GOLD STUDY: Young-Davidson final feasibility available

ONTARIO — Vancouver-based Northgate Minerals has filed the final feasibility report for its 100%-owned Y...

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ONTARIO — Vancouver-based Northgate Minerals has filed the final feasibility report for its 100%-owned Young-Davidson gold project at Matachewan. The mine could have annual production of 180,000 oz of gold over 15 years at a net cash cost of US$351/oz. (See January 2010 issue of CMJ.)

 

To complete the development at Young-Davidson including a 6,000-t/d mill, Northgate said it ill have to make spend a total of US$339 million, followed by sustaining capital of US$236 million over the life of the project. Pre-tax operating cash flow is estimated to be US$646 million. The project has an internal rate of return (IRR) of 12.4% based on a gold price of US$825/oz and a Canadian dollar worth US$0.90.

 

During Q4 2009, shaft dewatering activities and ramp development resumed at site to continue advanced exploration and establish the underground access conditions necessary for the modified construction concept for the new production shaft. Rather than blind sinking a new production shaft from surface, the company has decided to deepen the existing Matachewan Consolidated mine shaft from 775 metres to 1,515m and raise a new main production shaft in two sections from the bottom of the known reserve at 1,515 metres.

 

Additional information is available at www.NorthgateMinerals.com.

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