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Mining industry

Northstar Gold Corp. Partners with Novamera for Innovative Surgical Mining at Cam Copper Mine

Strategic Insights

— 1 min read

Northstar Gold Corp. has signed a Letter of Intent (LOI) with Novamera to utilize the company's patented Surgical Mining process to extract high-grade copper from Zone 2 of the historic Cam Copper Mine. The Surgical Mining method combines targeted drilling, real-time data, and automation to unlock the potential of the mine while minimizing environmental impact and respecting local communities. The LOI follows a recent evaluation study and outlines a near-surface tonnage range of 75,000 to 140,000 tonnes grading between 9% and 18% copper.

Key Takeaways:

  • Northstar Gold Corp. has signed a LOI with Novamera to use Surgical Mining at the Cam Copper Mine in Zone 2.
  • The Surgical Mining method significantly reduces capital costs, shortens the timeline to first production, and minimizes environmental and social impacts.
  • Novamera's method is designed to unlock steeply dipping tabular deposits like Northstar's Zone 2 and is currently being deployed at a gold project in Newfoundland.
  • Under the scope of the LOI, Novamera will evaluate the potential to extract approximately 116,000 tonnes of material from Zone 2 using 93 large-diameter surface-drilled holes over an estimated 31-month period.
  • Northstar will earn a 5% revenue share with a buyout option available, and the project features a low upfront cost of $1.5 million, off-balance-sheet financing, and efforts to secure non-dilutive funding for a rapid start.
  • Northstar also plans to commission a NI 43-101 compliant Technical Report and Mineral Resource Estimate on the Cam Copper Project.

Statistics:

  • 116,000 tonnes of material to be extracted from Zone 2 using Surgical Mining.
  • 93 large-diameter surface-drilled holes planned for the extraction process.
  • 31-month estimated timeframe for the extraction process.
  • 5% revenue share with a buyout option available to Northstar.
  • $1.5 million upfront cost for the project.
  • US$5.71 per lb copper price enhancing the value of the proposed mining venture.

Sources:

  • Northstar Gold Corp. press release, "Northstar Gold Corp. Signs Letter of Intent with Novamera to Utilize Surgical Mining at Cam Copper Mine".
  • Novamera website, "Surgical Mining Solutions for Steeply Dipping Tabular Deposits".

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