Exploration drilling at Northgate's Stawell mine intersects high gold grades
16 Avril 2008 - 2:56AM
PR Newswire (US)
TSX: NGX AMEX: NXG VANCOUVER, April 15 /PRNewswire-FirstCall/ --
Northgate Minerals Corporation (TSX: NGX, AMEX: NXG) is pleased to
announce assay results for seven diamond drill holes in the Golden
Gift 6 (GG6) exploration area at its Stawell Gold mine in
Australia. HIGHLIGHTS OF EXPLORATION RESULTS - Drilling in the GG6
area, which is located within 210 metres (m) of existing reserves,
has outlined two main zones of mineralization: the basalt contact
and stockwork zones. These zones extend over 270m along strike and
over 130m in vertical height; both are open along strike to the
north. Assays from the basalt contact zone include: - Hole MD-5267
contained two excellent intervals: the first interval assayed 11.2
grams per tonne (g/t) gold over 21.4m including 31.4 g/t over 3.3m;
the second interval assayed 11.2 g/t gold over 16.5m. - Hole
MD-5280 assayed 10.1 g/t over 11.9m. - Hole MD-5242 assayed 7.8 g/t
gold over 11.2m including 21.2 g/t gold over 2.4m. - A third,
previously unknown zone of mineralization (a "waterloo zone"), was
discovered just east of the main basalt contact zone. Historically,
waterloo zones at Stawell have added significant ounces by
providing secondary mining zones with the same high grade
mineralization as is found in the main basalt contact
mineralization. The best intercept to date in this new
mineralization assayed 15.1 g/t gold over 11.5m in Hole MD-5234. -
Northgate has allocated $7 million to fund an aggressive
exploration program at Stawell for 2008. which will focus on
numerous near mine targets that have strong potential to increase
mineable reserves. Ken Stowe, President and Chief Executive
Officer, stated, "We are extremely excited with the positive GG6
drill results at our newly acquired Stawell Gold mine in Australia.
These results are the first confirmation of the excellent
exploration potential we saw at Stawell during the due diligence
phase of our recent acquisition of Perseverance Corporation.
Drilling to date indicates that the GG6 area is characterized by
continuous zones of mineralization with excellent gold grades. A
resource estimation will be completed in June, which should yield a
significant resource in the GG6 zone. The drilling we have
completed thus far comprises only a small part of an aggressive $7
million exploration plan in and around the Stawell mine, which we
expect will add even more ounces to the resources by the end of
2008."
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OVERVIEW OF STAWELL GOLD MINE Stawell is a historic goldfield that
has produced approximately five million ounces of gold from both
alluvial and hard rock sources dating back to the mid-19th century
Victorian gold rushes. Since the commencement of modern day
production in 1984 to the end of 2007, approximately 1.8 million
ounces of gold have been produced from the Stawell ore body.
Production for the full year 2008 is forecast to be 112,000 ounces
of gold. The dominant geological feature at Stawell is the 1.2
kilometre wide Magdala basalt volcanic dome surrounded by
gold-bearing sedimentary formations. Historical mining occurs in
four distinct settings: iron-rich sediments stratigraphically above
the basalt; at the sediment-basalt contact; areas of sediment
bounded by basalt (locally termed "waterloos"); and, in quartz lode
shear structures parallelling the plunge and dip of the basalt
dome. Waterloo, a historical term, refers to a mineralized zone,
which lies between two lobes or flows of basalt. Historically,
waterloo zones, when they occur, have added significant resources
to primary zones by providing a secondary ore zone with similar
grade as the main basalt contact mineralization (see Figure 1). The
geologic setting of the Stawell gold deposit shows similarities to
other iron formation hosted gold deposits such as Lupin, Northwest
Territories and Homestake, South Dakota. Geology of GG6 To date,
GG6 drilling indicates that the zone has similar geology and
geometry to the other Golden Gift ore bodies at the Stawell mine.
GG6 is situated 210m beneath the Golden Gift 5 Lower (GG5L) and is
interpreted to be the fault offset of this ore body, which is
currently in production. The grade of the GG6 zone is similar to
the previously mined Golden Gift ore blocks which contained, on
average, 100,000 ounces of gold. Three zones of mineralization have
been confirmed with this latest phase of drilling, which have been
termed the "basalt contact", the "stockwork" and the "waterloo"
zones. MD-5234 has also provided indication of a quartz style lode
in the Albion schist. Further drilling is required to confirm the
continuity of this mineralization. Figure 1: 296N Cross Section
Showing Position of Mineralization Zones through Fault Blocks
http://www.northgateminerals.com/Theme/Northgate/files/Releases/2008/GG6_Fig1.jpg
The stockwork zone mineralization consists of pyrrhotite in weak to
moderately altered host rock. Stockwork zones occur interspersed
with sub-ore-grade zones of weakly altered chlorite volcanogenic or
iron-rich sediment. Quartz shear zones containing graphite and
chlorite alteration are also present in the stockwork zones. The
basalt contact zone mineralization is higher grade than the
stockwork zone and is hosted within strongly chlorite altered
volcanogenic or iron-rich sediments. Sulphide mineralization
consists of coarse arsenopyrite, up to 20mm, with recrystallised
pyrrhotite and minor pyrite. Quartz veins up to 0.75m wide are a
common feature in the basalt contact zone, as are bands of
silicification up to 1m wide. In addition to the basalt contact and
stockwork zones, a third mineralized horizon, a waterloo zone, has
been intersected by holes MD-5234 and MD-5253. Gold grades in the
waterloo zone are similar to those in the main basalt contact zone.
Figure 2: Stawell Mine Section (Vertical, West Looking,
Longitudinal Section with Metric Grid)
http://www.northgateminerals.com/Theme/Northgate/files/Releases/2008/GG6_Fig2.jpg
Drilling Results in the GG6 Zone The assay results received to date
from the 2008 drill program are presented in Tables 1, 2 and 3 and
drill hole locations are presented in Table 4. These holes have
comparable grade and thickness to those currently being mined in
the GG5L zone. Table 1: 2008 Assay Results from GG6 Zone - Basalt
Contact Zone Mineralization
-------------------------------------------------------------------------
Estimated Downhole True Interval Width Hole ID From (m) To (m) (m)
(m) Gold (g/t)
-------------------------------------------------------------------------
MD-5234 264.0 272.5 8.5 4.7 5.7
-------------------------------------------------------------------------
MD-5242 296.7 307.9 11.2 5.5 7.8 including 305.5 307.9 2.4 21.2
-------------------------------------------------------------------------
MD-5253 291.1 294.4 3.3 1.4 0.4
-------------------------------------------------------------------------
MD-5267 243.7 260.5 16.5 5.8 11.2 MD-5267 328.3 349.7 21.4 9.0 11.2
including 344.7 348.0 3.3 31.4
-------------------------------------------------------------------------
MD-5280 307.0 315.1 8.1 3.5 2.7
-------------------------------------------------------------------------
MD-5280 351.6 363.5 11.9 6.5 10.1
-------------------------------------------------------------------------
Table 2: 2008 Assay Results from GG6 Zone - Stockwork Zone
Mineralization
-------------------------------------------------------------------------
Estimated Downhole True Interval Width Hole ID From (m) To (m) (m)
(m) Gold (g/t)
-------------------------------------------------------------------------
MD-5242 261.3 272.4 11.1 5.2 2.7
-------------------------------------------------------------------------
MD-5253 275.1 276.0 0.9 0.4 9.9
-------------------------------------------------------------------------
MD-5253 281.8 289.0 7.2 3.0 1.4
-------------------------------------------------------------------------
MD-5267 307.8 313.0 5.2 1.5 2.2
-------------------------------------------------------------------------
MD-5280 284.8 295.3 10.5 5.4 3.5
-------------------------------------------------------------------------
Table 3: 2008 Assay Results from GG6 Zone - Waterloo Zone
Mineralization
-------------------------------------------------------------------------
Estimated Downhole True Interval Width Hole ID From (m) To (m) (m)
(m) Gold (g/t)
-------------------------------------------------------------------------
MD-5234 309.0 320.5 11.5 5.1 15.1
-------------------------------------------------------------------------
MD-5253 331.8 335.5 3.7 2.0 2.4
-------------------------------------------------------------------------
MD-5234 intersected a quartz structure between 236.3m and 242.1m
with 5.8m at 9.1 g/t gold that is indicative of a fourth zone of
mineralization. This has been intercepted by hole MD-5234 only and
is subject to further testing. The basalt contact intercept assayed
5.7 g/t gold over 8.5m and the previously unknown waterloo
intercept assayed 15.1 g/t gold over 11.5m. MD-5242 intersected 50m
of iron-rich sediment including coarse arsenopyrite, banded
pyrrhotite and pyrite. The stockwork intercept assayed 2.7 g/t gold
over 11.1m and the basalt contact intercept assayed 7.8 g/t gold
over 11.2m, including 21.2 g/t gold over 2.4m directly adjacent to
the basalt contact. MD-5253 intersected stockwork mineralization
with 7.2m of 1.4g/t gold and a separate zone with 0.9m of 9.9 g/t
gold. The basalt contact zone intersected 3.3m of 0.4 g/t gold.
Siliceous sediment in the waterloo position intersected 3.7m of 2.4
g/t gold. MD-5267 intersected strongly mineralized iron-rich
sediment in two separate areas including an intercept of 16.5m of
11.2 g/t gold in a faulted sliver of basalt contact mineralization.
This zone is interpreted to be caught in a fault splay off the
footwall of the Low Fault. This has been intersected by hole
MD-5267 only and is subject to further testing. Basalt contact
mineralization was also intersected from 328.3m with an intercept
of 21.4m of 11.2 g/t gold including 3.3m of 31.4 g/t gold. A minor
stockwork intercept of 5.2m of 2.2 g/t gold was also intersected.
MD-5280 intersected a strongly altered stockwork zone containing
arsenopyrite and recrystallised pyrrhotite with 10.5m of 3.5 g/t
gold. Two intercepts in the chloritic volcanogenics included
visible gold on the basalt contact margin with 11.9m of 10.1 g/t
gold and 8.1m of 2.7 g/t gold, respectively. MD-5243 intersected a
known fault and returned no significant gold intercepts. MD-5282
was completed and assay results are pending. Assays from holes
drilled in the GG6 zone during the scoping phase of the exploration
program conducted during 2007 are presented in Appendices 1 and 2.
Seven of these holes intersected the high grade basalt contact
zone. Upon completion of the 2008 drill program, it is expected
that there will be a total of 16 intercepts into the basalt contact
zone at 50m X 50m spacing. Drilling results to date within GG6 has
established that the zone is 270m in strike length and 130m in
vertical height and the zone is still open down plunge to the
North. The exploration team at Stawell has begun the interpretation
of the drill intercepts and expects to complete a resource estimate
for the GG6 area by the end of June 2008. GG6 is interpreted to be
the fault offset of the GG5 reserve block and is only is 210m away.
Drilling results to date within GG6 has established that the zone
is 270m in strike length and 130m in vertical height and the zone
is still open for another 100m down plunge to the North. The
exploration team at Stawell has begun the interpretation of the
drill intercepts and expects to complete a resource estimate for
the GG6 area by the end of June 2008. GG6 is interpreted to be the
fault offset of the GG5 reserve block and is only is 210m away.
While the initial work in the GG6 zone has centered on the high
grade basalt contact mineralization, the discovery of a potentially
significant waterloo zone further east of the main basalt contact
provides another high-grade zone to focus on. Potential for further
upside at GG6 is promising. Multiple ore surfaces in the GG6 zone,
further extension to the north and extensions at depth, and the
identification of the waterloo zone all present excellent
opportunities for more ounces to be discovered in the GG6 zone. As
development advances in the GG5L oreblock, it will become possible
to drill test another 100m of strike length do to the north of the
known mineralization and explore the waterloo zone in greater
detail. Table 4: GG6 Drill Hole Collar Locations (2008 Exploration
Program)
-------------------------------------------------------------------------
Collar Collar Hole ID Easting Northing Elevation Azimuth Dip Depth
(m)
-------------------------------------------------------------------------
MD-5234 659030.16 898048.18 -1271.84 44.1 -59.9 366.6
-------------------------------------------------------------------------
MD-5242 659030.16 898048.18 -1271.84 31.5 -64.8 380.5
-------------------------------------------------------------------------
MD-5243 659030.16 898048.18 -1271.84 26.5 -61.7 332.0
-------------------------------------------------------------------------
MD-5253 659030.16 898048.18 -1271.84 58.8 -59.1 369.3
-------------------------------------------------------------------------
MD-5267 659030.16 898048.18 -1271.84 12.4 -63.9 407.3
-------------------------------------------------------------------------
MD-5280 659030.16 898048.18 -1271.84 64.0 -58.5 530.2
-------------------------------------------------------------------------
MD-5282 659030.16 898048.18 -1271.84 37.0 -68.0 569.6
-------------------------------------------------------------------------
In MD-5281 659030.16 898048.18 -1271.84 49.0 -66.0 Progress
-------------------------------------------------------------------------
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 March 28, 2008. 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 Steven Harper, BSc(Hons), MAusIMM,
Northgate's Senior Exploration Geologist at Stawell. Appendix 1:
2007 Assay Results from GG6 Zone Basalt Contact Mineralization
(Previously Released by Perseverance)
-------------------------------------------------------------------------
Estimated Downhole True Interval Width Hole ID From (m) To (m) (m)
(m) Gold (g/t)
-------------------------------------------------------------------------
2007 Scoping Program
-------------------------------------------------------------------------
MD-5003 383.5 386.2 2.1 1.2 9.8
-------------------------------------------------------------------------
MD-5014 403.6 407.4 3.8 2.2 7.3
-------------------------------------------------------------------------
MD-5014 415.0 420.5 5.5 2.9 38.0
-------------------------------------------------------------------------
MD-5014 446.3 451.6 5.2 3.0 2.2
-------------------------------------------------------------------------
MD-5077A 397.1 406.0 8.9 3.5 7.4
-------------------------------------------------------------------------
MD-5078 372.8 383.1 10.3 5.8 13.0
-------------------------------------------------------------------------
MD-5094 352.8 364.1 11.3 5.6 13.1 including 360.5 364.1 3.6 23.1
-------------------------------------------------------------------------
MD-5104 349.4 355.7 6.3 3.5 9.0 including 349.4 352.7 3.3 14.7
-------------------------------------------------------------------------
MD-5139 338.0 346.5 8.5 3.0 7.7
-------------------------------------------------------------------------
MD-5139 353.3 354.5 4.7 1.9 10.9
-------------------------------------------------------------------------
Appendix 2: 2007 Assay Results from GG6 Zone Stockwork
Mineralization (Previously Released by Perseverance)
-------------------------------------------------------------------------
Estimated Downhole True Interval Width Hole ID From (m) To (m) (m)
(m) Gold (g/t)
-------------------------------------------------------------------------
2007 Scoping Program
-------------------------------------------------------------------------
MD-5003 338.9 351.5 15.0 7.0 1.3 including 350.6 351.5 0.9 0.5 5.6
-------------------------------------------------------------------------
MD-5014 375.5 381.4 5.9 2.9 2.8
-------------------------------------------------------------------------
MD-5077A 376.2 388.1 11.9 6.2 2.9 including 376.2 377.6 1.4 0.7
12.4
-------------------------------------------------------------------------
MD-5078 332.4 340.6 10.1 5.7 8.4
-------------------------------------------------------------------------
MD-5094 329.9 331.0 1.1 0.6 8.4
-------------------------------------------------------------------------
MD-5104 328.7 331.9 3.2 1.8 5.7
-------------------------------------------------------------------------
MD-5105 246.7 255.2 8.5 4.6 2.5 including 254.3 255.8 1.5 0.6 3.9
-------------------------------------------------------------------------
MD-5121 317.7 325.0 7.3 2.4 1.6
-------------------------------------------------------------------------
MD-5135 295.2 314.5 19.3 5.0 3.4
-------------------------------------------------------------------------
MD-5139 319.2 326.2 7.7 2.4 0.6
-------------------------------------------------------------------------
MD-5156 385 385.4 0.4 0.2 2.5
-------------------------------------------------------------------------
x x x x x x 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.
x x x x x x NORTHGATE MINERALS CORPORATION is a mid-tier gold and
copper producer with mining operations, development projects and
exploration properties in Canada and Australia. The company is
forecasting over 400,000 ounces of unhedged gold production in 2008
and is targeting growth through further acquisitions in stable
mining jurisdictions around the world. Northgate is listed on the
Toronto Stock Exchange under the symbol NGX and on the American
Stock Exchange under the symbol NXG. x x x x x x FORWARD-LOOKING
STATEMENTS: This news release contains certain "forward-looking
statements" and "forward-looking information" as defined under
applicable Canadian and U.S. securities laws. 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 on a number of
estimates and assumptions that are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. Certain of the statements made herein by Northgate
Minerals Corporation ("Northgate") including those related to
future financial and operating performance and those related to
Northgate's future exploration and development activities, are
forward-looking and subject to important risk factors and
uncertainties, many of which are beyond the Corporation's ability
to control or predict. Known and unknown factors could cause actual
results to differ materially from those projected in the
forward-looking statements. Such factors include, among others:
gold price volatility; fluctuations in foreign exchange rates and
interest rates; impact of any hedging activities; discrepancies
between actual and estimated production, between actual and
estimated reserves and resources and between actual and estimated
metallurgical recoveries; costs of production, capital
expenditures, costs and timing of construction and the development
of new deposits; and, success of exploration activities and
permitting time lines. In addition, the factors described or
referred to in the section entitled "Risk Factors" of Northgate's
Annual Information Form (AIF) for the year ended December 31, 2007
or under the heading "Risks and Uncertainties" of Northgate's 2007
Annual Report, both of which are available on SEDAR at
http://www.sedar.com/, should be reviewed in conjunction with this
document. Accordingly, readers should not place undue reliance on
forward-looking statements. The Corporation does not undertake any
obligation to update publicly or release any revisions to
forward-looking statements to reflect events or circumstances after
the date of this document or to reflect the occurrence of
unanticipated events, except in each case as required by law.
DATASOURCE: Northgate Minerals Corporation CONTACT: Ms. Keren R.
Yun, Director, Investor Relations, Tel: (416) 216-2781, Email: ,
Website: http://www.northgateminerals.com/
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