Northgate’s exploration strategy is to focus on areas around each of our operating mines and development projects. The company has a planned 2008 exploration budget of $22 million
($21 million – Young-Davidson; $1 million – Kemess), which is dedicated to additional drilling, surface-based exploration, ramp development and feasibility study preparation at the Young-Davidson Project. Northgate also plans to conduct limited drilling at Kemess South, in the area immediately surrounding the open pit in order to test targets that were identified in a deep penetrating IP survey completed in 2007.
With the recent acquisition of Perseverance Corporation in Australia in February 2008, Northgate acquired two fully-permitted operating mines in the Victoria gold belt and a 7,700 km2 land package, allowing for further exploration around each of the operating mines. An update on exploration spending for Australian operations will be released in the second quarter of 2008.
In 2007, Northgate took an investment stake in and signed an Option / Joint Venture agreement with Opawica Exploration Inc. to explore their land position to the north of our Young-Davidson project. In addition to this exploration, Northgate actively pursues joint ventures with junior exploration companies that have strong technical teams and a record of discovery. These joint ventures usually take the form of an Option / Joint Venture on a specific property such as the RDN project in northern British Columbia.
Northgate also has strategic alliances on regional exploration programs with Rimfire Minerals in British Columbia and the Yukon, as well as with Kaminak Gold Corporation in northern Ontario.
Business development activities are focussed on acquiring opportunities in politically stable jurisdictions with a pro-mining regulatory regime. Within these jurisdictions we seek projects that are amenable to conventional mining and metallurgical processes with a low environmental footprint that are well suited to our technical skills and which have been undercapitalized.