Northgate pours record ounces

Vancouver Northgate Exploration (NGX-T) continues to improve its quarterly and annual operating results at its Kemess South mine in British Columbia.

The company reports that the Kemess mine has posted a new record for annual gold and copper production. The mine churned out 282,300 oz. of gold and 72.9 million lbs. of copper during 2002, an increase of 5,200 oz. gold and 6.6 million lbs. of copper over last year.

During the fourth quarter Kemess produced out 77,552 oz. gold and 20.2 million lbs. of copper. This compares with 77,452 oz. gold and 18.9 million lbs. copper during the comparable quarter last year.

The average mill head grade for the quarter was 0.73 grams gold per tonne and 0.23% copper. This is down from 0.79 gram gold and 0.255% copper, posted during the comparable quarter last year. For the full year, the gold and copper average mill-head grades tallied to 0.72 gram gold and 0.23% copper. This compares with 0.85 gram gold and 0.25% copper for the year-earlier period.

During the fourth quarter, mill availability was 91% and exceeded the operating target of 90% in each of the past six months. Gold and copper recoveries were 74% and 86%, respectively, both new records. The previous records were 71% gold and 83% copper and were set during the second quarter of 2002.

Northgate states that the improvements are directly related to the excellent performance of two column flotation cells that were commissioned during the second quarter.

Average mill throughput for 2002 was 47,420 tonnes per day up 12% from the 42,084 tonnes per day throughput recorded in 2001. Fourth quarter mill throughput was 48,803 tonnes per day compared with 46,920 in the same period of 2001.

“The various production records established in the fourth quarter of 2002 are the result of the dedicated efforts of our management team over the past two years as we have worked to unlock the true operating potential of the Kemess South mine," said Ken Stowe, President and CEO of Northgate. "In 2003, we will continue to optimize the Kemess operation with the installation of an expert computer system in the mill to increase throughput and the commissioning of a new production drill, which will dramatically improve blasting productivity in the open pit. In 2003, we anticipate an increase in gold production to 294,000 ounces."

The Kemess mine is located 430 km northwest of Prince George. The complex consists of the Kemess South open pit mine and a 48,000 tonnes per day mill. As of December 31, 2001, Kemess South had a proven reserve of 132.5 million tonnes averaging 0.704 gram gold and 0.233% copper. The indicated resource stood at 56 million tonnes averaging 0.39 gram gold and 0.161% copper. The reserves and resources were calculated using metal prices of US$325 per oz. gold and US$0.95 per lb. copper. Northgate reports that the gold grade in the reserve estimate has been increased by 10% compared with the reserve estimate of one year ago. The increase is attributed to the cumulative operating history of the mine since 1998 and the reconciliation of the original diamond drill hole data with blast hole and mill production assays.