Canadian Malartic Mine
3% NSR Jeffrey + Barnat

Jeffrey Zone and Barnat Extension

 

Abitibi Royalties holds a 3% NSR on a portion of the Canadian Malartic mine known as the Jeffrey Zone and Barnat Extension, which are being permitted for production. The Jeffrey Zone is a separate deposit, located immediately east of the main Canadian Malartic open pit. The Barnat Extension makes up the eastern portion of the Canadian Malartic open pit. Production from the Jeffrey Zone and Barnat Extension is expected to commence in 2018 and 2019. The operators have reported that they will be conducting an exploration drill program at the Barnat Extension in order to identify open pit / underground zones that could be a potential source for ore at the Canadian Malartic mill.

The reserve and resource estimates for the Jeffrey Zone and Barnat Extension subject to Abitibi Royalties' 3% NSR (as at December 31, 2016) is listed below.

Jeffrey Zone Reserve and Resource


Tonnes
(metric)
Gold Grade
(gpt)
Contained
Ounces
Proven - - -
Probable 2,601,367 0.77 64,464
Total Proven and Probable 2,601,367 0.77 64,464
Measured - - -
Indicated 720,157 1.22 28,136
Total Measured and Indicated 720,157 1.22 28,136
Inferred (not constrained by pit) 129,840 1.36 5,679

Barnat Extension Reserve and Resource


Tonnes
(metric)
Gold Grade
(gpt)
Contained
Ounces
Proven 373,446 1.03 12,416
Probable 1,518,646 1.01 49,392
Total Proven and Probable 1,892,092 1.02 61,808
Measured 93,560 1.42 4,276
Indicated 365.100 1.29 15,086
Total Measured and Indicated 458,660 1.31 19,362
Inferred (not constrained by pit) 592,159 1.78 33,862

Gold Estimated Production 3% NSR

Year Area* Tons
Mined
Gold Grade
(g/t)
Mined
Ounces
Processed
Ounces
Recovered
Ounces
Stockpiled
Ounces
2017 - - - - - - -
2018 BA + JF 877,297 0.65 18,403 14,793 13,210 3,609
2019 BA + JF 2,236,640 0.78 65,562 53,325 47,619 12,236

*JF = Jeffrey, BA = Barnat

Additional Production Opportunities

Agnico Eagle states that it is evaluating several potential opportunities (which have not been approved) at a number of existing operations to enhance its production profile in 2018 through 2020. The near pit zones around the Canadian Malartic Mine were identified as one possible opportunity. Abitibi Royalties holds an NSR on several of the near pit zones that were previously outlined by the mine operators that include the eastern portion of the Barnat Extension/Barnat South Wall Contact (3% NSR) and the Sheehan Zone (3% NSR).

Reserve and Resource estimates calculated using gold price of US$1,200/oz.

Mineral reserves do not include mineral resources.

For more information regarding the reserve and resource calculations, see press release dated March 10, 2017.

 


Malartic / Val-d'or Regional Map - Malartic CHL Project

 


Project Map - Canadian Malartic mine and Malartic CHL Project

Abitibi Royalties Inc - TSX-V: RZZ