Northgate Minerals Reports Significant Gold Intersections at its Fosterville and Stawell Gold Mines
10.11.2010 | CNW
VANCOUVER, Nov. 10 /CNW/ - 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.
Phoenix Extension (6850 mN)
* Hole UDE037 intersected 14.1 g/t over 4.7 m and hole UDE038 intersected 5.8 g/t over 5.0 m.
* These holes follow on the assay results released previously: hole SPD527C (6950 mN) returned 6.5 g/t over 5.1 m and hole SPD526C (6900 mN) returned 12.2 g/t over 6.3 m.
* Results indicate the potential for increasing the Phoenix Extension zone another 150 m south along strike and down plunge.
* Stawell: in addition to the two new gold discoveries in previously untested areas (see press releases dated August 31 and November 1, 2010), drilling from Golden Gift 6 Lower ("GG6L") intersected high-grade mineralization, further enhancing the new GG6 reserve zone, with current average reserve grade of 6.3 g/t:
Basalt Contact:
* Hole MD-5338 returned 13.2 g/t over 4 m.
* Hole MD-5281 contained several excellent intervals: 4.9 g/t over 16.4 m, including 7.1 g/t over 7.6 m and 15.9 g/t over 5.1 m.
* Hole MD-5790 also contained several excellent intervals: 5.7 g/t over 5.2 m, including 13.0 g/t over 1.5 m; a second interval returned 5.8 g/t over 9.7 m, including 8.0 g/t over 3.0 m and 13.2 g/t over 1.5 m.
Waterloo:
* Hole MD-5281 returned 24.0 g/t over 10.6 m.
* Hole MD-5481 returned 21.0 g/t gold over 3.1 m.
Ken Stowe, President and Chief Executive Officer, remarked, "The excellent results received to date represent a significant step towards achieving our goal of reserve and resource expansion at our Australian mines. Drilling within the Phoenix Footwall and Extension down dip from the existing reserves is testing for the large scale continuity of the Phoenix Deposit, which has been the most productive orebody identified on the property to date, and while in its early stages, we are encouraged by the excellent results and the potential to add to reserves. We also continue to be very excited on the progress that is being made at Stawell in identifying new areas on our mining lease, including two new gold bearing basalt domes and a potentially significant waterloo zone, as we look to make further extensions to the mine life."
2010 Diamond Drill Programs
Fosterville - Phoenix Footwall and Phoenix Extension
To date, three holes have been drilled totalling 1,590 m using underground drill platforms.
We are encouraged by results within the Phoenix Footwall, which has appreciable widths and grades and has the potential to be an ore shoot paralleling the known Phoenix orebody. A drill program is in progress in the area between 7200 mN and 7500 mN to determine the grade and continuity of this potential zone.
Drill results from the Phoenix Extension indicate the potential for extending the Phoenix orebody another 150 m south along strike and down plunge. A drill program is also progressing on section 6850 mN to potentially extend mineralization up dip of existing drill intersections.
Figure 1: Fosterville Gold Mine Long Projection of Phoenix Extension and Footwall
Table 1: Assay Results from Phoenix Extension and Footwall Drilling
Hole ID From (m) To (m) Interval (m) Gold Assay
(g/t) Phoenix
Extension / Footwall
UDE037 446.5 451.2 4.7 14.1 Extension
UDE038 462.6 467.6 5.0 5.8 Extension
UDE038 500.7 525.6 24.9 5.4 Footwall
including 500.7 506.3 5.6 11.5 Footwall
and 516.1 520.4 4.3 10.1 Footwall
UD756 468.1 474.4 6.3 4.7 Footwall
UD756 478.0 496.6 18.6 5.5 Footwall
including 482.7 491.7 9.1 8.1 Footwall
Stawell - GG6L
Drilling within GG6L is ongoing, where there is potential to add to high-grade reserves similar to the 6.3 g/t reserve grade within GG6. Assay results received to date are presented in the following tables and have returned significant thicknesses of mineralization. The GG6L mineralized zone extends over 200 m along strike and over 180 m in vertical height at present. Since 2008, a total of 13 holes have been drilled into the GG6L scoping program. Seven of these holes intersected the high-grade basalt contact zone.
While the initial work in the GG6L zone has centered on the high grade basalt contact mineralization, the discovery of a potentially significant waterloo zone further east of the main basalt contact provides another high-grade area to focus on. Potential for further upside at GG6L is promising. Multiple ore surfaces in the GG6L zone and extensions at depth, as well as the identification of the waterloo zone, all present excellent opportunities for additional ounces to be discovered in the GG6L zone.
The exploration team at Stawell has begun the interpretation of the drill intercepts for a GG6L resource estimate. Upon completion of the proposed 2011 drill program, it is expected that there will be 27 intercepts into the basalt contact zone at 50 m by 50 m spacing, which should be sufficient to initiate resource definition drilling in the zone with the focus on reserve conversion.
Figure 2: Stawell Gold Mine Long Projection of GG6L
Table 2: Assay Results from GG6L Zone - Basalt Contact Zone Mineralization
Hole ID From (m) To (m) Downhole
Interval (m) Estimated
True Width
(m) Grade
(g/t)
MD-5338 417.9 421.9 4.0 1.9 13.2
MD-5540 359.5 360.8 1.3 1.0 12.6
MD-5540W1 366.2 369.5 3.3 2.0 4.9
MD-5281 493.7 510.1 16.4 8.4 4.9
including 502.5 510.1 7.6 3.8 7.1
MD-5281 525.9 531 5.1 2.6 15.9
including 525.9 528.5 2.6 1.3 12.7
and 529.2 530.2 1.0 0.5 40.3
MD-5281 559.2 561.7 2.5 1.1 9.6
MD-5489 444.5 445 0.5 0.4 8.8
MD-5550 361.6 366.7 5.1 3.3 12.3
MD-5790 273.2 278.4 5.2 3.2 5.7
including 274.7 276.2 1.5 0.9 13.0
MD-5790 345.3 355.0 9.7 6.8 5.8
including 347.7 350.65 3.0 2.0 8.0
and 353.5 355.0 1.5 1.0 13.2
Table 3: Assay Results from GG6L Zone - Stockwork Zone Mineralization
Hole ID From (m) To (m) Downhole
Interval (m) Estimated
True Width
(m) Grade (g/t)
MD-5282 476.1 477.3 1.2 0.8 5.2
MD-5282 485.2 486.9 1.7 0.9 5.4
MD-5481 418.8 420.2 1.4 1.1 5.9
MD-5489 437.5 441.2 3.7 2.8 2.7
MD-5550 351 354.4 3.4 2.7 9.0
Table 4: Assay Results from GG6L Zone - Waterloo Zone Mineralization
Hole ID From (m) To (m) Downhole
Interval (m) Estimated
True Width
(m) Gold (g/t)
MD-5281 535 545.6 10.6 5.6 24.0
MD-5282 512.4 516.2 3.8 2.0 9.6
MD-5481 439.3 442.4 3.1 2.9 21.0
Appendix 1: Phoenix Extension and Footwall Drill Hole Collar Locations
Hole ID Northing Easting Elevation Collar
Azimuth Collar Dip Depth (m)
UDE037 6,750 1,680 4,845 347.0 -77 509.9
UDE038 6,750 1,680 4,845 329.0 -80 546.1
UDE756 7,378 1,680 4,943 234.0 -86 533.5
Appendix 2: GG6L Drill Hole Collar Locations
Hole ID Easting Northing Elevation Collar
Azimuth Collar Dip Depth (m)
MD-5281 659031.19 898049.14 -1273.30 49.0 -66.0 620.6
MD-5282 659030.6 898049.4 -1273.3 30.0 -69.0 569.8
MD-5338 659030.66 898049.45 -1273.31 20.0 -68.0 491.9
MD-5481 659069.54 897967.75 -1331.47 29.6 -56.0 575.3
MD-5489 659069.87 897967.56 -1331.47 38.6 -54.7 689.5
MD-5540 658943.88 898035.33 -1357.67 28.3 -60.4 503.7
MD-5540W1 658943.88 898035.33 -1357.67 31.5 -58.2 560.7
MD-5550 659013.54 898004.4 -1355.52 60.0 -45.5 491.5
MD-5580 659014.1 898002.7 -1355.9 63.0 -47.7 677.6
MD-5599 659014.1 898002.7 -1355.9 71.0 -47.5 746.6
MD-5790 659009.3 898044.8 -1442.37 14.5 -58.0 404.6
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Quality Control - Analyses and Sample Location
The quality assurance/quality control and other analytical and testing procedures for sample analysis and drill hole survey methodology were those reported in the Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") compliant Technical Report filed on SEDAR (www.sedar.com) on October 22, 2008.
Qualified Persons
The program design, implementation, quality assurance/quality control and interpretation of the results from Fosterville are under the control of Northgate's geological staff, which includes of number of individuals, each of who are qualified persons as defined under NI 43-101. Supervision of the program is by Glenn Grayson (BSc Geology, MAusIMM), Northgate's Senior Exploration Geologist and Simon Hitchman (BSc Geology (Hons), MAusIMM, MAIG), Northgate's District Exploration Geologist at the Fosterville Gold Mine.
The program design, implementation, quality assurance/quality control and interpretation of the results from Stawell are under the control of Northgate's geological staff, which includes a number of individuals, each of who are qualified persons as defined under NI 43-101 and is supervised by Steve Harper, Senior Exploration Geologist (Australian Institute of Mining and Metallurgy). Mark Haydon (Australian Institute of Geoscientists), Stawell Gold Mine's Geology Manager, has supervised the preparation of the information that forms the basis of this release, and is responsible for the overall management of the program.
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Note to Investors:
The terms "Qualified Person", "Mineral Reserve", "Proven Mineral Reserve", "Probable Mineral Reserve", "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource", and "Inferred Mineral Resource" used in this news release are defined in accordance with NI 43-101.
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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:
This Northgate press release contains "forward-looking information", as such term is defined in applicable Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, concerning Northgate's future financial or operating performance and other statements that express management's expectations or estimates of future developments, circumstances or results. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects", "believes", "anticipates", "budget", "scheduled", "estimates", "forecasts", "intends", "plans" and variations of such words and phrases, or by statements that certain actions, events or results "may", "will", "could", "would" or "might" "be taken", "occur" or "be achieved". Forward-looking information is based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which Northgate operates, are inherently subject to significant operational, economic and competitive uncertainties and contingencies. Northgate cautions that forward-looking information involves known and unknown risks, uncertainties and other factors that may cause Northgate's actual results, performance or achievements to be materially different from those expressed or implied by such information, including, but not limited to gold and copper price volatility; fluctuations in foreign exchange rates and interest rates; the impact of any hedging activities; discrepancies between actual and estimated production, between actual and estimated reserves and resources or between actual and estimated metallurgical recoveries; costs of production; capital expenditure requirements; the costs and timing of construction and development of new deposits; and the success of exploration and permitting activities. In addition, the factors described or referred to in the section entitled "Risk Factors" in Northgate's Annual Information Form for the year ended December 31, 2009 or under the heading "Risks and Uncertainties" in Northgate's 2009 Annual Report, both of which are available on the SEDAR website at www.sedar.com, should be reviewed in conjunction with the information found in this press release. Although Northgate has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in forward-looking information, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information in this press release is made as of the date of this press release, and Northgate disclaims any intention or obligation to update or revise such information, except as required by applicable law.
Cautionary Note to US Investors Regarding Mineral Reporting Standards:
Northgate prepares its disclosure in accordance with the requirements of securities laws in effect in Canada, which differ from the requirements of U.S. securities laws. Terms relating to mineral resources in this press release are defined in accordance with National Instrument 43-101-Standards of Disclosure for Mineral Projects under the guidelines set out in the Canadian Institute of Mining, Metallurgy, and Petroleum Standards on Mineral Resources and Mineral Reserves. The Securities and Exchange Commission (the "SEC") permits mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. The Company uses certain terms, such as, "measured mineral resources" "indicated mineral resources", "inferred mineral resources" and "probable mineral reserves", that the SEC does not recognize (these terms may be used in this press release and are included in the Company's public filings which have been filed with securities commissions or similar authorities in Canada).
For further information:
Ms. Keren R. Yun, Director
Investor Relations
Tel: 416-216-2781
Email: ngx@northgateminerals.com
Website: www.northgateminerals.com