Per share data is based on the weightedaverage diluted number of shares outstanding of 255,762,702 in the firstquarter of 2009 and 255,338,997 in the corresponding quarter of 2008. As ofMay 8, 2009, the Corporation had 255,854,675 issued and outstanding commonshares and 6,958,450 outstanding common share options.Health, Safety and EnvironmentNorthgate promotes a strong culture of health and safety at its mine sites andstrives to ensure that the highest standards are maintained. During the firstquarter of 2009, both Kemess and Young-Davidson performed without a singlelost time incident (LTI). Young-Davidson has continued with its exemplaryperformance, as the property has not recorded a single LTI over the past twoyears. Production figures are for thefull quarter ending March 31, 2008.(2) Gold sales in Q1 2008 include the results for Fosterville and Stawellfrom February 19 to March 31, 2008.(3) Metal pricing quotational period is three months after the month ofarrival (MAMA) at the smelting facility for copper and two MAMA forgold.
Otherfigures are for the three month period ending March 31, 2008.(2) Production in Q1 2008 for Fosterville excludes the change in gold-in-circuit inventory previously recorded.Operational PerformanceThe Fosterville mine produced 25,779 ounces of gold during the threemonthsended March 31, 2009, which exceeded Northgate’s first quarter forecast andrepresented a significant improvement from gold production of 10,440 ounces inthe corresponding quarter of the previous year. During the quarter, 165,355tonnes of ore were mined and mine development advanced 1,900 metres (m),compared with 110,904 tonnes mined and 1,420m advanced, respectively, in thecorresponding period of 2008. Mining rates dramatically increased in the firstquarter of 2009 compared to the same period last year, resulting from anincrease in the number of working faces made available by the substantial minedevelopment completed since taking ownership of the mine. In addition,production figures for the first quarter of 2008 were adversely affected by atemporary suspension of underground mining activities in order to facilitate athorough review of operating procedures and provide additional safety trainingto mining personnel.During the first quarter of 2009, approximately 168,000 tonnes of ore weremilled at a grade of 5.53 grams per tonne (g/t), which was a significantimprovement from the 139,000 tonnes of ore milled at a grade of 4.30 g/t inthe first quarter of 2008. Gold recoveries of 86% in the first quarter of 2009were dramatically higher than the 54% recovery recorded in the same periodlast year. Higher recoveries were attributable to the lower quantity ofcarbonaceous ore milled during the most recent quarter and a variety ofsignificant process improvements made by Northgate’s engineers in the BIOX(R)and leach circuits over the past year. Subsequent to the first quarter, thenew heated leach circuit was fully commissioned in April and is expected tofurther improve gold recoveries in future quarters.Total operating costs for the first quarter of 2009 were A$16,661,000 or A$99(2008 – $A161) per tonne of ore milled.
Operating costs continued to declinefrom previous quarters as a result of increased mining efficiencies from theconversion to owner mining, increased mine output and other improvements tothe manner in which the mine has operated. Mining costs were A$54 (2008 -A$74) per tonne of ore mined and milling costs were A$35 (2008 – A$53) pertonne of ore milled. Operating costs for the corresponding period of 2008reflect results from the date of acquisition of Perseverance (February 19,2008) to March 31, 2008.The net cash cost of production for the first quarter of 2009 was $430 perounce of gold, which was dramatically lower than the net cash cost of $1,415per ounce of gold in the same period last year. The decrease in net cash costresulted from lower mining costs, higher ore grades, improved gold recovery,lower diesel prices and the stronger US dollar relative to the Australiandollar.Financial PerformanceFosterville’s revenue for the three months ended March 31, 2009 was$23,782,000 based on gold sales of 26,363 ounces, compared to $4,398,000 andgold sales of 4,568 ounces in the corresponding period of 2008. The cost ofsales for the first quarter of 2009, excluding depreciation and depletion, was$11,017,000 (2008 – $6,346,000) and the depreciation and depletion expense was$5,155,000 (2008 – $1,667,000). Earnings from operations before income taxesrecorded for the period was $6,483,000 compared with a loss from operations of$3,781,000 in the corresponding period of 2008.During the first quarter of 2009, the mine generated $12,748,000 in cash flowfrom operations while $1,908,000 was utilized in the corresponding period of2008. Financial performance for the corresponding period of 2008 reflectsresults from the date of acquisition of Perseverance (February 19, 2008) toMarch 31, 2008.Total investment in capital expenditures at Fosterville was $9,747,000, whichincluded $4,661,000 for mine development.