Northgate Minerals Corp (NXG)

[mlkrborn]

Northgate Minerals announces positive preliminary assessment for its Kemess underground project; reports production of 1.1 mln ounces of gold and 490 mln pounds of copper at a net cash cost of $115/ounce (NXG) 3.36 : Average annual production of 95K ounces of gold at a net cash cost of $115/ounce. Average annual copper production of 41.4 mln pounds. Co reported a total of 1.1 mln recovered ounces of gold and 490 mln pounds of copper over an ~12-year mine-life. Pre-production capital cost of $437 mln. The project has significant leverage to higher metal prices. At $1,500 per ounce gold and $4.00 per pound copper, Kemess Underground is expected to generate pre-tax operating cash flow of $2.1 bln.