ONTARIO - Northgate Minerals of Toronto held the official groundbreaking ceremony on Sept. 10, 2010, for the Young-Davidson gold mine near Matachewan. The first gold pour is scheduled for early 2012.
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. Northgate executives including president Ken Stowe and members of the press were also present.
Development at the site is well underway. 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 the mine will provide ongoing direct employment for 275 people for a minimum of 15 years based on currently known reserves, said Northgate. Using today's 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%.
The latest 43-101 report is available at www.NorthgateMinerals.com.