Drilling at Northgate Minerals' Young-Davidson Project Confirms Significant Resource Potential of the YD West Zone
12.01.2011 | CNW
Hole YD10-198A returns 6.16 grams per tonne gold over 21.3 metresVANCOUVER, Jan. 11 (CNW) - Northgate Minerals Corporation (TSX: NGX, NYSE Amex: NXG) is pleased to report that follow-up drilling on the YD West zone, located at the Young-Davidson Project in northern Ontario, has confirmed continuity and expansion of the zone as two follow-up holes have intersected higher grade mineralization. The YD West zone was discovered when hole YD10-198 intersected 3.46 grams per tonne ("g/t") gold over 79.5 metres ("m") earlier in 2010.
Drill Highlights
- Hole YD10-198A: located approximately 60 m west and below discovery hole YD10-198, returned 6.16 g/t uncut over 21.3 m (estimated 14.2 m true thickness).
- Hole YD10-234: located approximately 50 m east and slightly below hole YD10-198, returned 4.37 g/t over 17.8 m (estimated 9.5 m true thickness). A part of the zone in this hole was cut off by a post-mineral diabase dyke.
- These two holes have returned higher grades than the average resource grade at Young-Davidson and confirm the fault offset model relating the YD West zone to the main Young-Davidson deposit.
- A US$2 million exploration budget has been allocated in 2011 to complete a 12,000 m diamond drill program, a significant portion of which will focus on defining resources within the YD West zone.
"With the receipt of these positive assay results, the 2010 exploration program at Young-Davidson has ended on a high note," commented Ken Stowe, President and CEO. "Our priority now is to focus on defining the zone\'s gold resources. Equally as important, the Young-Davidson deposit also remains open down dip and to the east and there is always potential for further discovery as we drill other prospective targets on the property. This ongoing exploration program is expected to have a positive impact on the annual production profile once underground mining commences in 2014."
2011 Diamond Drill Program
Following up on the success of the 2010 exploration program on the YD West zone, Northgate will expedite a diamond drill program in 2011 focusing on resource definition. Approximately 10,000 m of drilling is planned to extend the YD West zone and delineate additional resources. With the current data, the zone appears to have a minimum strike length of approximately 200 m, measures 175 m along dip and averages 20 m in true thickness.
The long section and level plan below illustrates the location of holes 198, 198A and 234 in relation to the existing Young-Davidson reserves.
Other holes drilled in 2010, located closer to surface and west of the main Young-Davidson deposit, are also shown on the long section and intersected either low-grade intervals or failed to reach target depth as a result of drilling complications. A list of all assay results from the 2010 YD West zone drill program is shown in Table 2.
Figure 1 - Young-Davidson Longitudinal Section (looking north)
Figure 2 - 9200 Level Plan
Figure 2 presents a level plan (horizontal slice) of the property\'s geology immediately west of the currently defined reserves (at 9200m elevation), which terminated against the diabase dyke (shown in brown) that was the arbitrary western limit of the present reserves. However, drill holes 198, 198A and 234 have now confirmed that there is a continuous gold bearing horizon west of the dyke.
Table 1: Assay Results from Hole YD10-198A and 234
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True
Interval Thickness Gold Cut
Hole ID From (m) To (m) (m) (m) 20 g/t
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YD10-198A 1333.7 1355.0 21.3 14.2 5.32*
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YD10-234 1216.9 1234.7 17.8 9.5 4.37
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incl 1217.8 1226.1 8.3 4.4 6.82
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* Uncut values for YD10-198A are 6.16 g/t over 21.3 m.
Further Growth Potential at Young-Davidson
The Young-Davison deposit remains open in three directions: to the west, east and down dip. In 2010, geophysical surveys consisting of various forms of induced polarization ("IP"), gravity and airborne magnetics were completed over select portions of the claim group. The results of these surveys have indicated high ranking drill targets on the east and west flanks of the currently known deposit. As discussed in Northgate\'s press release dated January 10, 2011, two surface diamond drills will operate on the property this year with one drill focusing on resource definition at the YD West zone. A second drill will test the new geophysical and conceptual targets; mostly further along trend east and west of the Young-Davidson deposit. Figure 3 shown below illustrates the location of the YD West zone and the other targets, all with potential to add further resource ounces on the property. In detail, Figure 3 presents an isometric view of the Young-Davidson deposit and historic workings with IP pseudo-sections and the gravity anomaly trend. In general, higher IP chargeability with a co-incident gravity anomaly is associated with gold mineralization in the deposit area. These are the type of anomalies that will be tested on the east and west flanks of the Young-Davidson deposit in 2011.
Figure 3 - 2011 Surface Diamond Drill Areas
Table 2: Assay Results from 2010 YD West Zone Drill Program
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True
Interval Thickness Gold Cut
Hole ID From (m) To (m) (m) (m) 20 g/t
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YD10-198A 1333.7 1355.0 21.3 14.2 5.32*
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YD10-234 1216.9 1234.7 17.8 9.5 4.37
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incl 1217.8 1226.1 8.3 4.4 6.82
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YD10-90X Did not reach target
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YD10-226A 1097.3 1134.0 36.7 24.6 0.74
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incl 1115.1 1125.5 10.4 6.9 1.19
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YD10-227A 191.5 198.2 6.7 4.4 0.67
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YD10-228 76.0 82.5 6.5 4.2 0.99
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YD10-229 No significant values
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YD10-230 No significant values
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YD10-232 368.5 374.5 6.0 4.0 0.46
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398.0 412.5 14.5 9.7 0.33
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YD10-233 No significant values
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* Uncut values for YD10-198A are 6.16 g/t over 21.3 m.
Quality Control - Analyses and Sample Location
Details of quality assurance/quality control procedures for sample analysis and drill hole survey methodology are reported in detail in the Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") compliant Technical Report filed on SEDAR (www.sedar.com) on August 21, 2009.
Qualified Persons
The program design, implementation, quality assurance/quality control and interpretation of the results are under the control of Northgate\'s geological staff, which includes a number of individuals who are qualified persons as defined under NI 43-101. Carl Edmunds, PGeo, Northgate\'s Exploration Manager, is responsible for the overall supervision of the program.
Note to Investors:
The terms "Qualified Person", "Mineral Reserve", "Proven Mineral Reserve", "Probable Mineral Reserve", "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource", and "Inferred Mineral Resource" used in this news release are defined in accordance with NI 43-101.
Northgate Minerals Corporation is a gold and copper producer with mining operations, development projects and exploration properties in Canada and Australia. Our vision is to be the leading intermediate gold producer by identifying, acquiring, developing and operating profitable, long-life mining properties.
Cautionary Note Regarding Forward-Looking Statements and Information:
This Northgate press release contains "forward-looking information", as such term is defined in applicable Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, concerning Northgate\'s future financial or operating performance and other statements that express management\'s expectations or estimates of future developments, circumstances or results. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects", "believes", "anticipates", "budget", "scheduled", "estimates", "forecasts", "intends", "plans" and variations of such words and phrases, or by statements that certain actions, events or results "may", "will", "could", "would" or "might" "be taken", "occur" or "be achieved". Forward-looking information is based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which Northgate operates, are inherently subject to significant operational, economic and competitive uncertainties and contingencies. Northgate cautions that forward-looking information involves known and unknown risks, uncertainties and other factors that may cause Northgate\'s actual results, performance or achievements to be materially different from those expressed or implied by such information, including, but not limited to gold and copper price volatility; fluctuations in foreign exchange rates and interest rates; the impact of any hedging activities; discrepancies between actual and estimated production, between actual and estimated reserves and resources or between actual and estimated metallurgical recoveries; costs of production; capital expenditure requirements; the costs and timing of construction and development of new deposits; and the success of exploration and permitting activities. In addition, the factors described or referred to in the section entitled "Risk Factors" in Northgate\'s Annual Information Form for the year ended December 31, 2009 or under the heading "Risks and Uncertainties" in Northgate\'s 2009 Annual Report, both of which are available on the SEDAR website at www.sedar.com, should be reviewed in conjunction with the information found in this press release. Although Northgate has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in forward-looking information, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate or that management\'s expectations or estimates of future developments, circumstances or results will materialize. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information in this press release is made as of the date of this press release, and Northgate disclaims any intention or obligation to update or revise such information, except as required by applicable law.
Cautionary Note to US Investors Regarding Mineral Reporting Standards:
Northgate prepares its disclosure in accordance with the requirements of securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Terms relating to mineral resources in this press release are defined in accordance with National Instrument 43-101-Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy, and Petroleum Standards on Mineral Resources and Mineral Reserves. The Securities and Exchange Commission (the "SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. The Company uses certain terms, such as, "measured mineral resources" "indicated mineral resources", "inferred mineral resources" and "probable mineral reserves", that the SEC does not recognize (these terms may be used in this press release and are included in the Company\'s public filings which have been filed with securities commissions or similar authorities in Canada).
For further information:
Ms. Keren R. Yun, Director
Investor Relations
Tel: 416-216-2781
Email: ngx@northgateminerals.com
Website: www.northgateminerals.com