Northgate Minerals Corp Down 2%, But off day Lows Despite Green Light for Project
Northgate Minerals Corporation (NGX.TO) is down more than 2% despite announcing it has received notice from the Ontario Ministry of Northern Development, Mines and Forestry that its closure plan for the Young-Davidson Mining Project has been accepted.
The stock has been under selling pressure since the off and hit a day low 3.11 shortly after 11 a.m. ET before recovering. It is falling in line with other gold stocks on weakened gold prices, with Barrick Gold (ABX.TO) down 3% and New Gold Inc. (NGD.TO) 1.8% lower.
Acceptance of the closure Plan allows Northgate to commence construction and development of the Young-Davidson mine, which is forecast 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.
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