Northgate Minerals Provides Update on Construction and Exploration Activities at Young-Davidson
VANCOUVER, June 24, 2011 /CNW/ --
Underground Mine Optimization to Proceed
VANCOUVER, June 24, 2011 /CNW/ - (All figures in US dollars except where
noted) Northgate Minerals Corporation (TSX: NGX, NYSE-Amex: NXG) is
pleased to provide an update on the progress of building its 100% owned
Young-Davidson mine located near the town of Matachewan, in northern
Ontario.
Highlights
Construction Activities
» The project remains on schedule and on budget:
- at the end of May 2011, 95% of the construction contracts
have been awarded (approximately $245 million), 97% of the
equipment purchase orders have been placed and 85% of the
engineering has been completed.
» The project remains on budget:
- at the end of May 2011, Northgate has invested approximately
$170 million towards construction of the Young-Davidson mine.
» After an intensive optimization study, a mid-shaft crushing and
loading facility has been added to the original feasibility
study mine design to facilitate access to higher grade
underground ore one year earlier than planned, which will
provide flexibility in the early years of mine operation and
production.
Diamond Drill Program
» Hole YD11-234B in the YD West zone intersected 4.31 grams per
tonne (g/t) gold over 79.6 metres (m) (estimated true thickness
is 55.0 m), including 5.66 g/t over 49.9 m.
» The underground exploration program that will drill test targets
to the east of the known reserves at Young Davidson is scheduled
to begin in the final week of June.
'Our employees and contractors at Young-Davidson continue to put in hard
work and dedication to all of the activities underway on site', said
Ken Stowe, President and CEO. 'Due to their great efforts, the project
continues to advance on schedule and on budget. In addition, we are
very pleased with the results from the YD West Zone and the new
exploration program set to begin this month, potentially adding to our
2.8 million ounces of reserves and 650,000 ounces of resources.'
Young-Davidson Construction Update
Production Shaft
The first leg (446 m) of the new Northgate production shaft is almost
complete with breakthrough of the raise bore expected in mid-July. The
second leg, to a depth of 700 m is expected to begin by November 2011.
Mid-Shaft Loading Facility
The Northgate Board of Directors have approved a mid-shaft loading
facility, which is an optimization to the original mine design that
will allow for early underground ore production from the 9590 level and
above. This design will de-couple underground ore production from the
ongoing development in the lower half of the mine and will provide for
early underground ore feed to supplement open pit production. The
facility is scheduled to be operational by Q1 2013, one year ahead of
the feasibility schedule for underground ore production.
Pre-production capital expenditures will not change as a result of this
optimization, however, sustaining capital in the 2014-2015 period will
increase by approximately $25 million.
115 kV Transmission Line
The 115 kV hydro transmission line from Kirkland Lake to the Matachewan
Junction is proceeding ahead of schedule and is expected to be complete
by September 2011.
Tailings Impoundment Area ('TIA')
Construction of the tailings dam facility is on schedule and the
facility will be in a position to receive tailings from the mill's
scheduled start up in March 2012. The tailings facility is an expansion
of one of the historic tailings sites on the property.
The mill building erection is proceeding and will be enclosed by early
July, at which time the installation of the process equipment will
begin, much of which has already arrived at site.
More photos of the project development and a short video clip are
available on our website at www.northgateminerals.com.
Exploration Update
Hole YD11-234B returned 4.31 g/t gold over 79.6 m and contained a higher
grade section of 5.66 g/t over 49.9 m at the base (footwall) of the
zone. This intersection which was reported in a news release on June 7,
2011 is located about 130 m above and 55 m east of Discovery Hole
YD10-198. Both 234B and 198 are in a new gold zone west of the
currently defined reserves and resources, confirming the fault offset
model relating the YD West zone to the main Young-Davidson ore body.
Hole YD-11-240A, which was drilled perpendicular to the exploration
holes in the YD West area in order to resolve the location and
correlation of the north-south trending diabase dykes is now complete
and the results are being analyzed.
Underground exploration in the area east of the current Young-Davidson
Reserve is scheduled to get underway in the last week of June.
Figure 1 - YD West Zone-Longitudinal Section
Qualified Persons
John Andrew Cormier, PEng, Project Manager, Northgate Minerals
Corporation, is the Qualified Person responsible for reviewing and
approving the technical information of this press release.
Carl Edmunds, Exploration Manager, Northgate Minerals Corporation, is
the Qualified Person responsible for reviewing and approving the
exploration results of this press release.
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 estimate 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, 2010 or under the
heading 'Risks and Uncertainties' in Northgate's 2010 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).
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Ms. Keren R. Yun
Director, Investor Relations, Northgate Minerals Corporation
Tel: 416-216-2781
Email: ngx@northgateminerals.com Website: www.northgateminerals.com