On February 2, 2021, Agnico Eagle acquired TMAC Resources Inc., the operator of the Hope Bay property located in the Kitikmeot region of Nunavut, Canada. Hope Bay has been explored by multiple companies over a period spanning more than 30 years. TMAC began producing gold in early 2017 from Doris, its first mine at Hope Bay, and processed gold at the Doris processing plant which originally had nameplate capacity of 1,000 tpd and expanded to 2,000 tpd midway through 2018.
Agnico Eagle took over the mining operations in February 2021 and production continued until the end of September 2021. The primary objective in 2021 was to operate the mine on a cash flow neutral basis, while developing a better understanding of the mill circuit, underground conditions and initial exploration potential at Doris and Madrid.
The property contains significant infrastructure including:
• Underground mine development at the Doris and Boston deposits
• A fully enclosed conventional processing plant (with a 2,000 tpd design capacity) and a tailings impoundment area at Doris
• A gravel airstrip at Doris capable of handling Boeing 737 aircraft and a secondary gravel airstrip at Boston
• A port with a laydown facility and fuel storage at Roberts Bay
• An all-weather road network, a diesel power plant and an office-accommodations complex
Exploration activities by Agnico Eagle at Hope Bay began in February 2021 and are ongoing as of the first half of 2023.
The Hope Bay project has seen significant historical exploration activity, including more than one million metres of drilling with approximately 90% of the drilling occurring on the established deposits of Doris, Madrid and Boston. As a result, the project hosts a large historical mineral resource. These historical mineral resources were reviewed and have been incorporated into the Company's mineral reserve and mineral resource statement since year-end 2021.
As at December 31, 2022, it is estimated that Hope Bay hosts proven and probable mineral reserves of 3.4 million ounces (16.3 million tonnes grading 6.50 g/t gold), indicated mineral resources of 1.1 million ounces (9.8 million tonnes grading 3.58 g/t gold) and inferred mineral resources of 2.0 million ounces (11.0 million tonnes at 5.49 g/t gold).
Exploration
In 2022 and 2023, production activities have remained suspended and the primary focus at Hope Bay is on exploration.
In 2022, exploration drilling at Hope Bay confirmed the potential to upgrade and expand mineral resources at the Doris deposit at depth below the dike in the BTD Extension and BTD Connector zones, and in the West Valley Zone above the dike to the south.
Exploration drilling at the Madrid deposit in late 2022 continued to target the inflexion zone in the Naartok East area and the vertical extension of the Suluk Zone.
Farther south in the Hope Bay belt at the Boston deposit, the camp was refurbished in 2022 and is ready to support future exploration activities in 2023.
Exploration in 2023 will primarily shift to the Madrid deposit to further expand the mineral resources with a focus on defining areas of higher-grade mineralization.
The Company expects to complete 72,200 metres of drilling at the Hope Bay property in 2023, in a $30.6 million exploration program that includes 30,800 metres of underground exploration drilling at the Doris deposit to explore the extensions of mineralization and potentially add mineral reserves and mineral resources in the BTD Zone to the north and in the BCO, BCN and West Valley zones below the dike. The Company expects to spend $17.3 million for 41,400 metres of surface drilling into exploration targets around the Doris mine, between the Doris and Madrid deposits, and around the Madrid deposit with the objective of adding mineral reserves and mineral resources to the project.
Agnico Eagle believes that there is excellent potential to increase mineral reserves and mineral resources at all of the deposit areas and regionally. The Doris structure is open at depth and could extend all the way to Madrid, where all of the deposits are open in all directions, and there is good potential to infill the gaps between the known zones.
Studies
Internal evaluations are ongoing regarding various future production scenarios including the potential to operate a 4,000 tpd mine at Hope Bay that could ultimately produce 250,000 to 300,000 ounces of gold per year at reasonable costs and capital spending levels for at least 12 to 15 years. Current studies are only evaluating production from the Doris and Madrid deposits. Development of the Boston deposit could potentially enhance both the mine life and production profile.
The Company is also evaluating whether to retrofit the existing Doris mill or build a new mill closer to the Madrid Deposit. Key permits and approvals required to construct and mine the Doris, Madrid and Boston deposits at up to 4,000 tpd are already in place. However, any significant changes to the operational plans may require amendments to the existing permits.