Northgate Minerals and Nevada Exploration Sign Formal Option Agreement on the Awakening Gold Project
VANCOUVER, June 7 /CNW/ - (All figures in United States dollars) Northgate Minerals Corp. ("Northgate") (TSX: NGX, NYSE Amex: NXG) and Nevada Exploration Inc. ("NGE") (TSX-V:NGE) are pleased to announce the completion and execution of the definitive Exploration and Option to Enter Joint Venture Agreement ("Agreement") on NGE's Awakening Gold Project ("Property"), in Humboldt County, Nevada. The Agreement grants Northgate the option to earn an initial 51% interest in the Property by spending $4,100,000 in exploration and making additional payments totaling $436,000 over five years. Northgate's exploration commitment in the first year is $500,000. If Northgate completes the initial 51% earn-in, it may then earn an additional 14%, for a total of 65%, by completing a feasibility report on the Property.
Ken Stowe, Northgate's President and CEO, stated: "We are excited to commence exploration at the Awakening Gold Project, as this is our first foray into the Nevada region. The project lies in an area with a history of modest exploration activity and Nevada Exploration has done an excellent job in identifying several high priority targets analogous to mineralization seen in other areas of the Awakening mining district."
Wade Hodges, NGE's President and CEO: "We've used our groundwater chemistry exploration technology to identify a new project in a covered setting; we've used good conventional geology, geochemistry, and geophysics to advance the project and demonstrate its potential, and now we've leveraged this investment to engage Northgate, a well-funded and technically capable partner, to complete the next phases of work. This is a logical time for us to pass the torch at Awakening and to direct our resources towards advancing our other projects and continuing our target generating groundwater chemistry reconnaissance program. We are very pleased to partner with Northgate and look forward to developing a productive working relationship with Northgate's team."
Awakening Gold Project
The Awakening Gold Project consists of 420 claims (approximately 34km2) and is located 50km NNW of Winnemucca, Nevada, on the NW flank of the Slumbering Hills. The Property covers the NW portion of the historic Awakening mining district and adjoins the north end of the former producing Sleeper Gold Mine, which produced 1.7 million ounces of gold and 2.3 million ounces of silver.
The Property is largely covered by a thin veneer of alluvium, and as a result, has seen little historic exploration activity. In 2005, NGE's regional groundwater chemistry reconnaissance program identified anomalous levels of gold and other trace metals in the groundwater north of the Sleeper Mine. In 2008 and 2009, NGE completed detailed gravity geophysics, air magnetic geophysics, and soil geochemistry across the Property. The combined exploration dataset has identified several high priority targets analogous to the geologic units controlling the mineralization at the Sleeper Gold Mine.
Prior to its first drill program in early 2011, Northgate anticipates that it will carry out an induced polarization survey as well as additional soil and water geochemical sampling to further define drill targets.
Further information on the Awakening Gold Project can be found under the Exploration section on Northgate's website at www.northgateminerals.com.
Northgate Minerals Corporation is a gold and copper producer with mining operations, development projects and exploration properties in Canada and Australia. Northgate's vision is to be the leading intermediate gold producer by identifying, acquiring, developing and operating profitable, long-life mining properties. The company is forecasting gold production of 310,000 ounces in 2010.
Nevada Exploration Inc. is an exploration company focused on gold in Nevada. NGE has developed proprietary groundwater chemistry exploration technology to explore for gold in Nevada's covered basins where traditional exploration techniques are challenged, and has completed the first ever comprehensive survey of Nevada's groundwater focused on discovering new gold deposits. NGE has demonstrated that Nevada's gold deposits exhibit recognizable and measurable groundwater chemistry signatures and NGE is using its proprietary technology to identify, acquire, and advance new exploration properties exhibiting groundwater chemistry similar to known gold mines.
Wade A. Hodges, President & CEO, Nevada Exploration Inc., is the Qualified Person, as defined in National Instrument 43-101, and has prepared the technical and scientific information contained in this News Release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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. 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, 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:
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).
For further information: Keren R. Yun, Director, Investor Relations, Northgate Minerals Corporation, Email: firstname.lastname@example.org, Tel: (416) 363-1701 ext. 233, Website: www.northgateminerals.com; Wade A Hodges, President & CEO, Nevada Exploration Inc., Email: email@example.com, Tel: (775) 359-7740, Website: www.nevadaexploration.com