Agnico Eagle Reports First Quarter 2019 Results; Solid Production and Cost Performance; Nunavut Development Projects Advancing as Planned with Meliadine Expected to Achieve Commercial
Stock Symbol: AEM (NYSE and TSX)
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(All amounts expressed in U.S. dollars unless otherwise noted)
AGNICO EAGLE REPORTS FIRST QUARTER 2019 RESULTS; SOLID PRODUCTION AND COST PERFORMANCE; NUNAVUT DEVELOPMENT PROJECTS ADVANCING AS PLANNED WITH MELIADINE EXPECTED TO ACHIEVE COMMERCIAL PRODUCTION IN MAY; EXPLORATION DRILLING CONTINUES TO ADVANCE PROJECT PIPELINE
Toronto (April 25, 2019) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the "Company") today reported quarterly net income of $37.0 million or $0.16 per share, for the first quarter of 2019. This result includes derivative gains on financial instruments, mark-to-market and other adjustments of $4.0 million ($0.02 per share), noncash foreign currency translation gains on deferred tax liabilities and non-recurring tax gains of $3.2 million ($0.01 per share) and non-cash foreign currency translation losses of $2.2 million ($0.01 per share). Excluding these items would result in adjusted net income1 of $32.0 million or $0.14 per share for the first quarter of 2019. In the first quarter of 2018, the Company reported net income of $44.9 million or $0.19 per share.
Included in the first quarter of 2019 net income, and not adjusted above, is non-cash stock option expense of $6.2 million ($0.03 per share).
In the first quarter of 2019, cash provided by operating activities was $148.7 million ($170.8 million before changes in non-cash components of working capital), as compared with the first quarter of 2018 when cash provided by operating activities was $207.7 million ($180.5 million before changes in non-cash components of working capital).
The decrease in net income and cash provided by operating activities during the first quarter of 2019 compared to the prior year period was mainly due to lower gold sales volumes, lower realized gold prices and lower by-product revenue, partially offset by lower costs at several operations, principally at Goldex, Kittila, Pinos Altos and Creston Mascota. Lower gold sales were as a result of the expected lower gold production in the
1 Adjusted net income is a non-GAAP measure. For a discussion regarding the Company's use of non-GAAP measures, please see "Note Regarding Certain Measures of Performance".
period primarily due to reduced throughput levels at Meadowbank as the mine transitions to the Amaruq satellite deposit in the second half of 2019.
"Operationally, 2019 is off to a very good start with strong production and cost performance in the first quarter from Goldex, Kittila, Pinos Altos and Creston Mascota. We have also seen significant exploration results from several of our key pipeline projects in the first quarter", said Sean Boyd, Agnico Eagle's Chief Executive Officer. "With commercial production expected shortly at Meliadine, and Amaruq on schedule for start-up in the third quarter of 2019, we anticipate higher gold production to result in increased earnings and cash flow in the second half of the year. This should allow the Company to continue to advance its development pipeline, increase financial flexibility and potentially raise dividends", added Mr. Boyd.
First quarter 2019 highlights include:
- Solid quarterly production and cost performance – Payable gold production2 in the first quarter of 2019 was 398,217 ounces (including 17,582 ounces of precommercial gold production at the Meliadine project) at production costs per ounce of $727, total cash costs per ounce3 of $623 and all-in sustaining costs per ounce4 ("AISC") of $836. Production costs, total cash costs and AISC per ounce exclude the pre-commercial production ounces relating to the Meliadine project
- Meliadine mine expected to achieve commercial production in May 2019 – Commissioning of the process plant commenced in the first quarter of 2019, and precommercial gold production totaled 17,582 ounces for the quarter. Mill throughput is expected to average approximately 3,000 tonnes per day ("tpd") in the second quarter of 2019, and the plant has operated at 3,700 tpd on several occasions. Three underground mining areas are now in operation, with operations in a fourth area expected to commence in the second quarter of 2019
- Amaruq remains on schedule to begin production in the third quarter of 2019 – Dewatering of Whale Lake commenced early in the first quarter of 2019, followed by the ramp-up of open pit mining activities. The long-haul truck fleet is performing as planned with ore being mined and trucked to the Meadowbank mill where it is being
2 Payable production of a mineral means the quantity of a mineral produced during a period contained in products that have been or will be sold by the Company whether such products are shipped during the period or held as inventory at the end of the period.
3 Total cash costs per ounce is a non-GAAP measure and, unless otherwise specified, is reported on a byproduct basis. For a reconciliation to production costs and for total cash costs on a co-product basis, see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance".
4 All-in-sustaining costs per ounce is a non-GAAP measure and, unless otherwise specified, is reported on a by-product basis. For a reconciliation to production costs and for all-in sustaining costs on a co-product basis, see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance".
stockpiled for future processing. Underground ramp development is progressing on schedule
- A quarterly dividend of $0.125 per share was declared
- Exploration drilling continues to enhance organic growth opportunities
- Amaruq drilling continues to infill and expand known mineralized zones
- At Whale Tail, results continue to demonstrate the extension of high-grade
- Amaruq drilling continues to infill and expand known mineralized zones
mineralization below the proposed pit outline, including 14.5 grams per tonne ("g/t") gold over 7.3 metres at 396 metres depth. Drilling at the V Zone continued to expand the known mineral resources. Highlights include 29.8 g/t gold over 3.4 metres at 357 metres depth
- Santa Gertrudis drilling discovers new high-grade structure at Trinidad and further extends known resource areas – Highlights include 14.7 g/t gold over 11.5 metres at 170 metres depth at Trinidad and 5.1 g/t gold over 4.5 metres at 33 metres depth at Greta. Additional work is planned to test new targets and further expand the mineral resource potential
- Kirkland Lake drilling expands near-surface deposits at Upper Beaver and extends mineralization at depth – Shallow drilling has yielded 3.63 g/t gold and 0.21% copper over 14.0 metres at 102 metres depth, while deeper drilling has encountered 7.62 g/t gold and 0.36% copper over 3.4 metres at 1,983 metres depth, approximately 400 metres below any previous intersection
First Quarter Financial and Production Highlights
In the first quarter of 2019, solid operational performance continued at the Company's mines, which led to payable gold production of 398,217 ounces (including 17,582 ounces of precommercial gold production at the Meliadine project), compared to 389,278 ounces in the first quarter of 2018.
The lower level of gold production, in the first quarter of 2019 (when excluding the Meliadine project pre-commercial production ounces), when compared with the prior-year period, was primarily due to expected reduced throughput levels at Meadowbank as the mine transitions to the Amaruq satellite deposit in the second half of 2019. A detailed description of the production of each mine is set out below.
Production costs per ounce in the first quarter of 2019 were $727, compared to $759 in the prior-year period. Total cash costs per ounce in the first quarter of 2019 were $623, compared to $648 in the prior-year period.
Production costs per ounce and total cash costs per ounce in the first quarter of 2019 were lower, when compared to the prior-year period, primarily due to lower costs at several mines and the weakening of local currencies against the U.S. dollar, partially offset by lower gold production. The lower total cash costs per ounce in the first quarter of 2019, when compared to the prior-year period, were partially offset by lower by-product revenues.
AISC in the first quarter of 2019 were $836 per ounce, compared to $889 in the prior-year period. The lower AISC when compared to the prior-year period is primarily due to lower sustaining capital and lower total cash costs per ounce compared to the first quarter of 2018. A detailed description of the cost performance at each mine is set out below.
Cash Position Remains Strong
Cash and cash equivalents and short-term investments decreased to $196.5 million at March 31, 2019, from the December 31, 2018 balance of $307.9 million, primarily as a result of the capital spending at the Company's Nunavut projects.
The outstanding balance on the Company's credit facility remained nil at March 31, 2019. This results in available credit lines of approximately $1.2 billion, not including the uncommitted $300 million accordion feature.
Approximately 35% of the Company's remaining 2019 Canadian dollar exposure is hedged at an average floor price of approximately 1.29 C$/US$. Approximately 45% of the Company's remaining 2019 Mexican peso exposure is hedged at an average floor price of approximately 19.00 MXP/US$. Approximately 15% of the Company's remaining 2019 Euro exposure is hedged at an average floor price of approximately 1.17 US$/EUR. The Company's full year 2019 cost guidance is based on assumed exchange rates of 1.28 C$/US$, 18.00 MXP/US$ and 1.18 US$/EUR. The Company anticipates adding to its operating currency hedges, subject to market conditions.
Approximately 40% of the Company's diesel exposure relating to its Nunavut operations for the July 2019 to July 2020 consumption period is hedged at prices better than the 2019 cost guidance assumption of C$0.85 per litre (excluding transportation costs). The Company anticipates adding to its diesel hedges, subject to market conditions.
Capital Expenditures
Total capital expenditures (including sustaining capital) in 2019 remain forecast to be approximately $660 million. Pre-commercial production at Meliadine and Amaruq are incorporated in, and netted against, the total 2019 capital expenditure forecast. As a result, some variability is likely depending on the timing of the achievement of commercial production, prevailing gold prices and foreign exchange rates.
Total development capital expenditures related to the construction of the Company's new Nunavut mines, Amaruq and Meliadine, are expected to be below the combined capital expenditure forecast of $1.23 billion. At Amaruq, total development capital expenditures are forecast to be approximately $350 million and at Meliadine, total capital expenditures are expected to be below the 2018 forecast of $900 million, primarily due to strong project execution which has resulted in lower contingency costs and owners' costs.
The following table sets out capital expenditures (including sustaining capital) in the first quarter of 2019.
Capital Expenditures (In thousands of US dollars)
Three Months Ended March 31, 2019 Sustaining Capital
LaRonde mine $ 16,522 LaRonde Zone 5 mine 1,368 Canadian Malartic mine 7,506 Meadowbank mine — Kittila mine 13,123 Goldex mine 4,834 Pinos Altos mine 4,612 Creston Mascota mine — La India mine 663 Total Sustaining Capital $ 48,628
Development Capital
LaRonde mine $ 2,475 LaRonde Zone 5 mine 74 Canadian Malartic mine 8,222 Amaruq satellite deposit 50,627 Amaruq underground project 5,085 Kittila mine 16,354 Goldex mine 5,882 Pinos Altos mine 3,666 Creston Mascota mine — La India mine 1,119 Meliadine project 48,585 Other 495 Total Development Capital $ 142,584 Total Capital Expenditures $ 191,212
2019 Production and Cost Guidance Unchanged
Production guidance for 2019 remains unchanged at 1.75 million ounces of gold (including pre-commercial production from Meliadine of approximately 60,000 ounces of gold and from Amaruq of approximately 40,000 ounces of gold). The Company anticipates that total cash costs per ounce and AISC for 2019 will continue to be in the range of $620 to $670 and $875 and $925, respectively. Approximately 55% of expected gold production in 2019 is anticipated to occur in the second half of 2019.
2019 Tax Guidance
Income and mining taxes expense for the first quarter of 2019 was $15.5 million, or an effective tax rate of 29%. The tax rate is lower than prior guidance partly due to the distribution of earnings by jurisdiction in the first quarter of 2019. The Company anticipates the overall effective tax rate to increase over the remainder of 2019 to the previous guidance range of approximately 45% to 50% for the full year 2019. The anticipated increase in the tax rate is due to the expected higher percentage of total gold production coming from Canada.
As previously outlined in the Company's news release dated February 14, 2019, the Company expects its effective tax rates by jurisdiction for the full year 2019 to be:
Canada - 40% to 50% Mexico - 35% to 40% Finland - 20%
Dividend Record and Payment Dates for the Second Quarter of 2019
Agnico Eagle's Board of Directors has declared a quarterly cash dividend of $0.125 per common share, payable on June 14, 2019, to shareholders of record as of May 31, 2019. Agnico Eagle has declared a cash dividend every year since 1983.
Other Expected Dividend and Record Dates for 2019
| Record Date | Payment Date |
| August 30 | September 16 |
| November 29 | December 16 |
Dividend Reinvestment Plan
Please see the following link for information on the Company's dividend reinvestment plan: Dividend Reinvestment Plan
First Quarter 2019 Results Conference Call and Webcast Tomorrow
Agnico Eagle's senior management will host a conference call on Friday, April 26, 2019 at 8:30 AM (E.D.T.) to discuss the Company's financial and operating results.
Via Webcast:
A live audio webcast of the conference call will be available on the Company's website www.agnicoeagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial 1-647-427-7450 or toll-free 1-888- 231-8191. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.
Replay Archive:
Please dial 1-416-849-0833 or toll-free 1-855-859-2056, access code 7073579. The conference call replay will expire on May 27, 2019.
The webcast, along with presentation slides, will be archived for 180 days on the Company's website.
Annual Meeting
The Company's Annual and Special Meeting of Shareholders (the "AGM") will begin on Friday, April 26, 2019 at 11:00 am (E.D.T). The AGM will be held at the Arcadian Court, 401 Bay Street, Simpson Tower, 8th Floor, Toronto, Ontario, M5H 2Y4.
During the AGM, management will provide an overview of the Company's activities. For those unable to attend in person, the alternatives to participate are set out below.
Via Webcast:
A live audio webcast of the AGM will be available on the Company's website at www.agnicoeagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial 1-647-427-7450 or toll-free 1-888- 231-8191. To ensure your participation, please call approximately five minutes prior to the scheduled start of the AGM.
Replay archive:
Please dial 1-416-849-0833 or toll-free 1-855-859-2056, access code 5296987. The conference call replay will expire on May 27, 2019.
The webcast, along with presentation slides, will be archived for 180 days on the Company's website.
NORTHERN BUSINESS REVIEW
ABITIBI REGION
Agnico Eagle is currently Quebec's largest gold producer with a 100% interest in the LaRonde, Goldex and LaRonde Zone 5 mines and a 50% interest in the Canadian Malartic mine. These mines are located within 50 kilometres of each other, which provides operating synergies and allows for the sharing of technical expertise.
LaRonde Mine – Strong Unit Cost Performance; Lower Grades Due to Mine Sequencing with Grade Profile Expected to Improve in the Second Half of 2019
The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in 1988.
LaRonde Mine - Operating Statistics Three Months Ended Three Months Ended March 31, 2019 March 31, 2018
| Tonnes of ore milled (thousands of tonnes) | 547 | 531 | ||
| Tonnes of ore milled per day | 6,078 | 5,901 | ||
| Gold grade (g/t) | 4.65 | 5.49 | ||
| Gold production (ounces) | 77,433 | 89,785 | ||
| Production costs per tonne (C$) | $ | 150 | $ | 155 |
| Minesite costs per tonne (C$) | $ | 118 | $ | 121 |
| Production costs per ounce of gold produced ($ per ounce) | $ | 798 | $ | 723 |
| Total cash costs per ounce of gold produced ($ per ounce) | $ | 488 | $ | 427 |
Production costs per tonne in the first quarter of 2019 decreased when compared to the prior-year period due to higher tonnage and the timing of unsold concentrate inventory. Production costs per ounce in the first quarter of 2019 increased when compared to the prior-year period due to lower gold production.
Minesite costs per tonne5 in the first quarter of 2019 decreased when compared to the prioryear period due to higher tonnage. Total cash costs per ounce in the first quarter of 2019 increased when compared to the prior-year period due to lower gold production and lower by-product metal revenues.
Gold production in the first quarter of 2019 decreased when compared to the prior-year period due to lower grades resulting from the mining sequence, partially offset by higher tonnage. Grades are anticipated to increase in the second half of 2019 and are expected to average approximately 5.22 g/t gold for the full year 2019, consistent with the 2019 guidance set out in the Company's February 14, 2019 news release.
5 Minesite costs per tonne is a non-GAAP measure. For a reconciliation of this measure to production costs as reported in the financial statements, see "Reconciliation of Non-GAAP Financial Performance Measures" below. See also "Note Regarding Certain Measures of Performance" below.
In order to address wear related issues in the ore handling system at LaRonde, a 10-day previously unscheduled maintenance shutdown is planned in May 2019. The maintenance, which will largely focus on the underground ore and waste silos near shaft #4, is preventative in nature and is part of an ongoing program to update and improve the existing underground infrastructure at the LaRonde mine. During the shutdown, ore will be stockpiled underground to facilitate the start-up of the ore handling system once the maintenance is completed.
Concurrent with the 10-day underground shutdown, the LaRonde mill will undergo a five-day scheduled maintenance shutdown. Stockpiled ore from LaRonde Zone 5 mine will be processed in the LaRonde mill circuit over the remaining five days of the underground shutdown. As a result, 2019 production guidance is unchanged for the LaRonde Complex.
Drilling continued at LaRonde 3 during the first quarter of 2019, focusing on conversion drilling between 3.4 and 3.5 kilometres depth. Development plans are underway to deepen the ramp while engineering and construction work for ventilation and cooling of the deeper portion of the mine are ongoing.
As the Company mines deeper at LaRonde, the risks of more frequent and larger seismic events increases. As a result, the Company is studying various design approaches to LaRonde 3. In addition, the Company continues to adjust the mining methods, ground support and protocols to address seismic activity in the deeper portions of the mine.
Following the successful deployment of the LTE network at LaRonde Zone 5, an LTE network was deployed at the LaRonde mine below level 269 in 2018. Extension of the network in the ramp area from level 269 to surface and at LaRonde 3 will take place throughout 2019. The LTE network facilitates the integration of automation technologies currently being tested at LaRonde Zone 5, which are expected to allow the Company to maintain similar productivity levels at LaRonde 3 as it historically achieved in the shallower portions of the mine.
Engineering work on Zone 11-3, which is at depth in the past-producing Bousquet 2 mine, is ongoing. This zone, containing approximately 140,000 ounces of mineral reserves (1.2 million tonnes grading 3.77 g/t gold), is expected to provide production flexibility to the LaRonde Complex.
LaRonde Zone 5 – Higher Grades and Throughput Drive Strong Quarterly Performance; Evaluating Potential Expansion Opportunities
The Company acquired the LaRonde Zone 5 project in 2003. The property lies adjacent to and west of the LaRonde Complex and previous operators exploited the deposit by open pit. In February 2017, the LaRonde Zone 5 project was approved by Agnico Eagle's Board of Directors for development. Commercial production was achieved in June 2018.
Production costs per tonne in the first quarter of 2019 were $42. Production costs per ounce in the first quarter of 2019 were $437. Minesite costs per tonne in the first quarter of 2019 were C$64. Total cash costs per ounce in the first quarter of 2019 were $674. Gold production in the first quarter of 2019 was 12,988 ounces of gold with a total of 181,000 tonnes of ore milled at 2.44 g/t gold. LaRonde Zone 5 was not operational in the prior year period.
In its first partial year of operation, the mine achieved its designed production rate with lower than expected dilution and slightly higher than expected mill recoveries. The Company is currently evaluating opportunities to further enhance productivity. Under the current LaRonde Zone 5 mine plan, a total of approximately 350,000 ounces of gold are expected to be mined through 2026. The Company is evaluating scenarios to integrate the additional mineral reserves in the down plunge extension of the LaRonde Zone 5 deposit into the mine plan along with the potential to process additional tonnage through the LaRonde Complex.
The Company is also evaluating the potential to extend operations at depth and along strike onto the Ellison property, which adjoins the LaRonde Zone 5 property to the west. Ellison hosts an indicated mineral resource of 68,000 ounces of gold (665,000 tonnes grading 3.19 g/t gold) as of December 31, 2018.
Integration and pilot testing of automated mining equipment (two trucks and one scoop tram) continued in the first quarter of 2019 and will be ongoing over the balance of the year.
Canadian Malartic Mine – Barnat Extension Project Progressing with Rock Excavation Underway and Road Deviation Work Advancing on Schedule
In June 2014, Agnico Eagle and Yamana Gold Inc. ("Yamana") acquired Osisko Mining Corporation and created the Canadian Malartic General Partnership (the "Partnership"). The Partnership owns and operates the Canadian Malartic mine in northwestern Quebec through a joint management committee. Each of Agnico Eagle and Yamana has an indirect 50% ownership interest in the Partnership. All volume numbers in this section reflect the Company's 50% interest in the Canadian Malartic mine, except as otherwise indicated.
Canadian Malartic Mine - Operating Statistics Three Months Ended Three Months Ended March 31, 2019 March 31, 2018 5,035 Tonnes of ore milled (thousands of tonnes) (100%) 5,020
| Tonnes of ore milled per day (100%) | 55,944 | 55,776 | ||
| Gold grade (g/t) | 1.18 | 1.17 | ||
| Gold production (ounces) | 83,670 | 83,403 | ||
| Production costs per tonne (C$) | $ | 26 | $ | 24 |
| Minesite costs per tonne (C$) | $ | 25 | $ | 25 |
| Production costs per ounce of gold produced ($ per ounce) | $ | 595 | $ | 567 |
| Total cash costs per ounce of gold produced ($ per ounce) | $ | 572 | $ | 566 |
Production costs per tonne in the first quarter of 2019 increased when compared to the prioryear period due to lower capitalized deferred stripping, partially offset by higher throughput levels. Production costs per ounce in the first quarter of 2019 increased when compared to the prior-year period due to the reason described above.
Minesite costs per tonne in the first quarter of 2019 were the same when compared to the prior-year period. Total cash costs per ounce in the first quarter of 2019 increased when compared to the prior-year period due to lower capitalized deferred stripping, partially offset by slightly higher gold production.
Gold production in the first quarter of 2019 increased slightly when compared to the prioryear period due to slightly higher throughput levels and higher grades, partially offset by slightly lower gold recoveries.
Work on the Barnat extension project is proceeding on budget and on schedule. Work is primarily focused on the Highway 117 road deviation, overburden stripping and rock excavation. The highway deviation work re-started in April 2019 and is expected to be completed in late 2019. Production activities at Barnat are scheduled to begin in late 2019, following completion of the highway deviation.
Exploration programs are ongoing to evaluate several deposits to the east of the Canadian Malartic open pit, including the Odyssey, East Malartic, Sladen and Sheehan zones. These opportunities have the potential to provide new sources of ore for the Canadian Malartic mill. Additional exploration will be carried out in 2019 to assess the potential of these zones.
The permit allowing for the development of an underground ramp at the Odyssey project was received in December 2018.
As part of ongoing stakeholder engagement, the Partnership is in discussions with four First Nations groups concerning a potential memorandum of understanding, which is expected to also include a financial component. As with the Good Neighbour Guide and other community relations efforts at Canadian Malartic, the Partnership is working collaboratively with stakeholders to establish cooperative relationships that support the long-term potential of the mine.
Rand Malartic Acquisition Increases Canadian Malartic Land Package
On March 26, 2019, the Partnership acquired the Rand Malartic property adjacent to the east side of the Canadian Malartic property. The Rand Malartic property covers 262 hectares and extends 1.7 kilometres eastward along the Cadillac - Larder Lake break within the Piche Group, immediately east of the Odyssey project.
The Rand Malartic property was last explored in 1989 when a ramp was developed to 165 metres below surface to gain access to the #39 and #67 zones. A historical mineral resource was identified by NSR Resources Inc. in 1987 at the #67 Zone of 60,510 tonnes grading 12.45 g/t gold (24,200 ounces of gold) between 61 metres and 236 metres depth below surface. In 1988 and 1989, 31,115 tonnes was mined at an unreported grade from #67 Zone. All but four of the historical holes on the property were drilled to a depth of less than 400 metres. Since then, the Partnership has explored from surface to 1,480 metres depth at the adjacent Odyssey project. Until additional exploration work is carried out by the Partnership, the relevance and reliability of this historical estimate is unclear. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources or mineral reserves and the Company is not treating the historical estimate as current mineral resources or mineral reserves.
The Rand Malartic property has the same favourable geological features as the Odyssey project, with several porphyry intrusions in the southernmost portion of Piche Group volcanic rocks. The #39 and #67 zones are porphyry-hosted with similar mineralogy and alteration to Odyssey; the former appears to be geologically continuous with the Odyssey South Zone. In addition, the geological environment is similar to the historical Malartic Gold Fields mine located three kilometres to the east on the adjoining Midway property.
The Midway project (100% owned by the Partnership) includes the Midway, Piche-Harvey and Fourniere properties covering 3,202 ha, which surround the Rand Malartic property to the north, east and south. The Midway project hosts the main portion of the zones of the former Malartic Gold Fields mine that had historical production of 1.7 million ounces of gold (from 9.0 million tonnes of ore) to a depth of 800 metres, from 1939 to 1965.
A budget of $1.9 million (100% basis) has been allocated for the 2019 exploration program at Rand Malartic including an initial 10,000 metres of drilling to test the eastern extension of the Odyssey project and its possible continuity onto the Rand Malartic property. The nearsurface potential will also be investigated. For the Midway project there is a 2019 exploration budget of $378,000 (100% basis), including 3,000 metres of drilling.
Lapa – Underground Closure Completed
Mining and processing operations at Lapa ended in December 2018 and closure activities for the underground infrastructure were completed in the first quarter of 2019. Surface work is currently ongoing by the site reclamation team.
Goldex – New Quarterly Production Record Since Re-Starting in 2013
The 100% owned Goldex mine in northwestern Quebec began production from the M and E satellite zones in September 2013. Commercial production from the Deep 1 Zone commenced on July 1, 2017.