Northgate Announces Dramatic Increase in Resources at its Young-Davidson Project
Underground Measured and Indicated Resources Double to Three Million
Ounces of Gold
VANCOUVER, Dec. 10 /CNW/ - Northgate Minerals Corporation (TSX: NGX, NYSE
ALTERNEXT/AMEX: NXG) is pleased to report the results of a new NI 43-101
compliant mineral resource estimate at its 100% owned Young-Davidson property
near Matachewan, Ontario. The resource estimate includes both underground and
open pit resources and incorporates all diamond drilling on the property up to
September 30, 2008.
Highlights
- Total Measured and Indicated resources underground have increased by
1.6 million ounces to 3.0 million ounces of gold at an average grade
of 3.62 grams per tonne (g/t) using a cutoff grade of 2.3 g/t.
- Inferred resources underground have increased by over 300,000 ounces
to 748,000 ounces of gold at an average grade of 3.39 g/t.
- Open pit indicated resources now total 5.0 million tonnes at an
average grade of 1.7 g/t containing 270,000 ounces of gold in a pit
shell with a strip ratio of 1.5:1.
Ken Stowe, President and CEO, commented, "Our 2008 exploration program at
Young-Davidson has been a resounding success by any measure. Our priority at
the beginning of 2008 was to increase the indicated ounces underground by an
additional 0.5 million ounces. The exploration team at Young-Davidson far
surpassed this goal by more than doubling the underground gold resources to
over 3.0 million measured and indicated ounces at an average grade of 3.62
g/t. Equally as important, the continuity of the four main ore zones has been
clearly demonstrated, which will have very positive implications for mine
design and development. This new larger resource will flow into the conceptual
review of the Young-Davidson project that is now underway, focusing on
maximizing the utilization of existing underground infrastructure during the
early production years in order to significantly reduce capital costs."
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Overview of the Young-Davidson Exploration Area
The Young-Davidson property is situated within the southwestern part of
the Abitibi Greenstone Belt of northern Ontario. Gold mineralization on the
property is present primarily in an intrusive syenite host rock dipping at
approximately 70 degrees to the south. Figure 1, which can be viewed at:
www.northgateminerals.com/Theme/Northgate/files/Releases/YD-Dec08.gif presents
known resource areas (as defined in the legend), historic mine workings and
simplified geology. Elevations in the longitudinal section are based on an
artificial mine grid where the surface is defined as 10,355 metres.
2008 Exploration Program
The 2008 exploration program was extraordinarily successful, expanding
the measured and indicated resources underground to 3.0 million ounces of gold
consisting of 25.97 million tonnes at an average grade of 3.62 g/t. This
represents an increase of 1.6 million ounces of gold and compares to the 11.92
million tonnes of measured and indicated resources at a grade of 3.7 g/t that
was announced in February 2008. Notably, the additional underground tonnes
that have been delineated are close to the same grade as the previous resource
estimate, demonstrating the consistent grade distribution throughout the
Young-Davidson deposit.
The open pit resource on the property has been remodeled by Northgate
using resource solids defined by a 0.6 g/t gold cutoff grade resulting in a
pit shell that contains 4.95 million tonnes of indicated resources at an
average grade of 1.7 g/t.
In total, the Young-Davidson property now contains approximately 3.3
million ounces of measured and indicated resources and an additional 749,000
ounces of inferred resources (see Table 1).
Table 1 -Young-Davidson Gold Resources
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Tonnes Grade Gold
Category (000s) (g/t) (ounces)
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Underground Measured 3,170 3.95 402,000
Indicated 22,804 3.57 2,621,000
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Total Underground Measured &
Indicated 25,974 3.62 3,023,000
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Open Pit Indicated 4,955 1.70 270,000
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Total Property Measured &
Indicated 30,929 3.31 3,293,000
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Underground Inferred 6,873 3.39 748,000
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Open Pit Inferred 15 1.74 851
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Total Property Inferred 6,888 3.39 748,851
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Tables 2 and 3 provide summaries of measured and indicated and inferred
resources by zone for underground resources at Young-Davidson.
Table 2 - Underground Measured and Indicated Gold Resources by Zone
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Measured & Indicated Resources (2.3 g/t cutoff)
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Gold (Cut to 20 g/t)
Tonnes ------------------------------
Zone (000's) Grade (g/t) Ounces
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Upper Boundary 3,347 3.93 423,000
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Lower Boundary 5,961 3.89 745,000
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Lower YD 10,874 3.49 1,221,000
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Lucky 5,792 3.40 634,000
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Total Measured &
Indicated Resources 3.02 million ounces
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Table 3 - Underground Inferred Gold Resources by Zone
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Inferred Resources (2.3 g/t cutoff)
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Gold (Cut to 20 g/t)
Tonnes ------------------------------
Zone (000's) Grade (g/t) Ounces
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Upper Boundary 84 3.66 10,000
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Lower Boundary 523 3.26 55,000
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Lower YD 4,503 3.40 491,000
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Lucky 1,763 3.39 192,000
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Total Inferred Resources 748,000 ounces
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Notes:
1. Inferred Resources are separate from Measured and Indicated Resources
2. Inferred Resources should not be added to Measured and/or Indicated
Resources
Mineral Resource Estimation Notes:
- Geological interpretation of the underground mineralized body
resulted in the creation of 3D solids based on a 1.7 g/t gold cutoff
grade, 1.3 g/t gold incremental cutoff grade and a minimum horizontal
thickness of three metres (m).
- Block sizes underground are 15m by 15m by 7m.
- Specific gravity of 2.69 tonnes/m(3).
- Inverse distance squared was used for grade interpolation on 3m thick
composites.
- One cutting or capping level of 20 g/t was applied to all zones.
- Measured Resources were defined as blocks within 30m of the nearest
sample.
- Indicated Resources were defined as blocks between 30m - 65m of the
nearest sample.
- Open pit interpretation of the mineralized body was based on a
0.6 g/t gold cutoff grade. Open pit blocks are 5m by 5m by 5m.
- Waste tonnes: 7.7 million; strip ratio 1.5:1.
- Excludes unconsolidated overburden.
Underground Exploration and Development Update
Underground exploration and development work at Young-Davidson during
2008 targeted four specific goals as follows:
1. Driving the ramp to a total length of 3,000 metres (m) and a vertical
depth of approximately 475m to provide underground access to the
deposit for exploration and bulk sampling.
2. Dewatering and refurbishing of the existing No. 3 shaft down to the
13th level at approximately 625m in depth, in order to provide
ventilation and secondary access to the underground ramp workings.
3. Extracting a bulk sample of ore from the Upper Boundary Zone for
metallurgical testing.
4. Increasing the resources in the Upper Boundary and Lucky Zones and
upgrading some of these resources from an indicated to measured
category through underground diamond drilling.
The underground ramp development project was completed at the beginning
of December after advancing a total of 3,039m to a total vertical depth of
483m. During December, mining equipment is being demobilized while the
remaining shaft refurbishing work on the 13th level is completed. The number
of people working at the Young-Davidson site will drop from 115 to 23 at the
end of 2008. In 2009, Northgate's Young-Davidson project group will continue
to perform a variety of activities related to permitting and development and
will keep the mine dewatered.
Now that the new resource estimate is complete and basic geotechnical and
other information has been collected, the project focus has shifted to
optimize the NI 43-101 Preliminary Economic Assessment Report, which was filed
in August, by incorporating the new, dramatically larger resource and
attempting to make better use of the existing ramp and shaft infrastructure at
the site. Once this process is completed, a full feasibility study will be
commissioned.
2009 Exploration and Development Program
As the 2008 resource conversion and expansion drill program was completed
at the end of the third quarter, exploration in 2009 will focus on other
targets of the property outside of the known resource area. Three of the four
drill rigs on the property have been demobilized and the remaining rig has
commenced drilling on these targets.
The rocks that host the Young-Davidson deposit are known to extend to the
west under barren cover rocks. Historically, only a handful of drill holes
have been tested along strike west of Young-Davidson. Other targets on the
property are geophysical anomalies that have similar characteristics to those
of the known Young-Davidson deposit.
Updated Mineral Resource Estimate
The updated mineral resource estimate incorporates all resource
definition diamond drilling on the property as of September 30, 2008 and
comprises 814 mineralized intercepts from 512 drill holes. In 2008, Northgate
drilled 114 diamond core holes (55 surface and 59 underground), totalling
41,131 metres. Northgate will be filing a NI 43-101 Technical Report, which
will be available on SEDAR at www.sedar.com and on Northgate's website at
www.northgateminerals.com within the next 45 days.
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 most
recent National Instrument 43-101 (NI 43-101) Technical Report filed on SEDAR
(www.sedar.com) on May 16, 2008. A summary of these procedures may also be
found in a press release dated April 10, 2006.
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. Overall supervision of the program is by Carl
Edmunds, PGeo, Northgate's Exploration Manager.
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 "CIM Standards"). 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 365,000 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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