Northstar Gold CEO details strategic expansion of Miller copper-gold project

Northstar Gold Corp. (CSE:NSG) has seen a string of highly promising exploration results at its flagship Miller copper-gold property in Ontario. In this interview, CEO Brian Fowler provides more detail about the company’s plans to further explore and expand the project using a focused and disciplined strategy. 

This summer, a key part of the Northstar Gold strategy is to drill high-grade copper VMS targets about 600 metres from the Cam Copper mine, where previous drilling unearthed grades as high as 14.8% Cu over 2.5 metres. Can you tell us more about your plans? 

In the span of nine months, Northstar confirmed, developed, and is methodically advancing a district-scale, high-grade copper volcanogenic massive sulphide (VMS) critical minerals exploration play, centred over the historic, high-grade Cam Copper Mine on our Miller copper-gold property, located 18 kilometers southeast of Kirkland Lake, Ontario. This VMS copper focus proceeded a previous exploration emphasis on expansion drilling at our near-surface, bulk-tonnage Allied Gold Zone (AGZ). In 2022, SRK calculated an upper range of around 500,000 ounces of gold averaging 2.06 g/t gold in the AGZ, with excellent expansion potential. In light of increasing definition drilling costs and critical minerals appetite, however, Northstar elected to direct AGZ expansion efforts towards engaging a major partner and shift focus on developing Miller’s VMS copper opportunity.   

Northstar’s copper foray commenced last summer when the company took a number of Cam Copper Mine surface and mine dump samples that returned grades ranging from 1% - 39% copper, and averaging 14% copper. Cam Copper Mine was a historic, high-grade, direct shipping ore shaft mine in the southwest corner of the Miller property that had limited production in the 1940s and 1950s. Northstar announced these surface sample results, generating considerable market activity. The company subsequently raised funds and drilled four short holes last October. Every hole hit intercepts of high-grade copper, with the best being 14.8% copper over 2.5 meters. Results were well received by the market. 

Our drilling confirmed VMS-style mineralization, and with nearly one kilometre of untested strike extension to the southeast of Cam Mine, we conducted geophysical and surface EM surveys this spring, identifying a huge conductor anomaly towards the southern limits of our property. Historic surveys indicated this anomaly extended onto ground to the south that we did not control. We approached the landowners and negotiated letters of intent for properties to the northwest and southeast, thereby temporarily consolidating over four kilometres of highly prospective geology. 

Before drilling, it was crucial to consolidate these properties to avoid discovering something major that extends beyond our control. Last month, we announced a financing effort to raise up to $1 million to drill several holes to drill test this EM conductor anomaly. We subsequently found surface copper showings that assayed up to 17% over the main anomaly, confirming the right style of mineralization and high-grade copper. Surface results and the magnitude of the anomaly suggest this highly conductive VMS target is getting bigger and wider at depth.  Northstar is positioning to drill up to 2,000 metres testing this near-surface drill target along strike. 

You've also been working to consolidate claims around the area so that you're positioned well if the results of the summer drill program are strong. Can you elaborate on this strategy? 

We've secured letters of intent to acquire two adjacent, extensional mining properties, consolidating Northstar’s VMS copper trend over a four kilometre strike length. We have a six-month period to conduct due diligence and decide if we want to pursue acquisition terms, likely through option agreements. Additionally, we have a one-year right of first refusal, allowing us to match any other offer the owners might receive if we cannot come to terms. Essentially, we've tied up this ground for a year and a half on either side, giving Northstar the opportunity to drill on our property, explore the extensions, and benefit from any success.  

The anomaly we're targeting is very large, spanning 350 meters with a magnitude of 200 Siemens, which is exceptionally strong and highly conductive. We know it's near the surface, so we plan to drill four to six holes at 50-meter intervals to see what results we get. I'm hopeful the private placement will be oversubscribed and allowing us to drill these holes later this summer.  

Not only are copper prices strong right now, but gold hit an all-time high this month. Can you tell us about Northstar’s gold assets and your plans on that front? 

We have gold in our name, and the Miller property has historically been known for its gold opportunities. When we acquired Miller in 2014, we immediately focused on these opportunities. The property had historic workings and a high-grade historic gold resource, which became our primary focus. 

After closing our IPO in late 2019, we raised capital and concentrated on drilling the Allied Gold Zone, mentioned earlier. We had several excellent intercepts, with results ranging from 70 to 170 gold grams per ton. Notably, we had exceptional high-grade intercepts, such as 1,140 g/t Au over 0.5 metres, 4 g/t Au over 56 meters. We also found numerous near-surface intercepts averaging around a gram per ton over 100 meter type intervals. This clearly demonstrates a large gold system at the AGZ, at least partially centered on the Allied Syenite. The Allied Syenite is one of three syenites on the property, all of which have shown to be gold-bearing. 

To expand the target, we need to drill more than 10,000 meters, but we don't have the capital for that. We are actively seeking a senior partner interested in earning in and helping to advance and enlarge this gold target. 

The AGZ and surrounding syenite stocks hold excellent potential for a more than one million ounce gold deposit occurring on the Miller property.  This is in addition to our excellent high-grade VMS copper opportunity.  Northstar is positioned for success in both copper and gold! 

Is there anything we've missed that you think the investment community needs to know about Northstar Gold? 

We are very confident that, based on what we're seeing on the surface and the nature of the geophysical anomalies, we fully expect to hit copper and intercept much thicker sections than previously found at the Cam Mine. This, I believe, will attract significant attention and put North Star on the radar of many investors and larger companies. Consequently, our share price should rise, putting us in a much better position to raise the capital required to continue advancing both our copper and gold exploration opportunities. 

At some point, we may consider spinning out the copper side of things, focusing solely on gold, and dividend shares of a copper newco to existing shareholders. We're not there yet, but if both projects progress as anticipated with the necessary capital, it could present another unique opportunity for our shareholders.