Northern Star Mining Corporation
TSX VENTURE : NSM

Northern Star Mining Corporation

June 07, 2006 10:33 ET

Northern Star Announces the Acquisition of a New Gold Property

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 7, 2006) - Northern Star Mining Corp. (TSX VENTURE:NSM) (the "Company") is pleased to announce the acquisition of a new gold property in the Abitibi Gold Belt of Northwestern Quebec.

The new property, the Midway Porphyry project, is located in Fourniere Township, immediately south of and adjacent to the Company's 100% owned Midway Gold project, located 16 km west of the city of Val-d'Or, Quebec, 1 km south of the Transcanada Highway.

The property contains a discrete quartz monozonitic porphyry intrusive, introducing into the sedimentary sequence of the Pontiac group and immediately south of the Cadillac Break, the main structural controlling feature of gold mineralization in the area. A series of porphyry intrusive dikes offshoot from this intrusive to the Midway project, and are associated and possibly responsible for the gold mineralization on the Company's Midway project and at the past producing Malartic Goldfields mine.

The Company's geological staff believes that the intrusive may not only be responsible for the emplacement of gold mineralization at Midway (and Malartic Goldfields) but may also contain significant mineralization on its own, especially at the contact boundaries and where it approaches the Cadillac Break.

Gold mineralization in intrusive porphyry bodies is known in the area, with the best example being the past producing Camflo mine (2 million ounces producing 1965-1992, ref: MRN 32D/303).

The property consists of 22 claims for approximately 1200 hectares. With the addition of this property the Midway gold project now consist of 70 claims covering some 2400 hectares.

The Company can acquire 100% of the property by making payment of 200,000 shares and $25,000.00. The cash payment can be made at any time prior to December 31, 2006. The vendors, 6055290 Canada Inc retain a 1.5% NSR royalty on any production from the property.

The transaction is subject to the approval of the regulatory authorities.

The Company also announces that it has granted 500,000 stock options to certain employees, officers, consultants and directors at today's closing price.

The Company continues exploration and development at its wholly owned Midway gold project including a surface program of deep drilling. An update on the project will be issued shortly.

ON BEHALF OF THE BOARD

Michel David, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • Northern Star Mining Corporation
    Michel David
    President
    (819) 825-8088
    (819) 825-1199 (FAX)
    www.nsmgold.com