Northstar, Novamera sign surgical mining agreement

Executive Summary

• Northstar Gold Corp. and Novamera Inc. have signed a definitive Surgical Mining Services Agreement to evaluate and potentially extract high‑grade copper from Zone 2 of the Cam copper mine.
• The agreement calls for an advance payment of US$1,535,000 to Novamera and outlines a variable tonnage‑based compensation plus a 5% net smelter return (NSR) revenue share if production proceeds.
• The project targets extraction of ~116,000 t of Zone 2 material via 93 drilling holes over an estimated 31‑month period, with financing to be secured through non‑dilutive royalty structures, grants, off‑take agreements and private placements.

Key Details

• Scope of Work: Deployment of Novamera’s turnkey surgical mining solution on near‑surface Zone 2 (volcanogenic massive sulphide horizon) to extract ~116,000 t of copper material using 93 extraction holes over ~31 months.
• Advance Payment: Northstar will provide US$1,535,000 in staged instalments for planning, logistics and equipment readiness, contingent on permitting and financing conditions.
• Compensation Framework:
• Variable tonnage rate plus monthly service fee.
• Potential 5% NSR revenue share to Novamera on future production from material extracted with the turnkey solution.
• Right of First Refusal: Novamera holds a five‑year right of first refusal to apply its technology to other Miller and Boston Creek area deposits deemed suitable for surgical mining.
• Project Financing Strategy: Northstar intends to fund capex and opex via non‑dilutive advanced royalty financing, government grants, off‑take agreements, service‑provider partnerships and equity private placements; details to be disclosed later.
• Technical Highlights of Zone 2:
• Historic average grade ~10% Cu over a 0.85 m true width, 42 m strike length, minimum 140 m depth.
• Recent drilling (7 holes) includes an intercept of 14.8% Cu over 2.45 m in hole CC‑03‑23 (Nov 23 2023 release).
• Targeted resource: 75,000–140,000 t at 9%–18% Cu, conceptual average grade 12% Cu.
• Next Steps: Obtain necessary permits and financing; issue notice‑to‑proceed; commission NI 43‑101 technical report and mineral resource estimate before any production decision.

Notable Quotes

“Executing this agreement with Novamera marks a key milestone in our effort to apply Surgical Mining to provide a low‑impact, cost‑effective path to evaluate and potentially extract high‑grade copper at Cam copper.” – Brian P. Fowler, President & CEO, Northstar Gold Corp.

“We are excited to work with the Northstar team to help them unlock cash flow using our precision mining technology at Cam copper… offering the potential for a new standard in small‑scale, responsible mineral extraction.” – Jim Hollis, CEO, Novamera Inc.