UPDATE 1-Northgate to begin construction at Young-Davidson mine
* Expects mine to produce 180,000 oz of gold per year
* To begin construction in early August (All figures in U.S. dollars, unless noted)
TORONTO, July 2 (Reuters) - Northgate Minerals Corp NGX.TO said on Friday regulators will allow it to begin construction and development of the Young-Davidson gold mine in northern Ontario.
The Young-Davidson mine is expected to produce an average of 180,000 ounces of gold per year, at a cash cost of $350 per ounce over a 15-year mine life starting in 2012.
The company also completed additional drilling at the site this year and results-to-date indicate a strong potential to expand the current 2.8-million-ounce reserve.
Vancouver-based Northgate said construction of the main process building for Young-Davidson is scheduled to begin in early August.