Northgate Minerals Exceeds First Quarter Production Forecast
Net Cash Cost of Production Significantly Lower than Guidance
VANCOUVER, April 15 /CNW/ - (All figures in US dollars except where
noted) - Northgate Minerals Corporation (TSX: NGX, NYSE Amex: NXG) today
reported first quarter 2009 gold production and net cash cost for the
Fosterville and Stawell mines in Victoria, Australia and the Kemess South mine
in British Columbia, Canada.
First Quarter 2009 Highlights
- Consolidated production of 107,477 ounces of gold, which represents a
22% increase from the prior year and exceeds the first quarter
production forecast.
- Average net cash cost of production was $392 per ounce of gold, which
was approximately 20% lower than guidance.
- Made substantial progress on the pre-feasibility study work at Young-
Davidson, where the mine plan is being redesigned around the new
larger 3.3 million ounce measured and indicated gold resource, using
low cost bulk mining methods to reduce operating costs and increase
annual production.
- Began commissioning the heated leach circuit at the Fosterville mine.
The following table provides a summary of operations for Q1 2009 compared
with the same period in 2008:
(Unaudited, thousands of US dollars,
except where noted) Q1 2009 Q1 2008
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Fosterville
Gold Production (ounces) 25,779 10,440(1)
Net cash cost ($/ounce)(2)(3) 430 1,190
Stawell
Gold Production (ounces) 22,392 28,363
Net cash cost ($/ounce)(2)(3) 432 536
Kemess South
Gold Production (ounces) 59,306 49,583
Copper Production (thousands pounds) 15,007 14,380
Net cash cost ($/ounce)(2) 362 105
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Consolidated
Gold Production (ounces) 107,477 88,386(1)
Copper Production (thousands pounds) 15,007 14,380
Net cash cost ($/ounce)(2)(3) 392 259
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(1) Production in Q1 2008 for Fosterville excludes the change in gold-in-
circuit inventory previously recorded.
(2) The cash cost figure for Q1 2009 is an unaudited estimate and is
subject to revision.
(3) The cash cost figure for Q1 2008 includes the results for Fosterville
and Stawell from February 19 to March 31, 2008.
Ken Stowe, President & CEO, commented, "We achieved solid results in the
first quarter of 2009. In Australia, we essentially met the quarterly
production and cash cost forecasts we provided in early January. In addition,
we began commissioning the heated leach circuit at Fosterville in March and
early results support a 90% gold recovery target, which will enhance the
long-term profitability of the mine. At Kemess, both production and cash costs
exceeded our expectations due to higher than expected ore grades and metal
recoveries, as well as higher than forecast copper prices."
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Annual General Meeting and Q1 2009 Financial Results
Northgate will be hosting its Annual General Meeting ("AGM") on Friday,
May 8, 2009 at 10:00 am, Toronto time. The AGM will be held at The Suites at
One King West, King Gallery, 1 King Street West, Toronto, Canada.
This event will also include an overview of Northgate's 2009 first
quarter financial results, which are scheduled for release before market opens
on May 8, 2009.
Webcast and Conference Call information, including podcast and conference
replay details, can be found on Northgate's website at
www.northgateminerals.com.
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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 record gold production of
392,000 ounces in 2009 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 Amex (formerly AMEX)
under the symbol NXG.
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Forward-Looking Statements: This Northgate press release contains
"forward-looking information", as such term is defined in applicable Canadian
securities legislation, 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, 2008 or under the heading
"Risks and Uncertainties" in Northgate's 2008 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.
For further information: Ms. Keren R. Yun, Director, Investor Relations, Tel:
(416) 363-1701 ext. 233, Email: ngx@northgateminerals.com, Website:
www.northgateminerals.com
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