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Agnico Eagle achieves production at satellite deposit

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Agnico Eagle said its Amaruq satellite deposit near the Meadowbank Complex achieved commercial production at the end of last month.

Agnico said Amaruq ore processing commenced in August 2019 using low-grade stockpiles. In the third quarter of 2019, production at the Meadowbank Complex totaled 48,869 ounces of gold, which included 13,588 ounces from Meadowbank and pre-commercial payable gold production at Amaruq of 35,281 ounces, compared to pre-commercial production guidance of 40,000 gold ounces.

The company said the Amaruq site was affected by heavy rains, which slowed dewatering and pushed the project back one month.

"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 of 2019. We would also like to thank the various government agencies and the local communities for their continued support in Nunavut," said Sean Boyd, Agnico Eagle's Chief Executive Officer. "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. This is expected to allow us to reduce net debt and potentially increase the dividend while continuing to steadily grow our business."

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