Northgate Stawell Gold Mines has allocated $7 million towards an aggressive exploration program at Stawell.
The exploration program is being launched to identify new underground resources and to convert resources through underground diamond drilling and surface exploration.
The program was outlined to a meeting of the mine's Environmental Review Committee.
Northgate has already announced very positive drill results from the Golden Gift 6 (GG6) zone at the Stawell Gold Mines and will be completing a resource estimation for this zone in June.
In addition to the drill results at Golden Gift 6, Northgate is also targeting the North Magdala zone as a high priority target, given its close proximity to existing mine workings and the highly prospective nature of the target.
The North Magdala campaign will be conducted both from surface and underground. Up to six holes will be wedged off an existing surface hole (SD622) which had an intercept of 9.4m @ 8.35 g/t gold.
Coupled with the recent results in Golden Gift 6, the North Magdala program may add significant resources and extend the present mine life at Stawell.
Staweil Gold Mines is forecasting gold production in 2008 at 112,000 ounces.
The first quarter of 2008 saw 28,363 ounces of gold produced at Stawell at a cash cost of $428 per ounce.
Northgate Minerals Corporation has announced it plans to spend a total of $10 million for exploration on near mine targets designed to increase mineable reserves at Stawell and Fosterville in Bendigo.