Northgate Minerals
Reports Strong Third Quarter Production
Fosterville Gold Mine Achieves Second Consecutive
Record Production Quarter
VANCOUVER,
Oct. 11, 2011 /CNW/ - (All figures in US dollars) - Northgate
Minerals Corporation ("Northgate"
or the "Company") (TSX: NGX) (NYSE Amex: NXG) is pleased to
announce its third quarter 2011 operating results, highlighted by record gold
production for the second consecutive quarter from its Fosterville
mine.
Third Quarter
2011 Production Highlights
- Total production for the quarter was 50,014
ounces of gold, which represents a 14% increase from the previous
quarter.
- The Fosterville
mine achieved record production of 29,954 ounces of gold during the
quarter.
- The Stawell
mine achieved improved production of 20,060 ounces of gold.
- The average net cash cost for the quarter was $811
per ounce of gold, which was lower than guidance previously issued by
the Company and represents a 14% decrease from the previous quarter.
The following table provides a summary of production
results for Q3 2011:
Cash cost figures noted in US$
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�
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� � � � � � � � � � � � Q3 2011�
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Fosterville
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�
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�
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�
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Gold
Production (ounces)
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�
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� � � � � � � � � � � � 29,954�
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�
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Net
cash cost ($/ounce) 1
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�
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� � � � � � � � � � � � 733�
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Stawell
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�
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�
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�
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Gold
Production (ounces)
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�
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� � � � � � � � � � � � 20,060�
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�
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Net
cash cost ($/ounce) 1
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�
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� � � � � � � � � � � � 928�
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Total
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�
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�
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�
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Gold
Production (ounces)
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�
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� � � � � � � � � � � � 50,014�
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�
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Average Net cash cost ($/ounce) 1
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�
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� � � � � � � � � � � � 811�
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1� The
cash cost figures for Q3 2011 are unaudited estimates and subject to
revision.
"Our Australian mines delivered strong results
for the quarter, highlighted by another production record at Fosterville
and lower than forecast cash costs at both mines," commented Richard
Hall, Northgate's President & CEO. "With continued strong
performance forecast for the fourth quarter, we expect to meet our annual
production guidance and, at current gold prices, to generate excellent free
cash from our Australian operations for the second half of the year."
Timing for Release of Third Quarter 2011 Earnings
Results
On August 29, 2011, AuRico and Northgate entered into an Arrangement
Agreement pursuant to which, among other things, AuRico
agreed to acquire all of the issued and outstanding common shares of
Northgate in accordance with a Court-approved plan of arrangement (see
Northgate press release dated August 29, 2011) upon
fulfillment of certain conditions..�
The transaction is subject to, among other things, receipt of approval from
both AuRico and Northgate shareholders at their
respective special meetings scheduled for October 24, 2011.� Pending these results and receipt of subsequent
Court approval, the transaction is expected to close by the end of October,
at which time Northgate will become a wholly-owned subsidiary of AuRico.
AuRico
is scheduled to release its third quarter earnings before market opens on November
10, 2011. A conference call and webcast is scheduled to take place on
the same day at 10:00 am ET.� For
more information, please visit AuRico's website at www.auricogold.com.
* * * * * * *
Northgate
Minerals Corporation is a gold
producer with mining operations, development projects and exploration properties
in the Americas and Australia.� Northgate
currently owns and operates the Fosterville
and Stawell gold mines in Victoria,
Australia, and is building the Young-Davidson
gold mine in northern Ontario,
which is scheduled to commence production in 2012.
* * * * * * *
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, 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 US 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 Corporation 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 Corporation's
public filings which have been filed with securities commissions or similar
authorities in Canada)..
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