UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of April 2004.
Northgate Exploration Limited
2050 - 1055 West Georgia Street
Vancouver, British Columbia
Canada V6E 3R5
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 401-F:
Form 20-F Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No
If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82-_____________
SIGNATURES
Registrant: | |
Northgate Exploration Limited | |
Date: April 26, 2004. | |
(signed) | |
Jon Douglas | |
Chief Financial Officer |
NORTHGATE'S KEMESS SOUTH MINE CONTINUES ITS RECORD OF
OPERATIONAL
EFFICIENCY IN THE FIRST QUARTER OF 2004
VANCOUVER, April 26, 2004
- Northgate Exploration Limited (TSX: NGX, AMEX: NXG) today reported first quarter operating results from the Kemess South mine located in north central British Columbia._________________________________________________________
First Quarter Production Highlights
_________________________________________________________
Ken Stowe, President and CEO, commented, "Our Kemess South operation continued to operate efficiently during the first quarter, setting several new records for mining productivity and demonstrating strong mill throughput in spite of the harder lower-grade ore that was processed. In March, we took the decision to stockpile higher-grade transition ore and process lower-grade ore in its place, reducing first quarter gold production. This re-sequencing was necessary to maintain our 2004 tailings dam construction schedule. The gold ounces we did not produce in the first quarter have been deferred until later in the year and we are still on track to produce 300,000 ounces in 2004 at cash cost in the range of $150 per ounce if copper averages $1.20 during the year."
Northgate Exploration Limited | |
News Release |
2 |
Kemess South Production
The Kemess South mine produced 51,500 ounces of gold and 17.7 million pounds of copper during the first quarter of 2004. While copper production was slightly above plan, gold production was 15% below plan due primarily to the decision in March to stockpile 400,000 tonnes of higher-grade transition ore and process harder lower-grade ore in its place. The tailings generated by transition ore are unsuitable for tailings dam construction, and the unexpected presence of this ore type necessitated a re-sequencing of ore feed to the mill. As a result of the ore re-sequencing, 2004 dam construction remains on schedule and the ounces that were not produced in the first quarter will arrive in future quarters as shown in the revised production forecast below.
Revised Kemess South Mine Quarterly Metal Production Forecast
Q1 | Q2 | Q3 | Q4 | Total 2004 | |
Gold (ounces) | 51,500 | 77,500 | 87,500 | 83,500 | 300,000 |
Copper (millions lbs) | 17.7 | 18 | 19.3 | 20 | 75 |
Due to the implementation of a variety of productivity improvements in the Kemess South open pit, the mining team set another new record for tonnes mined during the first quarter of 157,000 per day and unit mining costs dropped to Cdn$0.84 per tonne, 12% lower than in the first quarter of 2003.
Mill availability during the first quarter was 92% and throughput was 49,757 tonnes per day in spite of the harder lower-grade ore processed. During the balance of 2004, throughput is expected to be well in excess of 50,000 tonnes per day as the mill is scheduled to process average hypogene ore and inherently softer supergene ore during the balance of the year.
Gold recovery was slightly lower than expected in the first quarter due to lower head grades and a special focus on higher concentrate grade. The focus on concentrate grade was necessary in order to alleviate the inventory backlog that developed due to a railcar shortage caused by a particularly difficult winter shipping season combined with the CN rail strike. Concentrate inventory is expected to return to normal levels during the second quarter.
Kemess' full absorption cash cost of production during the quarter was $202 per ounce, 20% lower than the same period in 2003. The significantly higher by-product credit generated by higher copper prices in the first quarter of 2004 more that made up for the lower gold production and the effect of the stronger Canadian dollar. In future quarters of 2004 the cash cost at Kemess South should be substantially lower than it was in the first quarter, due to the higher gold and copper production forecast and a recent weakening of the Canadian dollar relative to the US dollar. The approximate impact of copper price and exchange rates on 2004 cash cost is shown below.
Factor | Change | Impact on Cash Cost |
Copper price | $0.05/pound | 12 |
US$/Cdn$ Exchange rate | $0.02 | 8 |
Northgate Exploration Limited | |
News Release |
3 |
Kemess South Mine Production Table
(100% of production basis) | 1Q 04 | 1Q 03 |
Ore + waste mined (tonnes) | 14,275,063 | 13,032,056 |
Ore mined (tonnes) | 5,996,128 | 4,631,369 |
Stripping Ratio (waste/ore) | 1.38 | 1.81 |
Ore milled (tonnes) | 4,527,850 | 4,457,876 |
Average mill operating rate (tpd) | 49,757 | 49,532 |
Gold grade (gmt) | 0.515 | 0.601 |
Copper grade (%) | 0.212 | 0.207 |
Gold recovery (%) | 69 | 72 |
Copper recovery (%) | 84 | 84 |
Gold production (ounces) | 51,500 | 62,000 |
Copper production (000's pounds) | 17,717 | 17,151 |
Cash Cost ($/ounce) | ||
Full absorption method | 202 | 255 |
Gold institute method | 163 | 213 |
*******
Northgate Exploration Limited is a gold and copper mining company focused on operations and opportunities in North and South America. The Corporation's principal assets are the 300,000-ounce per year Kemess South mine in north-central British Columbia and the adjacent Kemess North deposit, which contains an indicated resource of 5.4 million ounces of gold and 2 billion pounds of copper and is currently the subject of a feasibility study. Northgate is listed on the Toronto Stock Exchange under the symbol NGX and on the American Stock Exchange under the symbol NXG.
This press release includes certain "forward-looking statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements include without limitation, statements regarding future production, potential mineralization and reserves, exploration results and future plans and objectives of Northgate Exploration Limited (Northgate). Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe," or "continue" or the negative thereof or variations thereon or similar terminology. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Northgate's expectations are disclosed under the heading "Risk Factors" in Northgate's 2003 Annual Report and under the heading "Trends, Risks and Uncertainties" in Northgate's 2003 Annual Information Form (AIF) both of which are filed with Canadian regulators on SEDAR (www.sedar.com) and with the United States Securities and Exchange Commission (www.sec.gov).
For further information, please contact:
Mr. Ken G. Stowe | Mr. Jon A. Douglas |
President and Chief Executive Officer | Senior Vice President and Chief Financial Officer |
416-216-2772 | 416-216-2774 |