Hole YD11-234B Intersects One of the Best Intervals Ever Drilled on the Property
TORONTO, June 7, 2011 /PRNewswire/ - Northgate Minerals Corporation (TSX: NGX, NYSE Amex: NXG) is pleased to report that 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 YD West zone is a newly discovered zone, just west of the currently known reserves at Young-Davidson in northern Ontario. Hole YD11-234B is one of the best intervals ever intersected on the property and follows on the excellent results received since Discovery Hole YD10-198 intersected 3.46 g/t over 79.5 m last year.
Hole YD11-234B and YD West Zone Highlights
- Hole YD11-234B returned 4.31 g/t gold over 79.6 m.
- The hole contains a higher grade section of 5.66 g/t over 49.9 m at the base (footwall) of the zone.
- This new intersection 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 orebody.
- Hole YD11-234B and YD10-198 are amongst the highest grade-thickness intervals intersected to date on the property. The zone remains open up and down dip and to the west.
- Two diamond drills continue to explore in the YD West zone area.
"Exploration at Young-Davidson continues to achieve outstanding results as recent drilling has returned one of the best holes ever intersected on the property" Ken Stowe, President and Chief Executive Officer, remarked. "While last year's Hole 198 was very exciting resulting in the discovery of the YD West zone, Hole 234B is equally exciting, confirming the fault offset model along the western edge of the Young-Davidson deposit. The results of this and other higher-grade follow-up holes in 2011 underline the tremendous potential to expand the currently known 2.8 million ounces of reserves1 on the property, which will ultimately extend the initial 15-year mine-life or increase the average annual gold output when production commences in 2012."
Diamond Drill Program
The purpose of the 2011 diamond drill program on the west flank of the Young-Davidson deposit is to explore for new resources west of a major north-south trending diabase dyke that appeared to have truncated the zone. To date, seven holes have intersected the YD West zone and all but one has returned ore-grade intersections. This is a technically challenging area to drill due the depths of the holes and the presence of poor drilling conditions within ultramafic flows located well into the hanging wall. The target is blind due to its depth and thick younger post mineral Proterozoic sedimentary cover. Therefore, geology in the area is being interpreted as drill holes are completed. A number of drill holes have potential intercepts that have been either partially or completely "dyked out" by diabase at zone horizon (i.e. either occupies the entire width of the auriferous zone or a substantial part of the zone (see Figures 1 and 2, Holes 234, 234A and 239)). Currently, a hole is being 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. An improved understanding of the diabase dykes in the YD West zone will provide a more accurate resource model to be generated at year-end.
Hole YD11-234B instills confidence that the YD West zone is a highly prospective area evident from thick auriferous intersections in drill Holes 198 and 234B. Other drill holes (198A, 198B and 234) also had very significant gold intercepts (see Table 1 below for complete results). The gold mineralization here is hosted in mildly-hematitic coarse grained syenite with quartz vein stockwork and pyrite mineralization, which is similar to what is observed in the main Young-Davidson deposit.
This new YD West intersection is considered significant as this zone is open up and down dip and to the west. The YD West zone appears to have excellent potential to add significant gold resources to the project. Two diamond drills continue to focus on the YD West target until a sufficient number of intercepts have been obtained to estimate an initial resource by the end of the year. Subsequent drilling will focus on a broader scale to explore the limits of the zone towards the west.
Overview of Young-Davidson Exploration Area
Gold mineralization on the Young-Davidson property is present primarily in an intrusive syenite host rock dipping at approximately 70 degrees to the south. Figure 1 illustrates a longitudinal view of the YD West zone with current reserves illustrated in dark red to the east.
Figure 1 - YD West Zone-Longitudinal Section
Figure 2 - 9300m Level Plan
Figure 2 presents a level plan (horizontal slice) of the property's geology immediately adjacent to the main Young-Davidson reserves. The currently defined reserves terminate against the brown diabase dyke that was the western limit of the reserve. Holes 234B, 234A, 234, 198 and 198A (holes are projected either 75 m up dip or 175 m down dip to the 9300 m level) clearly demonstrate that the younger diabase dyke occupies a fault with an apparent offset of 50 m to 100 m to the north on the western side of the dyke. The actual displacement on the fault could be to the north, downwards or a combination of the two.
Table 1: Assay Results from YD West Zone
|Hole ID||From (m)||To (m)||Interval (m)||True Thickness (m)||Gold Uncut (g/t)||Gold Cut 20 g/t|
|YD11-239||Target zone occupied by diabase dyke ("dyked out")|
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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 21, 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.
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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.
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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