Northgate Minerals Corp. has provided 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. All figures are in United States dollars except where noted.
First quarter 2009 highlights:
- Consolidated production of 107,477 ounces of gold, which represents a 22-per-cent increase from the prior year and exceeds the first quarter production forecast;
- Average net cash cost of production was $392 per ounce of gold, which was approximately 20 per cent lower than guidance;
- Made substantial progress on the prefeasibility study work at Young-Davidson, where the mine plan is being redesigned around the new larger 3.3-million-ounce measured and indicated gold resource, using low-cost bulk mining methods to reduce operating costs and increase annual production;
- Began commissioning the heated leach circuit at the Fosterville mine.
SUMMARY OF OPERATIONS FOR Q1 2009 COMPARED WITH THE SAME PERIOD IN 2008
(Unaudited, thousands of U.S. dollars, except where noted)
First quarter First quarter
2009 2008
Fosterville
Gold production (ounces) 25,779 10,440(1)
Net cash cost ($/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 first quarter 2008 for Fosterville excludes the change
in gold-in-circuit inventory previously recorded.
(2) The cash cost figure for first quarter 2009 is an unaudited estimate
and is subject to revision.
(3) The cash cost figure for first quarter 2008 includes the results for
Fosterville and Stawell from Feb. 19 to March 31, 2008.
Ken Stowe, president and chief executive officer, 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-per-cent 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.”
