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Northgate Minerals Provides Update On Construction And Exploration Activities At Young-Davidson

Stocks in this article: NGX NXG

Project Remains On Schedule and On Budget

VANCOUVER, April 13 /PRNewswire/ - (All figures in US dollars except where noted) Northgate Minerals Corporation (TSX: NGX, NYSE-Amex: NXG) is pleased to provide an update on construction activities for its 100% owned Young- Davidson project located beside the town of Matachewan, Ontario, 60 kilometres ("km") west of Kirkland Lake. Northgate is also pleased to report that follow-up drilling on the YD West zone continues to return positive results.

With current proven and probable gold reserves totalling over 2.8 million ounces(1), the Young- Davidson mine is targeting start-up of production in late Q1 2012. The mine is expected to generate an average of 180,000 ounces of gold annually over an initial 15-year mine life.


Construction Activities

    -   The project remains on schedule:
          -   at the end of March 2011, 80% of the contracts have been
              awarded (approximately $170 million), 90% of equipment purchase
              orders have been placed and 66% of the engineering has been
    -   The project remains on budget:
          -   at the end of March 2011, Northgate has invested approximately
              $130 million towards construction of the Young-Davidson mine.

Diamond Drill Program

    -   Hole YD10-198B, located approximately 115 metres ("m") below
        discovery hole 198, returned 5.43 grams per tonne ("g/t") gold over
        10.95 m (estimated 6.7 m true thickness).
    -   A total of 5,332 m of surface diamond drilling has been completed
        within the YD West zone in 2011.

"Since breaking ground in August 2010, we're pleased to report that Young- Davidson has remained on schedule and on budget" commented Ken Stowe, President and CEO. "In particular, we have made great progress on the construction front, having recently completed the raise bore pilot hole for the first leg of the production shaft as well as the concrete foundations for the process plant building. In addition, exploration results continue to prove up the YD West zone, where there is significant potential to add to current reserves. Over the next year, we expect to invest an additional $250 million using existing funds to bring Young- Davidson into production as we move towards our objective of increasing annual production to 350,000 ounces in 2013 and beyond."

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