Vancouver —
Income for the first half of 2004 is already equal to that for all of 2003. In the recent second quarter, the company earned US$9 million (or 4 per share), compared with a loss of US$5.7 million (3 a share) in the corresponding period last year.
At Kemess South, Northgate produced more than 78,000 oz. gold and 18 million lbs. copper in the 3-month period, as cash costs fell to a new low of US$129 per oz. gold.
Record-level mining rates of more than 156,000 tonnes per day, combined with strong bullion and copper markets, contributed to the strong quarterly showing. The company is on-track to produce 300,000 oz. gold and 75 million lbs. copper this year.
Northgate’s treasury exceeds US$30 million.
“We’ve done a significant amount of exploration drilling around the Kemess South pit and are reviewing the resources to see how much we can convert into reserves,” says Northgate President Ken Stowe.
Drilling of the two large mineralized zones on the southwestern and southeastern boundaries of the Kemess pit has been completed, with results expected in September.
Proven reserves at Kemess South stand at 90 million tonnes grading 0.7 gram gold per tonne and 0.23% copper.
A feasibility study of the Kemess North deposit is under way. Says Stowe: “We’re working on the design of our tunnel-conveyor system, which will bring ore from Kemess North to the Kemess concentrator.” Kemess North has a proven and probable resource of 414 million tonnes grading 0.31 gram gold and 0.16% copper.
Meanwhile, Northgate has agreed to acquire the Sustut Copper project from
Northgate has 200 million shares outstanding, and at presstime these were trading in the range of $2.20 apiece.
Be the first to comment on "Northgate’s profits soar"