Northern Star Mining Corporation

Northern Star Mining Corporation

April 12, 2006 10:00 ET

Northern Star Announces Update on Midway Gold Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - April 12, 2006) - Northern Star Mining Corp. (TSX VENTURE:NSM) (the "Company") is pleased to announce an update on its continuing development of its Midway Gold project, located 16 km west of the city of Val-d'Or, Quebec, 1 km south of the Transcanada Highway.

The surface construction and mine access is complete; the service tunnel from the hoist building is operational as is the service, hoist, and compressor buildings.

The compressors are installed and operational, and the electrical grid is also complete with the main transformer, hoist and compressor motors also operational (the hoist is 2500 hp and the compressors are 1000 hp each).

The 10 foot diameter double drum Nordberg hoist is completely set up and installed. There remains the hook-up of the direct drive system, as in January of this year, the drive system of the hoist was changed over from the original MG set to a state of the art computer controlled direct drive system. This new system allows for more efficient hoisting, at higher speeds while using significantly less electrical power. The combination hoist - head frame tandem allows Northern Star to reach depths in excess of 5500 feet.

The Company has also accessed, inspected and closed off raises that access the first level of the Malartic Goldfields mine site while retaining one for air circulation and emergency manway purposes.

Dewatering and water impounding are continuing well, water level is below the second level at some 355 feet approaching our initial target drift level at the third station (425 feet).

Shaft rehabilitation is also well underway, the third compartment manway is repaired and functional to the 150 feet level, and the three top sets in the shaft have been replaced; because of the excellent condition of the shaft collar and liners, further rehab shaft work should be relatively minor in nature.

All of the installation, engineering, shaft rehab, mining, and exploration activities at the Midway project are being carried out by the personnel and employees of Northern Star Mining.

The Company has adopted a very lean approach to personnel, installation and purchase costs with overhead remaining at a minimum. Installation costs to date are under the previously estimated budget; significant savings were made by the turnkey approach to the purchase of the entire necessary surface mine equipment (hoist, compressors, buildings, transformers, head frame, electrics and so on). Replacement costs of the equipment alone would be significantly higher than the amount actually paid by the Company.


The Company has also begun surface and underground exploration at the project.

From surface, a deep drilling program has begun - drill pad set up and overburden drilling had begun then was halted due to the soft ground conditions of spring breakup. The drill rig (depth capacity 8000 feet) is scheduled to return to the site of deep drill hole number 1 during the upcoming week.

This initial drill hole is targeted to a depth of 7500 feet to obtain geotechnical, geological, alteration and gold mineralization information at depths below 3000 feet (underneath the bottom workings of the old mine).

Evidence suggests continuation of gold mineralization below these depths with a possible thickening of the porphyry and alteration structures that control gold mineralization. New mines in the immediate area show that mineralization is persistent below 3000 feet (Agnico-Eagle La Ronde mine and Lapa deposit).


The Company has also begun underground work in the shaft and vent raises. From vent raise no. 2, a series of four short percussion drill holes were carried out from the 150 feet level in a direction away from the old mine workings, into previously untested areas. Five foot rods were used and the samples returned the following values.

Sample # Sample type Length Gold (g/tonne)
351 Chip 5 10.7
352 Chip 5 6.58
353 Chip 5 7.43
354 Chip 5 19.15

Samples were sent to ALS Chemex Chimitec, in Val d'Or, Quebec, and
were assayed using a 30 gram sample with a fire assay finish. Pulps
and rejects are recovered and returned for future check and
verification purposes.

All of the above is part of the Company's engineering studies and work towards dewatering of Northern Star's shaft no. 1 and exploration and development of the Midway - Malartic Goldfields project from underground.

The decision to begin underground exploration and development was taken in light of the significant and persistent results obtained since the start up of the surface drill program.

Gold assays are consistent to date over all 58 holes, with the amount of gold observed directly proportional to the pyrite percentage in the drill holes assayed to date; continuing to prove an excellent tool in the exploration of the Midway Project.

Previous production came from approximately 23 gabbroic and mafic lenses similar in nature and character to those encountered during the present drilling, straddling the Cadillac Break.

To date, drilling in the present exploration program, which began in late 2003, has resulted in the discovery of new gold mineralized zones that, with the four previously known zones, bring the total known individual gold zones at the project to at least ten with the potential for further discoveries. The different gold zones remain generally open along strike and at depth. For example, the Upper Halet zone has been traced along strike for at least 700 feet and remains open at both ends.

The present drilling has been concentrated on a small portion of the Midway - Malartic Goldfields project located between the two production shafts of the Malartic Goldfields mine complex, on an area that was previously occupied by the mining town of Halet, Quebec and has revealed gold zones open at depth with the results (e.g. hole NSM 04-50) demonstrating mineralization continuity below a depth of 1,600 feet.

It must be emphasized that the gold mineralization at the Midway is not contained within any of the workings at the Malartic Goldfields mine. The Company is using only the shaft for access to its gold mineralization, which lies in the opposite direction from the old workings. The Company will seal off access to the old workings, apart from those required for ventilation, as they are encountered as we go down.

The Midway Project is located some16 km west of the city of Val-d'Or and 1 km south of the Trans Canada Highway. The property hosts the past producing Malartic Goldfields mine, which produced over 2,000,000 ounces of gold. A three compartment, 2700 foot deep production shaft, (Malartic Goldfields shaft #1) is located on the property and is being used for access for exploration and development purposes. The Midway Project straddles the prolific Cadillac tectonic break, associated with most of the gold and base metals deposits of the Abitibi Mining camp. Total gold produced in the Abitibi camp to date is in excess of 60 million ounces.

The Company continues with its construction at Midway, and is in the final stages of planning its future underground and surface exploration and development program at its Midway project.


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
    (604) 669-5702 or Toll Free: 1-800-460-5031
    (819) 825-1199 (FAX)