Agnico Eagle is investing $200 million over the next three years to “further study and de-risk” its Upper Beaver project in Ontario, Canada, with plans to establish both an exploration decline and exploration shaft.
An internal evaluation of the Upper Beaver project was completed in June 2024. Based on this evaluation, the company believes Upper Beaver has the potential to produce an annual average of approximately 210,000 oz of gold and 3,600 t of copper, with initial production possible as early as 2030.
Over an expected 13-year mine life, total payable gold and copper production is expected to be approximately 2.8 Moz and 46,300 t, respectively, based on a 5,000 t/d production rate. Estimated total cash costs per ounce on a by-product basis and all-in sustaining cost per ounce on a by-product basis are expected to be approximately $592 and $733, respectively.
“In addition, the project has the potential to unlock significant exploration potential at depth and within satellite deposits in the company’s Kirkland Lake camp,” Agnico Eagle said.
At Upper Beaver, approximately $50 million is forecast to be spent in 2024 related to the construction of surface facilities, site preparation and the excavation of the shaft collar. Preparatory site work commenced in early 2024 and approximately $15 million was spent in the first half of 2024.
With the total $200 million investment, the company intends to develop an exploration ramp and an exploration shaft to depths of 160 m and 760 m, respectively, to establish underground drilling platforms and to collect bulk samples from the two most representative geological zones of the Upper Beaver deposit. The exploration ramp and exploration shaft will be sized to accommodate the potential production phase and are included in the initial capital expenditures estimate of approximately $900 million. Excavation of the ramp and shaft sinking are expected to start in the second half of 2025.
Upper Beaver is in the township of Gauthier, in north-eastern Ontario, approximately 25 km to the east of the town of Kirkland Lake. The district has a continuous history of mineral exploration and mining spanning more than 110 years and with an aggregate of over 42 Moz of gold produced by various producers.
The mineralisation has been defined along a 400-m strike length from surface to a depth of 2,000 m and it remains open at depth. Total indicated resources are currently 30.9 Mt at 3.47 g/t Au and 0.23% Cu, plus 3 Mt indicated at 4.13 g/t Au and 0.36% Cu.
The mining strategy developed for the Upper Beaver project is to mine the deposit mainly by conventional underground methods, although a small portion (approximately 10% of the mineral resource) will be mined via an open pit. The underground and open-pit mines are expected to be developed within the same time frame.
Open-pit operations will employ conventional methods of drilling, blasting and loading by excavator and wheel loader, with material haulage by truck to the various stockpiles, waste dump or directly to a crusher.
Under current scenarios, production from the open pit is expected to occur from 2030 to 2034 at an average rate of approximately 2,000 t/d, of which 500 t/d will be stockpiled for later processing.
Current scenarios contemplate underground access through a main decline ramp as well as a shaft that is 1,220-m deep and 6 m in diameter. Four main stations are planned along the shaft, including a loading station at the bottom of the shaft. Ore and waste above 430-m depth will be hauled to surface by trucks via the ramp. Ore and waste below 430-m depth will be managed mainly through an ore and waste pass system and skipped to surface via the shaft.
The underground mining concept is based on a long hole open stoping method, with sublevels every 30 m and with stopes to be backfilled with paste and waste rock. The project is expected to use a combination of conventional and automated equipment, similar to what is currently used at the company’s mines in the region. Production from underground, via ramp and shaft, could begin as early as 2030 and ramp-up to an average rate of approximately 4,500 t/d in 2035.
The plant is anticipated to use a conventional milling process, including a gravity circuit and a copper flotation circuit, with a design capacity of 5,000 t/d, an average total gold recovery of 95% and an average copper recovery of 81%.
Tailings will partly be returned underground as paste fill, with the remainder being disposed on a dry stack tailings storage facility.
An agreement with local indigenous communities and environmental permits are in place for the advanced exploration phase of the project, including for the development of an exploration ramp and an exploration shaft and the collection of two bulk samples. Negotiations with indigenous communities are ongoing to establish an agreement for the production phase if a development decision is made. The company is also advancing environmental impact assessments required for the Federal and Provincial approvals and permits that will be required for the construction and production phases following a development decision.
