Agnico Eagle to study satellite mining operation for Nunavut’s Meadowbank

Agnico Eagle’s exploration camp at Amaruq in August of 2014. (FILE PHOTO)

As Agnico Eagle Mines Ltd. drill teams continues to find high-grade samples at its new Amaruq site that “exceed our expectations,” the company is studying the idea of developing the site as a satellite operation for its existing Meadowbank mine near Baker Lake, the company said June 9 in a news release.

In addition, the company is pleased with exploration results from their new property in Mexico, called El Barqueno, which they acquired when they bought out Cayden Resources in November 2014.

“In the coming weeks we will be reviewing our programs at both projects with a view to increase our drilling activities,” said the company’s CEO, Sean Boyd.

The Amaruq property, located about 50 km northwest of Meadowbank, now comprises 114,761 hectares of Inuit-owned and Crown land.

This past February, the company announced, following results obtained from its 2014 drilling program, that it contains an inferred resource of 1.5 million ounces of gold.

An “inferred” estimate is one that is made with a relatively lower level of confidence than an “indicated” resource estimate.

However, drilling results last year were so promising, they expanded this year’s exploration program, giving it a budget of $20 million and hiring about 80 workers.

Those efforts appear to have paid off.

Drilling from the first phase of Agnico Eagle’s 2015 program, as of May 31, 2015, has turned up more high grade ore samples, ranging up to 19.8 and 15.9 grams per tonne, much of it from a section of Amaruq called Whale Tail.

They used seven rigs to drill more than 102 holes to depths of between 200 and 300 metres and plan to add three more drill rigs by the end of June.

They’ve also found four other gold-bearing structures that they will do more work on this summer.

And by the end of the summer, they plan to announce a new resource estimate after the first phase of their 2015 drill program ends.

“An updated resource is expected by the end of this summer following the completion of the first phase 2015 drill program. Studies are ongoing to evaluate the potential to develop the Amaruq deposit as a satellite operation to Meadowbank,” the company said.

These new developments appear to give Agnico Eagle more options for its future work within the Kivalliq region and may offer a way of extending the lifespan of its infrastructure at Meadowbank.

Meanwhile, the company has yet to announced a construction decision for its Meliadine gold project near Rankin Inlet, which is now well on its way to becoming fully permitted following the issuance of a project certificate this past March.

A decision on construction of an operating mine at Meliadine will likely depend on the price of gold and other economic factors.

As of June 11, the price of gold stood at $1,180.80 per ounce.