UPDATE 1-Northgate to begin construction at Young-Davidson mine

* Expects mine to produce 180,000 oz of gold per year

* To begin construction in early August
(All figures in U.S. dollars, unless noted)

TORONTO, July 2 (BestGrowthStock) – Northgate Minerals Corp
(NGX.TO: ) said on Friday regulators will allow it to begin
construction and development of the Young-Davidson gold mine in
northern Ontario.

The Young-Davidson mine is expected to produce an average
of 180,000 ounces of gold per year, at a cash cost of $350 per
ounce over a 15-year mine life starting in 2012.

The company also completed additional drilling at the site
this year and results-to-date indicate a strong potential to
expand the current 2.8-million-ounce reserve.

Vancouver-based Northgate said construction of the main
process building for Young-Davidson is scheduled to begin in
early August.

Northgate, which acquired Young-Davidson in November 2005,
also has operations in western Canada and Australia.
(Reporting by Euan Rocha; Editing by Derek Caney)

UPDATE 1-Northgate to begin construction at Young-Davidson mine