Indicated Resource of 2.6 Million Ounces of Gold and 860 Million Pounds of Copper for Northgate's Kemess Underground Project
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/17/11 -- Editors Note: There are two photos associated with this release.
Northgate Minerals Corporation (TSX: NGX)(NYSE Amex: NXG) has released its updated NI 43-101 compliant resource estimate for the Kemess Underground Project, located five kilometres ('km') north of the Kemess South mine and milling complex in north-central British Columbia.
Highlights
-- Indicated Resource of 136.5 million tonnes ('Mt') containing 2.6 million
ounces of gold and 860.6 million pounds of copper.
-- This represents an 18% increase in tonnes, a 10% increase in
contained gold and a 9% increase in contained copper from the May
2010 resource.
-- Identified a 10.3 Mt high-grade sector of the overall resource
containing 450,000 ounces of gold and 119 million pounds of copper
grading 1.35 grams per tonne ('g/t') gold and 0.52% copper,
respectively.
-- Northgate has engaged an independent mining consulting firm to complete
technical studies, which will be incorporated into a NI 43-101 compliant
Preliminary Assessment.
'We are very pleased with the results of the new resource estimate for Kemess Underground, which has exceeded our initial expectations and increased our confidence in this significant resource' commented Ken Stowe, President and Chief Executive Officer. 'In addition to increasing the gold and copper content of the resource, the 2011 drill results have identified a continuous, high-grade sector of the resource, which should allow us to enhance the value of the project if it can be scheduled for mining during the early years of production. In the third quarter of 2011, we look forward to the completion of a Preliminary Assessment to outline the economics for mining a large portion of the identified resources.'
Kemess Underground Overview
The 2011 resource estimate captures all drilling completed to November 2010. A budget of $1.4 million has been allocated in 2011 for feasibility work, using the new resource estimate, to determine the potential for a large-scale, low-cost underground bulk mining operation that could be milled using the existing Kemess facilities. Production, which could come as early as 2014, would further strengthen Northgate's growing production profile and significantly reduce the Company's average net cash cost of production.
About Northgate
Northgate Minerals Corporation is a gold and copper producer with mining operations, development projects and exploration properties in Canada and Australia. The company completed a 30-hole infill diamond drill program at its Kemess Underground Project in November 2010 and has released an updated resource estimate, containing 2.6 million pounds of gold and 860 million pounds of copper. We expect to file a Preliminary Assessment for the Kemess Underground Project in the third quarter of 2011. Our vision is to be the leading intermediate gold producer by identifying, acquiring, developing and operating profitable, long-life mining properties.
To view the full version of the press release issued on February 15, 2011, please visit the company's website at www.northgateminerals.com.
Resource Estimate Details
A 20 m x 30 m x 20 m block model was generated by Northgate's resource geologist under supervision by the qualified person noted below. Grade for copper and gold was estimated by ordinary kriging interpolation methods from 6 m uncapped composites of diamond drill core samples. Silver grades were estimated using silver analytical values and co-kriged with copper using a cross variogram.
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 May 6, 2005. All 2010 drill holes have had their down hole surveys completed by non-magnetic based instruments such as gyroscope or DeviFlex.
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, has reviewed the technical contents of this release.
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. All mineral resources are exclusive of mineral reserves. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
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. The estimate of mineral resources or mineral reserves may be materially affected by any known risk factors or other relevant issues.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:
The Company 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).
To view the first photo associated with this release, please visit the following link: http://www.marketwire.com/library/20110216-ngx0217kemessmillingfacilities800.jpg.
To view the second photo associated with this release, please visit the following link: http://www.marketwire.com/library/20110216-ngx0217kemesscamp800.jpg.
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Contacts:
Northgate Minerals Corporation
Ms. Keren R. Yun
Director, Investor Relations
416-216-2781
ngx@northgateminerals.com
www.northgateminerals.com