Engineering & Mining Journal

AUG 2018

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REGIONAL NEWS - U.S. & CANADA 10 E&MJ • AUGUST 2018 www.e-mj.com related permitting is subject to consulta- tion with relevant regulatory bodies and Indigenous groups. The company is in the process of carrying out such consultation and expects the process to be concluded in the fourth quarter of 2018. Although the company is committed to working with regulators and Indigenous groups in this regard, there can be no assurance that Mount Milligan's short and long-term water needs will be satisfied. In the short term, there is a risk that throughput levels at Mount Milligan may need to be reduced in the fourth quarter of 2018 if, among other things, the com- pany does not receive regulatory approval to access these further groundwater and surface water solutions on its expected timeline; the flows from presently per- mitted or new sources are not as great as expected; dry weather conditions expe- rienced in the first half of 2018 persist in the second half of 2018; the company is unable to recover significant amounts of water that has drained into sands and gravels within Mount Milligan's tailings management facility; or actual water lev- els in Mount Milligan's tailings manage- ment facility vary significantly from those predicted in the Mount Milligan's water model, which is the subject of ongoing evaluation and refinement. Agnico Eagle Begins Construction at Amaruq Agnico Eagle Mines has received the Type A water license for the Whale Tail pit at its Amaruq gold project, approximately 50 kilometers (km) northwest of its Meadow- bank mine in Nunavut, Canada, allowing project development to begin. Preliminary construction work and stripping of the Whale Tail pit is under way, and development remains on schedule and budget for production to start in the third quarter of 2019, coinciding with the end of production at the Meadowbank mine. The Whale Tail pit will supply ore to the existing Meadowbank mill, pending receipt of the required permits. Gold production in 2020 is forecast to be in the range of 260,000 ounces (oz) to 270,000 oz. As of year-end 2017, the Amaruq proj- ect had an estimated initial open-pit min- eral reserve of 2.4 million oz of gold in 20.1 million metric tons (mt) grading 3.67 grams/mt. Open-pit and underground indi- cated mineral resources totaled 1 million oz in 8.8 million mt grading 3.62 g/mt, and open-pit and underground inferred mineral resources totaled 1.7 million oz in 8.7 million mt grading 6.25 g/mt. A conventional open-pit mining opera- tion is being developed on the Whale Tail deposit. Initial planning calls for produc- tion of approximately 2.1 million oz of gold between 2019 and 2024. Satellite deposits such as the V Zone are expected to be included in the mine plan pending receipt of additional permitting. The Amaruq mining operation will utilize the existing infrastructure at the Meadowbank mine, including mining equipment, mill, tailings facility, camp, and airstrip. Additional infrastructure will be built at the Amaruq site, including a truck shop/warehouse, fuel storage and a larger camp facility. In addition, a new truck fleet will be required for hauling ore to the Meadow- bank mill. The mill is planned to oper- ate at a feed rate of 9,000 mt/d and will require minor modifications, specifically the addition of a continuous gravity and regrind circuit. Initial and sustaining capital costs at the Amaruq project are estimated at about $330 million and $25 million per year, respectively. Expenditures in 2018 are forecast at approximately $175 million. Exploration continues at depth in both the Whale Tail deposit and V Zone, as well as conversion drilling of underground min- eral resources at Whale Tail closer to the planned pit bottom. The first round of an underground exploration ramp was blast- ed in early January, and by June 30, the ramp had advanced 478 m to 60 m verti- cal depth at a cost of approximately $10.7 million. The main purpose of the ramp is to allow additional exploration drilling and to evaluate the potential for underground mining at both the Whale Tail and V zones. A total of 67,000 m of exploration drilling is planned for 2018. The Whale Tail deposit has been defined over at least 2.3 km of strike length and extends from surface to 915 m depth. Exploration continues at depth, with the aim of extending the limits of the deeper mineral resources. In the shallower parts of the under- ground mineral resources, closer to the planned pit bottom, infill drilling is being conducted from surface. The objective is to improve the understanding of the ge- ometry and limits of the main Whale Tail ore shoot. Salt Miners at Goderich Ratify 3-year Agreement Compass Minerals announced its union- ized employees at the Goderich salt mine in Ontario, Canada, have ratified a three- year collective bargaining agreement, ending an 11-week strike at the mine. The union representing 341 hourly em- ployees at the Goderich salt mine began the industrial action at the end of April. The Goderich mine has an annual produc- tion capacity of 8 million tons of rock salt, which serves the highway de-icing market in Canada and the Great Lakes region. "We are very pleased that our employ- ees have ratified this agreement, which aligns our operations with our invest- ments in continuous mining and provides the flexibility to operate the mine effec- tively and more efficiently," said Antho- ny Sepich, senior vice president, salt for Compass Minerals. Geologists review core samples at the Amaruq core shack in Nunavut.

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