Page 45 Contd from pg 44 Mine into production Matachewan is booming again its population of 375 in 2006 now near 500 and expected to grow Matachewan is the main townsite of Matachewan T ownship located 60 km west of the fabled Kirkland Lake Gold Camp also enjoying a revival these days On Jan 18 2013 AuRico president and CEO Scott Perry said it has been a transformationa l year for the company as we re positioned our portfolio for reliable consistent and sustainable performance demonstrating our focus on quality ounces that will drive signifcant cash fow going forward W e are pleased with the performance of the Y oungDavidson and El Chanate mines as both assets reported solid results for the year W e are particularly encouraged by the progress at the newly commissioned Y oungDavidson Mine The commissioning of Y oungDavidson has been one of the most successful in recent years with the mill facility operat ing consistently at or above nameplate As we gain more ex perience with operating Y oungDavidson we become more confdent in its potential In 2013 and the coming years we will continue to focus signifcant ef forts on realizing that po Contd on pg 46 tential Companywide production in 2013 is expected to be in the range of 190000 to 220000 gold ounces sig nifcantly increasing production over 2012 primarily as a result of increasing production from the Y oung meets expectations Y oungDavidson AuRicoYOUNGDA VIDSON MINE Page 44 This bat shows the fungus that gives white nose syndr ome its name Contd on pg 45 By Gregory Reynolds T wo gambles have turned the fortunes around of a small Northern Ontario community returning it to the role of host mining area something many people thought would never happen again The gambles also proved the saying that if you want to fnd gold search where gold has been found The 100 Y ear Gold Rush in Northern Ontario continues to deliver successes Matachewan boomed for years in the mid1930s to the mid1950s but when its two producing gold mines folded hard times struck the community Those two small producers were the Y oungDavidson and the Ma tachewan Consolidated mines Gold was discovered there in 1916 and the Y oungDavidson property was brought into production by Hollinger Corp in 1934 Between 1934 and 1957 the mine produced 6218272 tons grading 0094 ozt mainly from quartz stringer zones and associated pyrite in altered syenite The Matachew an Consolidated Mine operated from 1934 into 1953 and pro duced over 13 million worth of gold Then in 2005 Northgate Minerals Cor poration made a bet that there was a lot more gold remaining in the area It paid 20 million to Y oungDavidson Mines Ltd for its properties T om Obradovich was a prospector who spent many years searching for gold in the Matachewan area and in 2005 he was president of Y oungDavidson Mines He beli eved in the property and approached Northgate president Ken Stowe No one wanted the project when gold was US260 per ounce Persistence and the faith of many people made it a suc cess said Obradovich Stowe said most people didn t take a look because the grades at the historical mines were low but we were comfort able dealing with lowgrade operations and in our business it s the dif ference between revenue and costs I look at the mar gins W e saw Y oungDavidson as having ex cellent ground conditions excellent metallur gy and the only challenge was to fnd enough ounces to justify an operation Northgate found a lot of gold and it decided it needed the nearby Ma tachewan Mine acquiring it May 12 201 1 from Matachewan Con solidated Mines Limited The property consisted of 24 min ing leases in Powell and Cairo townships Larder Lake Mining Di vision which prior to the sale had been optioned to Northgate as the company built the new Y oung Davidson Gold Mine In October 201 1 things changed again when AuRico Gold Inc swal lowed Northgate in a deal Bay Street estimated 1billion That was a kingsized bet The faith of many prospectors ju nior mining companies and espe cially Northgate was proven on Sept 1 2012 when AuRico off cially put the Y oung Davidson Gold T wo big gambles and a lot of faith cr eated new Y oungDavidson Mine AuRicoYOUNGDA VIDSON MINE