Zeev's Turnips Patch-No Politics (ZEEV)

[basserdan]

*** Gold related post (NXG) ***

Sold my NXG this morning for 1.83, actually a loss of .14. Maybe I'm selling near the bottom, I don't know, but their production report makes me think they miss their Q1 earnings, and the stock is not recovering as it should if the Kemess North report is going to be good. I have basically replaced NXG with MNG for now.
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Hi JB,
Fyi.....
Though my initial browsing didn't turn up any skeletons, it seems weird that Northgate would release these PR's on a Friday night. Let us know if you find any. <g>


Northgate Reports Strong First Quarter Cash Flow from Operations

Friday May 7, 8:11 pm ET
Expanded Exploration Program Announced for 2004


VANCOUVER, British Columbia--(BUSINESS WIRE)--May 7, 2004--(All figures in US dollars except where noted) - Northgate Exploration Limited (AMEX:NXG - News; TSX:NGX - News) today reported cash flow from operations before changes in working capital of $11,801,000 or $0.06 per common share (fully diluted) for the first quarter of 2004. Net earnings for the quarter were $39,000.

First Quarter 2004 Highlights:

* The Kemess South mine produced a total of 51,500 ounces of gold at a cash cost of $202 per ounce on a full absorption basis, or $163 per ounce under the Gold Institute Standard.

* The Kemess South mining team set a new quarterly record for tonnes mined of almost 157,000 tonnes per day and unit mining costs during the first quarter dropped to Cdn$0.84 per tonne mined, 12% lower than the first quarter of the previous year.

* First quarter mill availability was over 92% and throughput was almost 50,000 tonnes per day in spite of the harder lower-grade ore processed.
* Northgate signed a letter of intent with Rimfire Minerals to earn up to a 60% interest in the promising RDN precious metal property in the Eskay Creek district of British Columbia by spending Cdn$5 million over three years and completing a feasibility study.

Ken Stowe, President and CEO, commented, "While the Kemess South mine and mill posted excellent operating results during the first quarter, our financial performance was not as robust as it was in the previous two quarters due to the lower grade ore that we processed and the lower gold production that resulted. As is the case of most open pit mines, to be cost efficient, we must mine Kemess South ore sequentially even though it means our quarterly production is somewhat variable. In the first quarter, if we had processed ore with grades equal to the reserve grade at Kemess South, our financial results would have been $10 million better. With significantly higher gold production forecast for the last three quarters of 2004 we expect strong cash flow and earnings for the remainder of the year."

Much more at:

http://biz.yahoo.com/bw/040507/75594_1.html
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Northgate Moves Four Million Ounces of Gold into Reserve at Kemess North
Friday May 7, 8:31 pm ET

VANCOUVER, British Columbia--(BUSINESS WIRE)--May 7, 2004--(All figures in US dollars except where noted) - Northgate Exploration Limited (AMEX:NXG - News; TSX:NGX - News) is pleased to announce that it has completed a revised pre-feasibility study on the Kemess North deposit and moved 4.1 million ounces of gold and 1.46 billion pounds of copper from an indicated resource to a probable reserve. Reserves within the Kemess camp are now sufficient to extend production until at least 2020.

Kemess North Highlights

* Probable Reserve: 414 million tonnes grading 0.31 g/t gold and 0.16% copper;

* Contained Metals: 4.1 million ounces gold and 1.46 billion pounds copper;

* Recoverable Metals: 2.6 million ounces gold and 1.3 billion pounds of copper;

* Extends life of Kemess operation to 2020

* Total capital cost: $160 million;

* Internal rate of return: 8.6% using gold price of $375 per ounce and a copper price of $1.00 per pound

The revised Kemess North Pre-feasibility study envisions three phases of operation. Between 2004 and 2006 Kemess South will produce an average of 310,000 ounces of gold per year at a cash cost of $118 per ounce; between 2007 and 2009 when both Kemess pits are in operation, gold production will average 288,000 ounces per year at a cash cost of $141 per ounce; and from 2010 until 2020 average production will be 208,000 ounces per year at an average cash cost of $181 per ounce. The final feasibility study will be completed in the summer of 2004. The study has been delayed by several months as a result of (i) additional geotechnical field work completed in January 2004 to verify the pit design and (ii) detailed engineering work related to the tunnel/conveyer system that was identified midway through the feasibility study as the preferred method of moving ore from the Kemess North open pit to the Kemess South concentrator. Permitting continues to advance in discussions with Provincial and Federal regulators. Northgate has targeted the second quarter of 2005 to have permits in place so that construction can begin in the summer of 2005.

Ken Stowe, President and Chief Executive Officer, commented: "The results of the revised pre-feasibility study on Kemess North have given us the technical confidence to move the Kemess North deposit into a probable reserve category. Over the next three months we will complete more detailed engineering work on the tunnel/conveyer system to bring this portion of our work up to feasibility standard and complete the feasibility study on Kemess North. We will continue with the permitting process and will begin to consider various financing alternatives for the development of Kemess North when this process is further advanced. As we expected, Kemess North provides Northgate with over a decade of additional mine life within the Kemess Camp and returns substantial incremental cash flow. It also provides Northgate the opportunity to find additional sources of ore within the Kemess Camp that will further enhance the value of the Kemess asset."

Continued at:

http://biz.yahoo.com/bw/040507/75595_1.html