NORTHERN ONTARIO - Exploration at the Young-Davidson gold property 60 km west of Kirkland Lake is going underground. Owner NORTHGATE MINERALS of Vancouver has approved an initial $2.2-million for the program. Assuming engineering and permitting is completed in a timely manner, underground development will being in early 2007. Initial estimates place the cost of developing an exploration ramp and dewatering the existing No.3 shaft at approximately $17 million. The Northgate board also approved spending $1.8 million over the next 18 months for baseline environmental and technical work that will be used as part of the feasibility and environmental impact studies.
The presence of gold mineralization on the Young-Davidson property was known as early as 1910. Two separate mines were operated by VENTURES LTD. and HOLLINGER MINES from the mid-1930s to early-1950s. Together they produced over 1.0 million oz of gold. Northgate acquired the property in November 2005. It believes a gold resource of 1.5 million oz remains and that a 5,000-tonnes/day mine and mill could produce 150,000 oz/year.
Northgate management held a conference call outlining its plans for the Young-Davidson project on April 19. The presentation is available in the Investor Info section at www.NorthgateMinerals.com.
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