Zone averages 30 metres thick at 3.72 grams per
tonne
VANCOUVER, Sept. 15, 2011 /PRNewswire/ - Northgate Minerals
Corporation (TSX: NGX, NYSE Amex: NXG) is pleased to announce a
new, NI 43-101 compliant resource estimate for the YD West
zone at Young-Davidson in northern Ontario. YD West is the most recent gold zone
discovery located just west of the currently known 2.8 million
ounce reserve1. The Young-Davidson mine is scheduled to commence
production in early 2012.
YD West Resource Highlights
- Indicated Resource of approximately 4.5 million tonnes
containing 536,000 ounces of gold at a grade of 3.72
grams per tonne ("g/t").
- Inferred Resource of 508,000 tonnes containing 53,000 ounces
of gold at a grade of 3.22 g/t.
- The YD West zone is the thickest resource on the
property; a large portion of the zone exceeds
50 metre ("m") true widths, with an average true width of
30 m.
- The mineral resource estimate incorporates nine diamond drill
holes totalling over 12,000 m, which were completed from
July 2010 to August 2011.
- YD West remains open at depth and to the west,
underscoring the exploration upside on the property. Currently, two
diamond drills continue to explore in this zone and assay results
are pending for two additional holes. Future work will involve
aggressive step-out drilling further west to expand on these
resources.
- An additional underground exploration drill is testing targets
to the east and down dip of currently known reserves.
"This is an outstanding result and achievement
by our exploration team and we are extremely pleased with the
initial resource estimate reported today" commented Richard Hall, President and Chief Executive
Officer of Northgate. "The YD West zone has yielded some of
best grade-thickness intervals ever drilled on the property and the
initial resource has exceeded our expectations. Due to its
thickness and grade, YD West has the potential to be the lowest
cost per ounce mining zone on the property and will have a positive
impact on the economics of the Young-Davidson mine. As we continue to explore in
this zone and commence step-out drilling, the exploration upside is
tremendous and we fully expect to announce a significant increase
in resources at YD West by the end of the year."
Table 1: 2011 YD West Zone Resource Estimate
YD West Zone |
Tonnes
(000's) |
Gold
(ounces) |
Gold Grade
(g/t) |
Indicated
Resource |
4,488 |
536,000 |
3.72 |
Inferred Resource |
508 |
53,000 |
3.22 |
Notes to Minerals Resources
- Mineral resources that are not mineral reserves do not have
demonstrated economic viability.
- Mineral resources for Young-Davidson have been estimated in accordance
with the definitions contained in the Canadian Institute of Mining,
Metallurgy and Petroleum (CIM) Standards on Mineral Resources and
Reserves, Definitions and Guidelines adopted by the CIM Council and
National Instrument 43-101.
- Mineral resources are rounded to 1,000 tonnes, 0.01 g/t gold
and 1,000 ounces.
- Mineral resources were estimated using an average long-term
gold price of $750/oz (Cdn$806/oz). Underground mineralized
wireframes constructed based on approximately a 1.70 g/t gold
cut-off grade, a 1.3 g/t incremental cut-off grade and a minimum
true thickness of three metres.
- Mineral resources were prepared by Carl
Edmunds, Exploration Manager, Northgate, using available
assay data with an effective date of September 1, 2011. Mr. Edmunds is a member of the
Association of Professional Engineers, Geologists and Geophysicists
of British Columbia and has 23
years of experience in mineral resource estimation.
Overview of the YD West Zone Drill Program
The purpose of the 2011 diamond drill program on
the YD West zone is to explore for new resources located west of a
major north-south trending diabase dyke that appeared to have
truncated and displaced the main Young-Davidson orebody. Northgate resolved the
fault displacement with Discovery Hole YD10-198, which intersected
3.46 g/t over 79.5 metres ("m"). The 2011 initial resource
estimate captures all drilling completed to the end of August 2011 and is based upon a total of
nine drill holes, all of which have been released
previously.
The resource occurs in an area of complex
post-mineral dykes (Figure 2), which necessitated drilling three
oblique holes in a north-west direction in order to resolve this
complexity and ensure the accuracy of the resource
estimation. Analytical results have been received for one of
the three oblique holes while geologic results have been received
for two of the three holes, providing tight control on the
positions of the dykes in the YD West resource area.
In total, the Young-Davidson property now contains Proven and
Probable Reserves of 2.8 million ounces of gold, Indicated
Resources of approximately 550,000 ounces and Inferred Resources of
over 700,000 ounces (see Annual Report for year ended December 31, 2010 for Young-Davidson Mineral
Resources).
Two diamond drills will continue to focus in
this area until the end of the year, with obvious expansion
possible to the west at similar elevations. An updated
resource for the YD West zone will be released with the
Corporation's annual resource/reserve statement in the first
quarter of 2012.
On the eastern side of the Young-Davidson property, underground exploration has
begun on the down dip area beneath the Upper Boundary Zone (a 100 m
wide sector between two prominent dykes inside the oval outline in
Figure 1), where it was historically challenging to drill
targeted holes from surface. The underground access that is
now available from the bottom of the new ramp provides the
opportunity to begin this program and three holes are already
complete with assays pending. An additional eight to ten
holes are planned during the balance of the 2011 exploration
program.
Figure 1 - Young-Davidson Longitudinal Section
www.northgateminerals.com/Theme/Northgate/files/Figure_1_YD.jpg
Figure 2 - YD West Zone Longitudinal Section
www.northgateminerals.com/Theme/Northgate/files/Figure_2_YD.jpg
Appendix 1 - Drill Collar Co-ordinates
Hole_ID |
Nad83
Easting |
Nad83
Northing |
Elevation
(m) |
Azimuth |
Dip |
Depth
(m) |
YD10-198 |
522500.2 |
5309856.7 |
368.7 |
0.0 |
-70.0 |
1383.0 |
YD10-198A |
522500.2 |
5309856.7 |
368.7 |
0.0 |
-70.0 |
1487.3 |
YD10-198B |
522500.2 |
5309856.7 |
368.7 |
0.0 |
-70.0 |
1591.9 |
YD10-226A |
522504.0 |
5309950.1 |
377.9 |
0.0 |
-70.0 |
1283.0 |
YD10-234 |
522510.3 |
5310040.2 |
383.3 |
0.0 |
-70.0 |
1354.8 |
YD11-234A |
522510.3 |
5310040.2 |
383.3 |
0.0 |
-70.0 |
1269.0 |
YD11-234B |
522510.3 |
5310040.2 |
383.3 |
0.0 |
-70.0 |
1224.8 |
YD11-240A |
522955.0 |
5310200.0 |
330.0 |
285.0 |
-70.0 |
1410.3 |
YD11-242 |
522381.0 |
5309871.0 |
383.0 |
0.0 |
-70.0 |
1383.0 |
* * * * * * *
Quality Control - Analyses and Sample
Location
Details of quality assurance/quality control procedures for sample
analysis and drill hole survey methodology are reported in detail
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 August 28, 2009.
Qualified Persons
The program design, implementation, quality assurance/quality
control and interpretation of the results are under the control of
Northgate's geological staff, which includes a number of
individuals who are qualified persons as defined under
NI 43-101. Carl Edmunds, PGeo,
Northgate's Exploration Manager, is responsible for the overall
supervision of the program.
* * * * * * *
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.
* * * * * * *
Northgate Minerals Corporation is a gold
and copper producer with mining operations, development projects
and exploration properties in the Americas and Australia. Northgate currently owns and
operates the Fosterville and
Stawell gold mines in Victoria
Australia, and is building the Young-Davidson gold mine in northern Ontario, which is scheduled to commence
production in 2012.
* * * * * * *
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, 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
US 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 Corporation 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 Corporation's public filings which
have been filed with securities commissions or similar authorities
in Canada).
1 See press release dated January 25, 2010.
SOURCE Northgate Minerals Corporation