Optimism near Meadowbank
Agnico Eagle reports positive drilling results with the possibility of further development
Karen K. Ho
Northern News Services
Monday, June 22, 2015
QAMANITTUAQ/BAKER LAKE
Agnico Eagle has released the latest results from the first phase of its drilling program near its Meadowbank project which may lead to additional development.
An aerial view of Agnico Eagle Mines Ltd.'s Meadowbank gold mine near Baker Lake. The company recently reported positive results from its nearby Amaruq project located 50 kilometres away. - photo courtesy of Agnico Eagle Mines Ltd. |
In a news release, the company said it had found "significant gold grades" in a deposit named Whale Tail, part of what its calling the Armaruq project. Agnico Eagle said it is conducting ongoing studies to evaluate the potential to develop the Whale Tail deposit as a satellite operation.
The hamlet's economic development officer said the prospect of another gold mine 50 kilometres away from Meadowbank would be a great thing for residents.
"It would mean job security for a little while longer," Trevor Attungala told Nunavut News/North.
"Right now, this town only relies on the mining sector."
Amaruq is a project totalling 1,147 square kilometres of Inuit-owned and federal Crown land. In February, Agnico Eagle announced that mineral resources at the site might include 1.5 million ounces of gold (6.6 million tonnes at 7.07 gold grams per tonne) worth a little less than USD $1.8 billion at press time.
With few other opportunities from the private or public sector available in the hamlet, 180 people from the 1,872 member community are already employed by Meadowbank.
"Everybody loves it," Attungala said. "It's really easy for them to walk into the Agnico Eagle office and inquire about positions."
Attungala also said the development has already led to spin-off businesses.
In addition to an increased number of trucks, ATVs, and snowmobiles in town, Attungala said two companies have expanded due to contracts with Agnico Eagle - trucking company Arctic Fuel Services and Peter's Expediting.
"Ten years ago they were just little small startups," he said, "Now they're full up with a lot of employees. It's a big difference."
At the moment, the company's drilling program at Amaruq appears to be progressing on schedule. In the company's latest news release, Agnico Eagle reported more than 102 holes, totalling 27,750 metres of digging as part of the first phase of its drill program May 31.
This brings the company more than halfway through the first phase of its anticipated drilling program. Agnico Eagle said the plan is to reach 50,000 metres in total by the end of June. There are currently seven drills in operation but another three are expected to be added by that time. Most of this drilling was to fill the former gap in the Whale Tail deposit (under Whale Lake), which is now successfully completed to a depth of 200 metres.
As for the future, the company's vice-president of exploration, Guy Gosselin, told Nunavut News/North that four drill rigs will move onto land from the ice this month to complete a conversion drill program - which means reducing the spacing between drill holes - in the western part of the Whale Tail site to a depth of 200 metres. "We are coming within that known area but reducing the spacing of drill holes from 80 metres spacing to 40 metres spacing," he said. "It increases our level of conferred information regarding our interpretation and our deposit and tonnage estimation."
Two other drill rigs will explore Whale Tail for depths below 200 metres. And finally, two more rigs will be added to resume investigation of other areas on the property. "We see from the geophysical survey that we have a lot of other targets that are untested," Gosselin said. "Anything with strong potential, we will start to conduct investigation of those targets."
Agnico Eagle is optimistic about the site and Gosselin emphasized the company plans on increasing its $20 million drill program this year to double the budget. "I wouldn't be surprised if for 2015 we're investing $40 to $50 million into exploration," he said. "We continue to get exciting results."
Gosselin plans to visit Amaruq later this week.
