| Mineral resources for Young-Davidson as at December 31, 2007 are shown below: |
|
Category |
Quantity
(tonnes) |
Gold Grade
(gr/mt) |
Contained Gold
(ounces) |
|
| Open Pit |
Measured |
6,330,000 |
2.13 |
433,000 |
|
Indicated |
482,000 |
2.02 |
31,000 |
| |
|
|
|
|
| Underground |
Indicated |
11,924,000 |
3.70 |
1,418,000 |
| |
|
|
|
|
| Total Measured & Indicated Resources |
18,736,000 |
|
1,882,000 |
|
| Open Pit |
Inferred |
330,000 |
1.34 |
14,000 |
| Underground |
Inferred |
4,216,000 |
3.24 |
440,000 |
| |
|
|
|
|
| Total Inferred Resources |
4,546,000 |
|
454,000 |
|
|
Notes to Resources
All mineral reserves and mineral resources were estimated in accordance with the CIM Standards of the Canadian Institute of Mining, Metallurgy and Petroleum, and National Instrument 43-101, or the AusIMM JORC equivalent.
Mineral resources for Young-Davidson are exclusive of mineral reserves.
Mineral resources which are not mineral reserves do not have demonstrated economic viability.
Mineral resources for Young-Davidson were calculated using the following economic parameters: For open pit: gold price $400/oz; cut-off grade of 0.82 g/t gold. For underground: gold price $600/oz; gold recovery 90%; underground operating cost CDN$38/tonne; cut-off grade of 2.3 g/t gold.
Mineral resource estimates for the open-pit were prepared by Micon International Limited, a geological and engineering consulting firm. Mineral resource estimates for underground were prepared by Carl Edmunds, Exploration Manager, Northgate Minerals Corporation.
The economic parameters used by Micon 2004 were calculated using an exchange rate of CDN$/US$1.33 and a gold price of $400 per ounce. The SWRPA 2007 report used an exchange rate of CDN$/US$1.15 and a gold price of $500 per ounce.
The estimated mineral resources for the syenite associated mineralization found on the Young-Davidson property are shown in the table above. Given the project’s development history, neither qualified person believes that there are any environmental, permitting, legal, title, taxation, socioeconomic, marketing or political issues that would adversely affect the mineral resources that they have reported.
Note to US Investors
While the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource”, and “inferred mineral resource” are recognized and required by Canadian regulations, they are not defined terms under standards in the United States. As such, information concerning descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by the US Securities and Exchange Commission. “Indicated mineral resource” and “inferred mineral resource” have a great amount of uncertainty as to their existence and a great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an “indicated mineral resource” or “inferred mineral resource” will ever be upgraded to a higher category. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. |
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