Bought WHT $2.85, and now filled up on gold hope it starts going up again. ===============================================================
Hi roswald, I have no doubt that (depending upon how long you hold it) WHT will produce some terrific returns for you. In my view, Ian Telfer is one of the truly 'smart' men in the mining biznez.
May I suggest you also consider Northgate Explorations (NXD) as a worthwhile addition to your portfolio? I believe NXG's % gains from here could exceed those of WHT over the next couple of years as assets in the ground will warrant upward evaluations bringing them closer to the values of the extracted product.
I believe the coming feasibility study on their North property will show Northgate to be undervalued, even if the shareprice is a buck higher than it is now.
Apparently the street likes what it sees in NXG as well, being that it is one of the few green lights in my purview. <VBG>
Northgate Projects 300,000 Ounces of Gold Production in 2004 Tuesday January 13, 7:25 pm ET
VANCOUVER, British Columbia--(BUSINESS WIRE)--Jan. 13, 2004--(All figures in US dollars except where noted) - Northgate Exploration Limited (TSX: NGX - News; AMEX: NXG - News) today released the 2004 production forecast for the Kemess South Mine.
Highlights
*The Kemess South mine is forecast to produce 300,000 ounces of gold and 75 million pounds of copper during 2004.
* The cash cost of production in 2004 on a fully absorbed basis, net of by-product credits, is forecast to be $206 per ounce ($174 per ounce using the Gold Institute Methodology).
* Mill throughput during 2004 is forecast to average 52,109 tonnes per day.
* The feasibility study on the Kemess North deposit is scheduled for completion at the end of the first quarter and is expected to add significantly to the reserves at Kemess.
* Northgate will invest $2 million in exploration within the Kemess Camp and on various joint venture exploration projects during 2004.
Ken Stowe, President and CEO, stated, "In 2003, we delivered on our promises at Kemess South, significantly advanced and enhanced the Kemess North Project, obtained a listing on AMEX, became a widely-held company with the exit of our major shareholder and saw our common share price rise by over 65%. In 2004, I expect our accomplishments will be no less dramatic. Our first priority in 2004 is to continue to build on our record of operational improvements at the Kemess South mine. Our second priority is to complete the feasibility study on Kemess North and move a substantial portion of the current indicated resource into a reserve category. Our final priority is to establish a fresh strategic plan for future growth that will take Northgate to its next level of development as a gold mining company. Fueled by projected gold production at Kemess South of 300,000 ounces in the coming year, strengthening prices for gold and copper and a strong balance sheet, I feel that we are poised to generate even more value for our shareholders in 2004."
2004 Kemess South Operating Parameters
Mine production is forecast to total 48 million tonnes of ore plus waste with ore being mined primarily from the eastern end of the pit during the early part of the year, and moving to the central and western regions of the pit as the year progresses. Mine productivity is expected to drop by approximately 5% due to the general deepening of the pit and increased truck haulage distances. The stripping ratio during the year is projected to be 1.57:1 compared to a life-of-mine average of approximately 1:1.
Mill throughput is forecast to average 52,109 tonnes per day with the mill operating at the same 91% availability as it did during 2003. Metallurgical recoveries of approximately 71% for gold and 82% for copper are projected. 3.2 million tonnes of supergene and leach cap ores are scheduled for processing in two separate campaigns in the second and third quarters compared to 2.3 million tonnes in 2003. Metal production of 300,000 ounces of gold and 75 million pounds of copper is anticipated from 19.1 million tonnes of ore.
Gold Cash Cost
Assuming by-product copper and silver prices of $0.95 per pound and $5.00 per ounce respectively and a Cdn$/US$ exchange rate of 1.30, cash costs are projected to be $206 per ounce of gold produced on a fully absorbed basis. Each $0.025 per pound change in the copper price or $0.01 change in the US$/Cdn$ exchange rate affects the cash cost by approximately $5 per ounce. Applying the Gold Institute methodology employed by the vast majority of the industry, the cash cost of the Kemess South mine during 2004 would be $174 per ounce due to the capitalization of waste stripping in excess of the life-of-mine average. In contrast to mines using the Gold Institute methodology, the Kemess South cash cost is projected to decrease dramatically in future years when the waste-ore stripping ratio drops below the life-of-mine average.
Continuous Improvement Projects
The culture of continuous improvement at Kemess will continue unabated in 2004, building on numerous past achievements. The mill team will implement three projects that will enhance the throughput and efficiency of the grinding and flotation circuits. The rotational speed of the second of two SAG mills will be increased, allowing the mill to process ore at a 4% higher rate. In addition, a trommel magnet will be installed on the second of two ball mills to recover small pieces of broken steel, thereby reducing power consumption and maintenance costs. Identical projects completed on the B-side grinding mills in 2003 were highly successful. In the flotation circuit, the rougher flotation cells are being upgraded to increase retention time, improve circuit stability and increase metal recoveries and concentrate grade. The first phase of the flotation cell retrofit will be completed in the first quarter and involves activating four currently unused cells.
In the first quarter, the mine engineering team will complete a re-optimization of the Kemess South pit incorporating a steeper angle for the south pit wall based on updated geotechnical information and a re-configuration of haul roads and ramps. These changes will be incorporated into Northgate's 2003 year-end reserve statement where they are expected to have a positive effect on the life-of-mine stripping ratio and ore reserves.
Kemess North Feasibility Study
By the end of the first quarter, Northgate plans to complete a feasibility study of the Kemess North deposit. Kemess North is situated approximately five kilometers north of the existing Kemess South pit and contains an indicated resource of 5.4 million ounces of gold and more than 2 billion pounds of copper. The goal of the study is to move a substantial portion of the resources into a reserve category under the terms of National Instrument 43-101. A pre-feasibility study completed in the third quarter of 2003 demonstrated the potential to increase the mine life at Kemess by more than 10 years.
Exploration
Exploration spending during 2004 is forecast to total $2 million. Approximately half of this amount will be used to continue exploration of the claims surrounding the Kemess South mine and Kemess North deposit. This will include diamond drilling on the periphery of the Kemess South deposit and in the areas surrounding Kemess North and the Nugget Zone. In addition to diamond drilling, geophysical surveys will be conducted over the Kemess region and trenching and fieldwork will follow up on the promising showings identified during last year's prospecting campaign. The balance of the exploration budget will be allocated to the Hyland and Brenda properties, which are the subject of joint venture agreements, and any other opportunities that may arise during the year.
Northgate Exploration Limited is a gold and copper mining company focused on operations and opportunities in North and South America. The Corporation's principal assets are the 300,000-ounce per year Kemess South mine in north-central British Columbia and the adjacent Kemess North deposit, which contains an indicated resource of 5.4 million ounces of gold and 2 billion pounds of copper and is currently the subject of a feasibility study. Northgate is listed on the Toronto Stock Exchange under the symbol NGX and on the American Stock Exchange under the symbol NXG.
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