED THE PRESENT INFORMATION AND IS NOT
RESPONSIBLE FOR THE CONTENTS OF THIS NEWS RELEASE, WHICH MAY CONTAIN FORWARD
LOOKING STATEMENTS.