in the news!
Northgate Minerals Corporation will spend $21 million this year at its Young-Davidson gold project in Matachewan as the company moves toward a production decision. Northgate hired AMEC earlier this year to prepare a feasibility study for the Young-Davidson and it is expected most of this work will be completed before the end of the year.
Northgate announced in its fourth quarter report it will conduct surface based exploration, and underground ramp development this year. The surface-based diamond drilling program started in 2006 will continue with a target of completing 25,000 metres of drilling 2008 at a cost of $4-million. Northgate says the primary goals of the surface-based drilling continues to be to increase the syenite-hosted mineral resources in the region between the Lower YD and Lower Boundary zones and within 1,300 metres of surface (above the 9,000 level).
Northgate will continue excavation of the Young-Davidson ramp to the final length of 3,000 metres and this is expected to be completed by June 2008.
At the same time, the underground definition drilling program, which began in the last half of 2007, will continue from upper sections of the ramp with the goal of moving additional resources into indicated category.
The company is also dewatering the existing Shaft No. 3 down to the 14th level at about 625 metres in depth, in order to provide ventilation and secondary access to the underground ramp workings.
During the fourth quarter of 2007 Northgate produced 41,467 ounces of gold binging its yearend production to 245,631 ounces. In the fourth quarter 16.8 million pounds of copper were produced. Northgate produced 68.1 million pounds of copper in 2007.
Northgate's quarterly net gold cost was $48 per ounce and the annual net coast was negative $16 per ounce for 2007.
The company forecasts that it will produce 243,000 ounces of gold at its Kemess Mine and 64.4 million pounds of copper in 2008. It projects cash cost of production, net of by-product credits, to be $130 per ounce of gold assuming a copper price of $3.00 per pound and the Canadian dollar being at par with the U.S. dollar.
Northgate is in the final stages of acquiring Perseverance, an Australian gold mining company with two mines. Initial projections call for the Australian mine to produce between 190,000 and 200,000 ounces of gold in 2008. Northgate will provide further guidance on gold production, production costs, capital expenditures and exploration costs.
Northgate's President and CEO said: "While the revised fourth quarter production at Kemess fell short of our expectations, our total 2007 production of 245,631 ounces of gold at a net cash cost of negative $16 per ounce generated excellent cash flow in 2007's strong metal price environment. With the acquisition of two operating mines in Australia, Northgate's total production in 2008 is forecast to be over 400,000 ounces of gold and 64.4 million pounds of copper, all of which is unhedged, and will be sold at spot prices giving us maximum exposure in the current robust metal price environment.
"With successful security holder votes behind us on the Perseverance transaction and the upcoming resource update we expect to announce at Young-Davidson, Northgate has become a multi-mine, mid-tier, gold producer with production platforms in two excellent mining jurisdictions from which we can generate additional growth through exploration and acquisitions."
October 24, 2007
Back row:
Joseph Bisson – Matachewan Councilor
Lisa Hendrix – Early Childhood Educator – Keepers of the Circle, Day Care
Celine Verrier – Development Service Worker – Child and Family Services of Timmins and District.
Jeanine battisse – Matachewan First Nations Band Manager & School bus driver – McLeallan Transportation Co Ltd.
April George – Matachewan Municipal Administrative Assistant.
Front Row:
Lorraine Davies – Educational Assistant - Sacred Heart Catholic School
Deborah Lafrance – Early Childhood Education graduate.
October 13-21, 2007 is proclaimed "THE WEEK OF THE CHILD" and October 24, 2007 is the 7
th Annual Child Care Worker & Early Childhood Educator Appreciation Day. This is a time to reaffirm Canada’s Commitment as a signatory to the United Nations Convention on the Rights of the Child, setting aside October 24, 2007 to celebrate Child Care Worker & Early Childhood Educator Appreciation Day.The Corporation of the Township of Matachewan has joined communities across Canada in celebrating the work and achievements of Child Care Workers who reside in Matachewan., Ontario. We wanted them to be recognized for the role that they play in shaping a child’s social, physical, emotional and cognitive development. All Child Care Worker’s contributing to the care of children impact and benefit both families and communities in a most incontestable way.
On October 15, 2007, The Council of Matachewan resolved to declare October 24
th 2007 as Child Care Worker & Early Childhood Educator Appreciation Day. Council has chosen to honour the above/following individuals and extend a heartfelt thanks for pursuing an avenue leading to the benefit of children and families on behalf of our Matachewan family.Visit
www.childcareontario.org for more informationThe Corporation of the Township of Matachewan
Beverly Hine, Reeve
Joseph Bisson, Councilor
Andrew George, Councilor
Albert Durand, Councilor
Carrie Anne Gilbert, Councilor
Andrew Van Oosten, CAO-Clerk-Treasurer
April George, Administrative Assistant
Matachewan First Nation Signs Impact and Benefits Agreement with Northgate Minerals Corporation
VANCOUVER, July 2 /CNW/ - Northgate Minerals Corporation (TSX: NGX, NYSE Amex: NXG) and the Matachewan First Nation are pleased to announce that the parties have signed an Impact and Benefits Agreement ("IBA") for the Young-Davidson project located in Matachewan, Ontario. The IBA establishes a framework for the permitting and development of a mine on the Young-Davidson property and sets out a variety of co-operative initiatives between the Matachewan First Nation and Northgate relating to employment, training and other business opportunities in connection with the project. The IBA follows on the Memorandum of Understanding, which was signed in March 2008.
A formal signing ceremony on the Matachewan First Nation Reserve will take place later this month to commemorate the continuation of the historic relationship between Northgate and the Matachewan First Nation that is based upon trust and mutual respect.
The Young-Davidson property is located in the Abitibi greenstone belt of northern Ontario, 60 kilometres west of Kirkland Lake. The property has hosted two past producing mines, both with track records of successful mining during the mid-20th century. Since its acquisition of the property in late 2005, Northgate has invested $55 million in surface diamond drilling and underground development, which has increased the total measured and indicated gold resources on the property to 3.3 million ounces as at December 31, 2008. Pre-feasibility work, which began earlier this year, is now largely complete and Northgate will announce the results of this work later this month followed by a revised NI 43-101 Technical Report filed on SEDAR in August.
Northgate Minerals Corporation is a gold and copper producer with mining operations, development projects and exploration properties in Canada and Australia. The company is forecasting record gold production of over 390,000 ounces in 2009 and is targeting growth through further acquisition opportunities in stable mining jurisdictions around the world. Northgate is listed on the TSX under the symbol NGX and on the NYSE Amex under the symbol NXG.
Forward-Looking Statements:
This Northgate press release contains "forward-looking information", as such term is defined in applicable Canadian securities legislation, 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, 2008 or under the heading "Risks and Uncertainties" in Northgate's 2008 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.
For further information: Ms. Keren R. Yun, Director, Investor Relations, Tel: (416) 363-1701 ext. 233, Email: ngx@northgateminerals.com, Website: www.northgateminerals.com
Northgate Minerals Corp. proposes to commence a new project on the historic Young-Davidson and Matachewan Consolidated properties in Cairo Township, 3km west of the village of Matachewan, Ontario. Northgate Minerals Corp. is currently conducting advanced exploration activities on the property.
The proposed project involves dewatering the Young-Davidson shaft and associated underground workings, and dewatering the Young-Davidson pit. Once the shaft is dewatered, the timber will be removed and the shaft will be evaluated for suitability to provide access for ore production or ventilation for the proposed mine project.
Northgate would like to meet with government officials to clarify any permitting and approval requirements. An inter-governmental meeting will be convened on February 24, 2009, at 1:30 to 4:30 in the White Pine Boardroom, Ontario Government Complex, South Porcupine, to introduce the project.
The company will present the project details and receive comments and advice on environmental, permitting or other issues that it may have to consider in the start-up of this project.
Please indicate to me by e-mail if you or one of your staff are able to attend or, if there is someone I may have missed.
If you would like to participate by teleconference, the call in number is 866-355-2663 pass code 1624#.
A description of the project and the meeting agenda is attached for your review.
Deborah Stephenson
Mineral Development Consultant
Ministry of Northern Development and Mines
Timmins
5520 Hwy 101 East, P.O. Bag 3060
South Porcupine, ON P0N 1H0
Tel: 705-235-1626 Fax: 705-235-1620
Sudbury
B6 - 933 Ramsey Lake Rd.
Sudbury, ON P3E 6B5
Tel: 705-670-3003 Fax: 705-670-5803
email: deb.stephenson@ontario.ca