Canadian Malartic is one of the world’s largest gold mines. The 55,000+ tonnes/day open-pit mine and plant produced 568,634 ounces of gold in 2020 (100% basis, and including pre-commercial production from the Barnat pit). Open pit mine life is expected to last through 2028, and does not include development of the underground Odyssey Project. Proven and probable mineral reserves total 2.21 million ounces of gold (61 million tonnes at 1.12 grams/tonne gold) on a 50% basis, as of December 31, 2020.
The Barnat extension project has allowed the Partnership to access the Barnat deposit. Pre-commercial production activities started at Barnat in late 2019, following completion of the deviation of Highway 117 in late 2019; Commercial production was declared at Barnat on September 30, 2020.
In 2021, approximately 65% of the production will be sourced from the Canadian Malartic pit. However, an increasing portion of the ore will be mined from the Barnat pit, which is expected to result in additional flexibility quarter over quarter. The mill throughput in 2021 is forecast to be approximately 57,000 tpd (on a 100% basis).
Following the completion of an internal technical study in late 2020, the Partnership has approved construction directly to the east of the Canadian Malartic/Barnat pit of a new underground mining complex named the Odyssey project, which hosts three main underground mineralized zones: East Gouldie, East Malartic and Odyssey. Average annual payable production from the Odyssey project is expected to be approximately 545,400 ounces of gold from 2029 to 2039, with total cash costs per ounce of approximately $630. Sustaining capital expenditures are expected to gradually decline from 2029 to 2039, with an expected average of approximately $56 million per year.
Geology
The property lies in the southern margin of the eastern portion of the Archean-age Abitibi volcanic belt, mainly within the Pontiac Group of metasedimentary rocks. The Canadian Malartic property, together with the adjacent Rand Malartic and Midway properties, cover in excess of 25 km along the Cadillac-Larder Lake deformation zone. The properties are underlain to the north by the Cadillac Group, in the centre by the Piché Group and in the south by the Pontiac Group. The mineralized zones are mostly located in the northern part of the Pontiac Group and in the Piché Group in proximity to the Cadillac-Larder Lake deformation zone.
Mineralization
Canadian Malartic is a large-tonnage, low-grade Archean gold system, consisting of a widespread shell of disseminated gold-bearing pyrite mineralization hosted by porphyritic felsic to intermediate intrusions and altered metasediments. The system is open to the west and to the south at depth. Mineralization in the Barnat deposit is largely along the southern edge of the Cadillac fault zone. The two deposits contain the bulk of the current mineral reserves and are part of one large pit. The Jeffrey and Gouldie deposits, a few hundred metres east and south of the pit, respectively, contain some of the mineral resources.
Mining
Canadian Malartic is a large open-pit operation using large-scale excavators and trucks, on the southern edge of the Town of Malartic. Since start-up, mining activities have been mindful of the need to limit noise levels from the mining operations, with drilling and blasting activities designed to control blast-induced vibrations and noise pressure on the neighbouring townsite. A 135-metre-wide buffer zone (the “green wall”) has been developed along the northern limit of the open pit to mitigate the impacts of mining activities on the residents of Malartic. This ridge has been planted with shrubs, trees and grasses, and further enhanced by the addition of a park alongside, a bike trail and sculptures.
Processing
Ore is processed at the Canadian Malartic mineral processing complex, which has a 55,000-tonnes/day nominal throughput capacity. Ore is transported to a crushing circuit and the crushed ore is stockpiled in a covered pile, then conveyed to the semi-autogenous grinding circuit followed by three identical ball mills, each in closed circuit with hydro-cyclones. The slurry is thickened to about 50% solids before being fed to the leach tank circuit for conventional cyanidation followed by carbon-in-pulp processing technology. The product is doré bars containing gold and silver.
To reduce the environmental impact, tailings are thickened and detoxified prior to being pumped to a tailings impoundment facility. Excess water is mainly re-used in the plant or treated prior to being discharged to the receiving environment.
Exploration
The primary exploration target at Canadian Malartic from 2019 to the present has been the East Gouldie Zone, which was discovered in late 2018 at underground depths approximately 1.5 kilometres east of the Canadian Malartic/Barnat open pit and south of the East Malartic and Odyssey underground zones. The East Gouldie Zone has a strike length of 1,400 metres in an east-west direction, dips 60 degrees north, and extends from 700 metres to 1,900 metres depth below surface. The new zone is a silicified and carbonatized mineralized envelope with fine disseminated pyrite developed in sheared greywacke units.
As at December 31, 2020, the Partnership has drilled 179,800 metres at East Gouldie for an aggregate of 133 pierce points, leading to the estimate of inferred mineral resource in the central portion of the East Gouldie Zone of 3.2 million ounces of gold (31.5 million tonnes grading 3.17 g/t gold) (reflecting Agnico Eagle's 50% interest), as of December 31, 2020.
East Malartic was previously a gold-producing property, located directly adjacent to and east of the Canadian Malartic mine, and west of the Odyssey Zone. On a 50% basis, the East Malartic Zone has an indicated mineral resource of 368,000 ounces of gold (5.7 million tonnes grading 2.03 g/t gold) and an inferred mineral resource estimated at 2.7 million ounces of gold (43.4 million tonnes grading 1.91 g/t gold) to a depth of 1,800 m, as of December 31, 2020.
The Odyssey Zone lies approximately 1.5 km east of the current limit of the Canadian Malartic open pit and is grouped into two elongated subzones — Odyssey North and Odyssey South, approximately 500 m apart — that strike east-southeast and dip steeply south. On a 50% basis, the indicated mineral resources at the Odyssey Zone are estimated at 61,000 ounces of gold (1.0 million tonnes grading 1.90 g/t gold), and inferred mineral resources are estimated at 913,000 ounces of gold (13.9 million tonnes grading 2.05 g/t gold) as of December 31, 2020.
The East Gouldie, East Malartic and Odyssey mineral resources do not form part of the Canadian Malartic mine’s mineral reserve and mineral resource estimate.
At the Canadian Malartic property in 2021, the Company expects to spend $11.9 million (50% basis) for 141,400 metres (100% basis) of exploration and conversion drilling focused on aggressive infilling of the East Gouldie Zone to improve confidence in the mineral resource and refine the geological model. With ramp development underway as part of the Odyssey project, the Company expects to initiate underground conversion drilling from the ramp in 2021.
The Company is planning to spend another $3.2 million (50% basis) on 32,000 metres (100% basis) on exploration drilling to test other regional targets at Canadian Malartic, including the Rand Malartic and East Amphi properties.
In March 2019, the Partnership acquired a 100% interest in the Rand Malartic property, which extends 1.7 km immediately eastward from the Odyssey project and provides an additional 262 hectares of prospective ground with the same favourable geological setting as the Odyssey Zone. The host porphyry intrusion seen at depth at Odyssey is exposed at surface on the Rand Malartic property, providing both shallow and deeper drill targets.
Development Project
Odyssey Project
In 2020, the Partnership approved the start of construction of surface infrastructure and an underground exploration ramp into the East Gouldie, Odyssey and East Malartic zones, collectively known as the Odyssey project. This ramp will provide additional access for exploration drilling to expand and upgrade the current mineral resource base, and allow for bulk sampling of up to 40,000 tonnes of mineralized material. The Odyssey project exploration ramp portal was completed during the fourth quarter of 2020. At year-end 2020, the ramp had progressed 102 metres and an additional 1,500 metres of ramp is planned in 2021.
In February 2021, the Partnership approved development of the Odyssey project.
Production using the ramp is expected to begin at Odyssey South in late 2023, increasing up to 3,500 tpd in 2024. The shaft will have an estimated depth of 1,800 metres and the first loading station is expected to be commissioned in 2027 with modest production from East Gouldie. The East Malartic shallow area and Odyssey North are scheduled to enter production in 2029 and 2030, respectively.
Capital expenditures from 2021 to 2028 are expected to total approximately $1.34 billion (on a 100% basis), which includes $1.1 billion in initial capital expenditures and $191.0 million in additional growth capital expenditures. During the 2021 to 2028 period, gold production is forecast to be approximately 932,000 ounces at total cash costs of approximately $800 per ounce.
Average annual payable production is approximately 545,000 ounces of gold from 2029 to 2039, at total cash costs per ounce of approximately $630. Sustaining capital expenditures are expected to gradually decline from 2029 to 2039, with an expected average of approximately $56.0 million per year.
The forecast parameters surrounding the Company’s proposed operations at the Odyssey project were based on the results of an internal technical study which were incorporated into section 24 of a NI 43-101 technical report for the Canadian Malartic operation. The report is preliminary in nature and includes inferred mineral resources that are too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves and there is no certainty that the forecast production amounts will be realized.