Fosterville Gold Mine Achieves Second Consecutive Record Production Quarter
VANCOUVER, Oct. 11, 2011 /PRNewswire/ - (All figures in US dollars) - Northgate Minerals Corporation ("Northgate" or the "Company") (TSX: NGX) (NYSE Amex: NXG) is pleased to announce its third quarter 2011 operating results, highlighted by record gold production for the second consecutive quarter from its Fosterville mine.
Third Quarter 2011 Production Highlights
- Total production for the quarter was 50,014 ounces of gold, which represents a 14% increase from the previous quarter.
- The Fosterville mine achieved record production of 29,954 ounces of gold during the quarter.
- The Stawell mine achieved improved production of 20,060 ounces of gold.
- The average net cash cost for the quarter was $811 per ounce of gold, which was lower than guidance previously issued by the Company and represents a 14% decrease from the previous quarter.
The following table provides a summary of production results for Q3 2011:
| Cash cost figures noted in US$ | Q3 2011 | ||
| Fosterville | |||
| Gold Production (ounces) | 29,954 | ||
| Net cash cost ($/ounce) 1 | 733 | ||
| Stawell | |||
| Gold Production (ounces) | 20,060 | ||
| Net cash cost ($/ounce) 1 | 928 | ||
| Total | |||
| Gold Production (ounces) | 50,014 | ||
| Average Net cash cost ($/ounce) 1 | 811 | ||
1 The cash cost figures for Q3 2011 are unaudited estimates and subject to revision.
"Our Australian mines delivered strong results for the quarter, highlighted by another production record at Fosterville and lower than forecast cash costs at both mines," commented Richard Hall, Northgate's President & CEO. "With continued strong performance forecast for the fourth quarter, we expect to meet our annual production guidance and, at current gold prices, to generate excellent free cash from our Australian operations for the second half of the year."
Timing for Release of Third Quarter 2011 Earnings Results
On August 29, 2011, AuRico and Northgate entered into an Arrangement Agreement pursuant to which, among other things, AuRico agreed to acquire all of the issued and outstanding common shares of Northgate in accordance with a Court-approved plan of arrangement (see Northgate press release dated August 29, 2011) upon fulfillment of certain conditions. The transaction is subject to, among other things, receipt of approval from both AuRico and Northgate shareholders at their respective special meetings scheduled for October 24, 2011. Pending these results and receipt of subsequent Court approval, the transaction is expected to close by the end of October, at which time Northgate will become a wholly-owned subsidiary of AuRico.
AuRico is scheduled to release its third quarter earnings before market opens on November 10, 2011. A conference call and webcast is scheduled to take place on the same day at 10:00 am ET. For more information, please visit AuRico's website at www.auricogold.com.
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Northgate Minerals Corporation is a gold 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.
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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 StatesPrivate 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).
SOURCE Northgate Minerals Corporation
