🕐10.09.10 - 16:27 Uhr

Northgate Minerals Young-Davidson Mine to Commence Production in Early 2012



Northgate Minerals Young-Davidson Mine to Commence Production in Early 2012

Northgate Minerals Young-Davidson Mine to Commence Production in Early 2012


Groundbreaking Ceremony Held for $339 Million Mining Project in Northern Ontario


MATACHEWAN, ON, Sept.

10 /CNW/ - Northgate Minerals Corporation ("Northgate") (TSX:NGX; NYSE-A:NXG) entered into a dynamic new stage of development for its Young-Davidson Gold Mine after a groundbreaking ceremony was held this morning at the site near the town of Matachewan, Ontario.

"This groundbreaking marks the achievement of a key milestone in the development of the Young-Davidson mine.

Our first gold pour is scheduled for early 2012 and in its first 15 years of production, the Young-Davidson mine will produce over 2.5 million ounces of gold," said Ken Stowe, President and CEO of Northgate.

"Young-Davidson represents a long-life, low-cost operation located in one of the best mining jurisdictions in the world.

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.

It is also gratifying to participate in the creation of 875 jobs, which will reinvigorate the economy of Matachewan and the surrounding region.

I would like to extend our thanks once again to the town of Matachewan and the Matachewan First Nation for their unwavering support over the past five years, and also to the various government agencies involved in helping our project come to life."

In attendance at the groundbreaking was Michael Gravelle, Minister of Northern Development, Mines and Forestry, MPP - Thunder Bay-Superior North, David Ramsay, MPP Timiskaming-Cochrane, Charlie Angus, MP Timmins-James Bay, Reeve Beverley Hine, Town of Matachewan, Chief Richard Wincikaby, Matachewan First Nation, and several other dignitaries from the surrounding communities of Elk Lake, Kirkland Lake, Temiskaming Shores, and Timmins.

"We commend Northgate Minerals for being a model responsible corporate citizen in developing this mine," said Michael Gravelle, Minister of Northern Development, Mines and Forestry.

"Our government is committed to advancing mineral exploration throughout the province so that the mines of tomorrow are developed in a sustainable manner for the benefit of all."

Beverly Hine, Reeve of Matachewan, also said, "Everybody in Matachewan is so excited that this day has finally come.

We know that it is a historic event and we couldnt be happier.

We realize that this project will be a huge boost to the economy and we welcome the opportunity that Northgate has brought back to the town of Matachewan with the revitalization of the mine, continuing on with the success and prosperity that the mine brought over 50 years ago."

Development at site is well underway, with over $140 million in contracts having already been awarded.

Ongoing activities include mobilization of heavy mobile equipment for construction of the main plant site area, the open pit and tailings dam and clearing the area to construct the main process building.

Other development activities scheduled to begin in the next few months include the deepening of the existing shaft, construction of the tailings impoundment area and the realignment of Highway 566.

During the construction phase, the project will create 600 jobs and once construction is completed, the mine will provide ongoing direct employment for 275 people for a minimum of 15 years based on currently known reserves.

Using todays spot prices, the mine is expected to generate $2.2 billion in pre-tax operating cash flow, a pre-tax net present value calculated at 5% of $865 million and a pre-tax internal rate of return of 25%.


A Social Media Release, including additional photos of the day, will be issued immediately following the event at 12:00 pm ET and will be accessible via our website at www.northgateminerals.com.


Northgate Minerals Corporation is a gold and copper producer with mining operations, development projects and exploration properties in Canada and Australia.

Our vision is to be the leading intermediate gold producer by identifying, acquiring, developing and operating profitable, long-life mining properties.


/NOTE TO PHOTO EDITORS: Photos accompanying this release are available at http://photos.newswire.ca.

Images are free to accredited members of the media/



For further information: Ms.

Keren R.

Yun, Director, Investor Relations, Tel: 416-216-2781, Email: , Website: www.northgateminerals.com





Products & Services | Jobs