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. 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 activities at Jeffrey and Barnat, are scheduled to begin in 2018 and 2020.

Since the beginning of the fourth quarter of 2017, the following activities were completed at the Barnat Extension project:

  • An acoustic screen (noise barrier) for the road deviation was put in place
  • A temporary bridge was being constructed (and became operational in January 2018)
  • Overload (new road bed foundation) preparation

Tree cutting has been completed over the Barnat deposit and overburden stripping is ongoing. 

The reserve and resource estimates for the Jeffrey Zone and Barnat Extension subject to Abitibi Royalties' 3% NSR (as at December 31, 2017) are listed below.

Reserve Estimate for Barnat (East) & Jeffrey (3% NSR)

Category Area* Tons (Metric) Gold Grade (g/t) Contained Ounces
Proven Reserve BA+JF 378,449 1.04 12,627
Probable Reserve BA+JF 4,054,393 0.89 115,526
Total Proven & Probable Reserve BA+JF 4,432,842 0.90 128,153

*BA = Barnat, Jeffrey = JF

Inferred Resource Estimate for Odyssey, East Malartic, Barnat & Jeffrey (3% NSR)

Category Area* Tons Metric) Gold Grade (g/t) Contained Ounces
Inferred Resource ODY-EM-BA-JF 32,779,651 2.2 2,313,925

*BA = Barnat, Jeffrey = JF, Odyssey = ODY, East Malartic = EM

Resource Estimate for Barnat (East) & Jeffrey (3% NSR)

Category Area* Tons (Metric) Gold Grade (g/t) Contained Ounces
Measured Resource BA 93,560 1.42 4,276
Indicated Resource BA-JF 1,008,595 1.24 40,143
Total M and I Resource BA-JF 1,102,155 1.25 44,419

*BA = Barnat, Jeffrey = JF

Gold Estimated Production 3% NSR (2018-2020)

Year Area* Tons Mined Gold Grade (g/t) Mined Ounces Processed Ounces Recovered Ounces Stockpiled
Ounces
2018 Q4 JF 907,662 0.70 20,304 12,123 10,826 8,181
2019 JF 1,637,121 0.87 45,833 27,339 24,414 18,494
2020 BA 362,582 0.89 10,327 8,797 7,855 1,530

*JF = Jeffrey, BA = Barnat

Additional Production Opportunities

Agnico Eagle stated that it is evaluating several potential opportunities (which have not been approved) at a number of existing operations to enhance its production profile in 2019 through 2022. The near pit zones around the Canadian Malartic open pit were identified as possible opportunities. Abitibi Royalties holds an NSR on several near pit zones that were previously outlined by the mine operators, including portions of the Barnat Extension/Barnat South Wall Contact.

Proven and probable reserves have been calculated at a gold price of US$1,200/oz.

Stated reserves are in addition to resources.

For more information regarding the reserve and resource calculations, see press release dated March 19, 2018.


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