Vancouver’s Northgate Minerals Corp. (TSX:NGX) said Friday it would begin constructing its Ontario-based Young-Davidson gold mine in August.
The company can begin construction now that Ontario’s Ministry of Northern Development, Mines and Forestry has accepted the company’s proposed closure plan for the mine.
A closure plan lays out a framework for the development, operation and ultimate closure of a mine and outlines the plans for rehabilitating the area surrounding a mine once it closes.
Northgate says the Young-Davidson mine could produce an average of 180,000 ounces of gold annually, at a cash cost of US$350 per ounce over a 15-year mine life starting in 2012.
The company’s share price fell 6% to close at $3.03 on Friday. The company announced the construction plans early Friday morning.
Northgate has awarded more than $140 million of contracts for the development of the mine to date, including an engineering, procurement and construction management or EPCM contract.