Northgate Minerals Reports Solid First Quarter Results
Construction at Young-Davidson Scheduled to Begin this Summer
Notice: Conference Call and Webcast of Annual and Special Meeting and Q1 Results Today at 10:00 am ET
Dial in: +647-427-7450 or 1-888-231-8191
VANCOUVER, May 11 /CNW/ - (All figures in US dollars except where noted) - Northgate Minerals Corporation ("Northgate" or the "Corporation") (TSX: NGX; NYSE Amex: NXG) today announced its financial and operating results for the first quarter ended March 31, 2010.
First Quarter Highlights
- Generated strong cash flow from operations of $16.3 million or
$0.06 per diluted share.
- Reported adjusted net earnings(1) of $7.3 million or $0.03 per share.
- Produced 73,362 ounces of gold and 9.5 million pounds of copper at an
average net cash cost of $654 per ounce of gold.
- Sold 75,128 ounces of gold at a realized price of $1,128 per ounce
and 11.1 million pounds of copper at a realized price of $3.49 per
pound.
- At Young-Davidson, we appointed AMEC Americas Limited ("AMEC") as the
engineering, procurement, construction management ("EPCM") contractor
and awarded a shaft development contract to Cementation Canada Inc
("Cementation"). Construction at Young-Davidson is scheduled to begin
this summer.
- Successful exploration results during the quarter:
- Drilling at Fosterville, south of the Phoenix Reserve block, has
intersected 6.3 metres ("m") of 12.2 grams per tonne ("g/t") gold
on section 6900N and 5.1m of 6.5 g/t gold on section 6950N,
potentially extending the Phoenix Extension zone another
150 metres south along strike and down plunge.
- At Young-Davidson, drilling on the high-grade mafic volcanic gold
mineralization around old workings just east of the current
deposit continues to show promising results for additional open
pit resources and reserves. Highlight holes include:
- Hole 160: intersected a core length of 17.2m of 5.29 g/t
- Hole 174: intersected a core length of 18.0m of 4.35 g/t.
- Identified a high-grade zone of at least 70 million tonnes within the
Kemess North Deposit that could potentially support an underground
block cave operation ("Kemess Underground").
- $3 million infill diamond drill program to commence this summer to
increase the confidence in the high-grade zone and confirm
geotechnical conditions.
(1) Adjusted net earnings is a non-GAAP measure. See section entitled
"Non-GAAP Measures" in the Corporation's fourth quarter MD&A Report.
Ken Stowe, President and CEO, stated: "We are pleased to report solid first quarter production from our three operating mines of 73,362 ounces of gold, highlighted by production at Stawell and Kemess South, which both met their production forecasts. We also continued to generate strong cash flow from operations of $16.3 million, following on the record annual cash flow generated in 2009. On the exploration front, our aggressive $21 million budget has already started to show promising results. At Fosterville, drilling south of the Phoenix Reserve should extend the zone another 150 metres. Work will continue into the second quarter with the focus of integrating the new drill data into a reserve and resource model. Drilling will also continue on the 'Big Fish' targets at Stawell, where work is currently underway in the Northgate Gift, a fault offset trend of the Magdala orebody, amongst other prospective targets. At Young-Davidson, we will wrap up a near-surface diamond drill program, where results to date have indicated the potential to add to current open pit reserves, which would have a positive impact on the early years of operating the mine. We also look forward to breaking ground on the property, as construction is scheduled to begin this summer. Finally, a $3 million drill program at Kemess Underground will also take place this summer after we identified an initial 70 million tonne high-grade zone within the Kemess North Deposit. Although more work is required to increase the confidence in the high-grade resource and determine the boundary of the high-grade zone, an initial review indicates the potential to support an underground block cave operation at the Kemess Camp."
Financial Performance
Northgate recorded consolidated revenue of $125.3 million in the first quarter of 2010, compared with revenue of $123.8 million recorded in the same period last year. Revenues were slightly higher in the first quarter of 2010 as a result of higher realized metal prices for both gold and copper.
Adjusted net earnings for the first quarter were $7.3 million or $0.03 per share, compared to adjusted net earnings of $27.3 million or $0.11 per share reported in the same quarter last year. Adjusted net earnings do not include certain non-cash items from its calculation of net earnings prepared in accordance with Canadian generally accepted accounting principles ("Canadian GAAP"). Northgate has prepared this figure as it may be a useful indicator to investors. Net earnings for the first quarter of 2010 were $4.9 million or $0.02 per share, compared with net earnings of $21.4 million or $0.08 per share in the first quarter of 2009.
Northgate continued to generate strong cash flow from operations of $16.3 million or $0.06 per share in the first quarter of 2010, following on the record cash flow of $187.2 million generated last year. During the quarter, Northgate made a Canadian income tax payment in the amount of Cdn$28.0 million. Cash flow from operations in the first quarter of 2009 totalled $45.2 million or $0.18 per share.
Northgate continues to maintain a strong balance sheet, with cash and cash equivalents totalling $230.3 million at the end of the first quarter 2010.
Results from Operations
Fosterville Gold Mine
During the first quarter of 2010, a total of 180,505 tonnes of ore were mined and mine development advanced 2,239m, which represents a 9% and 18% improvement over the 165,355 tonnes and mine development advance of 1,900m in the same period last year. Mining rates have improved due to an increase in the number of working faces made available within the Phoenix and Ellesmere orebodies and by the substantial mine development achieved since Northgate took ownership of the mine.
Also during the quarter, 191,663 tonnes of ore were milled at a grade of 5.11 g/t compared with 167,924 tonnes milled at a grade of 5.53 g/t in the corresponding quarter of 2009.
Fosterville achieved production of 26,421 ounces of gold in first quarter of 2010, following on the record set in the previous quarter of 26,615 ounces. Production in the first quarter of 2010 was slightly higher than the 25,779 ounces recorded in the same period last year.
The average net cash cost of production for the first quarter of 2010 was $679 per ounce, which was 5% lower than the $720 per ounce recorded in the previous quarter. The net cash cost of production in the first quarter of 2009 was $430 per ounce. Cash costs have increased year-over-year as a result of the stronger Australian dollar relative to the US dollar, which averaged over 36% higher in the most recent quarter.
In 2010, Fosterville is expected to produce 108,000 ounces of gold at a net cash cost of $689 per ounce.
Stawell Gold Mine
Record quarterly ore production continues to be achieved at Stawell, as 196,725 and 206,007 tonnes of ore were mined and milled, respectively, in the first quarter of 2010. This represents a significant improvement over the 154,718 and 180,199 tonnes of ore mined and milled in the corresponding quarter of 2009. Gold recoveries of 87% were in line in the first quarter of 2010.
Underground mine development continued in the Golden Gift (GG) production zones, GG3 and GG6, as well as the Magdala area during the quarter and the development advance totalled 1,892m compared to the 1,407m development advance in the corresponding quarter of 2009.
Gold production during the first quarter of 2010 was in line with forecast of 22,238 ounces, compared to the 22,392 ounces of gold production in the corresponding quarter of 2009. The net cash cost of production for the first quarter of 2010 was $794 per ounce of gold, which was higher than the cash cost of $432 per ounce of gold recorded in the same period last year. Cash costs have increased year-over-year as a result of the stronger Australian dollar relative to the US dollar previously mentioned. In 2010, Stawell is forecast to produce 99,500 ounces of gold at a net cash cost of $633 per ounce.
Kemess South
During the quarter, Kemess South posted gold production of 24,703 ounces, which was in line with forecast. While copper production of 9.5 million pounds was slightly under forecast due to lower than planned mill throughput, the annual copper forecast remains unchanged as grades and recoveries are expected to improve in the second half of the year. The net cash cost of production for the first quarter of 2010 was $502 per ounce, which was lower than forecast. For the full year 2010, the net cash cost is expected to drop to approximately $300 per ounce, as copper production is expected to increase in the second half of the year, which will increase the by-product credit.
During the first quarter of 2010, approximately 10.5 million tonnes of ore and waste were removed from the eastern end of the open pit compared to 6.8 million tonnes during the corresponding quarter of 2009. The higher tonnes moved in the most recent quarter resulted in significantly lower unit mining costs of Cdn$1.11 per tonne moved compared with Cdn$2.30 per tonne moved in the first quarter of 2009.
Mill throughput and mill availability during the first quarter of 2010 were 51,030 tonnes per day (tpd) and 92%, respectively, which was an improvement over the performance in the first quarter of 2009 of 47,913 tpd and 91%.
2010 Production Forecast
Northgate's production forecast for the balance of 2010 is outlined in the following table:
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Actual Forecast
(ounces) Forecast (ounces) 2010
----------------------------------- Total Cash Cost
Q1 Q2 Q3 Q4 (ounces) ($/oz)(1)
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Fosterville 26,421 28,500 26,500 26,500 108,000 $659
Stawell 22,238 21,250 27,250 28,750 99,500 $665
Kemess 24,703 23,000 26,500 28,500 102,500 $301
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73,362 72,750 80,250 83,750 310,000 $553
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(1) Assuming copper price of $3.20/lb and exchange rates of US$/Cdn$0.97
and US$/A$0.92 for Q2 to Q4 2010.
Moving Ahead with Young-Davidson
In January, Northgate released positive results from its feasibility study for the Young-Davidson project and, based on these results, received approval from its Board of Directors to develop the mine. During the quarter, substantial progress was made as follows:
- Environmental and permitting activities continued throughout the
quarter and Northgate received notice that the first of several key
permits, the Air and Noise Certificate of Approval, had been
approved.
- AMEC was appointed as the EPCM contractor and detailed engineering on
the project commenced early in the quarter.
- A contract with Cementation was recently signed for the shaft
infrastructure engineering, the deepening of the existing shaft, and
raise boring of a new 5.5m diameter production shaft.
- Hydro One has completed the Environmental Assessment process for
upgrading the 47 kilometres (km) of the 115 kilovolts (kV)
transmission line connecting Young-Davidson to the provincial grid.
Preparation of the refurbishment project is expected to begin
shortly.
- Northgate has hired key members of its owner's team at Young-Davidson
and is readying the site infrastructure that is necessary to support
construction and development activities.
- A ceremony commemorating the Board's approval to develop the mine was
held on March 4, 2010 in Matachewan, with dignitaries, business
representatives and members of the immediate and surrounding
communities in attendance.
- Ramp construction and existing shaft refurbishment activities
continued with the ramp reaching a vertical depth of 524m by quarter
end.
During the second quarter of 2010, the Young-Davidson site will convert to owner ramp development and engineering and permitting activities are expected to have advanced to the point where construction of surface facilities can begin this summer.
Exploration Update
Fosterville Gold Mine
During the first quarter, four drills were active primarily on the Phoenix Extension and Harrier Underground zones. Drilling on the Phoenix Extension was undertaken in order to extend reserves in the Phoenix deposit. Drilling highlights include Hole 526C in Section 6900N, which intersected 12.2 g/t gold over 6.3m and Hole 527C in Section 6950, which intersected 6.5 g/t over 5.1m (near to true thicknesses). Based on the assay results received to date, it appears that the Phoenix Extension zone continues at least another 150m down plunge. Work in the second quarter will focus on integrating the drill data into a resource and reserve model.
Figure 1: Longitudinal Projection of the Fosterville Gold Mine: Phoenix Extension
(http://www.northgateminerals.com/Theme/Northgate/files/FGM-May2010.gif)
In the Harrier Underground zone, work on the north sector continued where there is good potential to increase the existing Harrier Underground reserve. Ten holes have been completed year-to-date and have returned strong grades over minable widths, demonstrating that this zone is consistent and predictable. Drilling is expected to continue throughout the second and third quarter.
Other exploration at Fosterville has included geophysical and geochemical surveys both on and off the mine lease in preparation for drill testing later in the year.
Stawell Gold Mine
Exploration at Stawell has continued with a mix of early stage exploration targets, such as Commercial Road and Pleasant Creek (historic alluvial producing areas), and Germania (historic high-grade hard rock production). Exploration also includes targets within and adjacent to the mine lease, such as North Magdala, currently in a data compilation and analysis phase, and Northgate Gift, with a long hole in progress exploring for a fault offset portion of the Magdala orebody under the Wildcat Porphyry, a late structure against which the Magdala orebody is offset.
Results and/or completion of these programs are expected in the next several months, as well as substantial progress on in-mine exploration programs, such as the Infill drilling on Lower GG6 and Above Scotchman's Fault, as diamond drill platforms become available within the mine workings.
Young-Davidson
Drilling around old workings east of the current open pit reserves continues to show promising results for additional open pit resources and reserves. Highlight holes include Hole 160 that intersected a core length of 17.2m (true thickness estimated to be 11.7m) of 5.29 g/t and Hole 174 that intersected a core length of 18m (true thickness estimated to be 14.9m) of 4.35 g/t gold. To date, 31 holes totalling 1,901m have been drilled in this area. A summary of assay results are shown in Tables 1 and 2 below. The drill program will be completed this summer.
Figure 2: Longitudinal Projection of Young-Davidson Property - Near Surface Holes
(http://www.northgateminerals.com//Theme/Northgate/files/YD-May2010.gif)
Table 1 - Select Young-Davidson Surface Holes from 2010 Drilling Program
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Gold Grade
--------------------
Core Length Uncut Cut to
Hole ID From (m) To (m) (m) (g/t) 20 (g/t)
-------------------------------------------------------------------------
YD09-160 9.0 26.2 17.2 5.29 5.06
-------------------------------------------------------------------------
-------------------------------------------------------------------------
YD09-174 7.2 9.0 1.8 6.79 6.79
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-------------------------------------------------------------------------
(True thicknesses estimated to be 70-90% of core length)
Table 2 -Young-Davidson Surface Holes from the 2009 Drilling Program
-------------------------------------------------------------------------
Gold Grade
--------------------
Core Length Uncut Cut to
Hole ID From (m) To (m) (m) (g/t) 20 (g/t)
-------------------------------------------------------------------------
YD09-138 30.6 33.6 3.0 3.04 3.04
-------------------------------------------------------------------------
53.5 58.5 5.0 12.84 12.75
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-------------------------------------------------------------------------
YD09-139 69.3 72.0 2.7 16.83 13.86
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YD09-140 13.5 21.0 7.5 2.95 2.95
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64.5 93.5 29.0 2.34 2.34
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YD09-141 58.5 67.0 8.5 4.14 4.14
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YD09-142 31.5 36.0 4.5 2.48 2.48
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94.0 126.0 32.0 1.95 1.95
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Incl. 94.0 102.7 8.7 3.46 3.46
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Gold Grade
Core Length Gold Grade Cut to
Hole ID From (m) To (m) (m) Uncut (g/t) 20 (g/t)
-------------------------------------------------------------------------
YD09-143 30.4 33.4 3.0 1.33 1.33
-------------------------------------------------------------------------
45.4 48.0 2.6 3.57 3.57
-------------------------------------------------------------------------
58.5 60.0 1.5 3.10 3.10
-------------------------------------------------------------------------
75.0 76.9 1.9 2.15 2.15
-------------------------------------------------------------------------
-------------------------------------------------------------------------
YD09-144 8.0 14.0 6.0 4.33 4.33
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(True thicknesses estimated to be 70-90% of core length)
Kemess Underground
During the quarter, Northgate commissioned an international engineering firm to assess the economic prospects of mining part of the Kemess North deposit using an underground block caving method. An initial review of the existing Kemess North resource model was carried out to identify the higher grade zone that could support an underground block cave operation ("Kemess Underground"). A target zone of at least 70 million tonnes of mineralization containing 1.4 million ounces of gold and 500 million pounds of copper was identified in the eastern part of the Kemess North deposit from 300m - 600m below surface.
At the time of the original Kemess North feasibility study in 2005, the geological and geotechnical information relating to the Kemess North deposit was collected and analyzed on the assumption that the deposit would be mined as a large low-grade open pit. In order to develop a more detailed block caving model, additional resource definition drilling is required to enable a greater degree of confidence in the potential of the high-grade resource, to determine the boundary of the high-grade zone and to confirm the geotechnical conditions necessary to support block caving. An exploration budget of $3 million has been approved and diamond drilling is scheduled to commence this summer.
Summarized Consolidated Results
(Thousands of US dollars, except where noted) Q1 2010 Q1 2009
-------------------------------------------------------------------------
Financial Data
Revenue $ 125,278 $ 123,818
Adjusted net earnings(1) 7,341 27,313
Per share (diluted) 0.03 0.11
Net earnings 4,937 21,410
Per share (diluted) 0.02 0.08
Cash flow from operations 16,283 45,202
Cash and cash equivalents 230,306 88,379
Total assets $ 728,158 $ 593,322
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Operating Data
Gold production (ounces)
Fosterville 26,421 25,779
Stawell 22,238 22,392
Kemess 24,703 59,306
----------------------------
Total gold production 73,362 107,477
----------------------------
Gold sales (ounces)
Fosterville 25,944 26,363
Stawell 21,411 24,635
Kemess 27,773 55,686
----------------------------
Total gold sales 75,128 106,684
----------------------------
Realized gold price ($/ounce)(2) 1,128 934
----------------------------
Net cash cost ($/ounce)(3)
Fosterville 679 430
Stawell 794 432
Kemess 502 367
----------------------------
Average net cash cost ($/ounce) 654 396
----------------------------
Copper production (thousands pounds) 9,529 15,007
Copper sales (thousands pounds) 11,145 13,032
Realized copper price ($/pound)(2) 3.49 2.07
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(1) Adjusted net earnings is a non-GAAP measure. See section entitled
"Non-GAAP Measures" in the Corporation's first quarter MD&A Report.
(2) Metal pricing quotational period for Kemess is three months after the
month of arrival (MAMA) at the smelting facility for copper and gold.
Therefore, realized prices reported will differ from the average
quarterly reference prices, since realized price calculations
incorporate the actual settlement price for prior period sales, as
well as the forward price profiles of both metals for unpriced sales
at the end of the quarter.
(3) Net cash cost per ounce of production is a non-GAAP measure. See
section entitled "Non-GAAP Measures" in the Corporation's first
quarter MD&A Report.
Interim Consolidated Balance Sheets
March 31 December 31
Thousands of US dollars 2010 2009
-------------------------------------------------------------------------
(Unaudited)
Assets
Current Assets
Cash and cash equivalents $ 230,306 $ 253,544
Trade and other receivables 24,837 27,961
Inventories (note 3) 39,632 44,599
Prepaids 3,533 2,566
Future income tax asset 5,661 5,541
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303,969 334,211
Other assets 38,022 27,544
Future income tax asset 11,935 14,507
Mineral property, plant and equipment 337,097 327,416
Investments (note 4) 37,135 38,001
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$ 728,158 $ 741,679
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-------------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable and accrued liabilities $ 68,734 $ 59,132
Income taxes payable 1,291 29,395
Short-term loan (note 5) 41,137 41,515
Capital lease obligations 6,673 5,995
Provision for site closure and reclamation
costs 23,846 23,501
Future income tax liability 893 867
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142,574 160,405
Capital lease obligations 4,239 4,656
Other long-term liabilities 3,329 8,995
Provision for site closure and reclamation
obligations 22,503 23,989
-------------------------------------------------------------------------
172,645 198,045
Shareholders' Equity
Common shares 403,217 402,879
Contributed surplus 7,526 6,202
Accumulated other comprehensive income (loss) 1,575 (3,705)
Retained earnings 143,195 138,258
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555,513 543,634
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$ 728,158 $ 741,679
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The accompanying notes form an integral part of these unaudited interim
consolidated financial statements.
Interim Consolidated Statements of Operations and Comprehensive Income
Three Months Ended March 31
Thousands of US dollars, except share and
per share amounts, unaudited 2010 2009
-------------------------------------------------------------------------
Revenue $ 125,278 $ 123,818
-------------------------------------------------------------------------
Cost of sales (note 3) 84,544 59,318
Depreciation and depletion 27,312 23,497
Administrative and general 3,839 2,282
Net interest income (454) (380)
Exploration 4,127 3,249
Currency translation loss (gain) (3,399) 2,581
Accretion of site closure and reclamation
costs 414 722
Write-down of investments (note 4) 340 -
Other expenses (income) 249 (666)
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116,972 90,603
-------------------------------------------------------------------------
Earnings before income taxes 8,306 33,215
Income tax recovery (expense)
Current (477) (22,853)
Future (2,892) 11,048
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(3,369) (11,805)
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Net earnings for the period 4,937 21,410
Other comprehensive income (loss)
Unrealized loss on available for sale
securities (866) (2,486)
Unrealized gain (loss) on translation of
self-sustaining operations 5,806 (3,968)
Reclassification of other than temporary
loss on available for sale investments to
net earnings 340 -
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5,280 (6,454)
-------------------------------------------------------------------------
Comprehensive income $ 10,217 $ 14,956
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Net earnings per share
Basic $ 0.02 $ 0.08
Diluted 0.02 0.08
Weighted average shares outstanding
Basic 290,718,756 255,753,359
Diluted 292,005,260 255,762,702
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The accompanying notes form an integral part of these unaudited interim
consolidated financial statements.
Interim Consolidated Statements of Cash Flows
Three Months Ended March 31
Thousands of US dollars, unaudited 2010 2009
-------------------------------------------------------------------------
Operating activities:
Net earnings for the period $ 4,937 $ 21,410
Non-cash items:
Depreciation and depletion 27,312 23,497
Unrealized currency translation losses
(gains) 570 (1,124)
Accretion of site closure and reclamation
costs 414 722
Loss on disposal of assets 333 70
Amortization of deferred charges - 54
Stock-based compensation 1,439 439
Accrual of employee severance costs 438 655
Future income tax expense (recovery) 2,892 (11,048)
Change in fair value of forward contracts 2,894 8,433
Write-down of investments 340 -
Changes in operating working capital and
other (note 10) (25,286) 2,094
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16,283 45,202
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Investing activities:
Release of restricted cash 163 -
Increase in restricted cash (10,042) (72)
Purchase of plant and equipment (9,111) (9,740)
Mineral property development (19,277) (7,839)
Proceeds from sale of equipment 251 72
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(38,016) (17,579)
-------------------------------------------------------------------------
Financing activities:
Repayment of capital lease obligations (1,514) (1,112)
Repayment of short-term loan (378) (617)
Repayment of other long-term liabilities (217) (151)
Issuance of common shares 223 86
-------------------------------------------------------------------------
(1,886) (1,794)
-------------------------------------------------------------------------
Effect of exchange rate changes on cash and
cash equivalents 381 131
-------------------------------------------------------------------------
Increase (decrease) in cash and cash
equivalents (23,238) 25,960
Cash and cash equivalents, beginning of
period 253,544 62,419
-------------------------------------------------------------------------
Cash and cash equivalents, end of period $ 230,306 $ 88,379
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Supplementary cash flow information (note 10)
The accompanying notes form an integral part of these unaudited interim
consolidated financial statements.
Interim Consolidated Statement of Shareholders' Equity
Number of Common
Thousands of US dollars, except Common Shares Contributed
common shares, unaudited Shares Amount Surplus
-------------------------------------------------------------------------
Balance at December 31, 2008 255,717,071 $ 311,908 $ 5,269
Shares issued under new equity
offering 34,300,000 89,306 -
Shares issued under
employee share purchase plan 306,715 422 -
Shares issued on exercise of
options 364,600 1,030 (321)
Stock-based compensation - 213 1,254
Net loss - - -
Other comprehensive income - - -
-------------------------------------------------------------------------
Balance at December 31, 2009 290,688,386 402,879 6,202
Shares issued under
employee share purchase plan 60,479 111 -
Shares issued on exercise of
options 74,800 171 (59)
Stock-based compensation - 56 1,383
Net earnings - - -
Other comprehensive income - - -
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Balance at March 31, 2010 290,823,665 $ 403,217 $ 7,526
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Accumulated
Other Compre-
Thousands of US dollars, except hensive Retained
common shares, unaudited Income (loss) Earnings Total
-------------------------------------------------------------------------
Balance at December 31, 2008 $ (89,503) $ 187,764 $ 415,438
Shares issued under new equity
offering - - 89,306
Shares issued under
employee share purchase plan - - 422
Shares issued on exercise of
options - - 709
Stock-based compensation - - 1,467
Net loss - (49,506) (49,506)
Other comprehensive income 85,798 - 85,798
-------------------------------------------------------------------------
Balance at December 31, 2009 (3,705) 138,258 543,634
Shares issued under
employee share purchase plan - - 111
Shares issued on exercise of
options - - 112
Stock-based compensation - - 1,439
Net earnings - 4,937 4,937
Other comprehensive income 5,280 - 5,280
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Balance at March 31, 2010 $ 1,575 $ 143,195 $ 555,513
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The accompanying notes form an integral part of these interim
consolidated financial statements.
This press release should be read in conjunction with the Corporation's first quarter MD&A report and accompanying unaudited interim consolidated financial statements, which can be found on Northgate's website at www.northgateminerals.com, in the "Investor Info" section, under "Financial Reports - Quarterly Reports".
Annual General and Special Meeting and Q1 2010 First Quarter Result Conference Call and Webcast
Northgate will be hosting its Annual General and Special Meeting ("AGM") on Tuesday, May 11, 2010 at 10:00 am, Toronto time. The AGM will be held at The Suites at One King West, King Gallery, 1 King Street West, Toronto, Canada. This event will also include an overview of Northgate's 2010 first quarter financial results.
You may participate in our conference call by calling 647-427-7450 or toll free in North America at 1-888-231-8191. To ensure your participation, please call five minutes prior to the scheduled start of the call.
A live audio webcast and presentation package will be available on Northgate's homepage at www.northgateminerals.com. Information pertaining to the conference replay, available from May 11 to May 25, 2010, can also be found on our website.
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. We are forecasting gold production of 310,000 ounces in 2010.
Qualified Person
The program design, implementation, quality assurance/quality control and interpretation of the results are under the control of Northgate's geological staff, which includes a number of individuals who are qualified persons as defined under NI 43-101. Carl Edmunds, PGeo, Northgate's Exploration Manager, has reviewed the geologic contents 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:
The Company 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).
%CIK: 0000072931
For further information: Ms. Keren R. Yun, Director, Investor Relations, Tel: (416) 363-1701 ext. 233, Email: ngx@northgateminerals.com, Website: www.northgateminerals.com
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