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Northgate Minerals
Provides Update on Construction and Exploration Activities at Young-Davidson
Underground
Mine Optimization to Proceed
VANCOUVER,
June 24, 2011 /CNW/ - (All figures in US dollars except where
noted) Northgate Minerals Corporation
(TSX: NGX, NYSE-Amex: NXG) is pleased to provide an update on the progress of
building its 100% owned Young-Davidson
mine located near the town of Matachewan,
in northern Ontario.
Highlights
Construction
Activities
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The project remains on schedule and on budget:
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at the end of May 2011, 95% of the construction contracts have been
awarded (approximately $245 million), 97% of the equipment purchase orders
have been placed and 85% of the engineering has been completed.
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The project remains on budget:
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at the end of May 2011, Northgate has invested approximately $170
million towards construction of the Young-Davidson mine.
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After an intensive optimization study, a mid-shaft
crushing and loading facility has been added to the original feasibility
study mine design to facilitate access to higher grade underground ore one
year earlier than planned, which will provide flexibility in the early
years of mine operation and production.
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Diamond Drill Program
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Hole YD11-234B in the YD West zone intersected
4.31 grams per tonne (g/t) gold over 79.6 metres (m) (estimated true thickness is 55.0 m),
including 5.66 g/t over 49.9 m.
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The underground exploration program that will
drill test targets to the east of the known reserves at Young Davidson is
scheduled to begin in the final week of June.
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"Our employees and contractors at Young-Davidson
continue to put in hard work and dedication to all of the activities underway
on site", said Ken Stowe, President and CEO. "Due
to their great efforts, the project continues to advance on schedule and on
budget. In addition, we are very pleased with the results from the YD West
Zone and the new exploration program set to begin this month, potentially
adding to our 2.8 million ounces of reserves and 650,000 ounces of
resources."
Young-Davidson Construction Update
Production Shaft
The first leg (446 m) of the new Northgate
production shaft is almost complete with breakthrough of the raise bore
expected in mid-July. The second leg, to a depth of 700 m is expected to
begin by November 2011.
Mid-Shaft Loading Facility
The Northgate Board of Directors have approved a
mid-shaft loading facility, which is an optimization to the original mine
design that will allow for early underground ore production from the 9590
level and above. This design will de-couple underground ore production from
the ongoing development in the lower half of the mine and will provide for
early underground ore feed to supplement open pit production. The facility is
scheduled to be operational by Q1 2013, one year ahead of the feasibility schedule
for underground ore production. Pre-production capital expenditures
will not change as a result of this optimization,
however, sustaining capital in the 2014-2015 period will increase by
approximately $25 million.
115 kV Transmission Line
The 115 kV hydro transmission line from Kirkland
Lake to the Matachewan
Junction is proceeding ahead of schedule and is expected to be complete by September
2011.
Tailings
Impoundment Area ("TIA")
Construction of the tailings dam facility is on
schedule and the facility will be in a position to receive tailings from the
mill's scheduled start up in March 2012. The tailings facility
is an expansion of one of the historic tailings sites on the property.
Mill
Building
The mill building erection is proceeding and will be
enclosed by early July, at which time the installation of the process
equipment will begin, much of which has already arrived at site.
More photos of the project development and a short
video clip are available on our website at www.northgateminerals.com.
Exploration Update
Hole YD11-234B returned 4..31 g/t gold over 79.6 m
and contained a higher grade section of 5.66 g/t over 49.9 m at the base
(footwall) of the zone. This intersection which was reported in a news
release on June 7, 2011 is located about 130 m above and
55 m east of Discovery Hole YD10-198. Both 234B and 198 are in a
new gold zone west of the currently defined reserves and resources,
confirming the fault offset model relating the YD West zone to the main Young-Davidson
ore body.
Hole
YD-11-240A, which was drilled perpendicular to the exploration holes in the
YD West area in order to resolve the location and correlation of the
north-south trending diabase dykes is now complete
and the results are being analyzed.
Underground exploration in the area east of the
current Young-Davidson
Reserve is scheduled to get underway in the last week of June.
Figure 1 - YD West
Zone-Longitudinal Section
Qualified Persons
John Andrew Cormier, PEng, Project Manager, Northgate
Minerals Corporation, is the Qualified Person responsible for reviewing
and approving the technical information of this press release.
Carl Edmunds, Exploration
Manager, Northgate Minerals
Corporation, is the Qualified Person responsible for reviewing and
approving the exploration results of this press release.
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 estimate 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, 2010 or under
the heading "Risks and Uncertainties" in Northgate's 2010 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).
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