Northgate owns Chilean mine

TSE-listed Northgate Exploration has assumed complete ownership of the Choquelimpie gold property in northern Chile.

It increased its interest to 100% from 35% by acquiring the interests of its joint-venture partners for US$3.5 million.

The company did not use its own cash resources for the purchase. Instead, the transaction was funded by the partners’ combined cash generated from the operation (US$2.4 million), together with a non-recourse note (for US$1.1 million) secured by the property.

The operation produced 13,700 oz. gold in the 8-month period ended Aug. 31, at a cash cost of US$15 per oz. after silver credits. Silver production was 168,000 oz. in the same period.

Production is from a heap re-washing of previously leached ore. Northgate intends to explore for and, if feasible, develop underground sulphide reserves with a joint-venture partner.