Northgate Minerals Exceeds First Quarter Production Forecast
15 Avril 2009 - 10:52PM
PR Newswire (US)
Net Cash Cost of Production Significantly Lower than Guidance
VANCOUVER, April 15 /PRNewswire-FirstCall/ -- (All figures in US
dollars except where noted) - Northgate Minerals Corporation (TSX:
NGX, NYSE Amex: NXG) today reported first quarter 2009 gold
production and net cash cost for the Fosterville and Stawell mines
in Victoria, Australia and the Kemess South mine in British
Columbia, Canada. First Quarter 2009 Highlights - Consolidated
production of 107,477 ounces of gold, which represents a 22%
increase from the prior year and exceeds the first quarter
production forecast. - Average net cash cost of production was $392
per ounce of gold, which was approximately 20% lower than guidance.
- Made substantial progress on the pre-feasibility study work at
Young- Davidson, where the mine plan is being redesigned around the
new larger 3.3 million ounce measured and indicated gold resource,
using low cost bulk mining methods to reduce operating costs and
increase annual production. - Began commissioning the heated leach
circuit at the Fosterville mine. The following table provides a
summary of operations for Q1 2009 compared with the same period in
2008: (Unaudited, thousands of US dollars, except where noted) Q1
2009 Q1 2008
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Fosterville Gold Production (ounces) 25,779 10,440(1) Net cash cost
($/ounce)(2)(3) 430 1,190 Stawell Gold Production (ounces) 22,392
28,363 Net cash cost ($/ounce)(2)(3) 432 536 Kemess South Gold
Production (ounces) 59,306 49,583 Copper Production (thousands
pounds) 15,007 14,380 Net cash cost ($/ounce)(2) 362 105
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Consolidated Gold Production (ounces) 107,477 88,386(1) Copper
Production (thousands pounds) 15,007 14,380 Net cash cost
($/ounce)(2)(3) 392 259
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(1) Production in Q1 2008 for Fosterville excludes the change in
gold-in- circuit inventory previously recorded. (2) The cash cost
figure for Q1 2009 is an unaudited estimate and is subject to
revision. (3) The cash cost figure for Q1 2008 includes the results
for Fosterville and Stawell from February 19 to March 31, 2008. Ken
Stowe, President & CEO, commented, "We achieved solid results
in the first quarter of 2009. In Australia, we essentially met the
quarterly production and cash cost forecasts we provided in early
January. In addition, we began commissioning the heated leach
circuit at Fosterville in March and early results support a 90%
gold recovery target, which will enhance the long-term
profitability of the mine. At Kemess, both production and cash
costs exceeded our expectations due to higher than expected ore
grades and metal recoveries, as well as higher than forecast copper
prices." ------------ Annual General Meeting and Q1 2009 Financial
Results Northgate will be hosting its Annual General Meeting
("AGM") on Friday, May 8, 2009 at 10:00 am, Toronto time. The AGM
will be held at The Suites at One King West, King Gallery, 1 King
Street West, Toronto, Canada. This event will also include an
overview of Northgate's 2009 first quarter financial results, which
are scheduled for release before market opens on May 8, 2009.
Webcast and Conference Call information, including podcast and
conference replay details, can be found on Northgate's website at
http://www.northgateminerals.com/. ------------ 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 record gold
production of 392,000 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 (formerly 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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