Northgate Announces Dramatic Increase in Resources at its Young-Davidson Project
10 Décembre 2008 - 10:30PM
PR Newswire (US)
Underground Measured and Indicated Resources Double to Three
Million Ounces of Gold VANCOUVER, Dec. 10 /PRNewswire-FirstCall/ --
Northgate Minerals Corporation (TSX: NGX, NYSE ALTERNEXT/AMEX: NXG)
is pleased to report the results of a new NI 43-101 compliant
mineral resource estimate at its 100% owned Young-Davidson property
near Matachewan, Ontario. The resource estimate includes both
underground and open pit resources and incorporates all diamond
drilling on the property up to September 30, 2008. Highlights -
Total Measured and Indicated resources underground have increased
by 1.6 million ounces to 3.0 million ounces of gold at an average
grade of 3.62 grams per tonne (g/t) using a cutoff grade of 2.3
g/t. - Inferred resources underground have increased by over
300,000 ounces to 748,000 ounces of gold at an average grade of
3.39 g/t. - Open pit indicated resources now total 5.0 million
tonnes at an average grade of 1.7 g/t containing 270,000 ounces of
gold in a pit shell with a strip ratio of 1.5:1. Ken Stowe,
President and CEO, commented, "Our 2008 exploration program at
Young-Davidson has been a resounding success by any measure. Our
priority at the beginning of 2008 was to increase the indicated
ounces underground by an additional 0.5 million ounces. The
exploration team at Young-Davidson far surpassed this goal by more
than doubling the underground gold resources to over 3.0 million
measured and indicated ounces at an average grade of 3.62 g/t.
Equally as important, the continuity of the four main ore zones has
been clearly demonstrated, which will have very positive
implications for mine design and development. This new larger
resource will flow into the conceptual review of the Young-Davidson
project that is now underway, focusing on maximizing the
utilization of existing underground infrastructure during the early
production years in order to significantly reduce capital costs."
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Overview of the Young-Davidson Exploration Area The Young-Davidson
property is situated within the southwestern part of the Abitibi
Greenstone Belt of northern Ontario. Gold mineralization on the
property is present primarily in an intrusive syenite host rock
dipping at approximately 70 degrees to the south. Figure 1, which
can be viewed at:
http://www.northgateminerals.com/Theme/Northgate/files/Releases/YD-Dec08.gif
presents known resource areas (as defined in the legend), historic
mine workings and simplified geology. Elevations in the
longitudinal section are based on an artificial mine grid where the
surface is defined as 10,355 metres. 2008 Exploration Program The
2008 exploration program was extraordinarily successful, expanding
the measured and indicated resources underground to 3.0 million
ounces of gold consisting of 25.97 million tonnes at an average
grade of 3.62 g/t. This represents an increase of 1.6 million
ounces of gold and compares to the 11.92 million tonnes of measured
and indicated resources at a grade of 3.7 g/t that was announced in
February 2008. Notably, the additional underground tonnes that have
been delineated are close to the same grade as the previous
resource estimate, demonstrating the consistent grade distribution
throughout the Young-Davidson deposit. The open pit resource on the
property has been remodeled by Northgate using resource solids
defined by a 0.6 g/t gold cutoff grade resulting in a pit shell
that contains 4.95 million tonnes of indicated resources at an
average grade of 1.7 g/t. In total, the Young-Davidson property now
contains approximately 3.3 million ounces of measured and indicated
resources and an additional 749,000 ounces of inferred resources
(see Table 1). Table 1 -Young-Davidson Gold Resources
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Tonnes Grade Gold Category (000s) (g/t) (ounces)
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Underground Measured 3,170 3.95 402,000 Indicated 22,804 3.57
2,621,000
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Total Underground Measured & Indicated 25,974 3.62 3,023,000
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Open Pit Indicated 4,955 1.70 270,000
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Total Property Measured & Indicated 30,929 3.31 3,293,000
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Underground Inferred 6,873 3.39 748,000
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Open Pit Inferred 15 1.74 851
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Total Property Inferred 6,888 3.39 748,851
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Tables 2 and 3 provide summaries of measured and indicated and
inferred resources by zone for underground resources at
Young-Davidson. Table 2 - Underground Measured and Indicated Gold
Resources by Zone
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Measured & Indicated Resources (2.3 g/t cutoff)
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Gold (Cut to 20 g/t) Tonnes ------------------------------ Zone
(000's) Grade (g/t) Ounces
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Upper Boundary 3,347 3.93 423,000
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Lower Boundary 5,961 3.89 745,000
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Lower YD 10,874 3.49 1,221,000
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Lucky 5,792 3.40 634,000
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Total Measured & Indicated Resources 3.02 million ounces
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Table 3 - Underground Inferred Gold Resources by Zone
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Inferred Resources (2.3 g/t cutoff)
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Gold (Cut to 20 g/t) Tonnes ------------------------------ Zone
(000's) Grade (g/t) Ounces
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Upper Boundary 84 3.66 10,000
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Lower Boundary 523 3.26 55,000
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Lower YD 4,503 3.40 491,000
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Lucky 1,763 3.39 192,000
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Total Inferred Resources 748,000 ounces
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Notes: 1. Inferred Resources are separate from Measured and
Indicated Resources 2. Inferred Resources should not be added to
Measured and/or Indicated Resources Mineral Resource Estimation
Notes: - Geological interpretation of the underground mineralized
body resulted in the creation of 3D solids based on a 1.7 g/t gold
cutoff grade, 1.3 g/t gold incremental cutoff grade and a minimum
horizontal thickness of three metres (m). - Block sizes underground
are 15m by 15m by 7m. - Specific gravity of 2.69 tonnes/m(3). -
Inverse distance squared was used for grade interpolation on 3m
thick composites. - One cutting or capping level of 20 g/t was
applied to all zones. - Measured Resources were defined as blocks
within 30m of the nearest sample. - Indicated Resources were
defined as blocks between 30m - 65m of the nearest sample. - Open
pit interpretation of the mineralized body was based on a 0.6 g/t
gold cutoff grade. Open pit blocks are 5m by 5m by 5m. - Waste
tonnes: 7.7 million; strip ratio 1.5:1. - Excludes unconsolidated
overburden. Underground Exploration and Development Update
Underground exploration and development work at Young-Davidson
during 2008 targeted four specific goals as follows: 1. Driving the
ramp to a total length of 3,000 metres (m) and a vertical depth of
approximately 475m to provide underground access to the deposit for
exploration and bulk sampling. 2. Dewatering and refurbishing of
the existing # 3 shaft down to the 13th level at approximately 625m
in depth, in order to provide ventilation and secondary access to
the underground ramp workings. 3. Extracting a bulk sample of ore
from the Upper Boundary Zone for metallurgical testing. 4.
Increasing the resources in the Upper Boundary and Lucky Zones and
upgrading some of these resources from an indicated to measured
category through underground diamond drilling. The underground ramp
development project was completed at the beginning of December
after advancing a total of 3,039m to a total vertical depth of
483m. During December, mining equipment is being demobilized while
the remaining shaft refurbishing work on the 13th level is
completed. The number of people working at the Young-Davidson site
will drop from 115 to 23 at the end of 2008. In 2009, Northgate's
Young-Davidson project group will continue to perform a variety of
activities related to permitting and development and will keep the
mine dewatered. Now that the new resource estimate is complete and
basic geotechnical and other information has been collected, the
project focus has shifted to optimize the NI 43-101 Preliminary
Economic Assessment Report, which was filed in August, by
incorporating the new, dramatically larger resource and attempting
to make better use of the existing ramp and shaft infrastructure at
the site. Once this process is completed, a full feasibility study
will be commissioned. 2009 Exploration and Development Program As
the 2008 resource conversion and expansion drill program was
completed at the end of the third quarter, exploration in 2009 will
focus on other targets of the property outside of the known
resource area. Three of the four drill rigs on the property have
been demobilized and the remaining rig has commenced drilling on
these targets. The rocks that host the Young-Davidson deposit are
known to extend to the west under barren cover rocks. Historically,
only a handful of drill holes have been tested along strike west of
Young-Davidson. Other targets on the property are geophysical
anomalies that have similar characteristics to those of the known
Young-Davidson deposit. Updated Mineral Resource Estimate The
updated mineral resource estimate incorporates all resource
definition diamond drilling on the property as of September 30,
2008 and comprises 814 mineralized intercepts from 512 drill holes.
In 2008, Northgate drilled 114 diamond core holes (55 surface and
59 underground), totalling 41,131 metres. Northgate will be filing
a NI 43-101 Technical Report, which will be available on SEDAR at
http://www.sedar.com/ and on Northgate's website at
http://www.northgateminerals.com/ within the next 45 days. 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 most recent
National Instrument 43-101 (NI 43-101) Technical Report filed on
SEDAR (http://www.sedar.com/) on May 16, 2008. 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 "CIM Standards"). 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 mid-tier gold and copper producer with mining
operations, development projects and exploration properties in
Canada and Australia. The company is forecasting approximately
365,000 ounces of unhedged gold production in 2008 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 Alternext US (formerly AMEX)
under the symbol NXG. Forward-Looking Statements: This news release
contains certain "forward-looking statements" and "forward-looking
information" 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, including any
information as to the future activities of and developments related
to the business activities of Northgate Minerals Corporation
(Northgate) and its subsidiaries, the market position, and future
financial or operating performance of Northgate, 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; impact of any hedging activities, including
margin limits and margin calls; 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, success
of exploration activities and permitting time lines; changes in
national and local government legislation, taxation, controls,
regulations and political or economic developments in any of the
countries in which the corporation does or may carry out business
in the future; risks of sovereign investment; the speculative
nature of gold exploration, development and mining, including the
risks of obtaining necessary licenses and permits; dilution;
competition; loss of key employees; additional funding
requirements; and defective title to mineral claims or property. In
addition, there are risks and hazards associated with the business
of gold exploration, development and mining, including
environmental hazards, industrial accidents, unusual or unexpected
formations, pressures, cave-ins, flooding and gold bullion losses
(and the risk of inadequate insurance or inability to obtain
insurance, to cover these risks), as well as the factors described
or referred to in the section entitled "Risk Factors" in
Northgate's Annual Information Form for the year ended December 31,
2007 or under the heading "Risks and Uncertainties" in Northgate's
2007 Annual Report, both of which are available on SEDAR at
http://www.sedar.com/, and which 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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