Major increase of indicated resources at Northgate's Young-Davidson Project
07 Février 2008 - 12:46AM
PR Newswire (US)
Underground Resources Now Total 1.86 Million Ounces VANCOUVER, Feb.
6 /PRNewswire-FirstCall/ -- Northgate Minerals Corporation (TSX:
NGX, AMEX: NXG) is pleased to report the results of a new
underground mineral resource estimate at its Young-Davidson
property near Matachewan, Ontario. The estimate combines the
results of the 2007 diamond drill program with historic drilling
data. A re-estimate of the indicated resources mineable by open pit
methods, incorporating the results of a recently completed infill
drilling campaign, is presently underway and will be released at a
later date. EXPLORATION HIGHLIGHTS - Total gold resources on the
property including those mineable by open pit methods is now 2.34
million ounces - Total underground gold resources in the four main
ore zones have increased to 1.86 million ounces - Indicated
resources underground have increased to 1.42 million ounces, a gain
of 137% compared to last year's estimate - The percentage of total
resources underground in the indicated category has increased from
36% to 76% - Vertical continuity of the zones has been established
to a depth of 1,350 metres below surface - Horizontal continuity on
two levels between the two historic mines has now been demonstrated
by drill intersections Ken Stowe, President and CEO, commented,
"Since we acquired the Young-Davidson property two years ago, we
have essentially achieved our goal of doubling the underground gold
resource base. We have clearly established that there are large
areas of continuous mineralization both between and below the
workings in the two historic mines. An equally important objective
has been the conversion of inferred resources to the indicated
category and we are very pleased that we now have 1.4 million
indicated ounces underground with more to come in 2008. The first
priority of our 2008 diamond drill program will be to increase the
indicated ounces underground by an additional 0.5 million ounces
focusing the drilling in the prospective areas between the two
Boundary Zones and the Lucky/Lower YD Zones. Maximizing the number
of indicated resource ounces is important as it is these ounces
that can be converted into reserves in the upcoming Feasibility
Study. The tight spatial distribution of the resources on the
property will be beneficial in minimizing the required underground
infrastructure." OVERVIEW OF YOUNG-DAVIDSON EXPLORATION AREA Gold
mineralization on the Young-Davidson property is present primarily
in an intrusive syenite host rock dipping at approximately 70
degrees to the south. Figure 1, shown below, presents known
resource areas (as defined in the legend), historic mine workings,
simplified geology, and potential new resource areas. Elevations in
the longitudinal section are based on an artificial mine grid where
the surface is defined as 10,355 metres. To view Figure 1:
Young-Davidson Property (Vertical, North Looking, Longitudinal
Section with Metric Grid), click:
http://files.newswire.ca/592/0206LongSection.jpg The table below
provides a summary of the total underground indicated and inferred
resources. Table 1 - Young-Davidson Gold Resources
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Indicated Resources
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Gold (Cut to 20 g/t) ------------------------------------- Tonnes
Ounces Zone (000's) g/t (000's)
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Upper Boundary 1,956 3.83 241
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Lower Boundary 5,123 3.89 641
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Lower YD 2,465 3.37 267
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Lucky 2,380 3.51 269
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Total Indicated Resources 1,418,000 ounces
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Inferred Resources
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Gold (Cut to 20 g/t) ------------------------------------- Tonnes
Ounces Zone (000's) g/t (000's)
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Upper Boundary 319 3.76 39
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Lower Boundary 1,961 3.05 192.5
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Lower YD 848 3.32 90.5
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Lucky 1,088 3.38 118
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Total Inferred Resources 440,000 ounces
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Notes: 1. Inferred resources are separate from Indicated resources
2. Inferred resources should not be added to Measured and/or
Indicated resources Mineral Resource Estimation Notes - Geological
interpretation of the mineralized body resulted in the creation of
3D solids based on a 2.3 g/t gold cutoff grade and a minimum
horizontal thickness of three metres. - Block sizes are 15 m by 15
m by 7.5 m with a tonnage factor of 2.69 tonnes/m3. - Inverse
distance squared was used for grade interpolation - Within the 3D
mineralization solid, no selectivity as to grade was applied, as
this is a potential bulk underground mining scenario. - One cutting
level of 20 g/t was applied to all zones - The deposit is
relatively insensitive to cutting levels as the overall total
ounces are reduced by only 6% compared to uncut resource
estimation. The 2007 resource estimate shows significant increases
in indicated resources in all four of the main zones as shown below
in Table 2. Table 2 - Increases in 2007 Underground Indicated Gold
Resources by Zone
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Underground Indicated Resources
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Tonnes (millions) Gold Ounces (000's)
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Zone 2006 2007 Increase 2006 2007 Increase
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Upper Boundary 0 1.96 1.96 0 241 241
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Lower Boundary 2.61 5.12 2.51 339 641 302
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Lower YD 1.76 2.47 0.71 184 267 83
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Lucky 0.79 2.38 1.59 76 269 193
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Total Underground 5.16 11.93 6.77 599 1,418 819
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Although only limited drilling was conducted in the vicinity of the
Upper Boundary Zone in 2007, a thorough review of the extensive
historic database was completed. A fundamentally more conservative
and rigorous approach was applied around the historic mine openings
(last mined in the early 1950's), which significantly reduced the
previous 2004 estimate of inferred tonnes and ounces assumed to be
remaining in this zone. These assumptions will be verified in 2008
by drilling from the advanced exploration ramp and cavity
monitoring surveys of the old workings, which are presently being
dewatered as part of the shaft dewatering program. An update of the
open pit resource is presently underway. A 5,100-metre infill
drilling program was completed in December. This will be the first
update of the open pit resource to be generated by Northgate since
the company acquired the Young-Davidson property in late 2005. The
previous resource estimate was completed in 2004 and resulted in an
indicated resource of 464,000 ounces and an additional inferred
resource of 14,000 ounces. An aggressive $21 million advanced
exploration program, devoted to drilling, shaft dewatering and
underground ramp development, will continue in 2008 in support of a
Feasibility Study that is expected to be completed by the end of
the year. Four drills will be active on the property (surface and
underground) focusing mainly on increasing the indicated resource
by an additional 0.5 million ounces. It is expected that the
underground ramp development will be completed to its planned depth
of 450 metres by mid-year. 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 National Instrument 43-101 (NI 43-101) Technical
Report filed on SEDAR (http://www.sedar.com/) on January 29, 2007.
A summary of these procedures may also be found in a press release
dated April 10, 2006. QUALIFIED PERSONS The program design,
implementation, quality assurance/quality control and
interpretation of the results is under the control of Northgate's
geological staff that includes a number of individuals who are
qualified persons as defined under NI 43-101. Overall supervision
of the program is by Carl Edmunds, PGeo, Northgate's Exploration
Manager. NOTE TO US INVESTORS: The terms "Mineral Reserve", "Proven
Mineral Reserve" and "Probable Mineral Reserve" are Canadian mining
terms as defined in accordance with NI 43-101 Standards of
Disclosure for Mineral Projects under the guidelines set out in the
Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM")
Standards on Mineral Resources and Mineral Reserves Definitions and
Guidelines adopted by the CIM Council on August 20, 2000. The terms
"Mineral Resource", "Measured Mineral Resource", "Indicated Mineral
Resource", and "Inferred Mineral Resource" used in this news
release are Canadian mining terms as defined in accordance with NI
43-101-Standards of Disclosure for Mineral Projects under the
guidelines set out in the CIM Standards. NORTHGATE MINERALS
CORPORATION is a gold and copper mining company focused on
operations and opportunities in the Americas and Australia. The
Corporation's principal assets are the Kemess South mine in
north-central British Columbia and the Young-Davidson property in
northern Ontario. With the proposed acquisition of Perseverance
Corporation Limited, the addition of two operating mines will
create a leading multi-mine, mid-tier gold producer, with over
400,000 ounces of gold production in 2008. Northgate is listed on
the Toronto Stock Exchange under the symbol NGX and on the American
Stock Exchange under the symbol NXG. FORWARD-LOOKING STATEMENTS:
This news release includes certain "forward-looking statements"
within the meaning of section 21E of the United States Securities
Exchange Act of 1934, as amended. These forward-looking statements
include estimates, forecasts, and statements as to management's
expectations with respect to, among other things, future metal
production and production costs, potential mineralization and
reserves, exploration results, progress in the development of
mineral properties, demand and market outlook for commodities and
future plans and objectives of Northgate Minerals Corporation
(Northgate). Forward-looking statements generally can be identified
by the use of forward-looking terminology such as "may," "will,"
"expect," "intend," "estimate," "anticipate," "believe," or
"continue" or the negative thereof or variations thereon or similar
terminology. Forward-looking statements are necessarily based upon
a number of estimates and assumptions that, while considered
reasonable by management are inherently subject to significant
business, economic and competitive uncertainties and contingencies.
There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ
materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from
Northgate's expectations are disclosed under the heading "Risk and
Uncertainties" in Northgate's 2006 Annual Report and under the
heading "Risk Factors" in Northgate's 2006 Annual Information Form
(AIF) both of which are filed with Canadian regulators on SEDAR
(http://www.sedar.com/) and with the United States Securities and
Exchange Commission (http://www.sec.gov/). Northgate expressly
disclaims any intention or obligation to update or revise any
forward-looking statements whether as a result of new information,
future events or otherwise. DATASOURCE: Northgate Minerals
Corporation CONTACT: Ms. Keren R. Yun, Investor Relations, Tel:
(416) 216-2781, Email: , Website: http://www.northgateminerals.com/
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