Filed by Northgate Mineral Corporation
News |
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Release | |
NORTHGATE MINERALS CORPORATION | |
Stock Symbols: TSX: NGX, AMEX: NXG | |
Website: www.northgateminerals.com | |
NORTHGATE INTERSECTS 8.92 g/tonne GOLD OVER 218.5 FEET
AT YOUNG-DAVIDSON
VANCOUVER, May 25, 2006
- Northgate Minerals Corporation (TSX: NGX, AMEX: NXG) today announced that diamond drilling at its Young-Davidson property near the town of Matachewan, Ontario continues to intersect significant gold mineralization. Assay results from six additional drill holes are reported herein.Drilling Highlights
Ken Stowe, President and Chief Executive Officer, stated, "Our view at the time that we acquired the Young-Davidson property was that it was a mine waiting to be developed and our exploration results thus far have provided compelling evidence to support this view. The wide gold intercepts in the deeper holes we have drilled below the Lower Boundary Zone are particularly noteworthy because they should make for a significant increase in the overall resource in a zone that has an ideal configuration for low cost bulk mining. We are also seeing considerable fine grained visible gold and some short, high-grade assay intervals that indicate the possibility of "jewellery box" zones once we get to detailed evaluation."
Overview of Young-Davidson Exploration Area and 2006 Exploration Program 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, shown below, is a vertical, north looking, longitudinal
section on which known resource areas (darker shaded areas with dotted
boundaries), historic mine workings and simplified geology are presented along
with the pierce points for the holes drilled so far this year. The 2006 exploration campaign is designed to delineate
additional gold resources in the prospective exploration zone (lighter region
surrounding and below the known zones of inferred resources) and to increase the
overall geologic confidence of these resources, resulting in a new property
resource statement at the end of 2006. This will be accomplished by drilling
2,000 to 5,000 foot diamond drill holes from surface which will intersect the
syenite host rock at depths of 1,000 to 4,000 feet. Figure 1: Vertical Longitudinal Section of 2006 Drilling and
Previously Known Zones
2006 Drilling Results Collar co-ordinates for the 2006 drill holes are listed in Table 2. Hole YD06-1B (a wedge deflection from hole YD06-1) is located
175 feet east and 120 feet above YD06-01A. Historic hole, YD9530x (4.42 g/tonne
over 80 feet) is located 130 ft to the east, and 30 ft above YD06-01B. Drill
hole YD06-09 is located a further 200 ft to the east and 300 ft below YD95530x.
Hole YD06-09 intersected 102.7 feet of 4.49 g/tonne within which there is 52
feet of 8.28 g/tonne. Collectively these results and those from drill holes
YD06-01 and 01A (reported on April 10, 2006) confirm the Lower Boundary Zone's
potential as an attractive bulk mining target. YD06-05 (not shown on the longitudinal cross section) was
abandoned due to excessive deviation in the hole before reaching its target. The
intended target for hole YD06-05 was tested by hole YD06-09. Drill hole YD06-06 was drilled in the Upper Boundary Zone to
confirm several historical intercepts all of which are within 120 ft of YD06-06.
Drill holes YD06-04 and YD06-08 did not return significant
results from the Upper Boundary Zone as they both intersected post mineral
Matachewan diabase dykes at target projection. YD06-07 was designed to test an apparent gap in
mineralization between the 6300 and 6500 elevation in the vicinity of section
4200E. Assays returned 1.35 g/tonne over 106 ft with a narrower zone of 14.76
g/tonne over 6 ft. Drill hole YD06-10 was not targeted at a specific mineralized
zone but was drilled at an oblique angle to the geological units of interest in
order to gain information about the orientation and thickness of some of the
post mineral diabase dykes. The hole returned 3.37 g/tonne Au over 69.6 feet in
a zone between the Upper Boundary Zone and the Lucky Zone. Within this section a
31 ft zone returned 6.69 g/tonne. The nearest historical drill hole M03-50 (4.38
g/tonne over 10.6 feet) is located 150 feet east and 200 feet above YD06-10. YD06-11 was drilled on the east flank of the Lucky Zone and
returned 3.01 g/tonne over 45.5 feet within a thicker section of 97 ft which
averaged 2.23 g/tonne. YD90-31, an historic hole located on the same section as
YD06-11 but 200 ft below, assayed 72.7 ft of 2.15 g/tonne. Assay results from
drill holes YD06-12, 14 and 15 are pending from the Lucky zone area.
Table 1 below summarizes these intersection including preliminary true
thicknesses, cut and uncut grades. Table 1: Assay Results from 2006 Diamond Drill Holes Hole ID YD06-01B incl YD06-06 incl YD06-07 incl YD06-09 YD06-10 YD06-11 In order to put the Northgate drill results into the context
of past production and exploration, Graph 1 shows a plot of gold grade on the Y
axis and length of intersection on the X axis. Also plotted is the 100 gram
metre curve that is a commonly used screening tool within the exploration
industry. These selected historic reported intersections3 are within
the same rock type, with similar alteration and mineralization, as the 2006
drilling results being reported. The graph clearly shows that the 2006 results
are among the best holes on the property. Collectively the Young-Davidson
results, historic and current, also compare very favorably with many other
projects in the gold industry. ___________________ 1
From
To
Core
Core
TRUE
Au
Au
Au
Au
(Cut to
(Cut to
Length
Length
Thickness1
Uncut
34.28 g)2
Uncut
34.28g)2
(ft)
(ft)
(ft)
(m)
(m)
g/tonne
g/tonne
Oz/ton
Oz/ton
3487.5
3706.0
218.5
66.6
56.5
8.92
4.79
0.26
0.14
3487.5
3520.00
32.5
9.9
8.4
33.49
8.87
0.98
0.26
3585.0
3605.0
20.0
6.1
5.2
16.45
11.35
0.48
0.33
1032
1231.0
199.0
60.7
54.4
2.63
2.63
0.08
0.08
1032.0
1137.0
105.0
32.0
28.7
3.47
3.47
0.10
0.10
1041.5
1088.0
46.5
14.2
12.7
5.05
5.05
0.15
0.15
563.5
669.5
106.0
32.3
32.3
1.35
1.35
0.04
0.04
663.5
669.5
6.0
1.8
1.6
14.76
14.76
0.43
0.43
3359
3461.7
102.7
31.3
19.7
4.49
3.97
0.13
0.12
3409.7
3461.7
52.0
15.8
11.7
8.28
7.24
0.24
0.21
1602.40
1672.0
69.6
21.2
9.3
3.37
3.37
0.10
0.10
1641.00
1672.0
31.0
9.4
4.2
6.69
6.69
0.20
0.20
1445
1542.5
97.5
29.7
22.5
2.23
2.23
0.07
0.07
1497
1542.5
45.5
13.9
10.6
3.01
3.01
0.09
0.09
1497
1522.0
25.0
7.6
5.8
3.69
3.69
0.11
0.11
2
This cutting factor has been determined by an Independent Qualified Person in the 2004 NI 43-101 report as outlined in Northgate's April 10, 2006 news release. Assays in hole YD-06-1B that required cutting include 301 g/tonne over 3 ft and 72 g/tonne over 2.7 feet. In hole YD-06-09 there is a 3.6 ft sample of 49.3 g/tonne.3
As this data is historic in nature, the Company has no assurance that the Quality Assurance and Quality Control in the analytical laboratory would meet today's standard, however, the Company believes that the work was done to the acceptable technical standard of the time.
Graph 1: Comparison of Historic and 2006 Drill Results
Quality Control - Analyses and Sample Location
Details of Quality Control and drill hole survey methodology are reported in Northgate's April 10, 2006 news release that is filed on SEDAR (www.sedar.com) and may also be accessed on the Northgate website (www.northgateminerals.com).
Qualified Persons
The program design, implementation, Quality Assurance/Quality Control and interpretation of the results is under the control of Northgate Minerals Corporation geological staff that includes a number of individuals who are qualified persons as defined under NI 43-101. Overall supervision of the program is by Carl Edmunds PGeo, Northgate's Manager of Exploration.
* * * * * * *
Note to US Investors:
The terms "Mineral Reserve", "Proven Mineral Reserve" and "Probable Mineral Reserve" used in this news release are Canadian mining terms as 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 (the "CIM") Standards on Mineral Resources and Mineral Reserves Definitions and Guidelines adopted by the CIM Council on August 20, 2000. The terms "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource", and "Inferred Mineral Resource" used in this news release are Canadian mining terms as defined in accordance with National Instrument 43-101-Standards of Disclosure for Mineral Projects under the guidelines set out in the CIM Standards.
* * * * * * *
About Northgate:
Northgate Minerals Corporation is a gold and copper mining company focused on operations and opportunities in the Americas. The Corporation's principal assets are the 300,000-ounce per year Kemess South mine in north-central British Columbia, the adjacent Kemess North deposit, which contains a Proven and Probable Reserve of 4.1 million ounces of gold and the Young-Davidson property in northern Ontario with a total resource base of 1.5 million ounces of gold. Northgate is listed on the Toronto Stock Exchange under the symbol NGX and on the American Stock Exchange under the symbol NXG.
* * * * * * *
Forward-Looking Statements
Certain information included herein, including any information as to Northgate's future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements". The words "expect", "will", "intend", "estimate" and similar expressions identify forward-looking statements. Forward-looking statements including but not limited to the price of gold, the timing and amount of estimated future production, costs of production, capital expenditures, reserve determination, costs and timing of the development of new deposits, Northgate's hedging practices, permitting time lines, and the timing and possible outcome of pending litigation are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Northgate cautions the readers that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Northgate to be materially different from Northgate's estimated future results, performance or achievements expressed or implied by those forward looking statements and the forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to: sensitivity to metal prices, foreign exchange rates and interest rates, sufficiency of cash flows, cash costs of gold production, uncertainty of ore reserves and mineral resources, reserve estimates, mining risks and insurance, title matters, income tax, costs of exploration and development programs, laws and regulations and competition, scarcity of mineral lands and litigation, as well as those factors discussed in greater detail in Northgate's current Form 40-F/Annual Information Form ("Northgate's AIF") on file with the Canadian provincial securities regulatory authorities and US Securities and Exchange Commission. Material factors or assumptions that were applied in drawing a conclusion or making estimates set out in
forward-looking statements herein, include Northgate's 2005
reserve and resource price and foreign exchange rate assumptions described in
Northgate's AIF; the gold price, operating cost and foreign exchange rate
assumptions contained in Aurizon's 43-101 Technical Report on Casa Berardi;
prices for copper of US$2.60 per pound in 2006 and US$1.75 per pound in 2007;
Canadian$/US$ foreign exchange rates of 1.12 in 2006 and 1.18 in 2007; and a
gold price of US$600 per ounce in 2006. Northgate cautions that this list of
factors is not exhaustive. The following factors, among others, related to the
business combination of Northgate and Aurizon could cause actual results to
differ materially from the forward-looking statements: the Northgate Common
Shares issued in connection with the offer may have a market value lower than
expected; the businesses of Northgate and Aurizon may not be integrated
successfully or such integration may be more difficult, time-consuming or costly
than expected; and the expected combination benefit from the Northgate and
Aurizon transaction may not be fully realized or not realized within the
expected time frame. These factors are not intended to represent a complete list
of the factors that could affect Northgate and the combination of Northgate and
Aurizon. Additional factors are noted elsewhere in the offer and take-over bid
circular and in documents incorporated by reference therein. Northgate disclaims
any intention or obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise. 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 |
Table 2: 2006 Drill Hole Locations Hole ID YD06-01 YD06-01A YD06-01B YD06-01C YD06-02 YD06-02A YD06-03 YD06-04 YD06-05 YD06-06 YD06-07 YD06-08 YD06-09 YD06-10 YD06-11 YD06-12 YD06-13 YD06-14 YD06-15 YD06-16 YD06-17 YD06-18 Important Notice
Easting
Northing
Elevation
Collar Azimuth
Collar Dip
Depth
3500
477
7920
358.7
-70
4083.3
3500
477
7920
358.7
-70
3874.7
3500
477
7920
358.7
-70
3976.4
3500
477
7920
358.7
-70
4000
3997
1001
7898
7.7
-74.8
3799.2
3997
1001
7898
7.7
-74.8
2204.7
4112
1843
7928
2.4
-55.9
1587.9
4112
1841
7929
353.5
-70
1617.4
3853
1182
7891
358
-80
1102.6
4302
1870
7937
1.5
-56.2
1614.2
4179
2404
7959
0
-55
974.4
3850
1700
7900
355
-55
1446.9
3839
1187
7895
0
-80
3914
3850
1700
7900
315
-55
1909.4
2975
1925
7901
360
-70
2110.3
2777
2344
7916
0
-72
1282.8
3500
1200
7874
0
-70
3490.8
2975
2000
7880
0
-50
1486.2
2630
1718
7880
0
-70
2181.6
3023
46
7826
359
-70
5000
1777
782
7920
0
-70
4000
2630
1718
7880
0
-60
2000
Northgate plans to file with the U.S. Securities and Exchange Commission a Registration Statement on Form F-8, which will include Northgate's offer and take-over bid circular. Investors and security holders are urged to read the offer and take-over bid circular, regarding the proposed business combination transaction referred to in the foregoing information, when these documents become available, because they will contain important information. Investors may obtain a free copy of the offer and take-over bid circular when they become available and other documents filed by Northgate with the SEC at the SEC's website at www.sec.gov. These documents may also be obtained for free, once they have been mailed, on Northgate's website or by directing a request to Northgate's media or investor relations department.