Northern Star Mining Corporation
TSX VENTURE : NSM

Northern Star Mining Corporation

March 21, 2007 12:24 ET

Northern Star Mining Corp.: New Property Acquisition

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 21, 2007) - Northern Star Mining Corp. (TSX VENTURE:NSM) is pleased to announce that it has signed a letter of intent to purchase 72 % of a mining property, the "Piche-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.

The Piche-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 Piche project 1996).

The Piche-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, Piche 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 Piche-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 (1650 m) and more recently in 2005, Cambior completed 4 additional drill holes (1490 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 Piche-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 72 % of the Piche-Harvey property from the "Succession Lloyd Harvey". The terms of the transaction call for an initial payment of $100,000, the completion of a formal contract within 60 days, followed by an initial issuance of 500,000 shares, a second payment of $50,000 and the issuance of 750,000 shares 12 months following the formal agreement, a final payment of $50,000 and the issuance of 750,000 shares 24 months following the formal agreement. In addition, Northern Star must carry out 2 million dollars of expenditures on the project over a three year period from the formal agreement. The vendors retain a 3.0 % N.S.R. royalty, of which 1.5 % 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.

The Company is very pleased with this acquisition as it adds significant exploration potential to the Midway-Malartic project. With the addition of the Piche-Harvey project now consists of 116 claims covering 3142 hectares (7763 acres).

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

Finally, drilling continues on the Midway-Malartic project and results will be announced as available.

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.

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.

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 or Toll Free: 1-800-460-5031
    (819) 825-1199 (FAX)
    Website: www.nsmgold.com