Paulsens Gold Mine
Encyclopedia
The Paulsens Gold Mine is a gold mine
located 105 km south of Pannawonica
, Western Australia
, within the Pastoral lease
of the Mount Stuart Station
. It is fully owned by Northern Star Resources, having purchased the mine from Intrepid Mines Limited in July 2010.
It is located within the Ashburton Mineral Field
of Western Australia.
A feasibility study was completed out by Taipan Resources NL in 1999, but a review continued until 2001, when St Barbara Limited purchased 88 % of Taipan.
The Paulsens mine was developed by the NuStar Mining Corporation, which came into existence through a merger of Taipan Resources NL with St Barbara Limited in 2004, but as a separate entity of the latter. In 1999, Taipan had completed a pre-feasibility study and, in 2001-02, a follow-up review was carried out. Shortly after the merger, in May 2004, development of the mine commenced. St Barbara sold their interesst in the mine in 2005 to be able to finance its purchase of the gold division of insolvent mining company Sons of Gwalia
.
A year later, on 25 May 2005, commissioning of the Paulsens process plant commenced and, in June 2005, the first gold bar
was poured.
In June 2006, NuStar Mining Corporation merged with Intrepid Minerals Corporation to form Intrepid Mines Limited, a company listed both on the Australian Securities Exchange
and the Toronto Stock Exchange
.
Intrepid Mines Limited in turn merged with Emperor Mines Limited in March 2008. The company's Australian head quarters are in Brisbane
.
In July 2010, Northern Star Resources took over the mine.
but NuStar decided on an underground approach because of its lower establishment costs and an earlier positive cash flow. The mine has a production target of 70,000 to 80,000 ounces per annum with a throughput of approximately 320,000 tonnes of ore per annum.
A number of the components of the plant were second-hand, including a ball mill
from the Higginsville Gold Mine
.
In December 2008, the mine delivered the final ounces under existing hedge arrangements
at A$ 627, now allowing the mine to enjoy full exposure to the spot gold price
.
The mine was expected to cease production in early 2010, when it's currently known resources were depleted. Intrepid was aiming to extend the mine life by further exploration drilling
. In the first half of 2009, the mine has produced 44,656 ounces of gold. The plant was placed in care and maintenance in February 2010, but recommenced production in June.
Intrepid sold the mine to Northern Star Resources in July 2010 for A$40 million.
Gold mining
Gold mining is the removal of gold from the ground. There are several techniques and processes by which gold may be extracted from the earth.-History:...
located 105 km south of Pannawonica
Pannawonica, Western Australia
The town of Pannawonica is an iron-ore mining town located in the Pilbara region of Western Australia, near the Robe River, about 200 km south-west from Karratha...
, Western Australia
Western Australia
Western Australia is a state of Australia, occupying the entire western third of the Australian continent. It is bounded by the Indian Ocean to the north and west, the Great Australian Bight and Indian Ocean to the south, the Northern Territory to the north-east and South Australia to the south-east...
, within the Pastoral lease
Pastoral lease
A pastoral lease is Crown land that government allows to be leased, generally for the purposes of farming.-Australia:Pastoral leases exist in both Australian commonwealth law and state jurisdictions....
of the Mount Stuart Station
Station (Australian agriculture)
Station is the term for a large Australian landholding used for livestock production. It corresponds to the North American term ranch or South American estancia...
. It is fully owned by Northern Star Resources, having purchased the mine from Intrepid Mines Limited in July 2010.
It is located within the Ashburton Mineral Field
Mineral fields of Western Australia
Western Australian Mining is administered in terms of the administrative divisions of the:-* Gold or Mineral Field* Goldfield DistrictThere have also been various hierarchies of State Mining Engineer Inspectorate areas, as well as Mining Registrars Offices and areas.-List of fields:The following...
of Western Australia.
History
The Paulsens Deposit was discovered and mined in the early 1930s and was then called the Melrose Mine.A feasibility study was completed out by Taipan Resources NL in 1999, but a review continued until 2001, when St Barbara Limited purchased 88 % of Taipan.
The Paulsens mine was developed by the NuStar Mining Corporation, which came into existence through a merger of Taipan Resources NL with St Barbara Limited in 2004, but as a separate entity of the latter. In 1999, Taipan had completed a pre-feasibility study and, in 2001-02, a follow-up review was carried out. Shortly after the merger, in May 2004, development of the mine commenced. St Barbara sold their interesst in the mine in 2005 to be able to finance its purchase of the gold division of insolvent mining company Sons of Gwalia
Sons of Gwalia
Sons of Gwalia was a Western Australian mining company which mined gold, tantalum, spodumene, lithium and tin.Sons of Gwalia was Australia's third-largest gold producer and also controlled more than half the world's production of tantalum, before entering administration in August 2004 following a...
.
A year later, on 25 May 2005, commissioning of the Paulsens process plant commenced and, in June 2005, the first gold bar
Gold bar
A gold bar is a quantity of refined metallic gold of any shape that is made by a bar producer meeting standard conditions of manufacture, labeling, and record keeping....
was poured.
In June 2006, NuStar Mining Corporation merged with Intrepid Minerals Corporation to form Intrepid Mines Limited, a company listed both on the Australian Securities Exchange
Australian Securities Exchange
The Australian Securities Exchange was created by the merger of the Australian Stock Exchange and the Sydney Futures Exchange in July 2006. It is the primary stock exchange group in Australia....
and the Toronto Stock Exchange
Toronto Stock Exchange
Toronto Stock Exchange is the largest stock exchange in Canada, the third largest in North America and the seventh largest in the world by market capitalisation. Based in Canada's largest city, Toronto, it is owned by and operated as a subsidiary of the TMX Group for the trading of senior equities...
.
Intrepid Mines Limited in turn merged with Emperor Mines Limited in March 2008. The company's Australian head quarters are in Brisbane
Brisbane
Brisbane is the capital and most populous city in the Australian state of Queensland and the third most populous city in Australia. Brisbane's metropolitan area has a population of over 2 million, and the South East Queensland urban conurbation, centred around Brisbane, encompasses a population of...
.
In July 2010, Northern Star Resources took over the mine.
Mine
The Paulsens mine has 140 employees. Ore is mined in underground operations along two headings and treated on-site. The ore could also have been mined through open-cut miningOpen-pit mining
Open-pit mining or opencast mining refers to a method of extracting rock or minerals from the earth by their removal from an open pit or borrow....
but NuStar decided on an underground approach because of its lower establishment costs and an earlier positive cash flow. The mine has a production target of 70,000 to 80,000 ounces per annum with a throughput of approximately 320,000 tonnes of ore per annum.
A number of the components of the plant were second-hand, including a ball mill
Ball mill
A ball mill is a type of grinder used to grind materials into extremely fine powder for use in mineral dressing processes, paints, pyrotechnics, and ceramics.-Description:...
from the Higginsville Gold Mine
Higginsville Gold Mine
The Higginsville Gold Mine is a gold mine located near Higginsville, 45 km north of Norseman, Western Australia.It is currently owned by Avoca Resources Limited. Avoca has made headlines in 2009 when it became engaged in a bitter dispute with Ramelius Resources over conflicting takeover bids...
.
In December 2008, the mine delivered the final ounces under existing hedge arrangements
Hedge (finance)
A hedge is an investment position intended to offset potential losses that may be incurred by a companion investment.A hedge can be constructed from many types of financial instruments, including stocks, exchange-traded funds, insurance, forward contracts, swaps, options, many types of...
at A$ 627, now allowing the mine to enjoy full exposure to the spot gold price
Spot price
The spot price or spot rate of a commodity, a security or a currency is the price that is quoted for immediate settlement . Spot settlement is normally one or two business days from trade date...
.
The mine was expected to cease production in early 2010, when it's currently known resources were depleted. Intrepid was aiming to extend the mine life by further exploration drilling
Exploration diamond drilling
Exploration diamond drilling is used in the mining industry to probe the contents of known ore deposits and potential sites. By withdrawing a small diameter core of rock from the orebody, geologists can analyze the core by chemical assay and conduct petrologic, structural and mineralogic studies...
. In the first half of 2009, the mine has produced 44,656 ounces of gold. The plant was placed in care and maintenance in February 2010, but recommenced production in June.
Intrepid sold the mine to Northern Star Resources in July 2010 for A$40 million.
Production
Annual production of the mine:| Year | Production | Grade | Cost per ounce |
| 2005 | 33,935 ounces | 8.76 g/t | A$ Australian dollar The Australian dollar is the currency of the Commonwealth of Australia, including Christmas Island, Cocos Islands, and Norfolk Island, as well as the independent Pacific Island states of Kiribati, Nauru and Tuvalu... 438 |
| 2006 | 73,736 ounces | 7.93 g/t | A$ 331 |
| 2007 | 71,464 ounces | 7.38 g/t | A$ 357 |
| 2008 | 78,252 ounces | 7.8 g/t | A$ 478 |
| 2009 | 75,089 ounces | A$ | |
| Jan - June 2010 | 13,670 ounces |
External links
- Intrepid Mines website
- Intrepid Mines website - Paulsens
- Place Names Search Results - Paulsens Geoscience AustraliaGeoscience AustraliaGeoscience Australia is an agency of the Australian federal government. It carries out geoscientific research.On a user pays basis it produces geospatial products such as topographic maps and satellite imagery.-History:...
website