Some major milestones were achieved at Northern mines during the third quarter.
Check out the facts and figures below from the seven operating mines in the NWT and Nunavut, as well as Hope Bay, formerly operational, where expansion of the resource is the current goal.
Ekati
Owner: Burgundy Diamond Mines Ltd.
Resource: Diamonds
Location: 310 km northeast of Yellowknife
Status: Burgundy completed 40 per cent of its Sable underground pre-feasibility study during the third quarter. The company decided to reschedule the project start date due to positive Misery mine extension results.
The Point Lake open-pit mine is being readied for ore production during the first quarter of 2025, allowing for the transition from the Sable mine.
Burgundy recovered 1.24 million carats during the third quarter, and operational guidance for 2024 production was revised to 4.7 to five million carats.
On Oct. 22, Burgundy announced that Ekati, Canada’s first diamond mine, reached 100 million carats produced over 26 years. It still ranks among the world’s top-10 diamond producers around the world.
Burgundy became owner in July 2023.
Gahcho Kue
Owner: De Beers Canada (51 per cent) and Mountain Province Diamonds (49 per cent)
Resource: Diamonds
Location: 280 km northeast of Yellowknife
Status: Mountain Province reported a yield of 1.19 million carats during the third quarter, down 10 per cent from 1.33 million during the same period in 2023.
Diamond sales improved during the quarter, however, as 679,599 carats were moved for total proceeds of $69.4 million. That was better than a year earlier when 478,653 carats sold for $60.2 million. However, the average carat price fell to $102 during Q3 2024 compared to $126 per carat the year prior.
Mountain Province Diamond’s production guidance of 4.2-4.7 million carats for 2024 has been maintained, with an expectation of finishing in the mid-to-upper portion of that range, the company stated.
De Beers, which is privately-owned, does not report its production figures.
It’s anticipated that Gahcho Kue’s 5034 pit will be mined to completion before the end of this year. Afterwards, focus will turn to the Northeast Extension kimberlite between the 5034 and Tuzo pits and the Wilson and Tuzo kimberlites.
Mining in the Hearne pit wrapped up on Oct. 19. Fine processed kimberlite is being deposited into the bottom of the pit, as per the mine plan.
Gahcho Kue’s mine life was extended to 2031 earlier this year.
Diavik
Owner: Rio Tinto
Resource: Diamonds
Location: 300 km northeast of Yellowknife
Status: At Diavik, carat production was 28 per cent lower than the third quarter of 2023, delivering 542,000 carats in Q3 2024 compared to 757,000 carats a year earlier. Through the first nine months of the year, Diavik mined 1.98 million carats of diamonds.
“[Third quarter] production was impacted by a subsidence event in July that limited underground ore deliveries,” according to Rio Tinto. Subsidence is when the Earth’s surface settles or sinks.
Prior to the end of the third quarter, Rio Tinto announced that the Diavik mine completed the development and construction of the first phase of the A21 underground mine, and it was moving into commercial production.
“We expect to complete phase two and fully mine the A21 underground before closure in 2026,” the company stated.
In July, installation of a 3.5 megawatt capacity solar power plant was completed. It makes use of 6,620 solar panels, expected to generate 4.2 million kilowatt-hours of solar energy per year. That would result in 2,900 few tonnes of carbon dioxide equivalent, or the equivalent of removing 630 vehicles from the road annually. The project was described as “the largest off-grid solar power plant across Canada’s territories.”
The objective is for the solar power plant to provide up to 25 per cent of Diavik’s electricity during closure work, after commercial production ceases in 2026. Closure is expected to be complete by 2029.
Nechalacho
For an update on the Nechalacho rare earths mine, see the story titled ‘New Vital Metals CEO calls Indigenous involvement at Nechalacho single most important part of her job’ in this edition of NWT & Nunavut Mining.
Meadowbank
Owner: Agnico Eagle Mines Ltd.
Resource: Gold
Location: 160 km northwest of Baker Lake
Status: A milestone was achieved as five million oz. of gold were poured since the mine began producing the precious metal.
Gold production of 133,502 oz. in the third quarter of 2024 was superior to 116,555 ounces during the third quarter of 2023. Meanwhile, the production cost per ounce fell significantly to $867 compared to $1,149 a year prior.
Over the first nine months of 2024, Meadowbank processed 387,695 oz. of gold from the satellite Amaruq deposit, rising from 322,440 a year earlier.
“Gold production increased when compared to the prior-year period primarily due to higher gold grades as expected under the mine sequence and higher throughput, as the comparative period was affected by unplanned downtime at the SAG mill and unplanned shutdowns due to caribou migration patterns,” Agnico Eagle stated.
Meliadine
Owner: Agnico Eagle Mines Ltd.
Resource: Gold
Location: 25 km north of Rankin Inlet
Status: Agnico Eagle completed the expansion of its mill expansion, which resulted in record quarterly throughput during Q3 2024.
Gold production came in at 99,838 oz, up from 89,707 ounces during the third quarter of 2023. Through nine months, Meliadine produced 284,238 oz., an improvement from 267,856 oz. during the same period of 2023.
“Gold production increased when compared to the prior-year period primarily due to higher gold grades as expected under the mining sequence and higher throughput,” according to Agnico Eagle.
Production costs per ounce dropped to $752 during the third quarter from $994 in Q3 of 2023.
Agnico Eagle spent $8.7 million on exploration at Meliadine through the first nine months of 2024.
Exploration drilling at the mine totalled 25,300 metres during the third quarter (79,600 metres during the first nine months of 2024) with three underground drill rigs and up to three surface drill rigs in operation.
The exploration drilling program for 2024 was increased from 77,700 metres to a planned 103,700 metres.
Hope Bay
Owner: Agnico Eagle Mines Ltd.
Resource: Gold
Location: 125 km southwest of Cambridge Bay
Status: Although Hope Bay is on care and maintenance, exploration drilling is proceeding. Agnico Eagle achieved 33,100 metres of drilling during the third quarter and 99,200 metres during the first nine months of this year. Infill and expansion drilling of the Patch 7 zone at the Madrid deposit is the priority.
“We remain focused on realizing the full potential of our assets through continuous improvement and by advancing our pipeline of projects and supplemental exploration program,” said Ammar Al-Joundi, Agnico Eagle’s president and CEO. “Strong drill results this quarter continue to demonstrate significant exploration upside at several of our mines and key pipeline projects, including the extension of the East Gouldie deposit at Canadian Malartic and the expansion of high-grade mineralization at Patch 7 at Hope Bay.”
Mary River
Owner: Baffinland Iron Mines
Resource: Iron
Location: 160 km south of Pond Inlet
Status: Weakening iron ore prices put a strain on Baffinland Iron Mines. While a metric tonne of iron ore fetched more than $140 in January, it plummeted to under $92 in September, rebounding modestly to around $103 in mid-November.
Baffinland announced on Oct. 19 that it was laying off 10 per cent of its workforce. Inuit workers were protected under the Inuit Impact and Benefit Agreement.
The company also anticipated shipping a lower quantity of iron ore, just 4.2 million tonnes, less than its six million-tonne limit.
On July 30, the Baffinland announced the departure of longtime CEO Brian Penney.
Jowdat Waheed, president and CEO of Baffinland’s parent company, Nunavut Iron Ore, Inc., took over Penney’s duties and responsibilities.
