Northern Star Mining Corporation

Northern Star Mining Corporation

January 27, 2010 08:40 ET

Northern Star Announces First Gold Pour in the Company's History

VAL D'OR, QUEBEC--(Marketwire - Jan. 27, 2010) - Northern Star Mining Corp. (TSX VENTURE:NSM)(OTCQX:NSMSF) (Northern Star Mining or the "Company") is pleased to announce that it has scheduled the first gold pour in the Company's history for the first week in February. Milling is being carried out at the Company's wholly owned Beacon Gold Mill, located 13km east of Val-d'Or. The material being processed is mineralized rock mined from underground at the Malartic-Midway project which the Company has been actively exploring and developing since mid 2008 from its underground operations.

The Malartic-Midway project, located 16km west of Val-d'Or, Quebec, consists of 3,142 hectares (7,763 acres) and straddles a section 7km in length along the Cadillac Tectonic Zone, neighboring the Osisko gold project. The project includes two former gold producers Malartic Goldfields #1, and Malartic Goldfields #2 with reported production (1939-1965) of some 1.95 million ounces of gold to a depth of 3,000 feet.

Drilling by Northern Star in 2006 demonstrated the presence and continuity of gold mineralization at depth where it encountered 9.41g/t over 21 m at a vertical depth of some 5,200 feet (previously announced).

In mid 2008, the Company contracted Dumas Ltd, to begin construction of a 5m x 4.7m Decline to explore, access, and bulk sample previously discovered gold zones, as well as explore for and discover new gold mineralized zones from underground.

Midway Decline

To date, the Company has advanced the main haulage decline a total 2,370 meters from the surface portal. The surface portal required the excavation of 7,500 m3 of overburden and bedrock.

A total of 290 meters of remuck bays have been completed.

The South Briar branch of the Midway decline has advanced 332 meters for future exploration drilling of the South South Briar extension and Mill Porphyry zones. It is also planned as a second exit and haulage route.

A total of 236 meters of development and exploration drifting was carried out in the Chabela Zone where 3,000 tons of material were mined and transported to the Beacon Mill. The Chabela Zone was used as an initial mining method (long hole) and bulk sample test area.

753 meters of underground development including the construction of 6 drawpoints below the bottom of the South Briar area have been completed.

Finally, 105 meters of raising for sampling, ventilation, and safety purposes have been carried out to date.

South Briar

The initial large planned bulk sample from the South Briar Zone (176,000 tonnes @ 6.03g/t, 43-101 report, Ovalbay Geological Services, 2008) is presently underway. 6 drawpoints (4m x 4m) have been completed underneath the zone at 130m (425 level).

Development of the upper level at 110 meter (360 level) consisting of a slot drift is underway.

Initially, excavation of the zone occurs at the top of the drawpoints in an undercut slot of approximately 6,000 tonnes prior to long hole drilling of the South Briar stope.

Underground Exploration

A number of exploration discoveries have been made from underground since onset of the Decline construction.

Exploration work has been limited due to the construction phase of the Decline and the need to access the gold mineralized zones as soon as possible.

However, underground drilling can now be accelerated on the numerous targets under exploration.

These include the South South Briar Extension, the L and K zones and the new porphyry/gabbro zone discovered in October 2009.

This latter zone was discovered during decline construction when a mineralized porphyry was encountered. A cross drift some 108 meters long was pushed into the porphyry, which resulted in the discovery of a new gabbro mineralized zone. Grab and muck samples from the muck haulage trucks averaged a cut grade of 14.8g/t over a true width of 4.5 meters. Approximately 1,000 tons were sampled from this area prior to further definition drilling and drifting.

As the exploration drift progressed it encountered quartz veins in porphyry with sections of significant visible gold.

This zone is located some 250 meters NNW of the South Briar zone, presently under development.

Recently an underground drill hole located 70 meters north of the Briar Zone intersected a 4 meter wide gabbro showing significant sulphide mineralization, located some 100 meters below at 230 meter (750 level). Assays are pending.

Finally, other underground exploration targets include the Blake River group extension located some 150 meters north of the Decline, South Briar extension adjacent to the Mill porphyry, and the Chabela depth extensions will be evaluated and tested.

Beacon Mill

The wholly owned Beacon Mill was started up on November 23, 2009. A series of start up delays occurred while bedding and tuning the mill, compounded by the very cold weather experienced in late December. At present the mill is running more continuously and smoothly and should reach its continuous rated capacity shortly.

The tonnage presently being processed at the mill consists of Chabela and porphyry mineralization, development material, mineralization sampled from the new discovery, and drawpoint mineralization.

McKenzie Break

At the McKenzie Break project, surface installation and mobilization is complete. Portal construction, rock bolting, and screening was completed on January 6.

Underground Decline construction has begun and presently the decline has advanced some 30 meters. The initial target zone for bulk sampling is located some 100 meters from the portal entrance.

Surface diamond drilling is also currently underway.


The 2009 surface drilling program on the Callahan project is now complete. 14 holes for a total of 4,150 meters were drilled. Assay results are pending.

Michel David, president states "The Company has now reached an important milestone in its growth and development. A first gold pour is an important historic event, and the management and personnel at Northern Star are proud to have reached this point accident and injury free. The start up of a second underground project at McKenzie Break, and the successful but difficult start up of our mill all in the same period demonstrate the competence and devotion of our employees, contractors, and associated personnel. The new discoveries underground at Malartic-Midway clearly demonstrate the future potential of this project, located as it is in the heart of the historic Val-d'Or gold camp and immediately neighbour to the Osisko gold project, now under development with total announced resources of some 11.2 million ounces".

Eugene Gauthier, Ing (OIQ), acts as the qualified person of the Company and has reviewed the contents of the news release. The diamond drilling and exploration programs are being carried out under the direct supervision of Eugene Gauthier, Ing (OIQ). The Company is maintaining strict standards for QA (quality assurance) and QC (quality control); by keeping under lock all drill cores, rejects and pulps for further testing. Samples were sent to ALS Chemex and Techni-Lab labs in Val d'Or, Quebec. High grade assays intersections were subject to total gold metallic sieve method in addition to the standard fire assay and AA finish.


Michel David, President

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.

Neither the 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.

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