Agnico Eagle Reports First Quarter 2022 Results – Strong Operational Performance; integration ahead of schedule and Corporate merger synergies better than expected; good progress at key exploration and development projects

28 April 2022

Toronto (April 28, 2022) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the "Company") today reported financial and operating results for the first quarter of 2022.

First quarter of 2022 highlights:

  • Solid quarterly production and costs despite COVID-19 challenges – Payable gold production1 in the first quarter of 2022 was 660,604 ounces at production costs per ounce of $1,002, total cash costs per ounce2 of $811 and all-in sustaining costs ("AISC") per ounce3 of $1,079. These results include a full quarter of production
  • Several key cornerstone assets delivered strong operational performance in the first quarter of 2022
  • COVID-19 challenges seen in late 2021 and early 2022 appear to be moderating – Most of the Company's operations were affected by COVID-19 over the past few months, but production levels and costs in the first quarter of 2022 were generally in line with forecasts. All sites are still maintaining active protocols but risks now appear to be more manageable and the situation improved through the quarter. As a result, the Company began the reintegration of its Nunavummiut workforce (which had been sent home in December 2021) in mid-March, after consultation with the Nunavut Government and other local stakeholders. The reintegration was completed in early April 2022
  • Gold production, cost and capital expenditure guidance reiterated for 2022
  • Inflationary cost environment continues to evolve
  • Merger completed February 8, 2022; Focus Now on Delivering Synergies and Maximizing Value Drivers

[Ed Note: We have extracted some Nunavut highlights which include:]

  • Hope Bay – Drilling at the Doris deposit has discovered extensions to the known mineralized zones. Deep exploration drilling in the BTD Connector area returned highlights of 23.0 g/t gold over 5.0 metres at 502 metres depth and 9.4 g/t gold over 14.9 metres at 491 metres depth. Additional drills are expected to begin operating in the coming weeks. Exploration is expected to continue through 2023 while a larger production scenario is being evaluated
  • Meliadine mine – The Phase 2 expansion to 6,000 tonnes per day ("tpd") is expected to be complete by mid-2024. Exploration efforts are focused on increasing mineral reserves and mineral resources to extend mine life
  • Meadowbank Complex – At Amaruq, the focus remains on optimizing open pit operations and ramping up underground production starting in the second half of 2022
  • Hope Bay project – Exploration activities are ramping up with a primary focus on the Doris, Madrid and Boston deposits. The Company is also evaluating the potential to develop a larger production scenario
  • Including the diesel purchased for the Company's Nunavut operations on the 2021 sealift (consumed to mid-year 2022), approximately 40% of the Company's diesel exposure for 2022 is hedged at an average price below the 2022 cost guidance assumption of C$0.90 per litre. These hedges have partially mitigated the effect of inflationary pressures to date and are expected to provide a degree of protection against inflation for the 2022 sealift diesel costs.
  • The Company will continue to monitor market conditions and anticipates continuing to opportunistically add to its operating currency and diesel hedges to strategically support its key input costs. Current hedging positions are not factored into 2022 guidance.

Demonstrating strong ESG performance

  • In December 2021, as a result of an increase in COVID-19 cases at its Nunavut operations, the Company took precautionary steps to further protect the continued health of its Nunavut workforce and local residents in the communities in which it operates. In collaboration with the Nunavut public health authorities, the Company sent home the Nunavummiut from the Nunavut operations and exploration projects. As the COVID-19 situation improved and after consultation with the Nunavut Government and other local stakeholders, the Company began the reintegration of its Nunavummiut workforce in mid-March. The reintegration was completed in early April 2022.

NUNAVUT

  • Agnico Eagle considers Nunavut a politically attractive and stable jurisdiction with enormous geological potential. With the Company's Meliadine mine and Meadowbank Complex (including the Amaruq satellite deposit), together with the Hope Bay project and other exploration projects, Nunavut has the potential to be a strategic operating platform for the Company with the ability to generate strong gold production and cash flows over several decades.
  • In December 2021, as a result of the increase in COVID-19 cases at its Nunavut operations, the Company took the precautionary step to send home the Nunavut based workforce and reduce site activities. All site activities ramped back to normal operating levels from mid-January into February 2022. The return of the Nunavut based workforce started on March 14, 2022, after consultation with the Nunavut Government and other local stakeholders. The reintegration was completed in early April 2022.

Meliadine Mine – Millionth Gold Ounce Poured; Full Year Guidance Unchanged Despite COVID-19 Challenges

  • Located near Rankin Inlet in the Kivalliq District of Nunavut, Canada, the Meliadine project was acquired in July 2010. The Company owns 100% of the 98,222-hectare property. In February 2017, the Company's Board of Directors approved the construction of the Meliadine project and commercial production was declared on May 14, 2019.
  • Gold production in the first quarter of 2022 decreased when compared to the prior-year period primarily due to lower gold grades resulting from an increase in tonnage sourced from the open pit and lower grade stockpiles, partially offset by higher throughput levels resulting from the planned expansion of the mill to 4,800 tpd. The COVID-19 pandemic affected the underground mine activities particularly in December 2021 and January 2022. To compensate for the shortfall in mine production in the first quarter of 2022, low-grade stockpile ore was used to feed the mill.
  • Production costs per tonne in the first quarter of 2022 increased when compared to the prior-year period due to inventory adjustments resulting from the consumption of the low- grade stockpile and the contribution of open pit production costs, partially offset by higher throughput levels, lower mining costs as a result of lower underground activities related to lower workforce availability due to COVID-19 and the timing of unsold inventory. Production costs per ounce in the first quarter of 2022 increased when compared to the prior-year period due to lower gold grades and lower production costs per tonne, partially offset by the timing of unsold inventory.
  • Minesite costs per tonne in the first quarter of 2022 increased when compared to the prior- year period primarily due to inventory adjustments resulting from the consumption of the low-grade stockpile and the contribution of open pit production costs, partially offset by higher throughput levels and lower mining costs as a result of lower underground activities related to the COVID-19 pandemic. Total cash costs per ounce in the first quarter of 2022 increased when compared to the prior-year period due to lower gold grades and higher minesite costs per tonne.

Meliadine Operational Highlights

  • On March 9, 2022, the Meliadine mine poured its millionth ounce of gold. Since the start of the operation in 2019, the Meliadine mine quickly became a key cornerstone asset for the Company, with yearly production ranging from 360,000 to 390,000 ounces of gold and generating strong operating margins
  • In the first quarter of 2022, the COVID-19 pandemic resulted in lower than planned workforce levels which primarily affected the underground mine. Both underground development and ore production were lower than forecast. The processing plant operated as per planned during the quarter, achieving a run rate of approximately 4,800 tpd
  • On April 11, 2022, the Government of Nunavut announced the end of the Public Health Emergency and the Company expects impacts from COVID-19 to reduce considerably going forward. Production is expected to return to more normal levels for the remainder of the year. With an expected increase in the grade profile, the Company believes the mine is well positioned to deliver higher gold production and declining costs quarter over quarter in 2022
  • The permit for the construction of the discharge waterline was received on January 31, 2022. The construction of the waterline is expected to start later in 2022 and to be completed in time to start discharging in 2024. Once built, the discharge waterline will be used on a seasonal basis to discharge saline water to the sea
  • With lower than predicted inflows of saline water underground and the completion of the surface saline water storage facilities in 2021, the mine is expected to have sufficient capacity to manage saline water levels at site until completion of the discharge waterline. As a result, the Company has decided to suspend the trucking of saline water for discharge to sea in 2022, which will reduce costs and the environmental impact associated to trucking

Meliadine Projects

  • The Phase 2 mill expansion is expected to be completed in mid-2024 when the processing rate is forecast to increase to 6,000 tpd. Engineering work and procurement activities are progressing as per plan. The main contracts for construction of the CIL, filter-press and power plant buildings and the CIL process tank were awarded in the second quarter of 2022

Meliadine Exploration

  • In the first quarter of 2022, the Tiriganiaq exploration drift was advanced by approximately 109 metres and the development of the second drilling bay was completed. Initial drilling from the first drill bay is underway and assay results are expected in the second quarter of 2022
  • In the first quarter of 2022, infill and exploration drilling at the Tiriganiaq and Pump deposits returned significant results. Highlight intercepts from Tiriganiaq include: Hole M21-3251 in lode 1257 intersecting 6.8 g/t gold over 6.1 metres at 81 metres depth and 33.2 g/t gold over 2.7 metres at 117 metres depth, demonstrating potential for near surface mineral resources addition close to infrastructure; and hole M21-3300 in lode 1000 intersecting 15.7 g/t gold over 6.6 metres at 508 metres depth in a new ore shoot discovered during the fourth quarter of 2021 that remains open at depth

Meadowbank Complex – Record Daily Mill Throughput in March 2022; Operations Well Positioned to Ramp Up Production Through 2022

  • The 100% owned Meadowbank Complex is located approximately 110 kilometres by road north of Baker Lake in the Kivalliq District of Nunavut, Canada. The Complex consists of the Meadowbank mine and mill and the Amaruq satellite deposit, which is located 50 kilometres northwest of the Meadowbank mine. The Meadowbank mine achieved commercial production in March 2010, and mining activities at the site were completed by the fourth quarter of 2019.
  • The Amaruq mining operation uses the infrastructure at the Meadowbank minesite. Additional infrastructure has also been built at the Amaruq site. Amaruq ore is transported using long haul off-road type trucks to the mill at the Meadowbank site for processing. The Amaruq satellite deposit achieved commercial production on September 30, 2019.
  • In the first quarter of 2022, gold production decreased when compared to the prior-year period primarily due to lower gold grades resulting from an increase in tonnage sourced from low grade stockpile and from a lower grade sequence in the open pit. In the first quarter of 2022, the Meadowbank Complex was affected by the COVID-19 pandemic and activities were reduced to essential services from December 22, 2021 to January 10, 2022. Subsequently, production activities were gradually ramped up to normal operating levels into early February 2022. Low grade stockpile was used to feed the mill as the open pit activities ramped up in January and to complement open pit production as the mill performed above forecast in March 2022.
  • Production costs per tonne in the first quarter of 2022 increased when compared to the prior-year period primarily due to inventory adjustments resulting from the consumption of the low-grade stockpile and higher service costs to manage the COVID-19 pandemic, partially offset by the timing of unsold inventory. Production costs per ounce in the first quarter of 2022 increased when compared to the prior-year period due to lower gold grades and higher production costs per tonne, partially offset by the timing of unsold inventory.
  • Minesite costs per tonne in the first quarter of 2022 increased when compared to the prior- year period primarily due to inventory adjustments resulting from the consumption of the low-grade stockpile and higher service costs to manage the COVID-19 pandemic, partially offset by higher capitalized costs. Total cash costs per ounce in the first quarter of 2022 increased when compared to the prior-year period primarily due to lower gold grades and higher production costs per tonne.

Meadowbank Operational Highlights

  • In the first quarter of 2022, the Meadowbank Complex successfully overcame significant challenges related to COVID-19. At the start of the year, site activities were reduced to essential services. The mining operation ramp-up began on January 10, 2022 and the mill restarted in mid-January 2022
  • In the first quarter of 2022, open pit production remained in line with forecast. Based on solid in-pit drilling performance, the broken muck inventory increased above two million tonnes before in preparation for the freshet season
  • In the first quarter of 2022, the mill operated above forecast. In March 2022, the Meadowbank Complex achieved a record monthly throughput (since the start-up of
  • Amaruq) of approximately 377,000 tonnes milled, including an all-time daily record of 14,206 tpd
  • The High Pressure Grinding Rolls are expected to be commissioned in the second quarter of 2022. Combined with the optimization projects carried out at the mill, the Company expects to continue to maximize the mill throughput for the remainder of the year
  • This year's caribou migration started in March and, as at the end of the first quarter of 2021, it has had a minimal impact on the operation. The Company factors the migration into its production forecast. Wildlife management is an important priority and, given the unpredictability of the seasonal migration, the Company continues to work with government and local stakeholders to optimize solutions to safeguard wildlife and minimize production disruptions
  • With the open pit entering a higher grade mining sequence and the ore contribution from underground starting in the second half of 2022, gold production at the Meadowbank Complex is expected to increase consistently over the next three quarters of 2022

Meadowbank Underground Project Highlights

  • In the first quarter of 2022, the lower workforce availability related to COVID-19 resulted in delays in the underground development and the construction of the underground mine infrastructure
  • As of the end of the first quarter of 2022, the underground development was behind schedule with 810 metres completed compared to the budgeted development target metres of 1,050 metres. The Company has established an action plan to mitigate the impact of the delay and is focused on advancing priority aspects of the project to ready for production as scheduled later this year
  • The commissioning of several key infrastructure projects is ongoing, including the cemented rock fill plant and the emulsion plant. The development of the main ventilation raise and the construction of the main ventilation system were delayed but are still expected to be delivered in time to achieve the production plan
  • Despite these challenges, the underground project remains on budget and on schedule. The extraction of a test stope is planned for the second quarter of 2022 and commercial production is expected to be achieved in the second half of 2022

Hope Bay Project – Drilling Activities Continue to Ramp-Up with an Ongoing Focus on the Doris Deposit; Madrid Drilling to Commence in April 2022

  • Located in the Kitikmeot District of Nunavut, Canada, approximately 125 kilometres southwest of Cambridge Bay, the Hope Bay project was acquired in February 2021. The Company owns 100% of the 191,342-hectare property, which includes portions of the Hope Bay and Elu greenstone belts. The 80-kilometre long Hope Bay greenstone belt hosts three gold deposits (Doris, Madrid and Boston) with mineral reserves and mineral resources and over 90 regional exploration targets. At the time the Hope Bay project was acquired, construction at the Doris deposit was complete and commercial production had been achieved in the second quarter of 2017.
  • On February 18, 2022, the Company announced that it decided to maintain the suspension of production activities at the Doris mine, in order to dedicate the infrastructure of the Hope Bay site to exploration activities. The Company ramped down the remaining operational activities at the Doris mine in an orderly fashion over the remainder of the quarter while ensuring the safety of employees and the sustainability of the infrastructure. In parallel, exploration activities were increased, focusing primarily on Doris (both surface and underground).
  • In 2022 and 2023, production activities will remain suspended and the primary focus will be on accelerating exploration and the evaluation of larger production scenarios. The Company remains confident in the long term potential of the Hope Bay property.
  • At the Hope Bay project in the first quarter of 2022, 15,600 metres were drilled in 59 drill holes which mostly tested the Doris deposit along strike and at depth.
  • The latest results at Doris show high grades over substantial widths in multiple areas, including the northern extension of BTD Extension, in the southern extension of Central (DCN) and at depth in BTD Connector where new, thick and high-grade intervals were reported. The results further demonstrate the potential for the Doris mineral resources to grow significantly and to support the development of additional underground exploration platforms to further confirm the size, shape and grade of these new high-grade mineralized zones.
  • Highlights from conversion drilling in the southern portion of the Central area include: 30.8 g/t gold over 3.3 metres at 209 metres depth in hole HBDCN22-50912; and 14.3 g/t gold over 5.9 metres at 231 metres depth in hole HBDCN22-50916.
  • Highlights from deep exploration drilling in the BTD Connector area include: 23.0 g/t gold over 5.0 metres at 502 metres depth in hole HB21-013; 9.4 g/t gold over 14.9 metres at 491 metres depth in hole HB22-018; and 11.7 g/t gold over 3.0 metres at 569 metres depth in hole HB21-011.

Read the full release here.

Toronto (April 28, 2022) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the "Company") today reported financial and operating results for the first quarter of 2022.

First quarter of 2022 highlights:

  • Solid quarterly production and costs despite COVID-19 challenges – Payable gold production1 in the first quarter of 2022 was 660,604 ounces at production costs per ounce of $1,002, total cash costs per ounce2 of $811 and all-in sustaining costs ("AISC") per ounce3 of $1,079. These results include a full quarter of production
  • Several key cornerstone assets delivered strong operational performance in the first quarter of 2022
  • COVID-19 challenges seen in late 2021 and early 2022 appear to be moderating – Most of the Company's operations were affected by COVID-19 over the past few months, but production levels and costs in the first quarter of 2022 were generally in line with forecasts. All sites are still maintaining active protocols but risks now appear to be more manageable and the situation improved through the quarter. As a result, the Company began the reintegration of its Nunavummiut workforce (which had been sent home in December 2021) in mid-March, after consultation with the Nunavut Government and other local stakeholders. The reintegration was completed in early April 2022
  • Gold production, cost and capital expenditure guidance reiterated for 2022
  • Inflationary cost environment continues to evolve
  • Merger completed February 8, 2022; Focus Now on Delivering Synergies and Maximizing Value Drivers

[Ed Note: We have extracted some Nunavut highlights which include:]

  • Hope Bay – Drilling at the Doris deposit has discovered extensions to the known mineralized zones. Deep exploration drilling in the BTD Connector area returned highlights of 23.0 g/t gold over 5.0 metres at 502 metres depth and 9.4 g/t gold over 14.9 metres at 491 metres depth. Additional drills are expected to begin operating in the coming weeks. Exploration is expected to continue through 2023 while a larger production scenario is being evaluated
  • Meliadine mine – The Phase 2 expansion to 6,000 tonnes per day ("tpd") is expected to be complete by mid-2024. Exploration efforts are focused on increasing mineral reserves and mineral resources to extend mine life
  • Meadowbank Complex – At Amaruq, the focus remains on optimizing open pit operations and ramping up underground production starting in the second half of 2022
  • Hope Bay project – Exploration activities are ramping up with a primary focus on the Doris, Madrid and Boston deposits. The Company is also evaluating the potential to develop a larger production scenario
  • Including the diesel purchased for the Company's Nunavut operations on the 2021 sealift (consumed to mid-year 2022), approximately 40% of the Company's diesel exposure for 2022 is hedged at an average price below the 2022 cost guidance assumption of C$0.90 per litre. These hedges have partially mitigated the effect of inflationary pressures to date and are expected to provide a degree of protection against inflation for the 2022 sealift diesel costs.
  • The Company will continue to monitor market conditions and anticipates continuing to opportunistically add to its operating currency and diesel hedges to strategically support its key input costs. Current hedging positions are not factored into 2022 guidance.

Demonstrating strong ESG performance

  • In December 2021, as a result of an increase in COVID-19 cases at its Nunavut operations, the Company took precautionary steps to further protect the continued health of its Nunavut workforce and local residents in the communities in which it operates. In collaboration with the Nunavut public health authorities, the Company sent home the Nunavummiut from the Nunavut operations and exploration projects. As the COVID-19 situation improved and after consultation with the Nunavut Government and other local stakeholders, the Company began the reintegration of its Nunavummiut workforce in mid-March. The reintegration was completed in early April 2022.

NUNAVUT

  • Agnico Eagle considers Nunavut a politically attractive and stable jurisdiction with enormous geological potential. With the Company's Meliadine mine and Meadowbank Complex (including the Amaruq satellite deposit), together with the Hope Bay project and other exploration projects, Nunavut has the potential to be a strategic operating platform for the Company with the ability to generate strong gold production and cash flows over several decades.
  • In December 2021, as a result of the increase in COVID-19 cases at its Nunavut operations, the Company took the precautionary step to send home the Nunavut based workforce and reduce site activities. All site activities ramped back to normal operating levels from mid-January into February 2022. The return of the Nunavut based workforce started on March 14, 2022, after consultation with the Nunavut Government and other local stakeholders. The reintegration was completed in early April 2022.

Meliadine Mine – Millionth Gold Ounce Poured; Full Year Guidance Unchanged Despite COVID-19 Challenges

  • Located near Rankin Inlet in the Kivalliq District of Nunavut, Canada, the Meliadine project was acquired in July 2010. The Company owns 100% of the 98,222-hectare property. In February 2017, the Company's Board of Directors approved the construction of the Meliadine project and commercial production was declared on May 14, 2019.
  • Gold production in the first quarter of 2022 decreased when compared to the prior-year period primarily due to lower gold grades resulting from an increase in tonnage sourced from the open pit and lower grade stockpiles, partially offset by higher throughput levels resulting from the planned expansion of the mill to 4,800 tpd. The COVID-19 pandemic affected the underground mine activities particularly in December 2021 and January 2022. To compensate for the shortfall in mine production in the first quarter of 2022, low-grade stockpile ore was used to feed the mill.
  • Production costs per tonne in the first quarter of 2022 increased when compared to the prior-year period due to inventory adjustments resulting from the consumption of the low- grade stockpile and the contribution of open pit production costs, partially offset by higher throughput levels, lower mining costs as a result of lower underground activities related to lower workforce availability due to COVID-19 and the timing of unsold inventory. Production costs per ounce in the first quarter of 2022 increased when compared to the prior-year period due to lower gold grades and lower production costs per tonne, partially offset by the timing of unsold inventory.
  • Minesite costs per tonne in the first quarter of 2022 increased when compared to the prior- year period primarily due to inventory adjustments resulting from the consumption of the low-grade stockpile and the contribution of open pit production costs, partially offset by higher throughput levels and lower mining costs as a result of lower underground activities related to the COVID-19 pandemic. Total cash costs per ounce in the first quarter of 2022 increased when compared to the prior-year period due to lower gold grades and higher minesite costs per tonne.

Meliadine Operational Highlights

  • On March 9, 2022, the Meliadine mine poured its millionth ounce of gold. Since the start of the operation in 2019, the Meliadine mine quickly became a key cornerstone asset for the Company, with yearly production ranging from 360,000 to 390,000 ounces of gold and generating strong operating margins
  • In the first quarter of 2022, the COVID-19 pandemic resulted in lower than planned workforce levels which primarily affected the underground mine. Both underground development and ore production were lower than forecast. The processing plant operated as per planned during the quarter, achieving a run rate of approximately 4,800 tpd
  • On April 11, 2022, the Government of Nunavut announced the end of the Public Health Emergency and the Company expects impacts from COVID-19 to reduce considerably going forward. Production is expected to return to more normal levels for the remainder of the year. With an expected increase in the grade profile, the Company believes the mine is well positioned to deliver higher gold production and declining costs quarter over quarter in 2022
  • The permit for the construction of the discharge waterline was received on January 31, 2022. The construction of the waterline is expected to start later in 2022 and to be completed in time to start discharging in 2024. Once built, the discharge waterline will be used on a seasonal basis to discharge saline water to the sea
  • With lower than predicted inflows of saline water underground and the completion of the surface saline water storage facilities in 2021, the mine is expected to have sufficient capacity to manage saline water levels at site until completion of the discharge waterline. As a result, the Company has decided to suspend the trucking of saline water for discharge to sea in 2022, which will reduce costs and the environmental impact associated to trucking

Meliadine Projects

  • The Phase 2 mill expansion is expected to be completed in mid-2024 when the processing rate is forecast to increase to 6,000 tpd. Engineering work and procurement activities are progressing as per plan. The main contracts for construction of the CIL, filter-press and power plant buildings and the CIL process tank were awarded in the second quarter of 2022

Meliadine Exploration

  • In the first quarter of 2022, the Tiriganiaq exploration drift was advanced by approximately 109 metres and the development of the second drilling bay was completed. Initial drilling from the first drill bay is underway and assay results are expected in the second quarter of 2022
  • In the first quarter of 2022, infill and exploration drilling at the Tiriganiaq and Pump deposits returned significant results. Highlight intercepts from Tiriganiaq include: Hole M21-3251 in lode 1257 intersecting 6.8 g/t gold over 6.1 metres at 81 metres depth and 33.2 g/t gold over 2.7 metres at 117 metres depth, demonstrating potential for near surface mineral resources addition close to infrastructure; and hole M21-3300 in lode 1000 intersecting 15.7 g/t gold over 6.6 metres at 508 metres depth in a new ore shoot discovered during the fourth quarter of 2021 that remains open at depth

Meadowbank Complex – Record Daily Mill Throughput in March 2022; Operations Well Positioned to Ramp Up Production Through 2022

  • The 100% owned Meadowbank Complex is located approximately 110 kilometres by road north of Baker Lake in the Kivalliq District of Nunavut, Canada. The Complex consists of the Meadowbank mine and mill and the Amaruq satellite deposit, which is located 50 kilometres northwest of the Meadowbank mine. The Meadowbank mine achieved commercial production in March 2010, and mining activities at the site were completed by the fourth quarter of 2019.
  • The Amaruq mining operation uses the infrastructure at the Meadowbank minesite. Additional infrastructure has also been built at the Amaruq site. Amaruq ore is transported using long haul off-road type trucks to the mill at the Meadowbank site for processing. The Amaruq satellite deposit achieved commercial production on September 30, 2019.
  • In the first quarter of 2022, gold production decreased when compared to the prior-year period primarily due to lower gold grades resulting from an increase in tonnage sourced from low grade stockpile and from a lower grade sequence in the open pit. In the first quarter of 2022, the Meadowbank Complex was affected by the COVID-19 pandemic and activities were reduced to essential services from December 22, 2021 to January 10, 2022. Subsequently, production activities were gradually ramped up to normal operating levels into early February 2022. Low grade stockpile was used to feed the mill as the open pit activities ramped up in January and to complement open pit production as the mill performed above forecast in March 2022.
  • Production costs per tonne in the first quarter of 2022 increased when compared to the prior-year period primarily due to inventory adjustments resulting from the consumption of the low-grade stockpile and higher service costs to manage the COVID-19 pandemic, partially offset by the timing of unsold inventory. Production costs per ounce in the first quarter of 2022 increased when compared to the prior-year period due to lower gold grades and higher production costs per tonne, partially offset by the timing of unsold inventory.
  • Minesite costs per tonne in the first quarter of 2022 increased when compared to the prior- year period primarily due to inventory adjustments resulting from the consumption of the low-grade stockpile and higher service costs to manage the COVID-19 pandemic, partially offset by higher capitalized costs. Total cash costs per ounce in the first quarter of 2022 increased when compared to the prior-year period primarily due to lower gold grades and higher production costs per tonne.

Meadowbank Operational Highlights

  • In the first quarter of 2022, the Meadowbank Complex successfully overcame significant challenges related to COVID-19. At the start of the year, site activities were reduced to essential services. The mining operation ramp-up began on January 10, 2022 and the mill restarted in mid-January 2022
  • In the first quarter of 2022, open pit production remained in line with forecast. Based on solid in-pit drilling performance, the broken muck inventory increased above two million tonnes before in preparation for the freshet season
  • In the first quarter of 2022, the mill operated above forecast. In March 2022, the Meadowbank Complex achieved a record monthly throughput (since the start-up of
  • Amaruq) of approximately 377,000 tonnes milled, including an all-time daily record of 14,206 tpd
  • The High Pressure Grinding Rolls are expected to be commissioned in the second quarter of 2022. Combined with the optimization projects carried out at the mill, the Company expects to continue to maximize the mill throughput for the remainder of the year
  • This year's caribou migration started in March and, as at the end of the first quarter of 2021, it has had a minimal impact on the operation. The Company factors the migration into its production forecast. Wildlife management is an important priority and, given the unpredictability of the seasonal migration, the Company continues to work with government and local stakeholders to optimize solutions to safeguard wildlife and minimize production disruptions
  • With the open pit entering a higher grade mining sequence and the ore contribution from underground starting in the second half of 2022, gold production at the Meadowbank Complex is expected to increase consistently over the next three quarters of 2022

Meadowbank Underground Project Highlights

  • In the first quarter of 2022, the lower workforce availability related to COVID-19 resulted in delays in the underground development and the construction of the underground mine infrastructure
  • As of the end of the first quarter of 2022, the underground development was behind schedule with 810 metres completed compared to the budgeted development target metres of 1,050 metres. The Company has established an action plan to mitigate the impact of the delay and is focused on advancing priority aspects of the project to ready for production as scheduled later this year
  • The commissioning of several key infrastructure projects is ongoing, including the cemented rock fill plant and the emulsion plant. The development of the main ventilation raise and the construction of the main ventilation system were delayed but are still expected to be delivered in time to achieve the production plan
  • Despite these challenges, the underground project remains on budget and on schedule. The extraction of a test stope is planned for the second quarter of 2022 and commercial production is expected to be achieved in the second half of 2022

Hope Bay Project – Drilling Activities Continue to Ramp-Up with an Ongoing Focus on the Doris Deposit; Madrid Drilling to Commence in April 2022

  • Located in the Kitikmeot District of Nunavut, Canada, approximately 125 kilometres southwest of Cambridge Bay, the Hope Bay project was acquired in February 2021. The Company owns 100% of the 191,342-hectare property, which includes portions of the Hope Bay and Elu greenstone belts. The 80-kilometre long Hope Bay greenstone belt hosts three gold deposits (Doris, Madrid and Boston) with mineral reserves and mineral resources and over 90 regional exploration targets. At the time the Hope Bay project was acquired, construction at the Doris deposit was complete and commercial production had been achieved in the second quarter of 2017.
  • On February 18, 2022, the Company announced that it decided to maintain the suspension of production activities at the Doris mine, in order to dedicate the infrastructure of the Hope Bay site to exploration activities. The Company ramped down the remaining operational activities at the Doris mine in an orderly fashion over the remainder of the quarter while ensuring the safety of employees and the sustainability of the infrastructure. In parallel, exploration activities were increased, focusing primarily on Doris (both surface and underground).
  • In 2022 and 2023, production activities will remain suspended and the primary focus will be on accelerating exploration and the evaluation of larger production scenarios. The Company remains confident in the long term potential of the Hope Bay property.
  • At the Hope Bay project in the first quarter of 2022, 15,600 metres were drilled in 59 drill holes which mostly tested the Doris deposit along strike and at depth.
  • The latest results at Doris show high grades over substantial widths in multiple areas, including the northern extension of BTD Extension, in the southern extension of Central (DCN) and at depth in BTD Connector where new, thick and high-grade intervals were reported. The results further demonstrate the potential for the Doris mineral resources to grow significantly and to support the development of additional underground exploration platforms to further confirm the size, shape and grade of these new high-grade mineralized zones.
  • Highlights from conversion drilling in the southern portion of the Central area include: 30.8 g/t gold over 3.3 metres at 209 metres depth in hole HBDCN22-50912; and 14.3 g/t gold over 5.9 metres at 231 metres depth in hole HBDCN22-50916.
  • Highlights from deep exploration drilling in the BTD Connector area include: 23.0 g/t gold over 5.0 metres at 502 metres depth in hole HB21-013; 9.4 g/t gold over 14.9 metres at 491 metres depth in hole HB22-018; and 11.7 g/t gold over 3.0 metres at 569 metres depth in hole HB21-011.

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