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Northgate Minerals Intersects 5.44 Grams per Tonne Gold over 54.0 Metres at Young-Davidson


News provided by

Northgate Minerals Corporation

Oct 04, 2011, 07:30 ET

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Exploration Success Continues on Both Flanks of Existing Young-Davidson Reserve

VANCOUVER, Oct. 4, 2011 /PRNewswire/ - Northgate Minerals Corporation (TSX: NGX) (NYSE Amex: NXG) is pleased to announce assay results recently received from four diamond drill holes completed at Young-Davidson. Two of these holes were drilled in the YD West zone, where a new Indicated and Inferred Resource estimate of 536,000 and 53,000 ounces, respectively, was recently announced1. Drill results from these two holes (approximate widths of 30 metres ("m")), have enlarged this zone with a higher average grade than the main Young-Davidson deposit. The other two holes have slightly expanded the Upper Boundary Zone reserve ("UBZ") and highlight the potential of a new footwall zone, the YMX Footwall, that may provide another underground mining front on the property.

YD West Highlights

Following on the new resource estimate at the YD West zone1, there are two additional holes for which assay results are now available:

  • Hole YD11-244, drilled south to north, returned an intersected width of 54.0 m grading 5.44 grams per tonne ("g/t") gold, including 48.3 m grading 5.99 g/t.

  • Hole YD11-243A, an oblique hole completed in the upper portion of the YD West zone, returned 2.68 g/t over 31.2 m east of a post mineral dyke and 4.60 g/t gold over 39.2 m west of the same dyke. The average of these intersections with the dyke removed is 3.75 g/t gold over 70.4 m.

  • Two diamond drills continue to explore in the YD West zone.

It is expected that the results from these two holes will positively impact the recently announced YD West resource when it is updated at the end of the year.

Underground Exploration Highlights

Underground exploration drilling initiated in mid-2011 focused on the down dip extension of the UBZ and other targets to the east of the existing Young-Davidson reserve.  This drilling was conducted from an underground access located 150 m in the footwall and beneath the target UBZ.  While the intent was to step-out down dip from the UBZ, the first hole flattened excessively, intersecting the lower section of the UBZ reserve.

  • Hole YMX11-01 returned 3.07 g/t gold over 54.2 m, including 3.31 g/t gold over 45.3 m in the UBZ, indicating the zone at this location is up to 30 m wider than previously modeled.

  • Hole YMX11-02 confirmed that the UBZ has a depth extent as modeled in the reserve and does not continue below the 9550 m elevation.

YMX Footwall Zone

A benefit of drilling YMX holes from underground in a north to south orientation (i.e. from the footwall side of the existing deposit, as opposed to from the hanging wall side where almost all of the previous surface-based exploration drilling took place) is that the footwall of the currently known Young-Davidson deposit becomes better explored. In this instance, a potentially significant zone of continuous mineralization (YMX Footwall), which was previously interpreted as only isolated intersections, has been identified.

  • Hole YMX11-01 also returned 3.53 g/t gold over 12.0 m in the YMX Footwall.

  • Hole YMX11-02, drilled approximately 50 m down dip from the first hole, returned 5.89 g/t over 16.1 m in the YMX Footwall.

  • These two new holes, in conjunction with six historic intercepts, suggest the YMX Footwall zone is a continuous area of mineralization with a thickness of approximately 10 m and an east-west strike length of up to 250 m with a similar vertical extent up and down dip.

The potential new zone, which is not yet included in resources or reserves on the property, is located approximately 75 m north of and parallel to one of the main reserve areas of the 2.8 million ounce Young-Davidson reserve2.

Given its close proximity to current mine development, its near vertical orientation, its grade and thickness, the YMX Footwall zone has the potential to provide another underground mining front for the Young-Davidson mine, which commences production in 2012.

"Our exploration program at Young-Davidson continues to yield exceptional results," commented Richard Hall, President and CEO of Northgate. "The two new results from YD West bolster the recently released resource, while the YMX Footwall zone could become our second new gold resource area identified outside of current reserves at Young-Davidson in the past 14 months. The close proximity of the YMX Footwall to our existing mine infrastructure means the zone has the potential to provide an additional underground mining front to feed the Young-Davidson mill, which has the capacity to process substantially more than the 6,000 tonnes per day that was outlined in the Feasibility Study. The exciting results from the YMX Footwall, combined with the nearly 600,000 ounces recently reported at YD West, mean that we could realize an additional one million ounces of resources on the property from our 2011 drill program."

Overview of Young-Davidson Exploration Area

YD West Diamond Drill Program

Additional drilling on the YD West zone continues to return excellent results. Hole YD11-243A, an oblique hole, was designed to test the orientation of the post mineral dykes as well as the zone itself, and hole YD11-244 was drilled in a conventional direction from south to north to test the zone. Geologic contact information for both holes were used to constrain the dyke model in the YD West resource estimate; however, assay results were pending at the time of the release so were not used in the resource estimate. Two diamond drills continue to test the limits of the YD West zone, which contains an Indicated and Inferred Resource of 536,000 and 53,000 ounces, respectively.

Underground Diamond Drill Program

The purpose of the 2011 underground diamond drill program was to test if the main UBZ reserve extended further down dip and to explore other targets to the east of the main Young-Davidson reserve. The drilling reported herein indicates that while the main UBZ reserve does not extend much further down dip, the zone is considerably wider at depth than the 2008 interpretation (see Figure 2).

Both holes YMX11-01 and 02 were drilled from new underground mine workings from the footwall side of the deposit towards the hanging wall. Previous holes from surface were drilled from the hanging wall towards the footwall and most holes stopped once they exited the primary UBZ and, as such, did not encounter any mineralization in the footwall. The database for the 2008 resource estimate included six holes in this area that had gold bearing intervals in the footwall; however, their continuity was unknown, so they were not modeled as resource. Holes YMX11-01 and 02 confirm the potential that a mineable resource may be present between the new mine development work and the UBZ. Follow-up drilling will be performed as part of the underground delineation drilling program.

Figure 1: Young Davidson Longitudinal Section (looking north)

http://www.northgateminerals.com/Theme/Northgate/files/Releases/2011/Figure1.jpg

Figure 1 illustrates a longitudinal view with the location of drill holes 243A and 244 within the YD West zone and holes YMX11-01 and 02 within the YMX Footwall.

Figure 2: Cross Section 23680mE

http://www.northgateminerals.com/Theme/Northgate/files/Releases/2011/Figure2.jpg

Figure 2 presents a geologic sectional view (north-south vertical slice) on easting 23680mE. The main UBZ and its potentially en echelon, or stepping, YMX Footwall zone are presented on the section, as well as drill holes YMX11-01 and 02 and all historic drill holes within the 50 m window.

Figure 3 - YD West Zone-Longitudinal Section

http://www.northgateminerals.com/Theme/Northgate/files/Releases/2011/Figure3.jpg

Figure 3 presents a longitudinal section specific to the YD West Zone area.  Highlighted in yellow are the YD11-243A intercepts on both the east and west side of a post mineral dyke.

Table 1: Assay Results from the YD West Zone

Hole ID From
(m)
To
(m)
 Interval 
(m)
Estimated
True
 Thickness (m) 
 Gold Uncut 
(g/t)
 Gold Cut 
20 g/t
YD11-243A  888.9 907.0 18.1 5.8 1.0 1.0
             
  930.5 961.7 31.2 10.0 2.68 2.68
incl 942.2 961.7 19.5 6.5 3.62 3.62
             
   1045.8   1085.0  39.2 12.0 4.60 4.60
             
YD11-244 1313.5 1367.5 54.0 31.5 5.44 4.56
  1319.2 1367.5 48.3 28.3 5.99 5.01
  1329.6 1350.5 20.9 12.2 10.02 7.76

Table 1: Assay Results from the YMX Footwall Zone

Hole ID  From 
(m)
To
(m)
 Interval 
(m)
Estimated
True
 Thickness (m) 
 Gold Uncut 
(g/t)
 Gold Cut 
20 g/t
YMX11-01  99.0 110.0 12.0 11.1 3.53 3.53
             
  177.3 231.5 54.2 51.1 3.07 3.07
incl 183.5  231.5  48.0 45.3 3.31 3.31
             
YMX11-02 133.9 150.0 16.1 10.0 5.89 5.89

Table 3: Drill Collar Locations YD West Zone and YMX Footwall

Hole ID Mine
 Easting 
Mine
 Northing 
 Elevation 
(m)
 Azimuth     Dip     Depth (m) 
YMX11-01 23657 10527 9692 170 -30 315
YMX11-02 23657 10527 9692 170 -45 387
             
YD11-243A  22853 10255 10333 285 -72 1368
YD11-244 22441 9843 10382 351 -72 1521

* * * * * * *

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.  Mr. Edmunds is a member of the Association of Professional Engineers, Geologists and Geophysicists of British Columbia and a member of the Association of Professional Geoscientists of Ontario and has 23 years of experience in mineral resource estimation.

* * * * * * *

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 September 15, 2011

2 See press release dated January 25, 2010 

 

 

SOURCE Northgate Minerals Corporation

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