Northgate posts record Q4 and 2004 (March 01, 2005)

Vancouver – Record fourth quarter production from its Kemess gold-copper mine propelled Northgate Minerals (NGX-T) to a banner year in 2004.

Annual output from the north-central British Columbia mine was up about 3% over the previous year, at 303,475 ounces of gold and 78.3 million pounds of copper. The company saw net earnings of over US$31 million in 2004, up a whopping 680% from the US$4 million posted in 2003. Average net cash costs of US$135 per ounce of gold were incurred over the year.

Fourth quarter production of almost 95,000 ounces of gold and 24 million pounds of copper at Kemess secured the record year for Northgate. Quarterly net cash costs were US$111 per ounce of gold. Higher grades were encountered during the final quarter of 2004, averaging 0.88 grams gold per tonne, about 18% above those from the corresponding period of 2003.

Higher realized metal prices greatly assisted the company in its record earnings, although a soaring Canadian dollar partially offset some of the gains.

Northgate is anxiously awaiting a formal announcement from a joint British Columbia-Canada review panel on the proposed development of the Kemess North project.

Northgate shares saw a greater than 10% rally, to the $2.00-2.10 level, following its record earnings announcement plus settlement of a two-day strike at the mine. With its 200 million shares outstanding, the company has a market capitalization of about $400 million.