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Agnico Eagle achieves commercial production from Amaruq deposit

Despite some troubles due to heavy rainfall and consequent prolonged removal of groundwater, the Amaruq deposit is now producing gold at a commercial rate.

"With the start of production at both Amaruq and Meliadine in 2019, the company is well positioned to deliver on its goal of generating net free cash flow in the second half of this year," Sean Boyd, Agnico Eagle's chief executive officer, said in a press release. "This is expected to allow us to reduce net debt and potentially increase the dividend while continuing to steadily grow our business... Congratulations to all of our employees at Amaruq for achieving commercial production in line with the original schedule despite ongoing challenges related to dewatering and adverse weather conditions in the second and third quarters."

Agnico Eagle's Amaruq deposit is located 50 km northwest of the Meadowbank mine. photo courtesy of Agnico Eagle

The processing of ore at Amaruq began using low-grade stockpiles in August.

Amaruq contributed 35,281 ounces of gold in the third quarter of 2019, short of the 40,000 ounces projected.

Agnico Eagle noted that third quarter gold production at the Meadowbank complex is now anticipated to be 200,000 ounces, down from the previous forecast of 230,000 ounces. However, the company’s full year 2019 production guidance of 1.75 million ounces of gold at Meadowbank remains unchanged.

The Amaruq deposit is located 50 km northwest of the Meadowbank mine, where its gold is trucked to be processed. Meadowbank is 110 km from Baker Lake by road.