Agnico's Meadowbank satellite mine hits commercial production

Agnico Eagle Mines has declared commercial production at Amaruq, its satellite gold mine to the Meadowbank complex in Canada’s Nunavut
Agnico's Meadowbank satellite mine hits commercial production Agnico's Meadowbank satellite mine hits commercial production Agnico's Meadowbank satellite mine hits commercial production Agnico's Meadowbank satellite mine hits commercial production Agnico's Meadowbank satellite mine hits commercial production

Amaruq’s slow start-up has impacted the production outlook for Agnico’s Meadowbank complex in Nunavut

Staff reporter

However a slower-than-expected ramp-up, with adverse weather conditions leading to dewatering taking about a month longer than anticipated, has led Agnico to reduce the complex's 2019 production guidance from 230,000 ounces of gold to 200,000oz.

Agnico was quick to say, despite the lower forecast for the Meadowbank complex, the company's full year guidance of 1.75 million ounces remained unchanged.

It said due to the slower ramp-up at Amaruq, it had brought forward planned mill maintenance at Meadowbank which was set for next year.

The mill was now expected to restart around October 14.

Amaruq ore is being trucked 50km to Meadowbank.

"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," CEO Sean Boyd said.

"This is expected to allow us to reduce net debt and potentially increase the dividend while continuing to steadily grow our business."

Meliadine, also in Nunavut, had achieved commercial production ahead of schedule and under budget in May.