Matachewan Consolidated Mines Ltd (MCM.A)

[NYBob]

Construction of new gold mine under way
News
By RICK OWEN, NORTHERN NEWS

Friday was a golden day in Matachewan as Northgate Minerals Corporation
executives, Matachewan First Nation representatives, and area
political leaders officially broke ground to mark the start
of construction of Northgate's new Young- Davidson Gold Mine.

Matachewan has seen promise of mining development in the past fail so the ground breaking was a tangible indication of the new jobs and economic development that will benefit Matachewan, Matachewan First nations and the entire area.

In many ways the new Young-Davidson Mine will be different
from other area gold mines.
Northgate has worked closely with Matachewan First Nations and
worked out mutually beneficial agreements so both will benefit.
As well when the mine is in full production it will process 6,000
tonnes of gold ore a day, which is much higher than traditional
area mines that mill about 2,000 to 2,500 tons a day.

With exploration Matachewan has already seen an improvement in its economic situation and with the mine on track a total of 65 new homes will be built to house mine employees. With this will also come more commercial and economic development.

During the construction phase there will be about 600 people working at the mine site and during the mine life, which currently is projected to be 15 years but could be longer, just under 300 people will be employed at Young-Davidson. Currently Northgate has about 60 employees on site.

Northgate President and CEO Ken Stowe is very encourage by recent exploration results and is just as optimistic that the mine life can be expanded beyond the 15 years projected based on mining rate, costs and current mineral resources.

Northgate's President and CEO said people will see things move very quickly during the next few months and hopefully in a year and half they will be pouring their first gold bar at the Young-Davidson.
The mine is scheduled to start commercial production in early 2012.

To date Northgate has spent about $100 million at the Young-Davidson for exploration, development and equipment and during the next couple of years another $350 million will be injected into the community.

Over the mine life of 15 years there will be about one billion
and a half dollars go into the economy through capital and
operating costs.

"This mine I expect will be running a lot longer than 15 years.

We are having some outstanding exploration success already.

I think if we can produce gold at $350 an ounce, which
I expect we will be here for a long time," said Stowe.

He praised the community for the strong support they have given Northgate and that has allowed the company to move the project ahead at the speed they have.
He noted that the support not only came from Matachewan but
the surrounding communities and the Matachewan First Nation.

Matachewan Reeve Bev Hine noted the groundbreaking ceremony
has been a long time coming and she couldn't be more pleased
to be there representing the good people of Matachewan.

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