Northern Star Resources (ASX: NST) said the resource inventory at its Paulsens Gold Mine in Western Australia has increased to 226,000 ounces while a new 2011 mine plan has concluded that the company is set to generate between $20 and $40 million of surplus cash this year.
The increased resource figure, which compares with the previous estimate of 128,700oz, comes despite Northern Star
mining 71,000oz at Paulsens during 2010. This represents a 122% increase in resources year on year.
This increased resource estimate excludes the Voyager 2 lode at Paulsens, which Northern Star discovered last year. The company believes Voyager 2 has the exploration “target” potential to add a further 100,000-250,000 oz based on drill results achieved so far.
The 2011 mine plan forecasts that Paulsens will produce between 60,000 and 75,000 oz this year, enabling Northern Star to record surplus cashflow of between $20 million and $40 million at a gold price of A$1,400/oz gold.
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