Northgate Looks Elsewhere

Article Excerpt

NORTHGATE MINERALS CORP. $2.74 (Toronto symbol NGX; SI Rating: Speculative) (604-681-4004;; Shares outstanding: 254.2 million; Market cap: $696.5 million) dropped recently after a joint federal-provincial environmental review panel rejected its proposed Kemess North copper-gold open-pit project. In the panel’s view, adverse environmental, social and cultural effects outweighed its potential economic and social benefits. Several aboriginal groups opposed the project. Kemess North is located about six kilometers from Kemess South, Northgate’s mine in north central British Columbia. With about 4.1 million ounces of low-grade gold reserves, Kemess North was slated to replace Kemess South, which will be exhausted by late 2010. Northgate will now focus on its Young- Davidson property in northern Ontario, which has an estimated 2.1 million ounces of gold reserves. Northgate hopes to complete a feasibility study in early 2008, and targets production of 175,000 ounces per year beginning in 2010. Northgate will generate annual cash flow of approximately $164 million from Kemess South until 2010. (All figures except share…

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