Northgate Minerals Corp. (TSX:NGX) and the Matachewan First Nation signed an impact and benefits agreement on July 2 for the Young-Davidson project, located in Matachewan.
The agreement establishes a framework for the permitting and development of a mine on the Young-Davidson property and sets out a variety of co-operative initiatives between the Matachewan First Nation and Northgate relating to employment, training and other business opportunities in connection with the project.
The Young-Davidson property is located in the Abitibi greenstone belt of Northern Ontario, 60 kilometres west of Kirkland Lake. The property has hosted two past producing mines, both with track records of successful mining during the mid-20th century.
Since its acquisition of the property in late 2005, Northgate has invested $55 million in surface diamond drilling and underground development, which has increased the total measured and indicated gold resources on the property to 3.3 million ounces as of Dec. 31.
Pre-feasibility work, which began earlier this year, is now largely complete and Northgate will announce the results of this work later this month followed by a revised industry compliant report filed on SEDAR in August.
