April 13, 2011 / 11:36 AM / 7 years ago

UPDATE 2-Northgate expects Ontario gold mine output to start in Q1 2012

* Expects to spend $250 mln more to bring Young-Davidson mine up to production

* Sees mine’s 2012 gold output at 84,000-90,000 ounces (Adds output forecast in paragraph 2, expected cash flow in paragraph 4)

April 13 (Reuters) - Canadian gold miner Northgate Minerals Corp expects production at its Young-Davidson mine in Northern Ontario to start in late first quarter of 2012.

The company, which has assets in Canada and Australia, expects the mine to produce 84,000-90,000 ounces of gold in 2012 and 134,000-140,000 ounces in 2013.

Northgate forecast the Young-Davidson to produce an average of 180,000 ounces of gold annually over an initial 15-year mine life.

The company said proven and probable gold reserves at the Young-Davidson mine is over 2.8 million ounces, which is expected to generate $1.9 billion in pre-tax operating cash flow at current gold prices.

The company expects to invest an additional $250 million using existing funds to bring the mine into production.

It has invested about $130 million towards its construction, which started last September, at the end of March 2011.

Shares of the company closed at C$2.61 on Tuesday on the Toronto Stock Exchange. They have lost 13 percent in the last one year. (Reporting by Aftab Ahmed in Bangalore; Editing by Sriraj Kalluvila)

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