Northgate Discovers Significant Extensions to Mineralized Zones at the Fosterville Gold Mine
Drill Hole Intercepts Average Over 6.0 g/t Gold
VANCOUVER, Oct. 30 /CNW/ - Northgate Minerals Corporation (TSX: NGX, NYSE
ALTERNEXT/AMEX: NXG) is pleased to announce significant assay results for nine
Diamond drill holes in the Harrier Underground zone (within the area
previously referred to as the Wirrawilla zone), located just south of the
existing reserves at the Fosterville Gold mine in Victoria, Australia. The
results of the Diamond drill program include the discovery of significant
extensions to three north striking areas of gold mineralization: the Osprey;
Raptor; and, Harrier Base Fault zones. These zones collectively extend over
500 metres (m) along strike and 300m in vertical height. The Raptor zone is
open down dip and both the Osprey and Harrier Base zones are open to the
north, south and down dip.
Drilling Highlights
- Three zones of mineralization located on the southern edge of the
main Wirrawilla resource area have been significantly extended, but
are still only partially defined. These zones are tightly grouped and
have widths that are comparable to the main Phoenix ore body.
- SPD493 intersected 4.9 g/t (grams per tonne) gold over 9.0m in the
Osprey zone; a second interval returned 8.0 g/t gold over 15.0m in
the Harrier Base zone.
- SPD488 intersected 7.0 g/t gold over 7.7m (Osprey) and 8.7 g/t
gold over 3.4m (Harrier Base).
- SPD489 returned three intervals: the first two intervals (Osprey)
assayed 3.7 g/t gold over 8.4m and 7.2 g/t gold over 6.3m; the
third interval (Harrier Base) assayed 8.7 g/t gold over 7.0m.
- SPD494A assayed 7.5 g/t gold over 8.0m (Osprey) and 6.9 g/t gold
over 8.5m (Harrier Base).
- SPD498B assayed 4.5 g/t gold over 11.0m (Osprey) and 5.3 g/t gold
over 9.0m (Harrier Base).
- SPD491 assayed 5.4 g/t gold over 7.0m (Raptor).
Ken Stowe, President and Chief Executive Officer, stated, "We are excited
by the very positive drill results in the new Harrier Underground zone, which
confirm the exceptional exploration potential we saw within the Fosterville
Mining Lease when we purchased the mine earlier this year. Drilling on the
southern portion of the main Wirrawilla resource area intersected the Harrier
Underground zone of mineralization. This zone appears to be continuous, with
widths and grades similar to the best areas of the Phoenix ore body, which
represents the majority of the current Fosterville reserve. Drilling is
ongoing and an initial resource estimate for the area is scheduled for
completion in the first quarter of 2009."
Geological Overview of the Fosterville Gold Mine
The Fosterville Goldfield is located within the Bendigo Zone of the
Lachlan Fold Belt. The mineral deposits are hosted by sedimentary rocks
(interbedded sandstones, siltstones and shales) that have been folded into a
set of upright folds subsequently broken apart by late brittle faulting, which
provided pathways for gold mineralization. Mineralization is localized by the
geometric relationship between bedding and faulting. The faults are generally
moderately to steeply west dipping. Primary gold mineralization occurs within
disseminated arsenopyrite and pyrite on the margins of veins in quartz -
carbonate veinlet stockwork. Mineralized shoots are typically 4m to 15m thick,
50m to 150m up/down dip, and 300m to 1,500m+ down plunge. Mining is currently
taking place on the Phoenix and Ellesmere splay faults and the main
Fosterville Fault.
Location and Structure of the Harrier Underground Zone
The Harrier Underground zone is situated 1.7km south of the current
Phoenix ore body (Figure 1) and is interpreted to be at a slightly higher
stratigraphic level down plunge of the Harrier open-pit ore body, which was
mined in 2007. The zone comprises three distinct westerly dipping mineralized
structures (Figure 2), from west to east: the Osprey; Raptor; and Harrier Base
zones. The current depth extents of the mineralization for the Harrier
Underground zone are:
- Osprey - 310m to 560m depth.
- Raptor - 200m to 450m depth.
- Harrier Base - 460m to 620m depth.
The recent drilling confirms that grades and widths of the Harrier
Underground zones are comparable to the majority of the Phoenix reserves. From
a development perspective, the presence of the two zones, Osprey and Harrier
Base, which are separated by only 80m, will reduce the amount of development
required to access each zone and thus reduce overall mining and development
costs.
Figure 1: Fosterville Mine Lease Long Projection (North-South) of
Harrier Underground Location
(in relation to resources, underground development and mining)
www.northgateminerals.com/Theme/Northgate/files/Releases/FGM_HUG_Fig1.jpg
Figure 2: Harrier Underground Composite Geological Cross Section
(East-West)
www.northgateminerals.com/Theme/Northgate/files/Releases/FGM_HUG_Fig2.jpg
Summary of Exploration Results
The 2008 surface Diamond drilling program was designed to test the
characteristics and extend resources of the main Wirrawilla resource area. To
date, 24 holes totalling 11,900 metres of Diamond drilling have been completed
in this program with 21 holes reaching the target depth and results returned
for 14 holes. Two planned holes in the 2008 program have yet to be completed.
Drilling into the northern portion of the existing Wirrawilla area has
confirmed its structural complexity. The results from five drill holes are
modest with only one hole, SPD490, returning a significant result ((greater
than)20 gram-metre). This area requires close-spaced drilling to define the
gold mineralization, which can be completed much more cost effectively from
underground in the future, if a ramp decline is within the vicinity.
Subsequent drilling into the southern portion of the project area has
been highly encouraging with the discovery of significant extensions to the
Osprey (Figure 3), Raptor (Figure 4), and Harrier Base (Figure 5) zones
located within the Harrier Underground. The continuity of these zones, along
with their broad widths and good grades, shifted exploration focus to this
area, which can be cost effectively explored from surface. To date, results
have been returned for nine holes, of which eight have significant assay
results as reported in Tables 1, 2 and 3.
Figure 3: Harrier Underground Long Projection: Osprey Gold Mineralization
(North-South)
www.northgateminerals.com/Theme/Northgate/files/Releases/FGM_HUG_Fig3.jpg
Figure 4: Harrier Underground Long Projection: Raptor Gold Mineralization
(North-South)
www.northgateminerals.com/Theme/Northgate/files/Releases/FGM_HUG_Fig4.jpg
Figure 5: Harrier Underground Long Projection: Harrier Base Gold
Mineralization (North-South)
www.northgateminerals.com/Theme/Northgate/files/Releases/FGM_HUG_Fig5.jpg
Drilling Results in Harrier Underground
Significant assay results received to date from the 2008 drill program
are presented in Tables 1, 2 and 3. Significant results can be quantified by
greater than 20 gram-metre intersections. A gram-metre intercept is the
resultant product of gold grade (g/t) multiplied by the width (m). All drill
hole locations are presented in Table 4.
Table 1: 2008 Significant Assay Results from Harrier Underground
Project - Osprey Fault
-------------------------------------------------------------------------
Downhole Estimated True
Hole ID From (m) To (m) Interval (m) Width (m) Gold (g/t)
-------------------------------------------------------------------------
SPD488 433.3 441.0 7.7 6.4 7.0
-------------------------------------------------------------------------
583.0 591.4 8.4 7.0 3.7
SPD489 ---------------------------------------------------------------
596.4 602.7 6.3 5.0 7.2
-------------------------------------------------------------------------
SPD493 488.0 497.0 9.0 7.5 4.9
-------------------------------------------------------------------------
SPD494A 519.0 527.0 8.0 6.6 7.5
-------------------------------------------------------------------------
SPD498B 573.0 584.0 11.0 9.1 4.5
-------------------------------------------------------------------------
Table 2: 2008 Significant Assay Results from Harrier Underground
Project - Raptor Fault
-------------------------------------------------------------------------
Downhole Estimated True
Hole ID From (m) To (m) Interval (m) Width (m) Gold (g/t)
-------------------------------------------------------------------------
SPD491 508.0 515.0 7.0 5.8 5.4
-------------------------------------------------------------------------
SPD492 473.7 475.9 2.2 1.8 11.1
-------------------------------------------------------------------------
Table 3: 2008 Significant Assay Results from Harrier Underground
Project - Harrier Base Fault
-------------------------------------------------------------------------
Downhole Estimated True
Hole ID From (m) To (m) Interval (m) Width (m) Gold (g/t)
-------------------------------------------------------------------------
SPD486 405.5 411.0 5.5 4.6 7.1
-------------------------------------------------------------------------
SPD488 520.5 523.9 3.4 2.8 8.7
-------------------------------------------------------------------------
SPD489 664.3 671.3 7.0 5.8 8.7
-------------------------------------------------------------------------
SPD490 418.2 425.1 6.9 5.7 3.5
-------------------------------------------------------------------------
SPD493 562.0 577.0 15.0 12.4 8.0
-------------------------------------------------------------------------
SPD494A 589.0 597.5 8.5 7.0 6.9
-------------------------------------------------------------------------
SPD498B 668.2 677.2 9.0 7.5 5.3
-------------------------------------------------------------------------
Future Exploration
Further scoping drilling is planned for early 2009 to test for extensions
to mineralization in the Harrier Underground zone. This drilling will focus on
extending the most significant zones of Osprey and Harrier Base down dip and
along strike and Raptor down dip.
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
National Instrument 43-101 (NI 43-101) Technical Report filed on SEDAR
(www.sedar.com) on March 28, 2008.
Qualified Persons
The program design, implementation, quality assurance/quality control and
interpretation of the results is under the control of Northgate's geological
staff that includes a number of individuals who are qualified persons as
defined under NI 43-101.
Supervision of the program is by Glenn Grayson (BSc Geology, MAusIMM),
Northgate's Project Exploration Geologist and Simon Hitchman (BSc Geology
(Hons), MAusIMM, MAIG), Northgate's District Exploration Geologist at
Fosterville Gold Mine.
Table 4: 2008 Harrier Underground Drill Hole Collar Locations
(2008 Exploration Program, Fosterville Mine Grid)
-------------------------------------------------------------------------
Collar
Hole ID Northing Easting Elevation Azimuth Collar Dip Depth (m)
-------------------------------------------------------------------------
SPD485 5350.00 1727.00 5162.70 90 -74 549.1
-------------------------------------------------------------------------
SPD486 5350.00 1790.00 5162.70 90 -70 434.7
-------------------------------------------------------------------------
SPD487 5650.00 1755.00 5163.85 90 -70 462.8
-------------------------------------------------------------------------
SPD488 5450.00 1680.00 5165.80 90 -71 548.7
-------------------------------------------------------------------------
SPD489 5400.00 1510.00 5167.30 90 -70 701.5
-------------------------------------------------------------------------
SPD490 6050.00 1660.00 5161.60 90 -70 447.2
-------------------------------------------------------------------------
SPD491 5700.00 1655.00 5164.30 90 -70 588.5
-------------------------------------------------------------------------
SPD492 5600.00 1570.00 5164.80 90 -70 599.9
-------------------------------------------------------------------------
SPD493 5450.10 1609.91 5164.97 90 -70 620.8
-------------------------------------------------------------------------
SPD494(1) 5350.26 1600.01 5164.50 90 -71 374.7
-------------------------------------------------------------------------
SPD494A 5350.26 1600.01 5164.50 90 -71 632.7
-------------------------------------------------------------------------
SPD495 5851.70 1790.45 5161.34 90 -70 468.8
-------------------------------------------------------------------------
SPD496 5954.51 1728.68 5160.81 90 -70 430
-------------------------------------------------------------------------
SPD497 5750.00 1800.00 5163.70 90 -70 407.5
-------------------------------------------------------------------------
SPD498(1) 5300.00 1550.00 5166.30 90 -70 23
-------------------------------------------------------------------------
SPD498A(1) 5300.00 1550.00 5166.30 90 -70 348
-------------------------------------------------------------------------
SPD498B 5300.00 1550.00 5166.30 90 -70 699
-------------------------------------------------------------------------
SPD499(2) 5550.00 1670.00 5164.40 90 -70 567
-------------------------------------------------------------------------
SPD500(2) 5550.00 1826.00 5162.70 90 -70 369
-------------------------------------------------------------------------
SPD501(2) 5233.00 1630.00 5165.30 90 -70 600
-------------------------------------------------------------------------
SPD502(2) 5650.00 1860.00 5163.10 90 -70 361
-------------------------------------------------------------------------
SPD503(2) 5750.00 1865.00 5164.70 90 -70 307
-------------------------------------------------------------------------
SPD504(2) 5597.00 1555.00 5165.80 90 -73 633.1
-------------------------------------------------------------------------
SPD505(2) 5250.00 1540.00 5167.00 90 -73 728.6
-------------------------------------------------------------------------
SPD507(3) 5450.00 1510.00 5165.80 90 -70 Current
-------------------------------------------------------------------------
SPD508(3) 5350.00 1625.00 5165.30 90 -67 Planned
-------------------------------------------------------------------------
(1) Holes did not reach target depth.
(2) Assay results for these holes are pending
(3) Holes not yet completed
Note to US Investors:
The terms "Mineral Reserve", "Proven Mineral Reserve" and "Probable
Mineral Reserve" are Canadian mining terms as defined in accordance with NI
43-101 Standards of Disclosure for Mineral Projects under the guidelines set
out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM")
Standards on Mineral Resources and Mineral Reserves Definitions and Guidelines
adopted by the CIM Council on August 20, 2000. The terms "Mineral Resource",
"Measured Mineral Resource", "Indicated Mineral Resource", and "Inferred
Mineral Resource" used in this news release are Canadian mining terms as
defined in accordance with NI 43-101-Standards of Disclosure for Mineral
Projects under the guidelines set out in the CIM Standards.
Northgate Minerals Corporation is a mid-tier gold and copper producer
with mining operations, development projects and exploration properties in
Canada and Australia. The company is forecasting approximately 385,000 ounces
of unhedged gold production in 2008 and is targeting growth through further
acquisition opportunities in stable mining jurisdictions around the world.
Northgate is listed on the TSX under the symbol NGX and on the NYSE Alternext
US (formerly AMEX) under the symbol NXG.
Forward-Looking Statements:
This news release contains certain "forward-looking statements" and
"forward-looking information" under applicable Canadian and U.S. securities
laws. Forward-looking statements generally can be identified by the use of
forward-looking terminology such as "may," "will," "expect," "intend,"
"estimate," "anticipate," "believe," or "continue" or the negative thereof or
variations thereon or similar terminology. Forward-looking statements are
necessarily based on a number of estimates and assumptions that are inherently
subject to significant business, economic and competitive uncertainties and
contingencies. Certain of the statements made herein, including any
information as to the future activities of and developments related to the
business activities of Northgate Minerals Corporation (Northgate) and its
subsidiaries, the market position, and future financial or operating
performance of Northgate, are forward-looking and subject to important risk
factors and uncertainties, many of which are beyond the corporation's ability
to control or predict. Known and unknown factors could cause actual results to
differ materially from those projected in the forward-looking statements. Such
factors include, among others: gold price volatility; impact of any hedging
activities, including margin limits and margin calls; discrepancies between
actual and estimated production, between actual and estimated reserves and
resources and between actual and estimated metallurgical recoveries; costs of
production, capital expenditures, costs and timing of construction and the
development of new deposits, success of exploration activities and permitting
time lines; changes in national and local government legislation, taxation,
controls, regulations and political or economic developments in any of the
countries in which the corporation does or may carry out business in the
future; risks of sovereign investment; the speculative nature of gold
exploration, development and mining, including the risks of obtaining
necessary licenses and permits; dilution; competition; loss of key employees;
additional funding requirements; and defective title to mineral claims or
property. In addition, there are risks and hazards associated with the
business of gold exploration, development and mining, including environmental
hazards, industrial accidents, unusual or unexpected formations, pressures,
cave-ins, flooding and gold bullion losses (and the risk of inadequate
insurance or inability to obtain insurance, to cover these risks), as well as
the factors described or referred to in the section entitled "Risk Factors" in
Northgate's Annual Information Form for the year ended December 31, 2007 or
under the heading "Risks and Uncertainties" in Northgate's 2007 Annual Report,
both of which are available on SEDAR at www.sedar.com, and which should be
reviewed in conjunction with this document. Accordingly, readers should not
place undue reliance on forward-looking statements. The corporation does not
undertake any obligation to update publicly or release any revisions to
forward-looking statements to reflect events or circumstances after the date
of this document or to reflect the occurrence of unanticipated events, except
in each case as required by law.
For further information: Ms. Keren R. Yun, Director, Investor Relations, Tel:
(416) 216-2781, Email: ngx@northgateminerals.com, Website:
www.northgateminerals.com
.
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