Northgate Minerals Corporation

Northgate Minerals Corporation

January 10, 2005 21:29 ET

Northgate Reports Record Gold Production; 2004 Cash Cost of $137 Per Ounce




JANUARY 10, 2005 - 21:29 ET

Northgate Reports Record Gold Production; 2004 Cash
Cost of $137 Per Ounce

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 10, 2005) - Northgate
Minerals Corporation (TSX:NGX)(AMEX:NXG) - (All figures in US dollars
except where noted)

Northgate Minerals Corporation today reported record quarterly and
annual operating results from the Kemess mine located in north central
British Columbia.

2004 Highlights

- Record annual gold production of 303,475 ounces

- Record quarterly gold production of 94,673 ounces in the fourth quarter

- Record annual copper production of 78.3 million pounds

- Record quarterly copper production of 23.9 million pounds in the
fourth quarter

- Record low annual cash cost of $137 per ounce

- Record low quarterly cash cost of $116 per ounce in the fourth quarter

- Record quarterly mill throughput record for hypogene ore of 52,136
tonnes per day

- Record annual mining productivity of 826 tonnes moved per man shift

Ken Stowe, President and CEO, commented, "The Kemess mine finished the
year extremely strongly, setting records for quarterly gold and copper
production and recording the lowest quarterly cash cost in the history
of the mine. I wish to acknowledge the efforts of each and every one of
our employees who worked together to achieve these significant
accomplishments. 2004 marks the fifth year in a row that annual metal
output at Kemess has increased. I am especially pleased to report that
for the third year in a row, we delivered the metal production that we
forecast to our shareholders at the beginning of the year and did so at
a cash cost of only $137 per ounce."

Overview of Operations

The Kemess mine posted record gold and copper production of 94,673
ounces and 23.9 million pounds respectively, in the fourth quarter of
2004. This record production was the result of record mill throughput
for hypogene ore of 52,136 tonnes per day combined with above-average
ore grades. Over the course of 2004, ore grades and quarterly metal
production varied considerably as different areas of the Kemess pit were
mined as scheduled. For the full year, the grade of ore milled was close
to the Kemess South reserve grade and metal production was consistent
with the forecast released by Northgate at the beginning of 2004.

The cash cost of production at Kemess in the fourth quarter was $116 per
ounce bringing the average 2004 cash cost to $137 per ounce. Both these
figures represent records for the Kemess mine. Record copper production
and strong copper prices, which averaged $1.40 per pound for the fourth
quarter and $1.30 per pound for the full year, generated these excellent
results in spite of the strengthening Canadian dollar and the unusually
large amount of waste stripping (1.9:1 versus the life of mine average
of 1:1) that was completed during the year. Using the Gold Institute
methodology, which many other gold companies use, cash costs at Kemess
were $70 per ounce in the fourth quarter and $83 per ounce for the
entire year.

Northgate's audited financial results for the year ended December 31,
2004 are scheduled for release on February 24, 2005 and the
Corporation's regular quarterly investor conference call will be held at
10 am (Eastern Standard Time) the following day.

2004 Kemess Mine Production

(100% of
production basis) 4Q 04 4Q 03 2004 2003

Ore plus waste
mined (tonnes) 13,637,789 14,480,180 56,000,000 53,872,000
Ore mined (tonnes) 4,831968 5,466,208 19,329,000 18,633,000
Stripping ratio
(waste/ore) 1.82 1.65 1.90 1.88

milled (ore) 4,796,471 4,584,324 18,589,662 18,632,837
Average mill
rate (tpd) 52,136 49,830 50,791 51,049

Gold grade (gmt) 0.876 0.744 0.735 0.702
Copper grade (%) 0.270 0.261 0.231 0.225

Gold recovery (%) 70 71 69 70
Copper recovery (%) 84 84 83 82

Gold production
(ounces) 94,673 78,761 303,475 294,117
Copper production
(000's pounds) 23,856 22,165 78,291 76,177

Tonnes mined per
shift worked 842 880 826 803
Tonnes milled per
shift worked 280 293 290 281

Cash Cost
Full Absorption
Method 116 185 137 219
Gold Institute
Method 70 145 83 175
Note: (1) 2004 cash cost figures are unaudited estimates and are
subject to revision.

Northgate Minerals Corporation is a gold and copper mining company
focused on operations and opportunities in the Americas. The
Corporation's principal assets are the 300,000-ounce per year Kemess
mine in north-central British Columbia and the adjacent Kemess North
deposit, which contains a Proven and Probable Reserve of 4.1 million
ounces of gold. Northgate is listed on the Toronto Stock Exchange under
the symbol NGX and on the American Stock Exchange under the symbol NXG.

Forward-Looking Statements

This news release includes certain "forward-looking statements" within
the meaning of section 21E of the United States Securities Exchange Act
of 1934, as amended. These forward-looking statements include estimates,
forecasts, and statements as to management's expectations with respect
to, among other things, future metal production and production costs,
potential mineralization and reserves, exploration results, progress in
the development of mineral properties, demand and market outlook for
commodities and future plans and objectives of Northgate Minerals
Corporation (Northgate). Forward-looking statements generally can be
identified by the use of forward-looking terminology such as "may",
"will", "expect", "intend", "estimate", "anticipate", "believe", or
"continue" or the negative thereof or variations thereon or similar
terminology. Forward-looking statements are necessarily based upon a
number of estimates and assumptions that, while considered reasonable by
management are inherently subject to significant business, economic and
competitive uncertainties and contingencies. There can be no assurance
that such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in such
statements. Important factors that could cause actual results to differ
materially from Northgate's expectations are disclosed under the heading
"Risk Factors" in Northgate's 2003 Annual Report and under the heading
"Trends, Risks and Uncertainties" in Northgate's 2003 Annual Information
Form (AIF) both of which are filed with Canadian regulators on SEDAR
( and with the United States Securities and Exchange
Commission ( Northgate expressly disclaims any intention or
obligation to update or revise any forward-looking statements whether as
a result of new information, future events or otherwise.


Contact Information

    Northgate Minerals Corporation
    Mr. Ken G. Stowe
    President and Chief Executive Officer
    (416) 216-2772
    Northgate Minerals Corporation
    Mr. Jon A. Douglas
    Senior Vice President and Chief Financial Officer
    (416) 216-2774