Attention Business Editors:
Major increase of indicated resources at Northgate's Young-Davidson Project
Underground Resources Now Total 1.86 Million Ounces
TSX NGX AMEX NXG
VANCOUVER, Feb. 6 /CNW/ - Northgate Minerals Corporation (TSX: NGX, AMEX:
NXG) is pleased to report the results of a new underground mineral resource
estimate at its Young-Davidson property near Matachewan, Ontario. The estimate
combines the results of the 2007 diamond drill program with historic drilling
data. A re-estimate of the indicated resources mineable by open pit methods,
incorporating the results of a recently completed infill drilling campaign, is
presently underway and will be released at a later date.
EXPLORATION HIGHLIGHTS
- Total gold resources on the property including those mineable by open
pit methods is now 2.34 million ounces
- Total underground gold resources in the four main ore zones have
increased to 1.86 million ounces
- Indicated resources underground have increased to 1.42 million
ounces, a gain of 137% compared to last year's estimate
- The percentage of total resources underground in the indicated
category has increased from 36% to 76%
- Vertical continuity of the zones has been established to a depth of
1,350 metres below surface
- Horizontal continuity on two levels between the two historic mines
has now been demonstrated by drill intersections
Ken Stowe, President and CEO, commented, "Since we acquired the
Young-Davidson property two years ago, we have essentially achieved our goal
of doubling the underground gold resource base. We have clearly established
that there are large areas of continuous mineralization both between and below
the workings in the two historic mines. An equally important objective has
been the conversion of inferred resources to the indicated category and we are
very pleased that we now have 1.4 million indicated ounces underground with
more to come in 2008. The first priority of our 2008 diamond drill program
will be to increase the indicated ounces underground by an additional 0.5
million ounces focusing the drilling in the prospective areas between the two
Boundary Zones and the Lucky/Lower YD Zones. Maximizing the number of
indicated resource ounces is important as it is these ounces that can be
converted into reserves in the upcoming Feasibility Study. The tight spatial
distribution of the resources on the property will be beneficial in minimizing
the required underground infrastructure."
OVERVIEW OF YOUNG-DAVIDSON EXPLORATION AREA
Gold mineralization on the Young-Davidson property is present primarily
in an intrusive syenite host rock dipping at approximately 70 degrees to the
south. Figure 1, shown below, presents known resource areas (as defined in the
legend), historic mine workings, simplified geology, and potential new
resource areas. Elevations in the longitudinal section are based on an
artificial mine grid where the surface is defined as 10,355 metres.
To view Figure 1: Young-Davidson Property (Vertical, North Looking,
Longitudinal Section with Metric Grid), click:
http://files.newswire.ca/592/0206LongSection.jpg
The table below provides a summary of the total underground indicated and
inferred resources.
Table 1 - Young-Davidson Gold Resources
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Indicated Resources
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Gold
(Cut to 20 g/t)
-------------------------------------
Tonnes Ounces
Zone (000's) g/t (000's)
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Upper Boundary 1,956 3.83 241
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Lower Boundary 5,123 3.89 641
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Lower YD 2,465 3.37 267
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Lucky 2,380 3.51 269
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Total Indicated Resources 1,418,000 ounces
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Inferred Resources
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Gold
(Cut to 20 g/t)
-------------------------------------
Tonnes Ounces
Zone (000's) g/t (000's)
-------------------------------------------------------------------------
Upper Boundary 319 3.76 39
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Lower Boundary 1,961 3.05 192.5
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Lower YD 848 3.32 90.5
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Lucky 1,088 3.38 118
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Total Inferred Resources 440,000 ounces
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Notes:
1. Inferred resources are separate from Indicated resources
2. Inferred resources should not be added to Measured and/or Indicated
resources
Mineral Resource Estimation Notes
- Geological interpretation of the mineralized body resulted in the
creation of 3D solids based on a 2.3 g/t gold cutoff grade and a
minimum horizontal thickness of three metres.
- Block sizes are 15 m by 15 m by 7.5 m with a tonnage factor of
2.69 tonnes/m3.
- Inverse distance squared was used for grade interpolation
- Within the 3D mineralization solid, no selectivity as to grade was
applied, as this is a potential bulk underground mining scenario.
- One cutting level of 20 g/t was applied to all zones
- The deposit is relatively insensitive to cutting levels as the
overall total ounces are reduced by only 6% compared to uncut
resource estimation.
The 2007 resource estimate shows significant increases in indicated
resources in all four of the main zones as shown below in Table 2.
Table 2 - Increases in 2007 Underground Indicated Gold Resources by Zone
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Underground Indicated Resources
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Tonnes (millions) Gold Ounces (000's)
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Zone 2006 2007 Increase 2006 2007 Increase
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Upper Boundary 0 1.96 1.96 0 241 241
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Lower Boundary 2.61 5.12 2.51 339 641 302
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Lower YD 1.76 2.47 0.71 184 267 83
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Lucky 0.79 2.38 1.59 76 269 193
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Total Underground 5.16 11.93 6.77 599 1,418 819
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Although only limited drilling was conducted in the vicinity of the Upper
Boundary Zone in 2007, a thorough review of the extensive historic database
was completed. A fundamentally more conservative and rigorous approach was
applied around the historic mine openings (last mined in the early 1950's),
which significantly reduced the previous 2004 estimate of inferred tonnes and
ounces assumed to be remaining in this zone. These assumptions will be
verified in 2008 by drilling from the advanced exploration ramp and cavity
monitoring surveys of the old workings, which are presently being dewatered as
part of the shaft dewatering program.
An update of the open pit resource is presently underway. A 5,100-metre
infill drilling program was completed in December. This will be the first
update of the open pit resource to be generated by Northgate since the company
acquired the Young-Davidson property in late 2005. The previous resource
estimate was completed in 2004 and resulted in an indicated resource of
464,000 ounces and an additional inferred resource of 14,000 ounces.
An aggressive $21 million advanced exploration program, devoted to
drilling, shaft dewatering and underground ramp development, will continue in
2008 in support of a Feasibility Study that is expected to be completed by the
end of the year. Four drills will be active on the property (surface and
underground) focusing mainly on increasing the indicated resource by an
additional 0.5 million ounces. It is expected that the underground ramp
development will be completed to its planned depth of 450 metres by mid-year.
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 January 29, 2007. 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 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 gold and copper mining company
focused on operations and opportunities in the Americas and Australia. The
Corporation's principal assets are the Kemess South mine in north-central
British Columbia and the Young-Davidson property in northern Ontario. With the
proposed acquisition of Perseverance Corporation Limited, the addition of two
operating mines will create a leading multi-mine, mid-tier gold producer, with
over 400,000 ounces of gold production in 2008. Northgate is listed on the
Toronto Stock Exchange under the symbol NGX and on the American Stock Exchange
under the symbol NXG.
FORWARD-LOOKING STATEMENTS:
This news release includes certain "forward-looking statements" within
the meaning of section 21E of the United States Securities Exchange Act of
1934, as amended. These forward-looking statements include estimates,
forecasts, and statements as to management's expectations with respect to,
among other things, future metal production and production costs, potential
mineralization and reserves, exploration results, progress in the development
of mineral properties, demand and market outlook for commodities and future
plans and objectives of Northgate Minerals Corporation (Northgate).
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 upon a number of estimates and assumptions that, while
considered reasonable by management are inherently subject to significant
business, economic and competitive uncertainties and contingencies. There can
be no assurance that such statements will prove to be accurate and actual
results and future events could differ materially from those anticipated in
such statements. Important factors that could cause actual results to differ
materially from Northgate's expectations are disclosed under the heading "Risk
and Uncertainties" in Northgate's 2006 Annual Report and under the heading
"Risk Factors" in Northgate's 2006 Annual Information Form (AIF) both of which
are filed with Canadian regulators on SEDAR (www.sedar.com) and with the
United States Securities and Exchange Commission (www.sec.gov). Northgate
expressly disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information, future
events or otherwise.
For further information: Ms. Keren R. Yun, Investor Relations, Tel: (416)
216-2781, Email: ngx@northgateminerals.com, Website:
www.northgateminerals.com
