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7 years ago
UPDATE 1-Northgate breaks ground on Ontario gold mine
September 10, 2010 / 2:50 PM / 7 years ago

UPDATE 1-Northgate breaks ground on Ontario gold mine

2 Min Read

* Young-Davidson mine to start production in early 2012

* To produce 2.5 million ounces over 15 yrs

* Shares up 1.28 percent on the TSX

TORONTO, Sept 10 (Reuters) - Canadian gold miner Northgate Minerals Corp NGX.TO said on Friday that construction has started on its Young-Davidson gold mine in Northern Ontario.

The company said that the first gold pour will be in early 2012 and that the mine would produce 2.5 million ounces over its first 15 years of production.

Construction of the mine will create 600 jobs in the community of Matachewan, about 598 kilometres (372 miles) north of Toronto. Based on current known reserves, the mine will operate for at least 15 years and employ 275 people.

"Young-Davidson represents a long-life, low-cost operation located in one of the best mining jurisdictions in the world," said Northgate Chief Executive Ken Stowe in a press release. "We are extremely proud to be standing here today, five years after Northgate first set foot on the property, as we realize our vision of building this mine."

The Young-Davidson mine is expected to generate C$2.2 billion ($2.13 billion) in pretax operating cash flow over 15 years, based on current spot prices.

Shares in Northgate were up 1.28 percent at C$3.16 in morning trade on the Toronto Stock Exchange.

$1=$1.03 Canadian Reporting by Julie Gordon; editing by Peter Galloway

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