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 interest in the mine in 2005 to be able to finance its purchase of the gold division of insolvent mining companySons of Gwalia. A year later, on 25 May 2005, commissioning of the Paulsens process plant commenced and, in June 2005, the first gold ingot 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 headquarters are in Brisbane. 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 mining 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 its 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.
