MATACHEWAN, ON, March 4 /CNW/ - A special flag raising ceremony and celebration was held earlier today to mark the recent approval by Northgate Minerals' board of directors to commence the US$339 million development of the Young-Davidson mine. Approval by the board follows on the positive results of the Feasibility Study, which outlines a 15-year mine life producing an annual average of 180,000 ounces of gold.
In attendance at the event was MPP David Ramsay, Timiskaming-Cochrane, ADM Christine Kaszycki, Mines and Minerals Division, Ministry of Northern Development, Mines and Forestry, Chief Richard Wincikaby, Matachewan First Nation, Reeve Beverley Hine, town of Matachewan and several other dignitaries from surrounding communities in Elk Lake, Kirkland Lake, Temiskaming Shores, and Timmins.
At the ceremony, Ken Stowe, President and CEO, commented: "Today marks an important milestone for our company and we want to thank everyone in joining us on such a momentous day to celebrate a new beginning for mining on the Young-Davidson property. It has been more than 50 years since the mine produced its last ounce of gold and to see us take one step closer in revitalizing the mine is extremely gratifying. This is an important project for us and we would not be here without the strong support of our friends and partners who are in attendance today. Since we stepped foot on the property a little over four years ago, there has been enthusiastic support from the local and surrounding communities and we look forward to continuing upon the strong partnerships we have formed as we get set for construction later this year and ultimately production in 2012."
The event also included a traditional drum ceremony performed by members of the Matachewan First Nation and the christening of the first pieces of equipment delivered on site. A public celebration followed at the Matachewan Town Hall, with presentations and speeches made by local dignitaries and Northgate personnel.
Young-Davidson is located near the town of Matachewan, 60 kilometres west of Kirkland Lake. Development of the mine will provide jobs for 600 people during the two year construction phase of the project and ongoing direct employment for 275 people during the operating life of the mine. Substantial economic benefits will accrue to the communities closest to the mine, including the towns of Matachewan, Elk Lake, and Kirkland Lake. Manufacturers, suppliers and contractors in these nearby towns as well as those in the regional centres of Timmins, North Bay and Sudbury will have the opportunity to share in the US$339 million invested during the construction phase and annual expenditures on goods and services of approximately US$50 million during the life of the mine.
Northgate would like to thank all of those who have contributed to the success of revitalizing the Young-Davidson project and to those who were in attendance at today's event.
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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. We are forecasting gold production of 316,000 ounces in 2010.
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SOURCE Northgate Minerals Corporation
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