Value Through Gold

projects
STEADY-STATE PRODUCTION ACHIEVED AT
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 July 2017 and produced 339,500 ounces of gold during the first year of operation.


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) 404,000 ounces (life of mine)
Average gold grade(2) 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, 2016.

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 provides 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.

The mine’s grade control program is underway and fully operational. 

2018 Guidance

Gold production for the second half of 2018 is expected in the range of 200,000 ounces to 220,000 ounces, for total 2018 gold production of 387,000 ounces to 407,000 ounces.

All-in sustaining costs for the second half of 2018 are expected to range from US$710 per ounce gold sold to US$770 per ounce gold sold. As production has now reached steady state at the Brucejack Mine, an increased focus will be placed on operational efficiency to reduce costs.