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).
1 See press release dated January 25, 2010.
<p> <b>Ms. Keren R. Yun,</b> Director, Investor Relations<br/> Tel: 416-216-2781<br/> Email: <a href="mailto:ngx@northgateminerals.com">ngx@northgateminerals.com</a> Website: <a href="http://www.northgateminerals.com">www.northgateminerals.com</a> </p>