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Agnico Eagle hits commercial production at Meliadine

31st May 2019

By: Creamer Media Reporter

     

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The Meliadine mine, near Rankin Inlet, Nunavut, has reached its commercial production milestone ahead of schedule, and below the initial capital budget, owner Agnico Eagle Mines announced on Thursday.

Initial ore processing started in early February, using low-grade stockpiles.  Pre-commercial payable gold production totalled 47 281 oz, compared with the guided 60 000 oz, while pre-production gold sales totalled 28 855 oz.

The total project construction costs (after crediting precommercial gold sales) were below the 2017 guidance of $900-million, Agnico stated, noting that it would provide a further update on capital costs with the second-quarter results.

"With Meliadine ramping up production over the balance of the year and Amaruq on schedule to achieve commercial production in the third quarter of 2019, the company is well positioned to achieve its gold production target of 1.75-million ounces for 2019,” said CEO Sean Boyd.

Meliadine is forecast to produce 230 000 oz of gold at a cash cost of $612/oz this year.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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