Gold project near Rankin Inlet on track to start production in 2019
Agnico Eagle Mines Ltd. has reported that work at its Meliadine project, which received construction approval in February from Agnico Eagle’s board, is progressing as planned and is even slightly ahead of schedule.
The mining company operates the Meadowbank mine, which is currently nearing its end of lifespan, near Baker Lake in Nunavut’s Kivalliq region. To replace the exhausted mine, the company is building its long-awaited gold mine at Meliadine near Rankin Inlet and developing a satellite deposit near Meadowbank at a property called Amaruq.
Agnico Eagle included an update for its Meliadine and Amaruq deposits in a July 26 quarterly report, which cites a net income of $61.9 million, or 27 cents per share, for the second quarter of 2017, compared with income of $19 million, or nine cents per share over the same period in 2016.
“Construction and development activities at the Meliadine project remain on schedule and on budget,” reads the report. Its estimated annual capital budget of $360 million is unchanged. “Underground development is ahead of plan and engineering was 80 per cent complete at the end of June 2017.”
The overall development at the mine site is three per cent ahead of schedule, Agnico Eagle said. About 5.3 million ounces of gold production over 14 years are projected for the 1,117.57-square-kilometre property, located about 25 km north of Rankin Inlet. The company expects to begin production in the third quarter of 2019.
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