During the first quarter of 2010, Northgate commissioned an international engineering firm to assess the economic prospects of mining part of the Kemess North deposit using an underground block caving method.  An initial review of the existing Kemess North resource model was carried out to identify the higher grade zone that could support an underground block cave operation (“Kemess Underground”).  A target zone of at least 70 million tonnes of mineralization containing 1.4 million ounces of gold and 500 million pounds of copper was identified in the eastern part of the Kemess North deposit from 300m – 600m below surface. 

At the time of the original Kemess North feasibility study in 2005, the geological and geotechnical information relating to the Kemess North deposit was collected and analyzed on the assumption that the deposit would be mined as a large low-grade open pit. In order to develop a more detailed block caving model, additional resource definition drilling is required to enable a greater degree of confidence in the potential of the high-grade resource, to determine the boundary of the high-grade zone and to confirm the geotechnical conditions necessary to support block caving.  An exploration budget of $3 million has been approved and diamond drilling is scheduled to commence this summer.

Kemess Underground Overview





Historic Drill Intercepts – Kemess North


 
Next Steps – exploration to commence summer 2010