Northgate Minerals Corporation Announces Updated Resource Estimate for Kemess Underground Project

Strategic Insights -

Northgate Minerals Corporation has released an updated NI 43-101 compliant resource estimate for the Kemess Underground Project, located in north-central British Columbia. The new resource estimate captures all drilling completed to November 2010 and has exceeded initial expectations, with a significant increase in gold and copper content. The project's potential for a large-scale, low-cost underground bulk mining operation is being evaluated, with a preliminary assessment scheduled for completion in the third quarter of 2011.

Key Takeaways:

  • The updated resource estimate for the Kemess Underground Project has identified a continuous, high-grade sector of the resource, which could enhance the value of the project if mined during the early years of production.
  • The 2010 drill results have increased the gold and copper content of the resource, with 2.6 million pounds of gold and 860 million pounds of copper estimated.
  • Northgate plans to file a Preliminary Assessment for the Kemess Underground Project in the third quarter of 2011, which will outline the economics of mining a large portion of the identified resources.
  • The project's potential for a low-cost underground bulk mining operation could reduce Northgate's average net cash cost of production and further strengthen the company's growing production profile.
  • A budget of $1.4 million has been allocated for feasibility work in 2011 to determine the potential for the project.
  • The company's vision is to be the leading intermediate gold producer by identifying, acquiring, developing, and operating profitable, long-life mining properties.

Statistics:

  • 2.6 million pounds of gold estimated in the updated resource estimate.
  • 860 million pounds of copper estimated in the updated resource estimate.
  • $1.4 million allocated for feasibility work in 2011.
  • Production potential for the project: as early as 2014.
  • Average net cash cost of production reduction: significantly.

Sources:

  • Northgate Minerals Corporation. (2011, February 15). Northgate Minerals Corporation Releases Updated Resource Estimate for the Kemess Underground Project. Retrieved from www.northgateminerals.com
  • Comtex News Network. (2011, February 13). Daily SmarTrend Alert. Retrieved from www.mysmartrend.com
  • National Instrument 43-101 Standards of Disclosure for Mineral Projects. Canadian Institute of Mining, Metallurgy, and Petroleum.