Value Through Gold

projects
RAMPING UP PRODUCTION OF THE HIGH-GRADE BRUCEJACK GOLD MINE
COMMERCIAL PRODUCTION ANNOUNCED JULY 2017

Brucejack

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 gold sales are underway.


Production Estimates and Economic Highlights(1,2):

Processing rate 2,700 tonnes per day
Mine life 18 years
Total gold reserves 8.7 million oz
Average annual gold production 504,000 ounces (years 1-8)
404,000 ounces (life of mine)
Average gold grade(3) 16.1 g/t (years 1-10)
14.1 g/t (life of mine)
All-in sustaining cash cost per oz (4) US$446/oz
Total operating costs C$163.05/t milled
Internal Rate of Return 34.4% (pre-tax)
28.5% (post-tax)
Net Present Value US$2.34 billion (pre-tax)
(5% discount) US$1.53 billion (post-tax)

(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) Base case metals prices of US$1,100 /oz gold and US$14/oz silver
(3) Source: Reserve Estimate Update news release Dec 14, 2016x
(4) Includes cash costs net silver credit, sustaining capital, corporate G&A, and reclamation cost accretion

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.