Northgate Reports Third Quarter Cash Flow of $50.5 million

    
                     Cash on Hand Reaches $235.9 million

           Notice: Conference Call and Webcast Today at 10:00 am ET
                   Dial in: +416-644-3425 or 1-800-594-3790
    

VANCOUVER, Nov. 3 /CNW/ - (All figures in US dollars except where noted) - Northgate Minerals Corporation ("Northgate" or the "Corporation") (TSX: NGX; NYSE Amex: NXG) today announced its financial and operating results for the fiscal quarter ended September 30, 2009.

    
                        Third Quarter 2009 Highlights

    -   Generated excellent cash flow from operations of $50.5 million or
        $0.20 per share, for a year-to-date total of $145.7 million

    -   Reported adjusted net earnings of $7.7 million or $0.03 per share

    -   Produced 80,791 ounces of gold and 11.9 million pounds of copper at
        an average net cash cost of $539 per ounce of gold

    -   Sold 85,397 ounces of gold at a realized price of $982 per ounce and
        12.8 million pounds of copper at a realized price of $3.39 per pound

    -   Successfully completed an equity offering for net proceeds of $88.5
        million to fund the development of the Young-Davidson mine

    -   Northgate's cash balance at the end of the third quarter 2009 was
        $235.9 million

    -   Successful organic growth at Northgate's operations:

        -  Discovered a significant extension of mineralization at
           Fosterville, confirming that the Phoenix fault system continues
           down plunge

        -  Discovered a new gold zone located 300 metres (m) east of current
           reserves at Young-Davidson. The new zone is completely open down
           dip. In addition to this discovery, Northgate also reported drill
           results for 29 shallow diamond drill holes located in and around
           historic mine workings immediately east of current reserves, which
           have the potential to add to the 2.8 million ounces of reserves
           already on the property

        -  Identified approximately 870,000 tonnes of additional mineral
           reserves containing 93,000 ounces at Stawell, extending the mine-
           life until Q2-2012
    

Ken Stowe, President and CEO, stated: "Northgate continued to generate excellent cash flow from operations in the third quarter and is poised to generate our highest annual operating cash flow in 2009, which is highlighted by another record year of gold production. In addition to this milestone, we have made great strides at the Young-Davidson project through the signing of an Impact and Benefits Agreement with the Matachewan First Nation, the completion of a positive pre-feasibility study and an $88.5 million equity offering at the end of September to fund the development of the new Young-Davidson mine. The feasibility study is well underway and we have approved the restart of ramp development and shaft dewatering in the fourth quarter in advance of breaking ground on construction of the new mine infrastructure in 2010. With our treasury in excellent shape, we look forward to building Young-Davidson over the next two years and creating additional value for our shareholders during the same period through continued reserve additions at our mines and projects."

Financial Performance

Northgate recorded consolidated revenue of $120.2 million in the third quarter of 2009, compared with $99.3 million in the same period last year. Revenues were higher due to a 25% increase in gold production over the same period last year combined with higher realized metal prices for gold and copper in the most recent quarter. Revenues for the nine month period ending September 30, 2009 were $374.3 million.

The net loss for the quarter was $8.6 million or $0.03 per share compared with a net loss of $29.4 million or $0.12 per share in the corresponding quarter of 2008. Adjusted net earnings were $7.7 million or $0.03 per share in the third quarter of 2009, which was significantly higher than the adjusted net loss of $28.4 million or $0.11 per share in the same period last year. Adjusted net earnings do not include certain non-cash items from its calculation of net earnings prepared in accordance with Canadian generally accepted accounting principles. Northgate has prepared this figure as it may be a useful indicator to investors. Non-cash items in the third quarter of 2009 include a $10.4 million write-down of investments in auction rate securities and a $5.8 million (net of tax) mark-to-market loss on Northgate's copper forward sales contracts.

During the third quarter of 2009, Northgate generated excellent cash flow from operations of $50.5 million or $0.20 per share, which was a dramatic improvement over the $0.6 million or $0.00 per share generated in the corresponding quarter of 2008. In the first three quarters of 2009, Northgate has generated cash flow from operations of $145.7 million.

In the third quarter of 2009, Northgate's cash and cash equivalents increased by $115.2 million following the completion of a bought deal financing with net proceeds of $88.5 million and strong free cash flow from operations. Northgate's balance sheet now boasts cash and cash equivalents of $235.9 million and each operation is expected to generate strong operating cash flow for the balance of the year.

Results from Operations

Fosterville Gold Mine

During the third quarter of 2009, a total of 201,130 tonnes of ore were mined, following on the excellent performance of 206,829 tonnes of ore mined in the previous quarter. In addition, mine development advanced a record 2,362m during the quarter. Year-to-date mining rates have increased by over 60% since Northgate took ownership of the mine in February 2008.

A total of 201,866 tonnes of ore were milled at a grade of 4.51 grams per tonne (g/t) during the third quarter. Although the mill continued to operate at higher than plan throughput, mill head grades during the quarter were lower than expected due to dilution on some of the stopes mined and lower development grades. Mill head grades are expected to improve in the fourth quarter with the availability of higher grade stopes.

Fosterville produced a total of 25,550 ounces of gold during the quarter, which was 65% higher than the 15,491 ounces produced in the corresponding quarter last year. However, production was lower than plan as a result of lower than expected head grades mined, delays in the start up of the carbon-in-leach (CIL) tails retreat and a five-day mill shutdown in late September due to a process upset in the BIOX(R) circuit caused by a power outage at site. These issues have since been resolved and gold production forecast in the fourth quarter remains unchanged at 28,000 ounces. Fosterville is expected to produce over 105,000 ounces of gold for the full year 2009, which is a dramatic improvement over the 66,959 ounces produced in the previous year.

The net cash cost of production during the quarter was $612 per ounce of gold, dramatically lower than the $940 per ounce recorded in the same period last year, but significantly higher than the costs recorded earlier in 2009 due to the rapid appreciation of the Australian dollar relative to the US dollar.

Stawell Gold Mine

Record quarterly ore production was achieved at Stawell in the third quarter, as 193,538 and 195,813 tonnes of ore were mined and milled, respectively. Underground mine development advanced a record 1,937m, which will allow for more mining front flexibility in the future. Gold production of 20,319 ounces was lower than forecast as lower grade ore was mined due to changes in the stoping sequence. However, the record development advance in the third quarter has established additional production fronts, which has improved ore availability. Stawell is forecast to produce 25,000 ounces of gold in the fourth quarter, for a total of 88,000 ounces of gold in 2009.

Unit operating costs were at record lows during the quarter, as mining costs were A$56 per tonne of ore mined and milling costs were A$23 per tonne of ore milled.

The net cash cost of production during the quarter was $694 per ounce of gold, which was lower than the $738 per ounce of gold recorded in the same period last year. The net cash cost in the most recent quarter was also adversely affected by the strength of the Australian dollar relative to the US dollar.

Kemess South

During the quarter, Kemess posted gold and copper production of 34,922 ounces and 11.9 million pounds, respectively, which was in line with Northgate's production forecast. The net cash cost of production was $395 per ounce of gold, which was significantly lower than the $597 per ounce reported in the corresponding quarter of 2008. For the full year 2009, Kemess is forecast to produce 172,000 ounces of gold and 51.8 million pounds of copper at a net cash cost of $403 per ounce. While gold and copper production is in line with guidance, the net cash cost is forecast to be significantly lower, as a result of higher copper prices.

During the third quarter of 2009, approximately 8.3 million tonnes of ore and waste were removed from the open pit compared to 5.9 million tonnes during the corresponding quarter of 2008. The higher tonnes moved in the most recent quarter resulted in significantly lower unit mining costs of Cdn$1.25 per tonne moved compared with Cdn$1.99 per tonne moved in the same period last year.

Gold and copper recoveries in the third quarter were higher at 63% and 79%, respectively, compared with 60% and 69% reported in the third quarter of last year. Recoveries in the most recent quarter are dramatically higher due to improvements in the metallurgical process made earlier in the year, which have made the flotation circuit more efficient in processing lower grade ore with higher sulphide content. These improvements are noteworthy, as they will continue to have a positive impact on the profitability of the lower grade ore, which currently makes up the remaining reserves at Kemess.

2009 Production Forecast

Northgate's production forecast is set to achieve an annual record of 365,000 ounces of gold at a net cash cost of $493 per ounce, which has been revised slightly downwards form the previous forecast of 382,500 ounces. The annual production forecast for Kemess is in line with initial estimates, however, the production forecasts for Stawell and Fosterville have been reduced as previously discussed. Cash costs for the balance of 2009 are expected to be slightly higher as a result of the stronger Canadian and Australian dollar relative to the US dollar and declining ore reserves at Kemess. Northgate's production forecast for the balance of 2009 is outlined in the following table:

    
                                                Forecast            Forecast
                             Actual (ounces)     (ounces)               2009
                  ---------------------------------------   Total  Cash Cost
                        Q1        Q2        Q3        Q4  (ounces)  ($/oz)(1)
    -------------------------------------------------------------------------
    Fosterville     25,779    25,416    25,550    28,000   105,000      $555
    Stawell         22,392    20,066    20,319    25,000    88,000      $596
    Kemess          59,306    47,895    34,922    30,000   172,000      $403
    -------------------------------------------------------------------------
                   107,477    93,377    80,791    83,000   365,000      $493
    -------------------------------------------------------------------------
    (1) Assuming copper price of $2.75/lb and exchange rates of US$/Cdn$0.95
        and US$/A$0.925 for Q4 2009.
    

Moving Ahead with Young-Davidson

In July, Northgate released positive results from its pre-feasibility study for the Young-Davidson project and based on these results, immediately began work on a final feasibility study. During the third quarter, a trade-off study was completed on the underground shaft design required for mine operation. The decision was made to deepen the existing Matachewan Consolidated Mine (MCM) shaft to provide access to raise (rather than sink) a new Young-Davidson production shaft, with the potential to advance the start of underground ore production by up to one year. As a result, the MCM shaft dewatering activities and driving of the underground ramp at site have resumed. The feasibility study is progressing on schedule and is expected to be completed by the end of 2009.

Northgate took a critical step toward its goal of building a new mine at Young-Davidson during the quarter with the successful closing of an $88.5 million equity issue to fund the development of the mine. Preparations are underway to begin construction at Young-Davidson in 2010.

Environmental and permitting activities continued throughout the quarter in support of the project. In addition, the Young-Davidson management team continued to work with local First Nations, with consultations taking place on environmental permit applications and on the implementation of the recently signed IBA.

Exploration Overview

Fosterville Gold Mine

During the third quarter, Northgate's exploration efforts at Fosterville continued to deliver excellent results. Drilling in the Phoenix Deeps returned an intersection of 10.1 g/t gold over 6.7m, including 17.6 g/t gold over 3.7m, confirming that the Phoenix fault system continues down plunge. Follow-up drilling is now underway to confirm the width and grade of the mineralization in the area.

Drilling on the Phoenix Extension located just south of existing reserves was conducted in order to upgrade inferred mineral resources to reserve classification. Drilling in this area confirmed the continuity of mineralization down plunge from the current Phoenix orebody, indicating that any reserves ultimately defined can be mined using the existing infrastructure from the current production zone.

In the fourth quarter of the year, drilling will continue in the Phoenix extension area and these results combined with the results of the Harrier exploration program will be incorporated into an updated year-end reserve statement, which will be released in the first quarter of 2010.

Stawell Gold Mine

Following the increase in mineral reserves and resources announced in August, the exploration focus at Stawell has turned to definition and exploration drilling at newly discovered and existing zones in support of resource conversion and further mine-life extensions. To date, 39 holes totalling 39,600m have been completed.

Young-Davidson

At Young-Davidson, a new area of gold mineralization was discovered 300m east of current ore reserves when two geotechnical/condemnation holes intersected what appears to be the faulted off extension of the current syenite hosted Young-Davidson ore body. Several follow-up holes are currently being drilled to examine the extent of the mineralization in the area.

In addition, 29 shallow exploration holes totalling 2,424m were drilled immediately east of the current ore reserve in and around historic mine workings. The purpose of the drill program was to assess the potential for high-grade mafic volcanic hosted gold mineralization within 50m of surface, which would have the potential to add open pit reserves in and around existing mine workings.

The mafic volcanic exploration program returned a substantial number of gold intercepts: hole YD09-120 intersected 7.6 g/t gold over 13.5m and hole YD09-114 intersected 13.8 g/t gold over 2.0m and 7.1 g/t gold over 3.8m. Future work will include additional holes along strike to the east and a compilation of data to determine if there are further open pit resources.

    
    Summarized Consolidated Results

    (Thousands of
     US dollars,
     except where
     noted)                Q3 2009       Q3 2008      YTD 2009    YTD 2008(1)
    -------------------------------------------------------------------------
    Financial Data

    Revenue           $    120,163  $     99,267  $    374,278  $    324,240
    Adjusted net
     earnings(2)             7,660       (28,385)       45,030         9,871
      Per share
       (diluted)              0.03         (0.11)         0.18          0.04
    Net earnings            (8,563)      (29,438)       18,249        (7,926)
      Per share
       (diluted)             (0.03)        (0.12)         0.07         (0.03)
    Cash flow from
     operations             50,452           638       145,651        56,947
    Cash and cash
     equivalents           235,929        71,700       235,929        71,700
    Total assets      $    787,940  $    608,589  $    787,940  $    608,589
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Operating Data

    Gold production
     (ounces)
      Fosterville           25,550        15,491        76,745      40,561(3)
      Stawell               20,319        20,956        62,777        72,126
      Kemess                34,922        28,141       142,123       123,848
                          ---------------------------------------------------
      Total gold
       production           80,791        64,588       281,645       236,535
                          ---------------------------------------------------
    Gold sales (ounces)
      Fosterville           27,114        14,866        78,352        32,551
      Stawell               20,172        22,367        64,415        55,651
      Kemess                38,111        27,452       149,886       122,303
                          ---------------------------------------------------
      Total gold sales      85,397        64,685       292,653       210,505
                          ---------------------------------------------------
    Realized gold price
     ($/ounce)(4)              982           868           944           900
                          ---------------------------------------------------
    Net cash cost
     ($/ounce)(5)
      Fosterville              612           940           526         1,086
      Stawell                  694           738           573           650
      Kemess                   395           597           373           212
                          ---------------------------------------------------
    Average net cash
     cost ($/ounce)            539           725           459           465
                          ---------------------------------------------------
    Copper production
     (pounds)               11,934         9,195        40,746        37,515
    Copper sales (pounds)   12,816         8,633        40,795        38,089
    Realized copper price
     ($/pound)(4)             3.39          2.04          2.70          3.49
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (1) Gold sales, cash costs and Financial Data in YTD 2008 include the
        results for Fosterville and Stawell from the date of acquisition of
        February 19, 2008.
    (2) Adjusted net earnings is a non-GAAP measure. See section entitled
        "Non-GAAP Measures" in the Corporation's third quarter MD&A Report.
    (3) Production in YTD 2008 for Fosterville excludes the change in gold-
        in-circuit inventory previously recorded.
    (4) Metal pricing quotational period for Kemess is three months after the
        month of arrival (MAMA) at the smelting facility for copper and gold.
        Therefore, realized prices reported will differ from the average
        quarterly reference prices, since realized price calculations
        incorporate the actual settlement price for prior period sales, as
        well as the forward price profiles of both metals for unpriced sales
        at the end of the quarter.
    (5) Net cash cost per ounce of production is a non-GAAP measure. See
        section entitled "Non-GAAP Measures" in the Corporation's third
        quarter MD&A Report. Cash costs in YTD 2008 include the results for
        Fosterville and Stawell from the date of acquisition of February 19,
        2008.



    Interim Consolidated Balance Sheets
                                                   September 30  December 31
    Thousands of US dollars                                2009         2008
    -------------------------------------------------------------------------
                                                     (Unaudited)

    Assets
    Current Assets
    Cash and cash equivalents                       $   235,929  $    62,419
    Trade and other receivables                          32,126       18,310
    Income taxes receivable                                   -        6,837
    Inventories (note 3)                                 35,914       41,546
    Prepaids                                                886        1,989
    Future income tax asset                               6,670        5,259
    -------------------------------------------------------------------------
                                                        311,525      136,360
    Other assets                                         27,172       53,606
    Deferred transaction costs (note 6)                       -          775
    Future income tax asset                               4,638        3,741
    Mineral property, plant and equipment               408,491      357,725
    Investments (note 4)                                 36,114       39,422
    -------------------------------------------------------------------------
                                                    $   787,940  $   591,629
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and Shareholders' Equity
    Current Liabilities
    Accounts payable and accrued liabilities        $    51,026  $    56,469
    Income taxes payable                                 26,891            -
    Short-term loan (note 5)                             41,825       43,096
    Capital lease obligations                             4,996        4,533
    Provision for site closure and reclamation
     costs                                               24,905        8,420
    Future income tax liability                               -        1,895
    -------------------------------------------------------------------------
                                                        149,643      114,413
    Capital lease obligations                             4,014        6,211
    Other long-term liabilities                           5,903        3,368
    Site closure and reclamation obligations             25,564       37,849
    Future income tax liability                               -       14,350
    -------------------------------------------------------------------------
                                                        185,124      176,191

    Shareholders' Equity
    Common shares (note 6)                              401,993      311,908
    Contributed surplus                                   6,091        5,269
    Accumulated other comprehensive loss                (11,281)     (89,503)
    Retained earnings                                   206,013      187,764
    -------------------------------------------------------------------------
                                                        602,816      415,438
    -------------------------------------------------------------------------
                                                    $   787,940  $   591,629
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    The accompanying notes form an integral part of these unaudited interim
    consolidated financial statements.



    Interim Consolidated Statements of Operations and Comprehensive Income
    (Loss)

    Thousands of
     US dollars,
     except share
     and per share
     amounts,          Three Months Ended Sep 30    Nine Months Ended Sep 30
     unaudited                2009          2008          2009          2008
    -------------------------------------------------------------------------
    Revenue           $    120,163  $     99,267  $    374,278  $    324,240
    -------------------------------------------------------------------------
    Cost of sales
     (note 3)               81,959        83,720       228,011       249,087
    Depreciation and
     depletion              27,804        20,172        77,393        49,005
    Administrative and
     general                 2,424         2,963         7,062         9,190
    Net interest income       (112)       (1,157)       (1,022)       (6,320)
    Exploration              3,132        10,247        11,872        27,765
    Currency translation
     loss (gain)             1,262           (40)        4,638        (6,947)
    Accretion of site
     closure and
     reclamation
     obligations               802           665         2,301         1,619
    Write-down of
     auction rate
     securities
     (note 4)               10,440        16,912        10,948        16,912
    Other expense
     (income) (note 11)       (125)         (106)         (953)      (10,682)
    -------------------------------------------------------------------------
                           127,586       133,376       340,250       329,629
    -------------------------------------------------------------------------
    Earnings (loss)
     before income
      taxes                 (7,423)      (34,109)       34,028        (5,389)
    Income tax
     recovery (expense)
      Current               (5,333)        2,779       (30,453)       (5,658)
      Future                 4,193         1,892        14,674         3,121
    -------------------------------------------------------------------------
                            (1,140)        4,671       (15,779)       (2,537)
    -------------------------------------------------------------------------
    Net earnings (loss)
     for the period         (8,563)      (29,438)       18,249        (7,926)

    Other comprehensive
     income (loss)
      Unrealized gain
       (loss) on available
       for sale
       securities           (3,622)      (15,713)       (3,308)      (22,838)
      Unrealized gain
       (loss) on
       translation of
       self-sustaining
       operations           29,527       (59,809)       70,582       (44,124)
      Reclassification
       of other than
       temporary loss on
       available for sale
       securities to net
       earnings             10,440        16,912        10,948        16,912
    -------------------------------------------------------------------------
                            36,345       (58,610)       78,222       (50,050)
    -------------------------------------------------------------------------
    Comprehensive
     income (loss)    $     27,782  $    (88,048) $     96,471  $    (57,976)
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net earnings
     (loss) per share
      Basic           $      (0.03) $      (0.12) $       0.07  $      (0.03)
      Diluted                (0.03)        (0.12)         0.07         (0.03)
    Weighted average
     shares
     outstanding
      Basic            256,014,978   255,467,109   255,876,448   255,157,746
      Diluted          256,014,978   255,467,109   256,390,058   255,157,746
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    The accompanying notes form an integral part of these interim
    consolidated financial statements.



    Interim Consolidated Statements of Cash Flows

    Thousands
    of US dollars,     Three Months Ended Sep 30    Nine Months Ended Sep 30
    unaudited                 2009          2008          2009          2008
    -------------------------------------------------------------------------
    Operating
     activities:
      Net earnings
       (loss) for
       the period     $     (8,563) $    (29,438) $     18,249  $     (7,926)
    Non-cash items:
      Depreciation
       and depletion        27,804        20,172        77,393        49,005
      Unrealized
       currency
       translation
       loss (gain)           3,828           (42)        3,819        (4,311)
      Unrealized gain
       on derivative             -             -             -        (9,836)
      Accretion of site
       closure and
       reclamation
       obligations             802           665         2,301         1,619
      Loss on disposal
       of assets                93           156           276           112
      Amortization of
       deferred charges         89            54           196           161
      Stock-based
       compensation            352           417         1,106         1,730
      Accrual of employee
      severance costs          197           662         1,527           969
      Future income
       tax recovery         (4,193)       (1,892)      (14,674)       (3,121)
      Change in fair
       value of forward
       contracts             8,262       (22,984)       22,619        15,537
      Writedown of
       auction rate
       securities           10,440        16,912        10,948        16,912
    Changes in operating
     working capital
     and other (note 12)    11,341        15,956        21,891        (3,903)
    -------------------------------------------------------------------------
                            50,452           638       145,651        56,948
    -------------------------------------------------------------------------
    Investing activities:
      Release of
       restricted cash           -        14,340             -        67,496
      Increase in
       restricted cash        (302)         (811)         (438)      (24,723)
      Purchase of plant
       and equipment        (7,945)       (3,445)      (26,833)      (20,524)
      Mineral property
       development         (15,047)      (10,664)      (32,667)      (23,959)
      Transaction costs
       paid                      -          (679)            -        (2,912)
      Acquisition of
       Perseverance,
       net of cash
       acquired                  -             -             -      (196,590)
      Repayment of
       Perseverance hedge
       portfolio                 -             -             -       (45,550)
      Proceeds from sale
       of equipment             21            13           331         3,234
    -------------------------------------------------------------------------
                           (23,273)       (1,246)      (59,607)     (243,528)
    -------------------------------------------------------------------------
    Financing activities:
      Repayment of
       capital lease
       obligations          (1,145)       (1,508)       (3,804)       (4,916)
      Financing from
       credit facility         139           389           398         8,745
      Repayment of credit
       facility               (468)         (797)       (1,667)       (9,961)
      Repayment of other
       long-term
       liabilities              (4)            -          (328)         (746)
      Issuance of common
       shares               88,525           173        88,801         1,700
    -------------------------------------------------------------------------
                            87,047        (1,743)       83,400        (5,178)
    -------------------------------------------------------------------------
    Effect of exchange
     rate changes on
     cash and cash
     equivalents               944        (2,825)        4,066        (2,587)
    -------------------------------------------------------------------------
    Increase (decrease)
     in cash and cash
     equivalents           115,170        (5,176)      173,510      (194,345)
    Cash and cash
     equivalents,
     beginning of
     period                120,759        76,876        62,419       266,045
    -------------------------------------------------------------------------
    Cash and cash
     equivalents,
     end of period    $    235,929  $     71,700  $    235,929  $     71,700
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Supplementary cash flow information (note 12)



    Interim Consolidated Statement of Shareholders' Equity

                                         Number of       Common
    Thousands of US dollars,                Common       Shares  Contributed
    except common shares, unaudited         Shares       Amount      Surplus
    -------------------------------------------------------------------------
    Balance at December 31, 2007       254,452,862  $   309,455  $     3,940
      Transitional adjustment on
       adoption of inventory standard            -            -            -
      Shares issued under employee
       share purchase plan                 382,909          406            -
      Shares issued on exercise of
       options                             881,300        1,846         (492)
      Stock-based compensation                   -          201        1,821
      Net earnings                               -            -            -
      Other comprehensive income                 -            -            -
    -------------------------------------------------------------------------
    Balance at December 31, 2008       255,717,071      311,908        5,269
      Shares issued under new equity
       offering (note 6)                34,300,000       89,234            -
      Shares issued under
      employee share purchase plan         243,864          301            -
      Shares issued on exercise of
      options                              144,000          398         (132)
      Stock-based compensation                   -          152          954
      Net earnings                               -            -            -
      Other comprehensive income                 -            -            -
    -------------------------------------------------------------------------
    Balance at September 30, 2009      290,404,935  $   401,993  $     6,091
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

                                       Accumulated
                                             Other
    Thousands of US dollars,         Comprehensive     Retained
    except common shares, unaudited   Income (loss)    Earnings        Total
    -------------------------------------------------------------------------
    Balance at December 31, 2007       $    (3,282) $   176,663  $   486,776
      Transitional adjustment on
       adoption of inventory standard            -          381          381
      Shares issued under employee
       share purchase plan                       -            -          406
      Shares issued on exercise of
       options                                   -            -        1,354
      Stock-based compensation                   -            -        2,022
      Net earnings                               -       10,720       10,720
      Other comprehensive income           (86,221)           -      (86,221)
    -------------------------------------------------------------------------
    Balance at December 31, 2008           (89,503)     187,764      415,438
      Shares issued under new equity
       offering (note 6)                         -            -       89,234
      Shares issued under
      employee share purchase plan               -            -          301
      Shares issued on exercise of
      options                                    -            -          266
      Stock-based compensation                   -            -        1,106
      Net earnings                               -       18,249       18,249
      Other comprehensive income            78,222            -       78,222
    -------------------------------------------------------------------------
    Balance at September 30, 2009      $   (11,281) $   206,013  $   602,816
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    The accompanying notes form an integral part of these interim consolidated
financial statements.

                            ---------------------
    This press release should be read in conjunction with the Corporation's
third quarter MD&A report and accompanying unaudited interim consolidated
financial statements, which can be found on Northgate's website at
www.northgateminerals.com, in the "Investor Info" section, under "Financial
Reports - Quarterly Reports".
                            ---------------------
    

Q3 2009 Financial Results - Conference Call and Webcast

You are invited to participate in today's live conference call and webcast discussing our third quarter financial results. The conference call and webcast will be held at 10:00 am Toronto time.

You may participate in the Northgate Conference Call by calling 416-644-3425 or toll free in North America at 1-800-594-3790. To ensure your participation, please call five minutes prior to the scheduled start of the call.

A live audio webcast and presentation package will be available on Northgate's homepage at www.northgateminerals.com.

Conference Replay

A replay of the conference call will be available beginning on November 3, 2009 at 12:00 p.m. ET until November 17, 2009 at 11:59 p.m. ET.

    
    Replay Access No. 416-640-1917   Passcode: 4167 983 followed by the
                                                        number sign
    Replay Access No. 877-289-8525   Passcode: 4167 983 followed by the
                                                        number sign

                             --------------------
    

Northgate Minerals Corporation is a gold and copper producer with mining operations, development projects and exploration properties in Canada and Australia. The company is forecasting record gold production of 365,000 ounces in 2009 and is targeting growth through further acquisition opportunities in stable mining jurisdictions around the world.

    
                             --------------------
    

Cautionary Note Regarding Forward-Looking Statements and Information:

This Northgate press release contains "forward-looking information", as such term is defined in applicable Canadian securities legislation and "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995, concerning Northgate's future financial or operating performance and other statements that express management's expectations or estimates of future developments, circumstances or results. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects", "believes", "anticipates", "budget", "scheduled", "estimates", "forecasts", "intends", "plans" and variations of such words and phrases, or by statements that certain actions, events or results "may", "will", "could", "would" or "might" "be taken", "occur" or "be achieved". Forward-looking information is based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which Northgate operates, are inherently subject to significant operational, economic and competitive uncertainties and contingencies. Northgate cautions that forward-looking information involves known and unknown risks, uncertainties and other factors that may cause Northgate's actual results, performance or achievements to be materially different from those expressed or implied by such information, including, but not limited to gold and copper price volatility; fluctuations in foreign exchange rates and interest rates; the impact of any hedging activities; discrepancies between actual and estimated production, between actual and estimated reserves and resources or between actual and estimated metallurgical recoveries; costs of production; capital expenditure requirements; the costs and timing of construction and development of new deposits; and the success of exploration and permitting activities. In addition, the factors described or referred to in the section entitled "Risk Factors" in Northgate's Annual Information Form for the year ended December 31, 2008 or under the heading "Risks and Uncertainties" in Northgate's 2008 Annual Report, both of which are available on the SEDAR website at www.sedar.com, should be reviewed in conjunction with the information found in this press release. Although Northgate has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in forward-looking information, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information in this press release is made as of the date of this press release, and Northgate disclaims any intention or obligation to update or revise such information, except as required by applicable law.

%CIK: 0000072931

SOURCE Northgate Minerals Corporation

For further information: For further information: Ms. Keren R. Yun, Director, Investor Relations, Tel: (416) 363-1701 ext. 233, Email: ngx@northgateminerals.com, Website: www.northgateminerals.com

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Northgate Minerals Corporation

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