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Agnico Eagle achieves commercial production at Amaruq

Kitco News

(Kitco News) - Despite a one-month delay, Agnico Eagle Mines (NYSE: AEM, TSX: AEM) hit its third-quarter target, announcing commercial production at its Amaruq satellite deposit at the Meadowbank Complex.

In a press release late Monday the company said that it achieved commercial production Sept. 30 at its second project in Canada’s Nunavut Territory. The milestone was delayed to heavy rain in September, which lead to water issues at the property.

"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.”

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.

Because of the delays at Amaruq, the company lowered its production guidance for Meadowbank to 200,000 ounces of gold. However, the company added that it shouldn’t impact total annual production, which is projected come in at 1.75 million ounces.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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