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Northgate Minerals Corp
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Close 2011-08-24 C$ 2.97
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Northgate Minerals drills 44.1 m of 5.3 g/t Au at Young

2011-08-25 08:50 ET - News Release

Mr. Richard Hall reports

NORTHGATE MINERALS INTERSECTS TWO MAJOR INTERVALS IN THE YD WEST ZONE AT YOUNG-DAVIDSON

Northgate Minerals Corp.'s hole YD11-242 in the YD West zone intersected 5.30 grams per tonne (g/t) gold over 44.1 metres (estimated true thickness is 30.0 metres), including 6.49 g/t over 27.5 metres. Hole YD11-240A, an oblique hole drilled at an approximate 45-degree angle to the zone, returned 2.67 g/t over 193.0 metres (estimated true thickness is 48.3 metres). The YD West zone is located just west of the currently known 2.8-million-ounce reserve at Young-Davidson in Northern Ontario. Production of the Young-Davidson mine is scheduled to commence in 2012.

The YD West zone continues to expand since hole YD10-198 intersected 3.46 g/t over 79.5 metres last year. Additional intersections have returned some of the highest-grade intervals ever drilled on the property, including hole YD11-234B, which returned 4.31 g/t gold over 79.6 metres (see press release dated June 7, 2011). The most recent intervals, YD11-242 and 240A, confirm the highly prospective YD West zone hosting a thick auriferous horizon.

Holes YD11-242 and 240A highlights

  • Hole YD11-242 returned 5.30 g/t gold over 44.1 metres (estimated 30.0 metres true thickness).
  • The hole contains a higher-grade section of 6.49 g/t over 27.5 metres.
  • The hole is located about 65 metres below and 50 metres east of hole YD11-234B.
  • Hole YD11-240A, an oblique hole, returned 2.67 g/t gold over 193.0 metres.
  • The hole contains two higher-grade sections of 4.32 g/t over nine metres and 5.08 g/t over 6.8 metres.
  • The hole includes a 21-metre section of a postmineral diabase dike. The entire intersection (with the dike removed) grades 2.99 g/t gold over 172.0 metres.

This new intersection is oblique to the zone as the hole was designed to test both the attitude of the postmineral dikes and the continuity of the zone between the dikes. The intersection suggests the zone is continuous for at least 190 metres downdip.

Holes YD11-240A and YD11-242 are both very significant intersections and will be utilized to perform a resource estimation in the fall. These reported holes also demonstrate the continuity of the YD West zone, which remains open downdip and to the west.

Two diamond drills continue to explore in this area. An additional underground exploration drill has been mobilized to the property to test below the UBZ zone, located both below and east of current reserves.

"With the most recent drill results, we are confident the YD West zone will add significant resources to the property, as many of the holes have returned higher than average reserve grade," commented Richard Hall, president and chief executive officer of Northgate. "As production from the Young-Davidson mine is scheduled to commence in 2012, we look forward to completing a resource estimation of this new zone, which could increase the mine's average annual production or extend the initial 15-year mine life."

Diamond drill program

The purpose of the 2011 diamond drill program on the west flank of the Young-Davidson deposit is to explore for new resources west of a major north-south-trending diabase dike that appeared to have truncated and displaced the zone. Northgate resolved the fault displacement with hole YD10-198. To date, nine holes have intersected the YD West zone, and all but one have returned ore-grade intersections.

In order to perform a geologically accurate resource estimation, Northgate drilled a perpendicular (oblique) hole, YD11-240A, relative to the exploration holes in the zone to resolve the location and correlation of the north-south-trending postmineral diabase dike. The hole traversed the postmineral dike approximately midway through the YD West zone. The geological information from this hole will be very useful in modelling both the dikes and the zone itself.

Hole YD11-242 was completed in an area where the company required a pierce point in the zone between a thick intersection in YD11-234B and hole YD11-234A (1.22 g/t over 13.4 metres), which appeared to have a significant portion of mineralization replaced by a postmineral dike. Hole YD11-242 intercepted mineralization midway between 234B and 234A and returned 5.30 g/t gold over 44.1 metres. This hole confirms the continuity of the YD West zone and suggests that a significant portion of mineralization in hole 234A was indeed replaced by a postmineral dike.

The new YD West intersections are considered significant and confirm the continuity of the zone. The YD West zone has excellent potential to add significant gold resources to the project. Two diamond drills will continue to focus in this area until the end of the year.

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. An image on the company's website illustrates a longitudinal view of the YD West zone with current reserves illustrated in dark red to the east.

Another image on the website presents a level plan (horizontal slice) of the property's geology immediately adjacent to the main Young-Davidson reserves. The currently defined reserves terminate against the brown diabase dike that was the western limit of the reserve. The holes shown on the level plan are projected either 75 metres updip or 225 metres downdip to the 9,300-metre level and clearly demonstrate that the younger diabase dike occupies a fault with an apparent offset of 50 metres to 100 metres to the north on the western side of the dike. The actual displacement on the fault is to the north, downward or a combination of the two.

                            ASSAY RESULTS FROM YD WEST ZONE

Hole ID      From (m)    To (m)  Interval (m)  True thickness (m)  Gold uncut (g/t) Gold cut 20 g/t

YD11-242      1,239.0   1,283.1          44.1                30.0              5.30            4.80
              1,248.5   1,276.0          27.5                18.7              6.49            5.69
YD11-240A     1,135.0   1,328.0        193.00                48.3              2.67            2.67
Including     1,135.0   1,256.2        121.20                30.3              2.79            2.79
Including     1,159.0   1,195.0         36.00                 9.0              4.32            4.32
Including     1,277.2   1,328.0         50.80                12.7              3.48            3.48
Including     1,277.2   1,304.5         27.30                 6.8              5.08            5.08

                                 PREVIOUS ASSAY RESULTS FROM YD WEST ZONE

Hole ID         From (m)        To (m)  Interval (m)    True thickness (m)  Gold uncut (g/t)    Gold cut 20 g/t

YD11-234B        1,064.8       1,144.4         79.60                  55.0              4.31               4.21
Including        1,094.5       1,144.4         49.90                  34.4              5.66               5.51
Including        1,128.0       1,142.9         14.90                  10.3             10.62              10.10
YD11-234A        1,202.6       1,221.8         19.20                  13.4              1.22               1.22
YD11-234         1,216.9       1,234.7         17.80                   9.5              4.37               4.37
Including        1,217.8       1,226.1          8.30                   4.4              6.82               6.82
YD10-198         1,258.0       1,337.5          79.5                  53.5              3.46               3.46
YD10-198A        1,333.7       1,355.0         20.20                  14.2              6.31               5.42
YD10-198B        1,353.5       1,364.4          10.9                   7.7              5.43               5.43
YD10-226A        1,097.3       1,134.0          36.7                  25.3              0.74               0.74
                 1,115.1       1,125.5          10.4                   7.2              1.19               1.19
YD11-239                                                       Target zone occupied by diabase dike (diked out)             

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 -- technical report filed on SEDAR on Aug. 21, 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.

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