During the quarter, Kemess posted gold and copper production of 34,922 ounces and 11.9 million pounds, respectively, which was in line with Northgate's production forecast.
The net cash cost of production was $395 per ounce of gold, which was significantly lower than the $597 per ounce reported in the corresponding quarter of 2008.
For the full year 2009, Kemess is forecast to produce 172,000 ounces of gold and 51.8 million pounds of copper at a net cash cost of $403 per ounce.
While gold and copper production is in line with guidance, the net cash cost is forecast to be significantly lower, as a result of higher copper prices.
During the third quarter of 2009, approximately 8.3 million tonnes of ore and waste were removed from the open pit compared to 5.9 million tonnes during the corresponding quarter of 2008.
The higher tonnes moved in the most recent quarter resulted in significantly lower unit mining costs of Cdn$1.25 per tonne moved compared with Cdn$1.99 per tonne moved in the same period last year.
Gold and copper recoveries in the third quarter were higher at 63% and 79%, respectively, compared with 60% and 69% reported in the third quarter of last year.
Recoveries in the most recent quarter are dramatically higher due to improvements in the metallurgical process made earlier in the year, which have made the flotation circuit more efficient in processing lower grade ore with higher sulphide content.
These improvements are noteworthy, as they will continue to have a positive impact on the profitability of the lower grade ore, which currently makes up the remaining reserves at Kemess.
2009 Production Forecast
Northgate's production forecast is set to achieve an annual record of 365,000 ounces of gold at a net cash cost of $493 per ounce, which has been revised slightly downwards form the previous forecast of 382,500 ounces.
The annual production forecast for Kemess is in line with initial estimates, however, the production forecasts for Stawell and Fosterville have been reduced as previously discussed.
Cash costs for the balance of 2009 are expected to be slightly higher as a result of the stronger Canadian and Australian dollar relative to the US dollar and declining ore reserves at Kemess.
Northgate's production forecast for the balance of 2009 is outlined in the following table: