Gold miners expand production in Nunavut, estimated reserves in BC

Agnico Eagle gold mining Nunavut Canada EDIWeekly

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.

Agnico Eagle gold pour mining Nunavut Canada EDIWeekly
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.

Did you miss this?

Other Popular Stories

  • Canada's auto sales soar; Toyota passes 100K mark for hybrids
  • Aerospace is to Quebec what auto industry is to Ontario, and must be supported: Couillard
  • Wholesale trade saw healthy gains in 2014: Statistics Canada
  • Bombardier to build more commuter trains for London transit
  • Blowing up the Moon for Water? Space Miners Aim to "Mine Water" as Early as 2023
  • Héroux-Devtek subsidiary to provide landing gear for Boeing 777
  • NASA Keeping an Eye on Tesla Roadster
  • Bombardier, NetJets launch new Challenger 350
  • Manufacturing sector rebounded in February: Statistics Canada
  • Singapore scientists invent bendable concrete for low-maintenance roads
  • Canada's economy grew in Q4, manufacturing up in December
  • Long March 3B rocket launch destroys home as lower rocket booster crashes during launch
  • Ford announces Edge production will remain in Oakville
  • Ford investment in Oakville gets auto industry "on the move again"
  • Armoured vehicles an important niche in Ontario's auto industry
  • Canada Goose doubles production capacity with new Toronto plant
  • Large electric aircraft feasible with record-breaking Siemens motor
  • Ontario wants to be heard at Enbridge pipeline hearings
  • Windsor, auto industry counting on new Ford investment
  • ​Toyota highlights experimental technologies with artificial intelligence that recognizes driving habits and facial expressions
Scroll to Top