Northern Star Mining Corporation
TSX VENTURE : NSM

Northern Star Mining Corporation

October 03, 2005 12:23 ET

Northern Star Mining Corporation: Update on Midway Gold Project

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 3, 2005) - Northern Star Mining Corp. (TSX VENTURE:NSM) (the "Company") is pleased to announce an update to its development of the Midway project, located 16 km west of Val-d'Or, Quebec, 1 km south of the Trans-Canada highway, on the Cadillac tectonic zone.

Construction of surface mine facilities are nearing completion; the submersible pumping equipment has been installed in shaft no.1, and dewatering is underway.

Installation of the 10 foot double drum production hoist along with the two compressor stations is underway, with work continuing on budget and on schedule.

The Company's approach of careful methodical engineering during the installation of the mining equipment at Midway (hoist, head frame, service buildings, maintenance shop, compressors and electrical substation) has allowed us to circumvent and plan for possible problems and delays, without affecting our overall installation schedule.

The Company also expects, now that dewatering has begun and surface mine construction is nearing completion, to restart it surface drill program.

While the installation at Midway is designed to access and drill gold baring zone discovered at surface from underground, the Company has also untaken a deep drill program from surface. The goal of the program is to examine the Midway structures at depths below 3000 feet. Evidence suggest continuation of gold mineralization below these depths with a possible thickening of the porphyry and sheer structures which are controlling mining work in the immediate area as shown that mineralization is persistent below 3000 feet (Agnico-Eagle La Ronde mine and Lapa deposit).

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 of the Midway - Malartic Goldfields project from underground.

The decision to begin underground exploration 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.

The Midway Project is located some 16 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 also wishes to announce that it has granted 450,000 stock options to certain employees, officers, consultants and directors at today's closing price, and has also cancelled 2,090,000 stock options previously granted.

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.

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
    Toll Free: 1-800-460-5031 or (819) 825-8088
    (819) 825-1199 (FAX)
    www.nsmgold.com