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VANCOUVER, B.C. - The board of Northgate Minerals Corp. (TSX:NGX) has given formal approval to start development of the company's US$339-million Young-Davidson mine, the company said Monday.
The project is expected to create 600 jobs during the two-year construction phase and 275 jobs during operating life of the mine near Matachewan in the Abitibi region of northern Ontario.
The mine is expected to produce 180,000 ounces of gold per year at net cash cost of $350 per ounce over a 15-year mine-life.
The project includes 2.8 million ounces of proven and probable reserves.
"Young-Davidson represents an integral part of our growth platform and fits our vision of developing and operating profitable and long-life operations in politically predictable, mining friendly jurisdictions," president and chief executive Ken Stowe said in a statement.
"With construction slated to begin later this year, we expect to begin producing gold at Young-Davidson in 2012."
The property sits on the site of two past producing mines.
Last month, Northgate increased the expected cost of the mine from $292.5 million to $339 million.
Shares in the company were unchanged on Monday at $2.67 on the Toronto Stock Exchange.
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