Northgate Minerals and Nevada Exploration Sign Formal Option Agreement on the Awakening Gold Project
June 7, 2010
(All figures in United States dollars)
Northgate Minerals Corp. (“Northgate”) (TSX: NGX, NYSE Amex: NXG) and Nevada Exploration Inc. (“NGE”) (TSX-V:NGE) are pleased to announce the completion and execution of the definitive Exploration and Option to Enter Joint Venture Agreement (“Agreement”) on NGE’s Awakening Gold Project (“Property”), in Humboldt County, Nevada. The Agreement grants Northgate the option to earn an initial 51% interest in the Property by spending $4,100,000 in exploration and making additional payments totaling $436,000 over five years. Northgate’s exploration commitment in the first year is $500,000. If Northgate completes the initial 51% earn-in, it may then earn an additional 14%, for a total of 65%, by completing a feasibility report on the Property.
Ken Stowe, Northgate’s President and CEO, stated: “We are excited to commence exploration at the Awakening Gold Project, as this is our first foray into the Nevada region. The project lies in an area with a history of modest exploration activity and Nevada Exploration has done an excellent job in identifying several high priority targets analogous to mineralization seen in other areas of the Awakening mining district.”
Wade Hodges, NGE’s President and CEO: “We’ve used our groundwater chemistry exploration technology to identify a new project in a covered setting; we’ve used good conventional geology, geochemistry, and geophysics to advance the project and demonstrate its potential, and now we’ve leveraged this investment to engage Northgate, a well-funded and technically capable partner, to complete the next phases of work. This is a logical time for us to pass the torch at Awakening and to direct our resources towards advancing our other projects and continuing our target generating groundwater chemistry reconnaissance program. We are very pleased to partner with Northgate and look forward to developing a productive working relationship with Northgate’s team.”
Awakening Gold Project
The Awakening Gold Project consists of 420 claims (approximately 34km2) and is located 50km NNW of Winnemucca, Nevada, on the NW flank of the Slumbering Hills. The Property covers the NW portion of the historic Awakening mining district and adjoins the north end of the former producing Sleeper Gold Mine, which produced 1.7 million ounces of gold and 2.3 million ounces of silver.
The Property is largely covered by a thin veneer of alluvium, and as a result, has seen little historic exploration activity. In 2005, NGE’s regional groundwater chemistry reconnaissance program identified anomalous levels of gold and other trace metals in the groundwater north of the Sleeper Mine. In 2008 and 2009, NGE completed detailed gravity geophysics, air magnetic geophysics, and soil geochemistry across the Property. The combined exploration dataset has identified several high priority targets analogous to the geologic units controlling the mineralization at the Sleeper Gold Mine.
Prior to its first drill program in early 2011, Northgate anticipates that it will carry out an induced polarization survey as well as additional soil and water geochemical sampling to further define drill targets.
Further information on the Awakening Gold Project can be found under the Exploration section on Northgate’s website at www.northgateminerals.com.
Northgate Minerals Corporation
Northgate Minerals Corporation is a gold and copper producer with mining operations, development projects and exploration properties in Canada and Australia. Northgate’s vision is to be the leading intermediate gold producer by identifying, acquiring, developing and operating profitable, long-life mining properties. The company is forecasting gold production of 310,000 ounces in 2010.
Nevada Exploration Inc.
Nevada Exploration Inc. is an exploration company focused on gold in Nevada. NGE has developed proprietary groundwater chemistry exploration technology to explore for gold in Nevada’s covered basins where traditional exploration techniques are challenged, and has completed the first ever comprehensive survey of Nevada’s groundwater focused on discovering new gold deposits. NGE has demonstrated that Nevada’s gold deposits exhibit recognizable and measurable groundwater chemistry signatures and NGE is using its proprietary technology to identify, acquire, and advance new exploration properties exhibiting groundwater chemistry similar to known gold mines.
For further information please contact:
Wade A. Hodges, President & CEO, Nevada Exploration Inc., is the Qualified Person, as defined in National Instrument 43-101, and has prepared the technical and scientific information contained in this News Release.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statement on Forward-Looking Information:
This release contains certain "forward-looking statements" including, without limitation, expectations, beliefs, plans and objectives regarding the potential transactions and ventures discussed in this release. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are the risks inherent in mineral exploration, the need to obtain additional financing, environmental permits, the availability of needed personnel and equipment for exploration and development, fluctuations in the price of minerals, and general economic conditions.