Mr. Richard Hall reports
NORTHGATE MINERALS REPORTS STRONG THIRD QUARTER PRODUCTION
Northgate
Minerals Corp. has released its third quarter 2011 operating
results, highlighted by record gold production for the second
consecutive quarter from its Fosterville mine. All figures are shown in U.S. dollars, unless otherwise specified.
Third quarter 2011 production highlights
Total production for the quarter was 50,014 ounces of gold, which
represents a 14-per-cent 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 $811 per ounce of gold,
which was lower than guidance previously issued by the company and
represents a 14-per-cent decrease from the previous quarter.
The table provides a summary of production results for third quarter 2011.
SUMMARY OF THIRD QUARTER 2011 PRODUCTION RESULTS
(in U.S. dollars)
Fosterville
Gold production (ounces) 29,954
Net cash cost ($/ounce)* $733
Stawell
Gold production (ounces) 20,060
Net cash cost ($/ounce)* $928
Total
Gold production (ounces) 50,014
Average net cash cost ($/ounce)* $811
*The cash cost figures for thrd quarter 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 and chief executive officer. "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 Aug. 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 Aug. 29, 2011) upon fulfilment 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 Oct. 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 Nov. 10, 2011. A conference call and webcast is scheduled
to take place on the same day at 10 a.m. ET. For more information,
please visit AuRico's website.
We seek Safe Harbor.
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