Exploration Success Continues on Both Flanks of
Existing Young-Davidson Reserve
VANCOUVER,
Oct. 4, 2011 /PRNewswire/ - Northgate
Minerals Corporation (TSX: NGX) (NYSE Amex: NXG) is pleased to
announce assay results recently received from four diamond drill
holes completed at Young-Davidson. Two of these holes were drilled in
the YD West zone, where a new Indicated and Inferred Resource
estimate of 536,000 and 53,000 ounces, respectively, was
recently announced1. Drill results from these two holes
(approximate widths of 30 metres ("m")), have enlarged
this zone with a higher average grade than the main Young-Davidson deposit. The other two holes have
slightly expanded the Upper Boundary Zone reserve ("UBZ") and
highlight the potential of a new footwall zone, the YMX Footwall,
that may provide another underground mining front on the
property.
YD West Highlights
Following on the new resource estimate at the YD West
zone1, there are two additional holes for which assay
results are now available:
- Hole YD11-244, drilled south to north, returned an
intersected width of 54.0 m grading 5.44 grams per
tonne ("g/t") gold, including 48.3 m grading 5.99
g/t.
- Hole YD11-243A, an oblique hole completed in the upper
portion of the YD West zone, returned 2.68 g/t over 31.2 m
east of a post mineral dyke and 4.60 g/t gold over 39.2 m
west of the same dyke. The average of these intersections with the
dyke removed is 3.75 g/t gold over 70.4 m.
- Two diamond drills continue to explore in the YD West
zone.
It is expected that the results from these two holes will
positively impact the recently announced YD West resource when it
is updated at the end of the year.
Underground Exploration Highlights
Underground exploration drilling initiated in
mid-2011 focused on the down dip extension of the UBZ and other
targets to the east of the existing Young-Davidson reserve. This drilling was
conducted from an underground access located 150 m in the
footwall and beneath the target UBZ. While the intent was to
step-out down dip from the UBZ, the first hole flattened
excessively, intersecting the lower section of the UBZ reserve.
- Hole YMX11-01 returned 3.07 g/t gold over 54.2 m,
including 3.31 g/t gold over 45.3 m in the UBZ,
indicating the zone at this location is up to 30 m wider than
previously modeled.
- Hole YMX11-02 confirmed that the UBZ has a depth extent
as modeled in the reserve and does not continue below the 9550 m
elevation.
YMX Footwall Zone
A benefit of drilling YMX holes from underground
in a north to south orientation (i.e. from the footwall side of the
existing deposit, as opposed to from the hanging wall side where
almost all of the previous surface-based exploration drilling took
place) is that the footwall of the currently known Young-Davidson deposit becomes better explored.
In this instance, a potentially significant zone of continuous
mineralization (YMX Footwall), which was previously interpreted as
only isolated intersections, has been identified.
- Hole YMX11-01 also returned 3.53 g/t gold over 12.0
m in the YMX Footwall.
- Hole YMX11-02, drilled approximately 50 m down dip from
the first hole, returned 5.89 g/t over 16.1 m in the
YMX Footwall.
- These two new holes, in conjunction with six historic
intercepts, suggest the YMX Footwall zone is a continuous area of
mineralization with a thickness of approximately 10 m and an
east-west strike length of up to 250 m with a similar vertical
extent up and down dip.
The potential new zone, which is not yet
included in resources or reserves on the property, is located
approximately 75 m north of and parallel to one of the main reserve
areas of the 2.8 million ounce Young-Davidson reserve2.
Given its close proximity to current mine
development, its near vertical orientation, its grade and
thickness, the YMX Footwall zone has the potential to provide
another underground mining front for the Young-Davidson mine, which commences production in
2012.
"Our exploration program at Young-Davidson continues to yield exceptional
results," commented Richard Hall,
President and CEO of Northgate. "The two new results from YD West
bolster the recently released resource, while the YMX Footwall zone
could become our second new gold resource area identified outside
of current reserves at Young-Davidson in the past 14 months. The close
proximity of the YMX Footwall to our existing mine infrastructure
means the zone has the potential to provide an additional
underground mining front to feed the Young-Davidson mill, which has the capacity to
process substantially more than the 6,000 tonnes per day that was
outlined in the Feasibility Study. The exciting results from the
YMX Footwall, combined with the nearly 600,000 ounces recently
reported at YD West, mean that we could realize an additional
one million ounces of resources on the property from our 2011 drill
program."
Overview of Young-Davidson Exploration Area
YD West Diamond Drill Program
Additional drilling on the YD West zone
continues to return excellent results. Hole YD11-243A, an oblique
hole, was designed to test the orientation of the post mineral
dykes as well as the zone itself, and hole YD11-244 was drilled in
a conventional direction from south to north to test the zone.
Geologic contact information for both holes were used to constrain
the dyke model in the YD West resource estimate; however, assay
results were pending at the time of the release so were not used in
the resource estimate. Two diamond drills continue to test the
limits of the YD West zone, which contains an Indicated and
Inferred Resource of 536,000 and 53,000 ounces, respectively.
Underground Diamond Drill Program
The purpose of the 2011 underground diamond
drill program was to test if the main UBZ reserve extended further
down dip and to explore other targets to the east of the main
Young-Davidson reserve. The drilling reported herein
indicates that while the main UBZ reserve does not extend much
further down dip, the zone is considerably wider at depth than the
2008 interpretation (see Figure 2).
Both holes YMX11-01 and 02 were drilled from new
underground mine workings from the footwall side of the deposit
towards the hanging wall. Previous holes from surface were drilled
from the hanging wall towards the footwall and most holes stopped
once they exited the primary UBZ and, as such, did not encounter
any mineralization in the footwall. The database for the 2008
resource estimate included six holes in this area that had gold
bearing intervals in the footwall; however, their continuity was
unknown, so they were not modeled as resource. Holes YMX11-01 and
02 confirm the potential that a mineable resource may be present
between the new mine development work and the UBZ. Follow-up
drilling will be performed as part of the underground delineation
drilling program.
Figure 1: Young Davidson Longitudinal Section (looking
north)
http://www.northgateminerals.com/Theme/Northgate/files/Releases/2011/Figure1.jpg
Figure 1 illustrates a longitudinal view with the location of
drill holes 243A and 244 within the YD West zone and holes YMX11-01
and 02 within the YMX Footwall.
Figure 2: Cross Section 23680mE
http://www.northgateminerals.com/Theme/Northgate/files/Releases/2011/Figure2.jpg
Figure 2 presents a geologic sectional view
(north-south vertical slice) on easting 23680mE. The main UBZ and
its potentially en echelon, or stepping, YMX Footwall zone are
presented on the section, as well as drill holes YMX11-01 and 02
and all historic drill holes within the 50 m window.
Figure 3 - YD West Zone-Longitudinal Section
http://www.northgateminerals.com/Theme/Northgate/files/Releases/2011/Figure3.jpg
Figure 3 presents a longitudinal section specific to the YD
West Zone area. Highlighted in yellow are the YD11-243A
intercepts on both the east and west side of a post mineral
dyke.
Table 1: Assay Results from the YD West Zone
Hole ID |
From
(m) |
To
(m) |
Interval
(m) |
Estimated
True
Thickness (m) |
Gold
Uncut
(g/t) |
Gold
Cut
20 g/t |
YD11-243A |
888.9 |
907.0 |
18.1 |
5.8 |
1.0 |
1.0 |
|
|
|
|
|
|
|
|
930.5 |
961.7 |
31.2 |
10.0 |
2.68 |
2.68 |
incl |
942.2 |
961.7 |
19.5 |
6.5 |
3.62 |
3.62 |
|
|
|
|
|
|
|
|
1045.8 |
1085.0 |
39.2 |
12.0 |
4.60 |
4.60 |
|
|
|
|
|
|
|
YD11-244 |
1313.5 |
1367.5 |
54.0 |
31.5 |
5.44 |
4.56 |
|
1319.2 |
1367.5 |
48.3 |
28.3 |
5.99 |
5.01 |
|
1329.6 |
1350.5 |
20.9 |
12.2 |
10.02 |
7.76 |
Table 1: Assay Results from the YMX Footwall Zone
Hole ID |
From
(m) |
To
(m) |
Interval
(m) |
Estimated
True
Thickness (m) |
Gold
Uncut
(g/t) |
Gold
Cut
20 g/t |
YMX11-01 |
99.0 |
110.0 |
12.0 |
11.1 |
3.53 |
3.53 |
|
|
|
|
|
|
|
|
177.3 |
231.5 |
54.2 |
51.1 |
3.07 |
3.07 |
incl |
183.5 |
231.5 |
48.0 |
45.3 |
3.31 |
3.31 |
|
|
|
|
|
|
|
YMX11-02 |
133.9 |
150.0 |
16.1 |
10.0 |
5.89 |
5.89 |
Table 3: Drill Collar Locations YD West Zone and YMX
Footwall
Hole ID |
Mine
Easting |
Mine
Northing |
Elevation
(m) |
Azimuth |
Dip |
Depth
(m) |
YMX11-01 |
23657 |
10527 |
9692 |
170 |
-30 |
315 |
YMX11-02 |
23657 |
10527 |
9692 |
170 |
-45 |
387 |
|
|
|
|
|
|
|
YD11-243A |
22853 |
10255 |
10333 |
285 |
-72 |
1368 |
YD11-244 |
22441 |
9843 |
10382 |
351 |
-72 |
1521 |
* * * * * * *
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. Mr. Edmunds is a member of the
Association of Professional Engineers, Geologists and Geophysicists
of British Columbia and a member
of the Association of Professional Geoscientists of Ontario and has 23 years of experience in
mineral resource estimation.
* * * * * * *
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 September 15, 2011
2 See press release dated January
25, 2010
SOURCE Northgate Minerals Corporation