July 2, 2010 / 11:38 AM / 9 years ago

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.

Northgate, which acquired Young-Davidson in November 2005, also has operations in western Canada and Australia. (Reporting by Euan Rocha; Editing by Derek Caney)

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