30 March 2020
TMAC Resources Inc. has implemented a number of initiatives to manage the COVID-19 pandemic and to protect its employees and contractors, their families and local communities from the virus. At the present time there are no confirmed cases of COVID-19 at the Hope Bay site or any of the Company’s offices. The Company is also providing an update on the timing for filing its annual results.
COVID-19 PANDEMIC RESPONSE
In response to the health risks associated with COVID-19, TMAC initiated the implementation of an Infectious Disease Control Plan (the “Plan”) at Hope Bay on March 12, 2020. The Plan will be adapted as required based on additional information from within Canada and abroad. The decision to demobilize Nunavut based workers pursuant to the Plan was communicated to our workforce on March 17, 2020, and all are currently staying at home on standby hourly rates. This was done to eliminate the ongoing risk of transmitting the virus to remote communities. Southern crew change flights continue, but as part of the Plan, enhanced pre-boarding health screening of each passenger by a medical professional was initiated on March 17, 2020. The frequency and rigour of the already robust hygiene measures at Hope Bay have been increased, along with a range of communications and information campaigns to employees and contractors. All non-essential work and visits to Hope Bay have been suspended until further notice.
In line with many other mining operators, TMAC has now made the decision to scale down operations and reduce our workforce as the best course of action. The Company has suspended exploration activities at Hope Bay and development activity of the Madrid North underground and the Naartok East crown pillar. The Company has suspended underground development at Doris and is focusing on producing from developed stopes and bringing ore to surface. The Company expects to run the processing plant for eight to ten weeks with material from its stockpiles and limited mine production, but there may be opportunities to extend this further. If the risk of COVID-19 continues, TMAC will execute a controlled transition into temporary care and maintenance. During any care and maintenance period, on-site personnel would be limited to critical activities necessary to maintain the site until normal operations can resume.
Currently, TMAC has reduced the number of employees and contractors on site to approximately 120, in a camp that accommodates approximately 345 people. The Company would reduce this number further to approximately 30 people should the operations be suspended completely. The Cambridge Bay office of three employees has been closed to the public, while the staff work from home. Employees of the Toronto office have transitioned to working from home.