As gold prices surge past record highs, investors are witnessing an unprecedented opportunity to capitalize on the precious metal’s meteoric rise.
This golden era is not just about the soaring value of gold, but also about the strategic advancements of leading gold mining companies. These industry frontrunners are not only expanding their resource bases but are also forging powerful collaborations and partnerships with other entities to enhance their operational efficiencies and drive sustainable growth.
These alliances are setting the stage for a new wave of innovation and profitability in the gold mining sector, making it an exciting time for investors to dive in.
Northstar Gold (CSE:NSG) is one such company, having recently signed two key non-binding memorandums of understanding (MOUs) that are a pivotal first step to advancing their business.
The first MOU of the pair was signed with Hunan Nonferrous Geological Exploration Institution Pvt. Ltd., a subsidiary of the Remote Sensing Geological Survey and Monitor Institute of Hunan Province.
This partnership grants Hunan Nonferrous the opportunity to explore and develop a near-surface NI43-101 gold mineral resource at Northstar’s 100-per-cent-owned Miller Copper-Gold Property 18 kilometres southeast of Kirkland Lake, Ontario.
Key details of the MOU
Under the terms of the MOU, Hunan Nonferrous will conduct up to 10,000 metres of diamond drilling to earn a negotiated interest in the resultant NI43-101 gold resource.
Earlier this month, under a confidentiality agreement, Northstar provided Hunan Nonferrous access to the company’s Miller Property gold exploration database for due diligence purposes. Hunan Nonferrous has since accepted an invitation from Northstar and assigned a team of specialists to mobilize to Canada for site inspections in early October. These inspections will cover Northstar’s New Liskeard and Earlton, Ontario, offices, core shack facilities and the Miller Copper-Gold Property.
After these site visits, Northstar and Hunan Nonferrous will enter good faith negotiations to finalize the project’s earn-in terms, scope and timeline, aiming to formalize a binding cooperative agreement for the development of the gold mineral resource at the Miller Copper-Gold Property.
The Allied Gold Zone (AGZ)
Since its IPO in late 2020, Northstar has invested more than C$5.6 million in exploration at the Miller Property, leading to the discovery of broad, near-surface, shallow dipping sheeted quartz-gold-telluride vein structures in the Allied Syenite and Planet Syenites. Drilling at the AGZ has returned impressive near-surface gold intercepts, including:
- 6.6 g/t Au over 117.0 metres
- 4.0 g/t Au over 50.6 metres
- 1.4 g/t Au over 118.5 metres
- 1.2 g/t Au over 107.3 metres
In 2021, step-out drilling at the AGZ intersected peripheral steeply dipping copper-gold bearing structures (CG1 and CG2 Zones), with notable intercepts such as 9.41 g/t Au, 1.03 per cent Cu over 3.0 metres. The AGZ shares similarities with the nearby Upper Beaver Deposit, currently in the pre-development stage under Agnico Eagle Mines Ltd. (TSX/NYSE:AEM).
In April 2022, Northstar commissioned an Exploration Target Study of the Miller Property Allied Gold Zone and No. 1 Vein, conducted by Ronacher Mackenzie Geoscience and SRK Consulting (Canada). The study referenced an upper range exceeding 500,000 ounces of gold averaging 2.04 g/t Au, verifying the significance, size and gold grade potential of the Allied gold mineralizing system. Northstar is actively seeking a senior gold exploration partner to conduct further expansion drilling and development at the AGZ.
Management’s take
“This is a milestone development for Northstar,” the company’s president and CEO, Brian Fowler said in a media release on this MOU. “Hunan Nonferrous’ intentions are to earn an interest in Northstar’s Miller Alkalic Intrusive Complex, bulk tonnage gold-telluride mineralizing system centred over the near-surface Allied Gold Zone, by undertaking a substantial expansion diamond drill program. This drilling will provide for an inaugural NI43-101 mineral resource estimate, supplementing SRK Canada’s 2022 Exploration Target Study that defined an upper range exceeding 500,000 oz of near-surface gold averaging 2.04 g/t gold at the Allied Gold Zone.”
Looking to put boots on the ground by mid-October, CEO Fowler added, “The MOU with Hunan Nonferrous significantly enhances Northstar’s prospects to advance and develop the Allied Gold Zone, along with other gold exploration targets within the Miller Alkalic Intrusive Complex, through collaboration with a senior partner.”
In an exclusive interview with the Market Online’s “Watchlist,” CEO Fowler spoke in detail about work on two opportunities on the Cam Copper Property.
“One is the near high-grade VMS copper mineralization that we substantiated around the mine,” he said. “Secondly, a subsequent kilometre-long surface electromagnetic survey that we performed this spring defined a 350-metre-long [area] that has been confirmed to underly high-grade copper VMS style mineralization. We are in active negotiations to try to advance both opportunities.” Watch the video below for the full interview.
High-grade VMS copper at the Miller Copper-Gold Property
Northstar Gold’s latest MOU was announced in early October, a signing with Novamera Inc. to model, develop, and mine a potentially economically viable mineral resource at Northstar’s 100 per cent-owned Cam Copper Mine site. This site is part of the Miller Copper-Gold Property, located 20 km southeast of Kirkland Lake, Ontario.
Strategic partnership and project overview
The MOU outlines the terms under which Novamera will secure the necessary financing to implement its proprietary Surgical Mining process at the Cam Copper Project. This initiative is contingent upon the definition and permitting of an economic deposit. The project will involve a multi-staged program to test and extract material from the copper-rich, near-vertical Zone 2 VMS horizon at the historic Cam Copper mine site. Zone 2 is the largest of three narrow, steeply dipping tabular copper horizons, previously estimated to average 10 per cent copper over a 0.85-metre true width, 42-metre strike length, and a minimum 140-metre depth extent from the surface.
Recent drilling by Northstar has corroborated historic Zone 2 copper widths and grades, including a notable intercept of 14.8 per cent copper over 2.45 metres in drill hole CC03-23. Zone 2 is interpreted to host copper-rich Besshi-type volcanogenic massive sulphides, including massive chalcopyrite and bornite, and remains open to expansion along strike and down dip.
Historical context and exploration
The Cam Copper Mine hosts at least three separate lenses (Zone 1, Zone 2, Zone 3, and a possible Zone 4) of massive copper sulphides, situated about 30 to 50 metres apart and striking southeast along the contact with the Round Lake Granite Batholith.
Underground development between 1929 and 1953 included the sinking of a 67-metre vertical shaft, with 64 metres of cross-cutting and 81 metres of drifting. Historical records indicate a 1955 shipment of 346 tons of hoisted underground ore produced 43,411 lbs. of copper at a Noranda smelter, yielding a recovered grade of 6.3 per cent copper. Additionally, a 1948 shipment of 22 tons of ore reportedly graded 12.72 per cent copper, 0.84 oz/t silver, and 0.03 oz/t gold, presumably from Zone 1.
Surgical Mining: An innovative approach
Novamera’s Surgical Mining process combines advanced mapping, positioning, and steering technologies with conventional drilling equipment to exploit narrow, high-grade copper deposits like those found in Zone 2 of the Cam Copper Mine. This innovative solution offers a cost-effective and rapid path to production, significantly reducing environmental and social impacts. With low upfront capital and minimal development costs, Surgical Mining provides junior mining companies the opportunity to exploit small, high-grade mineralized zones, generating sustainable cash flow to fund strategic plans and reduce reliance on capital markets. Additionally, permitting time and expenses are generally reduced due to the small environmental footprint and operational scale.
Future exploration and economic potential
It is important to note that insufficient exploration has been conducted to define a mineral resource on the property, and a qualified person has not done sufficient work to classify Cam Copper as a current mineral resource. Additional exploration, including a 43-101 Technical Report, CIM and NI-43-101 compliant mineral resource estimate, and Preliminary Economic Assessment, are required to establish the economic potential of Cam Copper.
Northstar Gold Corp. and Novamera Inc. are optimistic that this partnership will pave the way for a clearer understanding of the value of Surgical Mining at the Cam Copper Project, setting the stage for commercial deployment and extraction.
Northstar’s take
“This marks the second major milestone announcement for Northstar in just two weeks,” CEO Fowler stated in a news release. “The MOU with Novamera for the Cam Copper Mine, along with the recently announced MOU with Hunan Nonferrous-which focuses on developing an NI43-101 gold resource at our nearby Miller Alkalic Intrusive Complex-represents yet another non-dilutive approach to advance and monetize our high-grade gold and copper projects. We’re thrilled to collaborate with Novamera to establish a sustainable mining operation at Cam Copper, utilizing their cutting-edge, eco-friendly Surgical Mining technology for critical minerals.”
The investment corner
The two recent MOUs represent significant milestones for Northstar Gold Corp. These partnerships not only bringing technical expertise and financial resources but also accelerates the development of the Miller Copper-Gold Property.
The exploration and potential development of the Allied Gold Zone and high-grade VMS copper deposits position Northstar for substantial growth.
With the price of gold surging to all-time highs and copper rebounding with demand expected to increase in 2025, the company has now positioned itself over many of its peers to take advantage. In what has been a challenging market for juniors, investors should view these MOUs as a positive move that align with Northstar’s goals and offers promising returns in the near future.
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