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Northgate Minerals Reports 2010 Gold Production of 272,712 Ounces
Gold Sales of 70,145 Ounces in Q4
01.13.2011
Download this Press Release
http://www.northgateminerals.com/
http://www.northgateminerals.com/news-and-media/press-releases/press-releases-details/2011/Northgate-Minerals-Reports-2010-Gold-Production-of-272712-Ounces1123842/default.aspx
VANCOUVER, Jan. 13 /CNW/ - (All figures in US dollars except where noted) -
Northgate Minerals Corporation -
(TSX: NGX, NYSE Amex: NXG) is pleased to report gold production of 66,077 ounces in the fourth quarter of 2010, bringing full year production to 272,712 ounces of gold.
Production Highlights
<<
- Fourth quarter gold production of 66,077 ounces at
Northgate's three operating mines:
- Fosterville finished out the year with quarterly gold
production of 23,108 ounces of gold, which exceeded
forecast by 10%.
Full year production at Fosterville was 100,441 ounces
of gold.
- Stawell produced 17,882 ounces of gold during the
fourth quarter,
bringing full year production to 71,482 ounces of gold.
- Kemess reached its quarterly and annual forecast,
producing 25,087 ounces of gold in the fourth quarter,
bringing annual production
to a total of 100,789 ounces of gold.
- The estimated average net cash cost* of production for
the fourth quarter was $655 per ounce, bringing the
full year cash cost to $662 per ounce.
- Metal sales for the fourth quarter totalled 70,145
ounces of gold and 12.4 million pounds of copper.
>>
The following table provides a summary of production at Northgate's operations in 2010.
<<
Q1 2010 Q2 2010 Q3 2010 Q4 2010 2010 Total
-------------------------------------------------------------------------
Gold Production
(ounces)
Fosterville 26,421 28,476 22,436 23,108 100,441
Stawell 22,238 14,832 16,530 17,882 71,482
Kemess 24,703 24,967 26,033 25,087 100,789
-------------------------------------------------------------------------
Total Gold
Production (ounces) 73,362 68,275 64,999 66,077 272,712
-------------------------------------------------------------------------
Copper Production
(thousands pounds) 9,529 9,643 10,869 10,625 40,666
Net cash cost
($/ounce)(1) 654 693 645 655 662
-------------------------------------------------------------------------
Gold Sales (ounces) 75,128 65,943 58,083 70,145 269,299
Copper Sales
(thousands pounds) 11,145 7,997 7,434 12,363 38,939
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Q4 and full year 2010 cash cost figures are unaudited estimates and
are subject to revision.
>>
"We capped off 2010 by delivering fourth quarter gold production,
which was consistent with guidance and our gold sales totalled
70,145 ounces," commented Ken Stowe, Northgate's President and CEO.
"In Australia, our Fosterville mine had an extremely strong
quarter with production significantly higher than forecast and,
while our Stawell mine continued to show steady improvement,
quarterly production came up short of our projection.
The Kemess mine had another excellent quarter bringing its 2010
total to over 100,000 ounces of gold for its final full year
of production at a net cash cost of $370 per ounce.
As announced earlier this week in our three year production
forecast, we are looking forward to the considerable growth
and transition of our company as we focus on building
the Young-Davidson mine in 2011.
Young-Davidson, along with our Australian operations and
a robust $14.5 million exploration program focusing on a
number of exciting discoveries and targets, position
Northgate well for significant and sustainable growth for
many years to come."
Results of Operations
Fosterville Gold Mine
The Fosterville Gold mine achieved quarterly production of 23,108
ounces of gold, which was better than forecast, due to higher
than expected ore grades in the stopes that were mined.
For the second straight year, production at Fosterville exceeded
the 100,000-ounce mark.
The mine produced a total of 100,441 ounces of gold in 2011,
which was slightly less than the 103,360 ounces produced last
year.
The net cash cost of production in the fourth quarter and full
year 2010 were lower than the most recent forecast at $856
and $739 per ounce, respectively, despite the substantial
appreciation of the Australian dollar during the year, which
averaged slightly below parity with the US dollar for the last
three months of 2010.
Production in 2011 is forecast to be in the range of 97,000 -
102,000 of gold.
Stawell Gold Mine
During the fourth quarter, the Stawell Gold mine produced 17,882
ounces of gold at a net cash cost of $1,127 per ounce.
The mine has continually improved operations since the low
production performance in the second quarter of the year.
However, production in the fourth quarter was hampered by lower
grades mined than forecast.
For the full year 2010, Stawell produced 71,482 ounces of gold
at an average net cash cost of $964 per ounce.
The net cash cost for 2010 was negatively impacted primarily by
lower than forecast production resulting from lower than
expected ore grades and also by a stronger Australian dollar
relative to the US dollar.
Production in 2011 is expected to increase by at least 20%
from 2010, to between 86,000 - 91,000 ounces of gold, and
in years 2012 and 2013, this ramp up of production is expected
to continue with production forecast to be in the range of
105,000 - 117,000 ounces as ore is increasingly sourced from
the higher-grade GG6 zone.
Kemess South Gold and Copper Mine -
The Kemess South mine posted solid fourth quarter production
of 25,087 ounces of gold and 10.6 million pounds of copper,
bringing total production for all of 2010 to 100,789 ounces
of gold and 40.7 million pounds of copper.
The net cash costs for the fourth quarter and full year 2010
were $133 and $370 per ounce, respectively, which was slightly
higher than forecast due to lower than forecast copper
production in the fourth quarter of the year.
Kemess South is scheduled to close in March 2011.
Since taking ownership of the operation in 2000, the mine
has produced nearly three million ounces of gold and
700 million pounds of copper, generating almost $900 million
in cash flow from operations.
Young-Davidson Gold Mine
Significant progress was made during the last half of 2010,
as a number of activities ramped up on site since construction
began in August.
In the fourth quarter, we completed construction of the new
hoist house for the existing shaft.
We also completed the raise bore pilot hole for the first leg
of a new 5.5 metre ("m") diameter Northgate production shaft
and are pleased to announce that the raise bore work for the
shaft has commenced.
In addition, we completed clearing the area where the process
plant will be built and have commenced pouring concrete for
the mill building.
Construction of the main plant site and tailings impoundment
areas was ongoing during the quarter and will continue
through 2011.
In the underground section of the mine, we installed and
commissioned new ventilation equipment to service the increased
mine development activities.
The ramp that will serve as the main access to underground
ore was extended to a total length of 3,900 m and an additional
755 m of lateral development was achieved during the quarter.
In the first half of 2011, major development activities include:
<<
- Continuing major earthworks required for the preparation
of the project site.
- Commissioning the new hoist and commencing sinking
operations of the existing shaft.
- Raise boring work for the first leg of a new 5.5 m
diameter Northgate production shaft.
- Completing the erection of the mill building.
- Preparing the materials required for the construction
of the tailings dam.
- Starting the installation of major process equipment.
- Continuing with the construction of the 115 kV power line.
- Commencing the open pit pre-production development.
>>
Year End 2010 Financial Results
Northgate's audited financial results for the year ended
December 31, 2010 are scheduled for release before the market
opens on March 8, 2011 and the Corporation's year-end conference
call and webcast for investors and analysts will be held at
10:00 am (Eastern Time) on the same day. Dial-in information
for the conference call and webcast will be made available
in the coming weeks.
Northgate Minerals Corporation
is a gold and copper producer with mining operations,
development projects and exploration properties in Canada
and Australia.
Our vision is to be the leading intermediate gold producer
by identifying, acquiring, developing and operating profitable,
long-life mining properties.
Cautionary Note Regarding Forward-Looking Statements and Information:
http://www.northgateminerals.com/
Gold Sales of 70,145 Ounces in Q4
01.13.2011
Download this Press Release
http://www.northgateminerals.com/
http://www.northgateminerals.com/news-and-media/press-releases/press-releases-details/2011/Northgate-Minerals-Reports-2010-Gold-Production-of-272712-Ounces1123842/default.aspx
VANCOUVER, Jan. 13 /CNW/ - (All figures in US dollars except where noted) -
Northgate Minerals Corporation -
(TSX: NGX, NYSE Amex: NXG) is pleased to report gold production of 66,077 ounces in the fourth quarter of 2010, bringing full year production to 272,712 ounces of gold.
Production Highlights
<<
- Fourth quarter gold production of 66,077 ounces at
Northgate's three operating mines:
- Fosterville finished out the year with quarterly gold
production of 23,108 ounces of gold, which exceeded
forecast by 10%.
Full year production at Fosterville was 100,441 ounces
of gold.
- Stawell produced 17,882 ounces of gold during the
fourth quarter,
bringing full year production to 71,482 ounces of gold.
- Kemess reached its quarterly and annual forecast,
producing 25,087 ounces of gold in the fourth quarter,
bringing annual production
to a total of 100,789 ounces of gold.
- The estimated average net cash cost* of production for
the fourth quarter was $655 per ounce, bringing the
full year cash cost to $662 per ounce.
- Metal sales for the fourth quarter totalled 70,145
ounces of gold and 12.4 million pounds of copper.
>>
The following table provides a summary of production at Northgate's operations in 2010.
<<
Q1 2010 Q2 2010 Q3 2010 Q4 2010 2010 Total
-------------------------------------------------------------------------
Gold Production
(ounces)
Fosterville 26,421 28,476 22,436 23,108 100,441
Stawell 22,238 14,832 16,530 17,882 71,482
Kemess 24,703 24,967 26,033 25,087 100,789
-------------------------------------------------------------------------
Total Gold
Production (ounces) 73,362 68,275 64,999 66,077 272,712
-------------------------------------------------------------------------
Copper Production
(thousands pounds) 9,529 9,643 10,869 10,625 40,666
Net cash cost
($/ounce)(1) 654 693 645 655 662
-------------------------------------------------------------------------
Gold Sales (ounces) 75,128 65,943 58,083 70,145 269,299
Copper Sales
(thousands pounds) 11,145 7,997 7,434 12,363 38,939
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Q4 and full year 2010 cash cost figures are unaudited estimates and
are subject to revision.
>>
"We capped off 2010 by delivering fourth quarter gold production,
which was consistent with guidance and our gold sales totalled
70,145 ounces," commented Ken Stowe, Northgate's President and CEO.
"In Australia, our Fosterville mine had an extremely strong
quarter with production significantly higher than forecast and,
while our Stawell mine continued to show steady improvement,
quarterly production came up short of our projection.
The Kemess mine had another excellent quarter bringing its 2010
total to over 100,000 ounces of gold for its final full year
of production at a net cash cost of $370 per ounce.
As announced earlier this week in our three year production
forecast, we are looking forward to the considerable growth
and transition of our company as we focus on building
the Young-Davidson mine in 2011.
Young-Davidson, along with our Australian operations and
a robust $14.5 million exploration program focusing on a
number of exciting discoveries and targets, position
Northgate well for significant and sustainable growth for
many years to come."
Results of Operations
Fosterville Gold Mine
The Fosterville Gold mine achieved quarterly production of 23,108
ounces of gold, which was better than forecast, due to higher
than expected ore grades in the stopes that were mined.
For the second straight year, production at Fosterville exceeded
the 100,000-ounce mark.
The mine produced a total of 100,441 ounces of gold in 2011,
which was slightly less than the 103,360 ounces produced last
year.
The net cash cost of production in the fourth quarter and full
year 2010 were lower than the most recent forecast at $856
and $739 per ounce, respectively, despite the substantial
appreciation of the Australian dollar during the year, which
averaged slightly below parity with the US dollar for the last
three months of 2010.
Production in 2011 is forecast to be in the range of 97,000 -
102,000 of gold.
Stawell Gold Mine
During the fourth quarter, the Stawell Gold mine produced 17,882
ounces of gold at a net cash cost of $1,127 per ounce.
The mine has continually improved operations since the low
production performance in the second quarter of the year.
However, production in the fourth quarter was hampered by lower
grades mined than forecast.
For the full year 2010, Stawell produced 71,482 ounces of gold
at an average net cash cost of $964 per ounce.
The net cash cost for 2010 was negatively impacted primarily by
lower than forecast production resulting from lower than
expected ore grades and also by a stronger Australian dollar
relative to the US dollar.
Production in 2011 is expected to increase by at least 20%
from 2010, to between 86,000 - 91,000 ounces of gold, and
in years 2012 and 2013, this ramp up of production is expected
to continue with production forecast to be in the range of
105,000 - 117,000 ounces as ore is increasingly sourced from
the higher-grade GG6 zone.
Kemess South Gold and Copper Mine -
The Kemess South mine posted solid fourth quarter production
of 25,087 ounces of gold and 10.6 million pounds of copper,
bringing total production for all of 2010 to 100,789 ounces
of gold and 40.7 million pounds of copper.
The net cash costs for the fourth quarter and full year 2010
were $133 and $370 per ounce, respectively, which was slightly
higher than forecast due to lower than forecast copper
production in the fourth quarter of the year.
Kemess South is scheduled to close in March 2011.
Since taking ownership of the operation in 2000, the mine
has produced nearly three million ounces of gold and
700 million pounds of copper, generating almost $900 million
in cash flow from operations.
Young-Davidson Gold Mine
Significant progress was made during the last half of 2010,
as a number of activities ramped up on site since construction
began in August.
In the fourth quarter, we completed construction of the new
hoist house for the existing shaft.
We also completed the raise bore pilot hole for the first leg
of a new 5.5 metre ("m") diameter Northgate production shaft
and are pleased to announce that the raise bore work for the
shaft has commenced.
In addition, we completed clearing the area where the process
plant will be built and have commenced pouring concrete for
the mill building.
Construction of the main plant site and tailings impoundment
areas was ongoing during the quarter and will continue
through 2011.
In the underground section of the mine, we installed and
commissioned new ventilation equipment to service the increased
mine development activities.
The ramp that will serve as the main access to underground
ore was extended to a total length of 3,900 m and an additional
755 m of lateral development was achieved during the quarter.
In the first half of 2011, major development activities include:
<<
- Continuing major earthworks required for the preparation
of the project site.
- Commissioning the new hoist and commencing sinking
operations of the existing shaft.
- Raise boring work for the first leg of a new 5.5 m
diameter Northgate production shaft.
- Completing the erection of the mill building.
- Preparing the materials required for the construction
of the tailings dam.
- Starting the installation of major process equipment.
- Continuing with the construction of the 115 kV power line.
- Commencing the open pit pre-production development.
>>
Year End 2010 Financial Results
Northgate's audited financial results for the year ended
December 31, 2010 are scheduled for release before the market
opens on March 8, 2011 and the Corporation's year-end conference
call and webcast for investors and analysts will be held at
10:00 am (Eastern Time) on the same day. Dial-in information
for the conference call and webcast will be made available
in the coming weeks.
Northgate Minerals Corporation
is a gold and copper producer with mining operations,
development projects and exploration properties in Canada
and Australia.
Our vision is to be the leading intermediate gold producer
by identifying, acquiring, developing and operating profitable,
long-life mining properties.
Cautionary Note Regarding Forward-Looking Statements and Information:
http://www.northgateminerals.com/
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