VANCOUVER, April 15 /PRNewswire-FirstCall/ -- (All figures in US dollars except where noted) - Northgate Minerals Corporation (TSX: NGX, NYSE Amex: NXG) today reported first quarter 2009 gold production and net cash cost for the Fosterville and Stawell mines in Victoria, Australia and the Kemess South mine in British Columbia, Canada.
First Quarter 2009 Highlights - Consolidated production of 107,477 ounces of gold, which represents a 22% increase from the prior year and exceeds the first quarter production forecast. - Average net cash cost of production was $392 per ounce of gold, which was approximately 20% lower than guidance. - Made substantial progress on the pre-feasibility study work at Young- Davidson, where the mine plan is being redesigned around the new larger 3.3 million ounce measured and indicated gold resource, using low cost bulk mining methods to reduce operating costs and increase annual production. - Began commissioning the heated leach circuit at the Fosterville mine.
The following table provides a summary of operations for Q1 2009 compared with the same period in 2008:
(Unaudited, thousands of US dollars, except where noted) Q1 2009 Q1 2008 ------------------------------------------------------------------------- Fosterville Gold Production (ounces) 25,779 10,440(1) Net cash cost ($/ounce)(2)(3) 430 1,190 Stawell Gold Production (ounces) 22,392 28,363 Net cash cost ($/ounce)(2)(3) 432 536 Kemess South Gold Production (ounces) 59,306 49,583 Copper Production (thousands pounds) 15,007 14,380 Net cash cost ($/ounce)(2) 362 105 ------------------------------------------------------------------------- Consolidated Gold Production (ounces) 107,477 88,386(1) Copper Production (thousands pounds) 15,007 14,380 Net cash cost ($/ounce)(2)(3) 392 259 ------------------------------------------------------------------------- (1) Production in Q1 2008 for Fosterville excludes the change in gold-in- circuit inventory previously recorded. (2) The cash cost figure for Q1 2009 is an unaudited estimate and is subject to revision. (3) The cash cost figure for Q1 2008 includes the results for Fosterville and Stawell from February 19 to March 31, 2008.
Ken Stowe, President & CEO, commented, "We achieved solid results in the first quarter of 2009. In Australia, we essentially met the quarterly production and cash cost forecasts we provided in early January. In addition, we began commissioning the heated leach circuit at Fosterville in March and early results support a 90% gold recovery target, which will enhance the long-term profitability of the mine. At Kemess, both production and cash costs exceeded our expectations due to higher than expected ore grades and metal recoveries, as well as higher than forecast copper prices."
------------ Annual General Meeting and Q1 2009 Financial Results
Northgate will be hosting its Annual General Meeting ("AGM") on Friday, May 8, 2009 at 10:00 am, Toronto time. The AGM will be held at The Suites at One King West, King Gallery, 1 King Street West, Toronto, Canada.
This event will also include an overview of Northgate's 2009 first quarter financial results, which are scheduled for release before market opens on May 8, 2009.
Webcast and Conference Call information, including podcast and conference replay details, can be found on Northgate's website at http://www.northgateminerals.com/.
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Northgate Minerals Corporation is a mid-tier gold and copper producer with mining operations, development projects and exploration properties in Canada and Australia. The company is forecasting record gold production of 392,000 ounces in 2009 and is targeting growth through further acquisition opportunities in stable mining jurisdictions around the world. Northgate is listed on the TSX under the symbol NGX and on the NYSE Amex (formerly AMEX) under the symbol NXG.
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Forward-Looking Statements: This Northgate press release contains "forward-looking information", as such term is defined in applicable Canadian securities legislation, 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, 2008 or under the heading "Risks and Uncertainties" in Northgate's 2008 Annual Report, both of which are available on the SEDAR website at http://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.
Northgate Minerals Corporation
CONTACT: Ms. Keren R. Yun, Director, Investor Relations, Tel: (416)
363-1701 ext. 233, Email: ngx@northgateminerals.com, Website:
http://www.northgateminerals.com/
