Northgate Minerals Extends Mine Life at the Stawell Gold Mine
August 06 2009 - 5:32PM
PR Newswire (US)
Increase in Both Mineral Reserves and Resources VANCOUVER, Aug. 6
/PRNewswire-FirstCall/ -- (All figures in US dollars except where
noted) - Northgate Minerals Corporation (TSX: NGX, NYSE Amex: NXG)
is pleased to announce an increase in mineral reserves and
resources at its Stawell Gold Mine located in Victoria, Australia.
An aggressive exploration program in support of resource
delineation and conversion has identified approximately 870,000
tonnes of additional mineral reserves containing 93,000 ounces of
gold and has extended the current mine-life until the second
quarter of 2012. Mineral Reserve and Resource Highlights - An
additional 93,000 ounces of gold reserves have been delineated in
the first half of 2009 - Stawell's mine-life has been extended
until Q2-2012 - An additional 32,000 indicated ounces and 98,000
inferred ounces have been added to the mineral resource base
---------------------------------------------------------------
Proven Probable Total
-------------------------------------------------------------------------
June 30, Tonnes Grade Gold Tonnes Grade Gold Tonnes Grade Gold 2009
(000) (g/t)(000 oz) (000) (g/t)(000 oz) (000) (g/t)(000 oz)
-------------------------------------------------------------------------
Open Pit (less than 100m from surface) - - - 430 1.80 25 430 1.80
25
-------------------------------------------------------------------------
Underground (greater than 100m from surface) 64 7.13 15 2,004 4.24
273 2,068 4.33 288
-------------------------------------------------------------------------
Total Proven & Probable Reserves 15,000 ounces 298,000 ounces
313,000 ounces
-------------------------------------------------------------------------
Note: Mineral reserves were estimated using a gold price of
A$965/oz; cut-off grade applied was variable for underground ore
depending upon width, mining method and ground conditions; dilution
of 2m-3m and mining; recovery of 95%-100% was applied to the
underground reserves, dependent upon mining method. Ken Stowe,
President and Chief Executive Officer, remarked, "Our exploration
efforts at Stawell continue to delineate new zones of economic
mineralization. In the first six months of the year, we have added
another 93,000 ounces to our reserves, bringing the total increase
to approximately 230,000 ounces since we acquired the mine less
than 18 months ago. Equally as important, the mine reserve life has
also increased to three years. Over the balance of 2009, we expect
to define additional reserves in the newly discovered GG7 zone, and
in the Dukes Flank and North Magdala zones and will continue to
explore the Magdala Upper Levels and GG6 areas, which have great
potential to host additional reserves and resources. Overall,
prospects are excellent for us to add substantially to the nearly
2.0 million ounces of gold produced at Stawell over the 26-year
history of the mine." Overview of Mineral Reserve and Resource
Additions Mineral reserves and resources were increased in all
areas of the mine through a combination of exploration drilling,
resource definition drilling, and grade control drilling. In the
first six months of 2009, a total of 870,000 tonnes containing
93,000 ounces of additional gold reserves were delineated and
48,000 ounces were depleted as a result of mining activity. The
result is a net increase of 51,000 ounces of reserves compared with
Northgate's December 31, 2008 reserve statement. A further 32,000
ounces of indicated and 98,000 ounces of inferred resources have
also been added. Mineral resources, exclusive of reserves, at June
30, 2009 are outlined in the following table:
--------------------------------------------------------- Indicated
Inferred
-------------------------------------------------------------------------
June 30, Tonnes Grade Gold Tonnes Grade Gold 2009 (000) (g/t) (000
oz) (000) (g/t) (000 oz)
-------------------------------------------------------------------------
Open Pit (less than 100m from surface) 2,975 2.19 209 205 2.64 17
-------------------------------------------------------------------------
Underground (greater than 100m from surface) 388 4.68 58 843 5.57
151
-------------------------------------------------------------------------
Total Resources 267,000 indicated ounces 168,000 inferred ounces
-------------------------------------------------------------------------
Note: Mineral Resources were estimated using the following
parameters: a. Gold price of A$1,071/oz for underground resources
b. Magdala surface above 130mRL and above a nominal 0.8g/t gold
cut-off c. Wonga surface at A$1,071/oz gold price Continuation of
the 2009 Exploration Program The balance of the 2009 exploration
program at Stawell will focus on the newly discovered GG7 (an
extension to the GG5L system), Dukes Flank and North Magdala zones,
in addition to ongoing work in the Magdala Upper Levels and GG6
areas (refer to Figure 1 below) where definition and exploration
drilling will be carried out in support of resource conversion and
further mine-life extensions. Figure 1 - Stawell Gold Mine Long
Section
http://www.northgateminerals.com/Theme/Northgate/files/Releases/SGM_LS_J09.gif
Note to Mineral Reserves and Resources: 1. All Mineral Reserves and
Resources have been estimated in accordance with the JORC Code and
have been reconciled to CIM Standards as prescribed by National
Instrument 43-101. 2. Mineral Resources are exclusive of Mineral
Reserves. 3. Mineral Reserve estimates were prepared by Glenn
Miller, Mine Technical Superintendent, Northgate Minerals
Corporation. Mr. Miller is a member of the Australasian Institute
of Mining and Metallurgy and has over 16 years of relevant
engineering experience and is a Qualified Person. 4. Mineral
Resource estimates were prepared by Mark Haydon, Geology Manager,
Northgate Minerals Corporation. Mr. Haydon is a member of the
Australasian Institute of Geoscientists and has over 15 years of
relevant geological experience and is a Qualified Person. 5.
Mineral Reserves and Mineral Resources are rounded to 1,000 tonnes,
0.01 g/t gold and 1,000 ounces. Minor discrepancies in summations
may occur due to rounding. 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-Standards of
Disclosure for Mineral Projects of the Canadian Securities
Administrators. Northgate Minerals Corporation is a gold and copper
producer with mining operations, development projects and
exploration properties in Canada and Australia. The company is
forecasting record gold production of over 390,000 ounces in 2009
and is targeting growth through further acquisition opportunities
in stable mining jurisdictions around the world. Northgate is
listed on the TSX under the symbol NGX and on the NYSE Amex under
the symbol NXG. Forward-Looking Statements: This Northgate press
release contains "forward-looking information", as such term is
defined in applicable Canadian securities legislation, 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,
2008 or under the heading "Risks and Uncertainties" in Northgate's
2008 Annual Report, both of which are available on the SEDAR
website at http://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.
DATASOURCE: Northgate Minerals Corporation CONTACT: Ms. Keren R.
Yun, Director, Investor Relations, Tel: (416) 363-1701 ext. 233,
Email: , Website: http://www.northgateminerals.com/
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