Value Through Gold

projects
RAMPING UP PRODUCTION OF THE
HIGH-GRADE BRUCEJACK GOLD MINE

Brucejack Mine

The Brucejack Mine is a 2,700 tonnes-per-day high-grade gold underground mine located in northwestern British Columbia, approximately 65 kilometers north of Stewart. A year-round, all-weather access road connects the mine to Highway 37. The mine’s operations and camps are fully grid-powered, with diesel backup available. The mine began commercial operation in the summer of 2017 and produced 154,484 ounces of gold during the first six months of ramp-up. Steady state production at the mine is expected to be achieved in mid-to-late 2018.


Production Estimates and Economic Highlights:

Processing rate(1) 2,700 tonnes per day
Mine life(1) 18 years
Total gold reserves(2) 8.7 million oz
Average annual gold production(2) 504,000 ounces (years 1-8)
404,000 ounces (life of mine)
Average gold grade(2) 16.1 g/t (years 1-10)
14.1 g/t (life of mine)

(1) Source: Feasibility Study and Technical Report on the Brucejack Project, dated June 19, 2014; capital cost updates, news release dated Feb 14, 2017.
(2) Source: Reserve Estimate Update news release Dec 14, 2016x

The mining method at Brucejack is long-hole stoping using a combination of longitudinal and transverse mining, depending on zone width and orientation. The ore is crushed underground and conveyed to surface where the fully-enclosed mill produces gold-silver dore bars and flotation concentrate.

The tailings are mixed with cement and used as paste backfill in underground voids, with the remainder pumped to the lower depth of Brucejack Lake.

Achieving Steady State Production 2018

Underground development is expected to provide access to eight mining levels by mid-2018.  With the continued extension of the mining levels to the east and west within the two mining horizons now established (1200-meter level to the 1320-meter level and the 1320-meter level to the 1440-meter level), access to stopes with a range of gold grade is expected to be available through 2018. Access to the broadest possible range of stopes will maximize stope blending and is expected to improve the management of production grades as the ramp-up continues.

The mine’s grade control program is underway and expected to be fully operational by the middle of Q1 2018.  A key component of grade control is the sample splitting station now under commission which provides a homogenous sample of each ring blasted within a long-hole stope.  This information will allow the blending of ore from the various stopes on a ring-by-ring basis to smooth out head grade to the mill.

Another component of the grade control program is continued infill drilling of stopes to 7.5-meter to 10-meter centres (the infill drill spacing planned for long-term mining operations at Brucejack) prior to mining. 

As the ramp-up of mining into areas of higher definition drilling continues and the grade control program is in full operation, the mine will have achieved steady state production.

2018 Guidance

Gold production for the first half of 2018 is expected in the range of 150,000 to 200,000 ounces during the continuing ramp-up.  Once the mine is operating in steady state, production guidance will be provided later in 2018.

All-in sustaining costs for the first half of 2018 are expected to range from US$700 per ounce gold sold to US$900 per ounce gold sold. As operations continue to ramp up at the Brucejack Mine through 2018, an increased focus will be placed on operational efficiency.

January 29, 2018