Manufacturing News from the Engineered Designer Perspective

Gold miners expand production in Nunavut, estimated reserves in BC

Canadian gold mining company Agnico Eagle announced that it will invest more than $1.2 billion in two new mines in the Nunavut Territory beginning this year. The company’s mine at Meliadine is approved and licensed for development while a satellite deposit at Amaruq is expected to be approved next year. The company expects to produce at least 5.3 million ounces of gold over fourteen years at Meliadine, and 1.98 million ounces at Amaruq over six years. Further exploration could result in an extension of the mine’s life and higher production numbers.

The COE of Agnico, Sean Boyd, told BNN that the two deposits are “wide open, so we expect them to grow.” He called the new development “low-risk, high-value growth” because it builds on what the company has been doing for “many, many years.” An existing mine at Meadowbank, 60 kilometres away and in operation since 2010, is expected to wind down production in 2018. It will be used to process ore mined at Amaruq.

Alnico Eagle, North America’s fourth-largest gold miner by market value (Bloomberg), estimates that the two projects will generate $500 million in spending on goods and services, create employment for approximately 2,000 people, including 500 contractors, and generate about $130 million in payroll and taxes per year. A spokesperson for Agnico Eagle in Nunavut called it a “huge opportunity” for the region, with job creation and training opportunities. Both mines are expected to be producing gold by late 2019.

The company reported production of 1.6 million ounces of gold in 2016 with a realized price of $1,266 per ounce.

Gold pour photo courtesy of Agnico Eagle

Another major Canadian gold mining company, Seabridge, also announced an expansion, this one pertaining to estimated mineral resources at its KSM project in British Columbia. The Deep Kerr Deposit is reportedly the world’s largest undeveloped gold project based on mineral reserves. A statement from Seabridge says that inferred reserves now total 19 million ounces of gold and 17.3 billion pounds of copper, an increase of 3 million ounces of gold and 2.1 billion pounds of copper over last year’s estimate. The company projects that the mine will have a life of fifty-two years. Exploration continues at the site, with the estimated deposit growing year by year.

Canada is currently ranked the world’s fifth-largest gold producer, after China, Australia, Russia and the United States.

According to the World Gold Council, global demand for gold, including gold-backed exchange-traded funds (ETF), jewellery, central banks, technology, and bar and coin, gained 2 per cent in 2016, reaching a three-year high of 4,308.7t.

Gold prices are trending upwards in 2017, with some experts predicting prices to rise 15 per cent over the year. Prices peaked in 2011 at more than $1,900, fell below $1,100 in 2015, then rose to $1,400 in the summer of 2016. The price is currently about $1,240 per ounce.

More Great Stories
SpaceX launches Immarsat 5 F4: continuing the Elon Musk tradition of innovation with commercial payback
Currently, as I write this, the Immarsat-5 Flight 4, livecast via YouTube (below) is at an altitude [more]
Richard Browning invents super human 450 km per hour “Iron Man” flight suit (video)
The idea of having superhuman capabilities, especially the ability to fly, has captivated us since a [more]
Clean technologies for mining: Green Mining’s time has come
In the United States, metal mining "creates nearly 30% of all the toxic releases measured annual [more]
3D printing, or additive manufacturing, becoming more mainstream across many manufacturing sectors
Additive manufacturing, otherwise known as 3D printing is growing in practicality and popularity. In [more]
Is Clean Diesel a myth, or a yet-to-come promise?
Four big cities have already moved to ban diesel from their cities: Paris, Madrid, Athens and Mexico [more]
Auto Sales Down Again for Big Car Makers
Demand is down again for automobiles in April, after an already weak March 2017. Overall, in Apr [more]
Technology that could help save the earth: Carbon Capture and Storage
No one technology can "save the earth" but, since carbon dioxide emissions are one of the major caus [more]
Creative work skills helping drive the 4th Industrial Revolution, the fusion of biological, digital and physical
The fusion of three worlds — biological, digital and physical — gave rise to the massive potenti [more]
3D printed homes in 24 Hours — printed on site: printed villas, offices and floating saunas?
3D Printing's potential has hardly been tapped. NASA has programs in place to 3D print components fo [more]
Wind capacity reaches 82,183 megawatts in US, enough to power 24 million homes
The United States is chasing after wind-friendly Europe and Asia. With wind power generating more po [more]
Vitamin-derived battery created by U of T chemists
The search for better batteries has taken another step forward with the work of chemists at the [more]
Tesla is now the number one valued carmaker in America, jumping ahead of GM
  No one could argue that Elon Musk's visionary approach to automobile engineering made [more]
Manufacturing continues to grow but exports decline, increasing Canada’s trade deficit in February
Canada’s manufacturing sector continued to grow in March according to the Markit Canada Manufa [more]
“Fireworks” in Canada’s economy as GDP rises 2.3 per cent in January
Canada’s economy grew at an annualized rate of 2.3 per cent in January, reports Statistics Can [more]

Other Popular News and Stories

  • SPPCA's new landing gear facility opening in Mississauga
  • Canadian oil production up; producers turning to railways for shipment
  • Economy managed slight growth in Q4, but shrank in December
  • Manufacturing the sole industry showing job losses in February
  • BC refinery close to financing deal
  • Miners struggling with higher costs, lower prices
  • Pratt & Whitney Canada announces helicopter engine contracts
  • Japex to buy into west coast LNG development
  • Clean energy expected to surge as pv costs drop
  • Canada keeping up pressure on US for Keystone XL approval
  • Canadian business, except energy, had profitable Q4: Statistics Canada
  • DART Aerospace re-branding itself to reach wider markets
  • GM investing $250 million at Ingersoll plant
  • Bombardier holds update on CSeries aircraft
  • Skilled labour shortage in world oil industry: report
  • RV industry has growing role in Canada's economy: study
  • Bombardier nearly ready to flight test CSeries
  • Volkswagen to produce super-efficient hybrid
  • Russian leasing company orders 42 CSeries jets from Bombardier
  • FTG Aerospace to supply avionics to Rockwell Collins