Northgate Minerals Reports Significant Gold Intersections at its Fosterville and Stawell Gold Mines
Nov. 10, 2010 (PR Newswire) --
VANCOUVER, Nov. 10 /PRNewswire/ - Northgate Minerals Corporation (TSX: NGX, NYSE Amex: NXG) is pleased to report positive exploration results from diamond drill programs at its Fosterville and Stawell Gold mines in Victoria, Australia.
Exploration Highlights
* Fosterville: drilling below and down-plunge of the Phoenix Reserve block continues to show promising results:
Phoenix Footwall
* Drilling within the Footwall has intersected strong mineralization: hole UDE038 (6850 mN) intersected 5.4 grams per tonne ("g/t") gold over 24.9 metres ("m"), including 11.5 g/t over 5.6 m and 10.1 g/t over 4.3 m. * Hole UD756 (7360 mN) intersected 4.7 g/t over 6.3 m and 5.5 g/t over 18.6 m, including 8.1 g/t over 9.1 m. * These holes follow on assay results released previously: hole SPD547B (7000 mN) returned 6.3 g/t over 23.3 m and 4.6 g/t over 6.5 m. * Results from the Footwall indicate that there is potential to add new reserves close to the existing Phoenix underground development and to increase ounces per vertical metre immediately below the existing reserves.
Northgate Minerals Reports Third Quarter Results :-)
Nov. 10, 2010 (PR Newswire) --
Young-Davidson Fully Funded and Advancing on Schedule and on Budget
Notice: Conference Call and Webcast of Q3 Results Today at 10:00 am ET Dial in: +647-427-7450 or 1-888-231-8191
VANCOUVER, Nov. 10 /PRNewswire-FirstCall/ - (All figures in US dollars except where noted) - Northgate Minerals Corporation ("Northgate" or the "Corporation") (TSX: NGX; NYSE Amex: NXG) today announced its financial and operating results for the three and nine months ended September 30, 2010.
Third Quarter Highlights
* Reported adjusted net earnings of $1.7 million or $0.01 per diluted share. * Generated cash flow from operations of $13.5 million or $0.05 per diluted share. * Adjusted net earnings and cash flow from operations were adversely impacted by an inventory build-up at Kemess South as poor railcar availability impeded metal sales during the quarter. As inventory is sold during the fourth quarter of 2010, we expect to realize an additional $14 million in revenue. * Produced 64,999 ounces of gold and 10.9 million pounds of copper at an average net cash cost of $645 per ounce. * Successfully completed a convertible note offering for net proceeds of $163.5 million to fund the development of the Young-Davidson mine; Young-Davidson is now fully-funded and construction is advancing on schedule and on budget. * Successful exploration results at Northgate's operations: o Kemess Underground: intersected the highest grade-thickness interval ever encountered on the property of 3.37 grams per tonne ("g/t") gold and 0.95% copper over 60 metres ("m"). o Stawell: discovered gold in two previously untested areas, the first being the previously reported Northgate Gift and a second area 1.6 kilometres ("km") south of existing mine workings, which intersected 13.7 g/t gold over 5.45 m, including 25.0 g/t gold over 2.2 m, and 15.4 g/t gold over 2.5 m. * In addition to exploration results released during the quarter, we are pleased to announce further exploration results, which are reported in Northgate's exploration press release dated November 10, 2010. Highlights include:
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.
(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.
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