Record 2004 Kemess output for Northgate

Vancouver – Northgate Minerals (NGX-T) set a string of records in its 2004 production report, most significant being gold output and low cash cost.

For the year, the company’s Kemess mine, in north-central British Columbia, delivered a record 303,475 ounces of gold and 78.3 million pounds of copper in 2004. The figures were a modest improvement over 2003 that saw 294,117 ounces of gold and 76.2 million pounds of copper.

Net annual cash cost of bullion production was a record low US$137 per ounce, a substantial improvement over the US$219 an ounce seen in 2003.

A stellar fourth quarter in 2004 saw record production of 94,673 ounces of gold and 23.9 million pounds of copper at a cash cost of US$116 per ounce. Output was up significantly over that of the corresponding quarter in 2003 that saw 78,761 ounces of gold and 22.2 million of pounds copper, reflecting the record Q4-2004 mill throughput of higher-grade hypogene ore. The average mill operating rate for last year’s final quarter was 52,136 tonnes-per-day with above-average ore grades of 0.876 grams gold per tonne and 0.27% copper.

Record copper production coupled with high average prices for the metal in 2004, about US$1.30 per pound, offset a higher stripping ratio of 1.9-to-1 plus a stronger Canadian dollar.

During the year, the company’s Kemess South pit drill program resulted in further conversion of resource material into reserves. About 11.8 million tonnes of ore grading 0.414 grams gold per tonne and 0.147% copper was added to reserves with some resultant redesign to the pit.

Additionally in 2004, Northgate completed its feasibility study on the Kemess North project, located about 6 km north of the Kemess South mine, showing positive economics. The study outlines development of Kemess North potentially commencing in late-2006 with an initial US$190 capital investment. Production-life is estimated at 13 years.

Northgate is advancing its permitting process and evaluating financing options for development of the new Kemess mine. One possible option under consideration includes vending a portion of the project to an Asian group coupled with a concentrate supply or off-take agreement.