Northgate Minerals Announces a 500,000+ Ounce Indicated Resource at YD West
September 12 2011 - 9:48AM
PR Newswire (Canada)
Zone averages 30 metres thick at 3.72 grams per tonne VANCOUVER,
Sept. 15, 2011 /CNW/ - Northgate Minerals Corporation 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 reserve(1). 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 | 4,488 | 536,000 | 3.72 | |Resource | | | |
|_________________|_________________|________________|____________|
|Inferred Resource| 508 | 53,000 | 3.22 |
|_________________|_________________|________________|____________|
Notes to Minerals Resources 1. Mineral resources that are not
mineral reserves do not have demonstrated economic viability. 2.
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. 3. Mineral resources
are rounded to 1,000 tonnes, 0.01 g/t gold and 1,000 ounces. 4.
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. 5. 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 | Nad83 | Elevation| Azimuth | Dip | Depth| | |
Easting | Northing | (m) | | | (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.
Northgate Minerals Corporation CONTACT: Ms. Keren R. Yun,
Director, Investor RelationsTel: 416-216-2781Email:
ngx@northgateminerals.com Website: www.northgateminerals.com
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