“Now we have adopted a phased and disciplined method to develop this potential, with the approval of a $100 million funding over the following three years to additional research and de-risk the underground undertaking, together with the event of an exploration ramp and the gathering of a bulk pattern,” stated president and CEO Ammar Al-Joundi.
“With the event of an underground mine to enhance the present open pit mine, we see the chance to rework the asset into one of many prime 5 gold mines on the earth by output.
“We imagine the underground undertaking has comparatively low execution danger and has the potential to generate a powerful risk-adjusted return on capital whereas sustaining exploration and manufacturing upside for many years in among the finest mining jurisdictions on the earth,” he added.
The 2024 PEA assumes an underground mining price of about 11,200 t/y beginning in 2030, mixed with a mill growth to 79,450 t/d beginning in 2028. Annual gold manufacturing from underground will add 300,0000 oz., bringing the full to 1 million oz. per yr from 2030 to 2043. The quantity represents a rise of 43%, in comparison with 2024 to 2029.
Mine life is prolonged by two years to 2054, and there are ample exploration alternatives that will result in a good longer mine life.
Based mostly on $1,900/oz. gold, the underground undertaking and mill optimization at Detour Lake has a web current worth of C$1.2 billion and an inside price of return of 18%. The funds requires an preliminary capital dedication of roughly C$1 billion and sustaining capital of C$864 million.
Underground infrastructure will embrace a 2-km conveyor ramp to a depth of 270 metres, a portal, and an ore stockpile close to the mill. It would embrace growing a cellular store and upkeep space for big gear. Rock hammers and a jaw crusher can even be put in. Excessive depth drilling and bulk sampling might be performed in 2025 and 2026.
Underground mining might be carried out with bulk strategies, specifically 40-metre sub-level transverse mining. The stope dimension will common 30,000 tonnes. About 130 stopes might be developed every year. Backfill will include primarily cemented paste fill.
To spice up mill capability, the secondary crusher might be improved. Retention time within the semi-autogenous grinding (SAG) mill might be elevated, and the ball mill will endure optimization. Superior course of management can also be deliberate for the mill. Gold manufacturing will start in 2030.
Agnico is basing its underground plans on an indicated useful resource of 1.2 million oz. gold and an inferred useful resource of seven.1 million oz. gold in-situ. That is based mostly on 53 million tonnes averaging 2.46 g/t gold (class unspecified).
As of March 31, 2024, complete confirmed and possible reserves at Detour Lake have been 818.6 million tonnes grading 0.75 g/t gold and containing 19.7 million oz. The measured and indicated assets have been 669.0 million tonnes grading 0.64 g/t gold and containing 13.8 million oz. Within the inferred class, there have been 136.4 million tonnes grading 1.76 g/t gold and containing 7.7 million oz.