Project Remains On Schedule and On Budget
/PRNewswire/ - (All figures in US dollars except where noted) Northgate Minerals Corporation (TSX: NGX, NYSE-Amex: NXG) is pleased to provide an update on construction activities for its 100% owned
project located beside the town of
, 60 kilometres ("km") west of
. Northgate is also pleased to report that follow-up drilling on the YD West zone continues to return positive results.
With current proven and probable gold reserves totalling over 2.8 million ounces(1), the
mine is targeting start-up of production in late Q1 2012. The mine is expected to generate an average of 180,000 ounces of gold annually over an initial 15-year mine life.
- The project remains on schedule:
- at the end of March 2011, 80% of the contracts have been
awarded (approximately $170 million), 90% of equipment purchase
orders have been placed and 66% of the engineering has been
- The project remains on budget:
- at the end of March 2011, Northgate has invested approximately
$130 million towards construction of the Young-Davidson mine.
Diamond Drill Program
- Hole YD10-198B, located approximately 115 metres ("m") below
discovery hole 198, returned 5.43 grams per tonne ("g/t") gold over
10.95 m (estimated 6.7 m true thickness).
- A total of 5,332 m of surface diamond drilling has been completed
within the YD West zone in 2011.
"Since breaking ground in
, we're pleased to report that
has remained on schedule and on budget" commented
, President and CEO. "In particular, we have made great progress on the construction front, having recently completed the raise bore pilot hole for the first leg of the production shaft as well as the concrete foundations for the process plant building. In addition, exploration results continue to prove up the YD West zone, where there is significant potential to add to current reserves. Over the next year, we expect to invest an additional
using existing funds to bring
into production as we move towards our objective of increasing annual production to 350,000 ounces in 2013 and beyond."