NST - Northern Star Resources

[mr. jeff]

Kennas you got me challenged so I have checked why MC seems constrained and my conclusion is that NST's reserves are too small at this stage to support a longer term prospect; for this reason I would expect that NST's sp will be very responsive to good drilling as the increasing production profile is favourable at this time.

Hope that helps.

 

[pixel]

Yep, NST has formed 2 tops @ 60c. Hence why I consider 55c-60c the sell range.

And I have a habit of selling early (e.g. sold CBA at 45 bought at 46 in the midst of the panic!!) Hence now I take a step back and really review my positions before deciding whether to push the all important sell button.

Im looking to buy-in NST again so I hope something shocks the market so I can grab another piece

I hope you did buy in, Chasero;
some of us posted NST in the Breakout Alert thread; sorry about that - I could've at least cross-linked from here.

 

[laurie]

Trading Halt Spectacular results hmm when a company like NST uses these words its normally conservative maybe MEGA is a more a suitable word

 

[marioland]

Sounds exciting! Happy holders!

 

[notting]

It's so big it's going to take them 2 days to announce it!

 

[toocool]

Hmmm

I had a profit taker on this @ .79

Just removed it, ill ride it out and see how it goes for the time being.

 

[mr. jeff]

It's so big it's going to take them 2 days to announce it!

It's just that typed in size 145 font the announcement pdf is 95 Mb so it takes a long time to upload.

 

[Chasero]

NST $1.00 by end of year?

Who's with me!!

 

[pixel]

NST $1.00 by end of year?

Who's with me!!

I'll be happy with 83c. That's the target for the recent pennant, a continuation pattern.
Going by precedents however, the current level may well provide some strong resistance and a pullback towards the earlier consolidation and breakout levels. 62c maybe?
That's where I would start a new swing trade.

 

[explod]

Dah, got on last week at .63 and stopped out at .67, a few dollars made but should have held.

Moved on to another thing, PDN. But announcement could be juicy for NST, so cheers to holders.

 

[Chasero]

Dah, got on last week at .63 and stopped out at .67, a few dollars made but should have held.

Moved on to another thing, PDN. But announcement could be juicy for NST, so cheers to holders.

I actually sold out some of my NST shares as well (took profits).

Damn big mistake LOL.

I wonder why it takes 2 days to announce something. Will be interesting to see the action on NST tomorrow!

 

[investorpaul]

I actually sold out some of my NST shares as well (took profits).

Damn big mistake LOL.

I wonder why it takes 2 days to announce something. Will be interesting to see the action on NST tomorrow!

I spoke to Bill yesterday at The Gold Symposium. He told a crowd of approx 600 that the announcement is related to drill results and nothing more.

Maybe news leaked so they decided to put it in a TH, rather than risk a speeding ticket by the ASX

 

[drillinto]

November 16, 2011

Northern Star Gets Ready To Redefine The Word “Spectacular” With Drill Results From Paulsens Due Imminently

By Our Man in Oz
www.minesite.com ( free registration )

The word “spectacular” is about to be redefined, when it comes to gold intersections. Either that, or Northern Star Resources will be on the receiving end of a heavy dose of disappointment when its shares come back from suspension on Thursday 17th November. That’s because the company put itself into a trading halt on the ASX on Tuesday 15th “pending release of spectacular drill results from the Paulsens Gold Mine”.


But given that last week the company’s shares enjoyed a strong upward share price run from assays also described as “spectacular”, and given that the company used the same adjective in its September quarterly report, it had better be pretty good time round. After all, the company filed the mouth-watering assay of up to 638 grams a tonne (20.5 ounces a tonne) without a request for a trading suspension, which means tomorrow’s should be even better. Either that or Northern Star will be accused of gilding the drill results.



After all, that “spectacular” 638 gram intersection managed to move the shares up by A11 cents, or 17 per cent, to A75 cents. That price, the last trade before the ASX agreed to a halt, means that the shares have almost doubled over the past six weeks, and tripled over the last 12 months.



Most of the increased interest in Northern Star can be traced to the Paulsens mine, which it acquired in July last year after paying A$40 million to Intrepid Mines. At the time, Intrepid was seen as getting the better end of the transaction. Not today. Paulsens, under a management team led by Bill Beament, has been the subject of a classic makeover. Costs have been slashed after the company took full control of the mining process, expanded production, accelerated exploration, and acquired nearby assets. This calendar year alone should see Northern Star generate A$40 million in surplus cash from production of 75,000 ounces of gold at a cost of around A$682 an ounce. It will also push ahead with plans to grow the business to 200,000 ounces a year.



Impressive as the financial numbers are, the real interest in Australia today revolves around the straightforward question: what does it take to halt trading in a company because of potentially “spectacular” assays, when a previous spectacular result of 638 grams was not enough to stop trading?



One possibility is that word of the latest assay results has been leaked to the market, though given the tight-lipped nature of the management team a more reasonable explanation is that something ultra-special has been received back from the company’s primary assay laboratory. The initial result is now being re-checked by a second lab to avoid the embarrassment suffered by Venus Metals two weeks ago when it was forced to retract an assay of 4.12 grams per tonne over 82 metres when a check later found minimal gold. Mega oops, and a share price which crashed from A90 cents to A54 cents.



Northern Star, unless the stars are misaligned, will not repeat that mistake because it is in the middle of a busy promotional season, having hauled a tour group of stockbrokers and journalists to its Paulsens site in the iron ore rich Pilbara district of Western Australia last Friday. The first analyst reports from that inspection of the company’s assets have been enthusiastic. Argonaut Securities has describing the drilling results as the best so far – and that was before Tuesday’s suspension request.



Argonaut told clients that the latest drilling confirmed high-grade mineralisation 150 metres down plunge and 50 metres east of the resource envelope reported in March, and that it suggests that two mineralised lodes, Voyager 1 and Voyager 2, might merge at depth. Argonaut wrote that the drill results were a good pointer to the next resource upgrade and represented steady progress in the company’s “two-stage journey from 75,000oz a year to 200,000oz a year.” The company’s plan is to lift output to 100,000 ounces by December next year, and then to add another 100,000 ounces through the construction of a stand-alone plant at the recently acquired, nearby Ashburton project.



At Paulsens is Northern Star has picked up where Intrepid left off, extracting most of its ore from the Voyager 1 orebody while making brisk progress drilling the look-alike Voyager 2 structure. It’s also seeking a third target which it describes as a potential “structural repeat” of the Paulsens quartz host vein on the other side of a gabbro rock intrusion. The theory is that the series of lodes which make up the Voyager system will be repeated in mirror image.



Meanwhile, the production numbers continue to look good. In the September quarter the company produced 17,043 ounces of gold from 84,735 tonnes milled at a recovery grade of 6.74 grams per tonne. But the new material, from the first “spectacular” drill result from intersections in the Voyager 1 lode, compares very well to that. The “spectacular” intersection rang in at 13 metres at 45.1 grams per tonne, with an internal slice in that intercept of 6.6 metres at 82.2 grams, and 0.6 metres at the top assay of 638 grams per tonne.



The super-rich, but narrow assay result is what makes headlines, but the real meat in the Northern Star sandwich lies in thicker and lower grade assays which are following on from earlier results. For instance, on October 13th the company reported 18.8 metres at 62.7 grams per tonne and 6.4 metres at 120.2 grams, assays which have encouraged Bill and his team to locate a third underground drilling rig at Paulsens, and to start designing a new mine plan which will incorporate more ore from Paulsens, and possibly ore hauled from Ashburton too, before it gets its own processing plant. All that is in the future. For now, investors want to see the real meaning of spectacular.
......................................................................

 

[mr. jeff]

Not a bad article, thanks drillinto.

Drilling at Paulsens Gold Mine in WA returns 0.8m at
12,718gpt (12.7 kg/t or 1.27%); Total intersection of
5.6m at 1,713gpt

Read the announcement of 12kg/t strike and further intercepts, high grade and justifiably called spectacular. Previous drilling has also been exceptional and with the drilling set to continue, NST should see further strength.

 

[tech/a]

Sold entire holding at $.89c

Will see how excited the rest of the holders are by tonight.

 

[explod]

Sold entire holding at $.89c

Will see how excited the rest of the holders are by tonight.

Well done tech, "buy the roumour sell the fact" ;or

a bit of a ramp down for some more.

Could be Lasaters Reef or Poseidon.

Wonder how many tons of dirt with 12,178 g/t there are. Must be dreamin.

 

[tech/a]

Im happy to buy a pullback.
(If there is one) Id expect some filling of the current gap
80c looks about right (Technically).

 

[sammy84]

Sold entire holding at $.89c

Will see how excited the rest of the holders are by tonight.

Sold my entire holding at $.88c

Agree with your reasoning. The probabilities of a pull back after such a breakaway are high. Move on to the next trade and re-enter if NST provides a new low risk entry.

 

[redsmartie]

NST $1.00 by end of year?

Who's with me!!

If they can add to the present production values, the price will go up. You cannot fool the market with a promise of increasing production unless you do the wording and that goes something like "i have struck the gold and the mining operation is returning more profits than before" and that is if you are a net producer of Gold.

 

[tech/a]

Ooooo

Missed to by that much!

Holding off Still think it has potential for more but after a 50% run for me Im happy to sit and watch for another opportunity.(In this or other stock)