Northgate Minerals
Announces a 500,000+ Ounce Indicated Resource at YD West
Zone averages 30 metres thick at 3.72 grams per tonne
VANCOUVER,
Sept. 15, 2011 /CNW/ - Northgate
Minerals Corporation (TSX: NGX, NYSE Amex: NXG) is pleased to announce
a new, NI� 43-101 compliant resource estimate for the YD West zone at Young-Davidson
in northern Ontario.
YD West is the most recent gold zone discovery located just west of the
currently known 2.8 million ounce reserve1.�
The Young-Davidson
mine is scheduled to commence production in early 2012.
YD West Resource Highlights
- Indicated Resource of approximately 4.5 million
tonnes containing 536,000 ounces of gold
at a grade of 3.72 grams per tonne
("g/t").
- Inferred Resource of 508,000 tonnes containing 53,000 ounces of gold at a
grade of 3.22 g/t.
- The YD West zone is the thickest resource on
the property; a
large portion of the zone exceeds 50� metre� ("m")
true widths, with an average true width of 30 m.
- The mineral resource estimate incorporates nine
diamond drill holes totalling over 12,000 m,
which were completed from July� 2010
to August 2011..
- YD West remains open at depth and to the west, underscoring the exploration
upside on the property. Currently, two diamond drills continue to
explore in this zone and assay results are pending for two additional
holes. Future work will involve aggressive step-out drilling further
west to expand on these resources.
- An additional underground exploration drill is
testing targets to the east and down dip of currently known reserves.
"This is an outstanding result and achievement
by our exploration team and we are extremely pleased with the initial
resource estimate reported today" commented Richard Hall,
President and Chief Executive Officer of Northgate. "The YD� West
zone has yielded some of best grade-thickness intervals ever drilled on the
property and the initial resource has exceeded our expectations. Due to its
thickness and grade, YD West has the potential to be the lowest cost per
ounce mining zone on the property and will have a positive impact on the
economics of the Young-Davidson
mine. As we continue to explore in this zone and commence step-out drilling,
the exploration upside is tremendous and we fully expect to announce a
significant increase in resources at YD West by the end of the year."
Table 1: 2011 YD West Zone Resource Estimate
YD
West Zone
|
� � Tonnes (000's)� �
|
� � Gold (ounces)� �
|
� � Gold Grade (g/t)� �
|
Indicated Resource� �
|
4,488
|
536,000
|
3.72
|
Inferred Resource
|
508
|
53,000
|
3.22
|
Notes to Minerals Resources
- Mineral resources that are not mineral reserves
do not have demonstrated economic viability.
- Mineral resources for Young-Davidson
have been estimated in accordance with the definitions contained in the Canadian
Institute of Mining, Metallurgy and Petroleum (CIM) Standards on
Mineral Resources and Reserves, Definitions and Guidelines adopted by
the CIM Council and National Instrument 43-101.
- Mineral resources are rounded to 1,000 tonnes, 0.01 g/t gold and 1,000 ounces.
- Mineral resources were estimated using an
average long-term gold price of $750/oz
(Cdn$806/oz).� Underground
mineralized wireframes constructed based on approximately a 1.70 g/t
gold cut-off grade, a 1.3 g/t incremental cut-off grade and a minimum
true thickness of three metres..
- Mineral resources were prepared by Carl
Edmunds, Exploration Manager, Northgate, using available assay
data with an effective date of September 1, 2011. Mr.
Edmunds is a member of the Association of Professional Engineers,
Geologists and Geophysicists of British
Columbia and has 23 years of experience in mineral resource
estimation.
Overview of the YD West Zone Drill Program
The purpose of the 2011 diamond drill program on the
YD West zone is to explore for new resources located west of a major
north-south trending diabase dyke that appeared to
have truncated and displaced the main Young-Davidson
orebody.� Northgate resolved the fault
displacement with Discovery Hole YD10-198, which intersected 3.46 g/t over
79.5� metres ("m"). The 2011 initial
resource estimate captures all drilling completed to the end of August
2011 and is based upon a total of nine� drill
holes, all of which have been released previously.
The resource occurs in an area of complex
post-mineral dykes (Figure 2), which necessitated drilling three oblique
holes in a north-west direction in order to resolve this complexity and
ensure the accuracy of the resource estimation.� Analytical results have been received for one of
the three oblique holes while geologic results have been received for two of
the three holes, providing tight control on the positions of the dykes in the
YD� West resource area.
In total, the Young-Davidson
property now contains Proven and Probable Reserves of 2.8 million ounces of
gold, Indicated Resources of approximately 550,000 ounces and Inferred
Resources of over 700,000 ounces (see Annual Report for year ended December
31, 2010 for Young-Davidson Mineral Resources).
Two diamond drills will continue to focus in this
area until the end of the year, with obvious expansion possible to the west
at similar elevations.� An
updated resource for the YD West zone will be released with the Corporation's
annual resource/reserve statement in the first quarter of 2012.
On the eastern side of the Young-Davidson
property, underground exploration has begun on the down dip area beneath the
Upper Boundary Zone (a 100 m wide sector between two prominent dykes inside
the oval outline in Figure� 1), where it was
historically challenging to drill targeted holes from surface.�
The underground access that is now available from the bottom of the new ramp
provides the opportunity to begin this program and three holes are already
complete with assays pending.� An additional
eight to ten holes are planned during the balance of the 2011 exploration
program.
Figure 1 - Young-Davidson Longitudinal Section
www.northgateminerals.com/Theme/Northgate/files/Figure_1_YD.jpg
Figure 2 - YD West Zone Longitudinal Section
www.northgateminerals.com/Theme/Northgate/files/Figure_2_YD.jpg
Appendix 1 - Drill Collar Co-ordinates
Hole_ID
|
Nad83
Easting
|
Nad83
Northing
|
� � Elevation (m)� �
|
� � Azimuth� �
|
Dip
|
� � Depth (m)� �
|
YD10-198
|
� � 522500.2� �
|
� � 5309856.7� �
|
368.7
|
0.0
|
� � -70.0� �
|
1383.0
|
YD10-198A� �
|
522500.2
|
5309856.7
|
368.7
|
0.0
|
-70.0
|
1487.3
|
YD10-198B
|
522500.2
|
5309856.7
|
368.7
|
0.0
|
-70.0
|
1591.9
|
YD10-226A
|
522504.0
|
5309950.1
|
377.9
|
0.0
|
-70.0
|
1283.0
|
YD10-234
|
522510.3
|
5310040.2
|
383.3
|
0.0
|
-70.0
|
1354.8
|
YD11-234A
|
522510.3
|
5310040.2
|
383.3
|
0.0
|
-70.0
|
1269.0
|
YD11-234B
|
522510.3
|
5310040.2
|
383.3
|
0.0
|
-70.0
|
1224.8
|
YD11-240A
|
522955.0
|
5310200.0
|
330.0
|
285.0
|
-70.0
|
1410.3
|
YD11-242
|
522381.0
|
5309871.0
|
383.0
|
0.0
|
-70.0
|
1383.0
|
* * * * * * *
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 Canadian
National Instrument� 43-101 Standards of
Disclosure for Mineral Projects�
("NI� 43-101") compliant Technical Report filed on
SEDAR (www.sedar.com) on August 28, 2009.
Qualified Persons
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, is responsible for
the overall supervision of the program.
* * * * * * *
Note to Investors:
The terms "Qualified Person", "Mineral Reserve",
"Proven Mineral Reserve", "Probable Mineral Reserve",
"Mineral Resource", "Measured Mineral Resource",
"Indicated Mineral Resource", and "Inferred Mineral
Resource" used in this news release are defined in accordance with NI
43-101.
* * * * * * *
Northgate
Minerals Corporation is a gold and
copper 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).
|