Gold Deposit Geology
- Potential resource: 5 to 6 million ounces
- Average grade of the deposit: between 1.0 g/t and 1.6 g/t Au
- Type of deposit: Archean porphyry gold system, consisting of a widespread shell of disseminated gold and pyrite mineralization hosted by diorite porphyry and altered metasediments.
- Size of deposit: gold mineralized system measuring 1200 meters x 350 meters, with a variable true thickness ranging from 60 to 270 meters from surface to a vertical depth of 320 meters below surface.
- Deposit exploitation: open pit, bulk tonnage mining
Malartic Mine Production Method & Equipments
The deposit will be mined by conventional open pit mining methods using an initial fleet of:
- 12 trucks (227 tone haul trucks)
- 2 electric hydraulic shovels
- Various ancillary equipment to support the mining operations.
Malartic Mine Production Rate
- Mine production daily rate, including waste: 152,000 tons per day (estimated average).
- Waste to ore ratio: 1.78 to 1 (estimated)
- The pit design includes an inter-ramp pit slope of 55 degrees for all areas except the northeast sector which is designed at an inter-ramp pit slope of 46 degrees.
Malartic Mine Mineral Processing
- Conventional cyanidation and carbon-in-pulp plant
- Plant nominal throughput capacity: 55,000 tons per day (20 M tons per annum) based on 92% plant availability.
- Gold recovery: 85.9% (estimated) based on an average head grade of 1.07 g/t Au.
Malartic Mine Environmental Impact Assessment (EIA)
- EIA study submission date: September 4, 2008
- EIA authority: Québec's Ministère du Développement durable, de l'Environnement et des Parcs (MDDEP)
- EIA conclusion summary : Thanks to mining infrastructure and selected technology, the Canadian Malartic project would have a minimal impact on the environment and the population and well within acceptable industrial norms
- EIA review: Québec government authorities to establish compliance with MDDEP guidelines.
- Next step: The BAPE (Quebec’s Bureau d'Audiences Publiques sur l'Environnement) process will start following the MDDEP's review of the study, leading to a report that will be submitted for approval to members of the Québec Cabinet.
Malartic Gold Deposit Mining costs
- US$1.41 per tone mined (estimated).
- Fuel price assumption is based on US$70 per barrel of oil. The average annual fuel consumption is estimated at 23 million liters.
Malartic Mine Operating Costs
Average of US$320 per ounce before royalties and silver credits (US$9.43 per tone milled) including:
- US$0.65/tone milled for general and administration services
- US$4.96/tone milled for mineral processing costs (estimated, and including tailings operations and power)
Malartic Mine Rate of Return
Under the Base Case scenario with a gold price at US$775 per ounce, the overall project’s Internal Rate of Return (IRR) is estimated at 28.8% before taxes and at 25.1% after tax (unleveraged).
Malartic Mine Financing and Cash Resources
- Cash resources: CAN$139 M (as at September 30, 2008)
- Undrawn capital lease facility: US$78.6 M with CAT Finance
The Company is discussing with several parties to secure the necessary funding to develop the Project. All alternatives are being considered including joint ventures, sale of gold revenue stream, royalties and project debts.
Malartic Mine Capital Investment Program
The initial capital investment program amounts to US $789 M and is summarized in the chart below.