Northern Star Mining Corporation
TSX VENTURE : NSM

Northern Star Mining Corporation

July 16, 2008 15:07 ET

Northern Star Mining Corporation: Company Files New NI 43-101 Technical Report

VAL D'OR, QUEBEC--(Marketwire - July 16, 2008) - Northern Star Mining Corporation (TSX VENTURE:NSM) (Northern Star Mining or the "Company") is pleased to report an initial National Instrument 43-101 compliant mineral resource estimate for its Midway Gold Project in Val d'Or, Quebec which has been filed on SEDAR.

The conclusions of the technical report are as follows:



RESOURCE ESTIMATE RESULTS
(at a cut off grade of 1.71 g/t for gabbros and 1.03 g/t for porphyries).

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National Instrument 43-101 Compliant Mineral Resource
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Metric
MALARTIC-MIDWAY Tonnes Grade Gold Ounces
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Indicated
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Gabbros 930,107 5.83 174,293
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Porphyries 1,509,732 2.4 116,492
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Total Indicated 2,439,839 290,785
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Inferred
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Gabbros 572,412 6.56 119.884
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Porphyries 1,469,795 2.4 113,410
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Total Inferred 2,042,207 233,294
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(i)Historical Resources at Midway & Callahan
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Midway - Shaft 2 788,158 6.10 156,391
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Callahan # 4 Zone 2,480,158 1.71 124,008
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Callahan Amlartic 304,001 3.10 27,360
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Total Historical 3,572,317 307,749
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(i) The historical resources are historical in nature and were estimated
prior to May 30th, 2003, (CIM) current and adopted guidelines. The
Company is not treating these resources as current mineral resources
under NI 43-101 and should not be relied upon.

(i) The qualified person for the mineral resource estimate, as defined by
NI 43-101 guidelines, is Claude P. Larouche, B.Sc Ing; M.Sc Geol,
ING (OIQ), the president of Ovalbay Geological Services.

(i) Note: For the Amlartic zone on the Callahan project, published
historical numbers indicate up to 450,000 tonnes grading 11.60 g/t.
These historical resources are historical in nature. The Company is
not treating these resources as current mineral resources under 43-101
and should not be relied upon.

(i) The historical information at Shaft #2 and on the Callahan project is
presently being evaluated and verified.

(i) The indicated and inferred reserves were evaluated from diamond drill
holes using a block model and sections 15 meters apart. Indicated
reserves were limited to a maximum of 15 meters from the drill
intersections and the inferred resources were extended to a maximum of
30 meters from drill hole intersections.

(i) The data base comprises 40,341 individual assays. Univariate statistics
(LOG Normal Hislogram and Normal Probability Plot) were carried out on
all samples and also on different populations (gabbro separate from
porphyry, previous drilling, underground drilling and recent drilling).


A.S. Horvath, P.Eng, an independent consultant, conducted a preliminary geostatistical study in March 2008, and indicated that results from the data base indicate the presence of mineralization subpopulations related to lithology type and drill hole type vintage.

- The exploration and development at the Midway-Malartic project determined that there are at least two different gold bearing structures present on the project: higher grade gold mineralized "Gabbro" and lower grade gold mineralized "Porphyries").

- From surface to a depth of 365 meters within the Gabbros gold mineralization amounts to 930,107 tonnes grading 5.83 g/t Au (indicated) and 572,412 tonnes grading 6.56 g/t Au (inferred).

- Also from surface to 365 meters vertical depth, a tonnage of 1,509,732 tonnes grading 2.40 g/t Au (Indicated) and 1,469,795 tonnes grading 2.40 g/t A has been calculated within the Porphyries.

- The structures are open along strike and depth. In 2006, a deep diamond drill hole, carried out by Northern Star, intersected gold mineralization of 8.95 g/t over 16 meters at a vertical depth of 1,595 meters.

- The gabbros remain the main target for underground exploration. The porphyries were recently identified as a major "exploration target" on the Malartic Midway property because of their similarities to the Osisko and Goldex orebodies, two properties adjacent to the west and to the east of Northern Star. Osisko is being evaluated for "bulk surface" mining and Goldex for "bulk underground" mining, (which commenced commercial production on May 1, 2008).

- Most of the recent compilation for the resource estimate was limited to a depth of 365 meters from surface.

- Additional mineralized zones were encountered that were not included in the 43-101 resource estimate. These zones include the Dubuisson Goldfields, Audet and Western Extension Zone of Shaft 2.

The Midway-Malartic and Callahan projects are located some 16 km west of the city of Val d'Or, Quebec and comprise a total of 116 claims for 3,150.7 hectares (7,786 acres). The past-producing Malartic Goldfields mine is present on the property (production 1939 to 1965, 52.5 tons Au) (reference: E. Lemieux, Cambior Piche report 1996)).

The Callahan project, located 1 km NE of the Midway claims comprises 79 claims for 2,181 hectares (5,387 acres).

Presently the Company has begun construction of a decline designed to access, explore and develop certain mineralized zones initially at the 450 foot level.

The Company presently has two diamond drill rigs active on the Midway project and will also begin drilling on the Callahan project in August.

The Company expects the following milestones through to 2009:

- Continued release of results from ongoing surface and underground exploration drilling on the Malartic-Midway and Callahan projects;

- Updated 43-101 technical report by mid 2009;

- Decline will reach a vertical depth of 450 feet by Q4, 2008;

- Completion of underground bulk sampling Q1, 2009;

- Initial economic assessment study by Q4, 2009.

Claude P. Larouche, Geol, 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 Claude P. Larouche, 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 labs in Val d'Or, Quebec.

ON BEHALF OF THE BOARD

Michel David, President

This press release is available on the official Northern Star Mining IR Hub at http://www.agoracom.com/ir/NorthernStar where retail investors can post questions and receive answers within the business same day, review questions and answers posted by other investors or communicate with fellow investors in a monitored community.

Forward-Looking Information

This press release contains certain forward-looking information as defined in applicable securities laws (referred to herein as "forward-looking statements"). Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Specifically, this press release includes forward-looking statements regarding: the Company's planned drilling program and estimate of the quantity and quality of its mineral resources. Inherent in forward-looking statements are risks, uncertainties and other factors beyond the Company's ability to predict or control. These risks, uncertainties and other factors include, but are not limited to, the uncertainties involved in interpreting geological data and other risks involved in the gold exploration and development industry. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this press release. Such statements are based on a number of assumptions which may prove to be incorrect, including, but not limited to, the following assumptions: the Company's exploration and development activities on the Midway Property will proceed in accordance with the Company's current timetables; and the Company's resource estimates, geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral resources) and operational and price assumptions on which the resource estimates are based, are accurate. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law.

Information Concerning Estimates of Mineral Resources

This news release uses the terms 'measured', 'indicated' and 'inferred' resources. Northern Star Mining Corp. advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, 'inferred resources' have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary assessment as defined under 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.

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

Contact Information

  • Northern Star Mining Corporation
    Michel David
    President
    Toll Free: 1-800-460-5031 or (819) 825-8088
    (819) 825-1199 (FAX)
    Website: www.nsmgold.com