BRITISH COLUMBIA – Northgate Minerals of Vancouver says the 43-101 report prepared for its Kemess underground project outlined an indicated resource of 136.5 million tonnes grading 0.56 g/t Au and 0.29% Cu. The inferred resource is another 6.0 million tonnes grading 0.42 g/t Au and 0.22% Cu. A cutoff of $15/t NSR was used.
Infill drilling during 2010 intersected some of the highest grades on the Kemess property. The intercepts come from a high grade zone containing 10.3 million tonnes of resources that grade 1.35 g/t Au and 0.52% Cu.
The Kemess North deposit is located 5 km north of the Kemess South mine and milling complex at Smithers. Resources in the Kemess South open pit will be exhausted as early as March this year, and transitioning to underground mining would keep the property productive. However, in 2007 the environmental impact assessment for a Kemess North open pit was rejected. Northgate went back to the drawing board. A preliminary economic assessment is to be ready by Q3 2011, and if all goes smoothly, the underground mine could be producing in 2014.
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