Agnico Eagle wants to grow its northeastern Ontario assets by more than 50 per cent as early as 2030.
The leading Toronto gold company has a slew of development projects underway in Ontario, western Quebec and Nunavut, including the Detour Lake mine, northeast of Cochrane, where plans are afoot to drive production there to one million ounces a year.
Both the Detour expansion and the Upper Beaver mine project in the Larder Lake area are looked upon as two of Agnico’s catalysts for growth.
Agnico said in its year-round financial and operating announcements that it’s setting itself up for strong and steady production over the next three years leading to higher production beginning in 2030.
In releasing its fourth-quarter and year-round performance and financials, Agnico reported record gold production of almost 3.5 million ounces with record earnings and cash flow.
Market volatility made for a good gold price environment in 2024 with Agnico believing more of the same heading into 2025 with gold prices expected to surge even higher.
Detour Lake is poised to become one of the largest gold mines in the world with a multi-decade mine life. Agnico acquired Detour following the acquisition of Kirkland Lake Gold in 2022. Outside of the proposed underground mine, the pit mine life lasts until 2053. Detour hosts Agnico’s largest reserves at 19.1 million ounces.
The open-pit operation, 185 kilometres northeast of Cochrane, will be adding an underground mine element as the deposit extends to the west and remains open at depth.
Last June, the company outlined its plans for Detour to become a one-million-ounce producer annually for more than 14 years, beginning in 2030.
Site preparation has started to excavate an exploration shaft and drive a two-kilometre-long ramp. That is expected to commence in this year’s fourth quarter. An access road and the main earthworks for the site are complete. A power line was energized, a shaft collar has been excavated, and the foundation for the head frame is done.
The company said once it receives its government permit to take water, ramp construction will start.
Exploration drilling will continue on this year to track gold mineralization that’s part of the western offshoot of the deposit. Agnico said the drill results indicate there is room to grow the ore body to the west.
Near Larder Lake, Upper Beaver is one of Agnico’s many development projects in the pipeline in the Abitibi mining camp, a region the company knows so well.
The property, 27 kilometres east of Agnico’s Macassa Mine in Kirkland Lake, contains 2.77 million ounces, grading at 3.71 grams per tonne. There’s also 54,930 tonnes of copper in the mix at 0.24 per cent.
Agnico is preparing to dig an exploration shaft and a ramp at Upper Beaver. A technical evaluation last summer painted a picture of a stand-alone mine and mill with a potential annual production run of 210,000 ounces of gold a year by 2031.
