Canadian Malartic Mine
3% NSR Odyssey and Norrie

Odyssey Project


Malartic CHL - Odyssey Zones (3% NSR)

Abitibi Royalties holds a 3% NSR on the Odyssey Zones located within the Malartic CHL Property. Odyssey North is proximate to the Odyssey South Zone and together, these zones comprise the “Odyssey Project” that is east of the main Canadian Malartic Mine open pit.

Odyssey - Resource Estimate

The resource estimate for the Odyssey Zone subject to Abitibi Royalties' 3% NSR (as at December 31, 2016) is listed below.

Resource Estimate for Odyssey (3% NSR)


Category
Tonnes
(metric)
Gold Grade
(gpt)
Contained
Ounces
Inferred Resource 14,969,945 2.16 1,039,941

Odyssey - Exploration Update

The mine operators reported that during 2016, a total of 155 holes (119,396 metres) were completed at the Odyssey Property.

In the first half of 2017, the mine operators note that drilling activities at Odyssey will focus on further defining these internal zones and expanding the mineral resources in Odyssey North and South. The mine operators have budgeted USD$11 million (CDN$14.4 million using a 1.31 USD/CDN exchange ratio) for a total of 99,700 metres of drilling in 2017 at the Canadian Malartic mine.

Odyssey - Possible Production

Odyssey is envisioned as a bulk tonnage underground deposit, similar to the Agnico Eagle Goldex mine located 15 km to the southeast. Yamana states in its Q3-2016 News Release “This deposit (Odyssey) supports optionality for enhanced production and life of mine” and has stated that Odyssey could operate between 8,000-10,000 tonnes per day (tpd).

New Internal Zone

The mine operators also announced a number of significant drill results from the newly discovered internal zones that extend from the Odyssey North Zone. These results were not included in the recent initial Odyssey Project resource calculation.

The mine operators state that the drilling carried out to date indicates that the internal zones could increase mineral resources and enhance the economics of the Odyssey Project by adding higher grade ounces that would require minimal additional infrastructure to access.

The majority of the drill intercepts released from the internal zone by the mine operators appear to be close to the Malartic CHL Property boundary. The Company believes that the majority of intercepts released to date appear to be within the Malartic CHL Property or straddle the boundary. Although the Company believes the recent drill results from the internal zones could have a positive impact on its 3% NSR, the Company has not independently verified the drill hole data and cannot confirm, nor can there be any assurance, that all or any of the recent drilling encountered additional mineralization on the Malartic CHL Property. The full impact of the internal zones will not be known until the mine operators calculate a resource for the portion that is attributable to the Company’s NSR interest. 

Norrie – Bulk Tonnage Underground Deposit

The Norrie Zone is located 200 metres southeast of the ultimate Canadian Malartic open pit. Limited drilling from the 1960’s and recent drilling from 2007 encountered wide intersections of gold mineralization similar to Agnico Eagle’s Goldex mine. Results included 1.7 gpt gold over 236.3 metres, 1.4 gpt gold over 234.7 metres and 1.5 gpt gold over 107 metres.

Drilling at the Norrie Zone indicates a mineralized zone measuring at least 380 metres long, up to 260 metres wide, and approximately 100 m thick. Although deep, these intersections appear to indicate the presence of a very large system of Canadian Malartic-style disseminated gold mineralization.

For more information regarding the resource estimate, 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

 


Odyssey North - Cross-section Compilation

Abitibi Royalties Inc - TSX-V: RZZ