Fosterville Gold Mine Achieves Second Consecutive
Record Production Quarter
VANCOUVER, Oct. 11, 2011 /PRNewswire/ - (All figures in US
dollars) - Northgate Minerals Corporation ("Northgate" or the
"Company") (TSX: NGX) (NYSE Amex: NXG) is pleased to announce its
third quarter 2011 operating results, highlighted by record gold
production for the second consecutive quarter from its Fosterville mine.
Third Quarter 2011 Production Highlights
- Total production for the quarter was 50,014 ounces of gold,
which represents a 14% 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 $811 per ounce of gold, which was lower than
guidance previously issued by the Company and represents a 14%
decrease from the previous quarter.
The following table provides a summary of production results for
Q3 2011:
Cash cost figures noted in US$ |
|
Q3
2011 |
Fosterville |
|
|
|
Gold Production (ounces) |
|
29,954 |
|
Net cash cost ($/ounce) 1 |
|
733 |
Stawell |
|
|
|
Gold Production (ounces) |
|
20,060 |
|
Net cash cost ($/ounce) 1 |
|
928 |
Total |
|
|
|
Gold Production (ounces) |
|
50,014 |
|
Average Net cash cost ($/ounce) 1 |
|
811 |
1 The cash cost figures for Q3
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 & CEO.
"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 August 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 August
29, 2011) upon fulfillment 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 October 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 November 10,
2011. A conference call and webcast is scheduled to take
place on the same day at 10:00 am
ET. For more information, please visit AuRico's
website at www.auricogold.com.
* * * * * * *
Northgate Minerals Corporation is a gold
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).
SOURCE Northgate Minerals Corporation