Canadian mining company Agnico Eagle Mines has unveiled an ambitious plan to boost production at its Detour Lake mine, in Ontario, to an average of one-million ounces a year over a 14-year period, starting in 2030.

This increase is outlined in the  New York- and Toronto-listed company’s newly released 2024 life-of-mine plan (LoMP), which includes both updated mineral reserve and resource estimates and a preliminary economic assessment (PEA) for concurrent openpit and proposed underground operations.

“With the development of an underground mine to complement the existing openpit mine, we see the opportunity to transform the asset into one of the top five gold mines in the world by output," said president and CEO Ammar Al-Joundi.

“We believe the underground project has relatively low execution risk, and has the potential to generate a strong risk-adjusted return on capital while maintaining exploration and production upside for decades in one of the best mining jurisdictions in the world."

The 2024 PEA contemplates an underground mining rate of about 11 200 t/d starting in 2030, alongside a mill expansion to 29-million tonnes a year by 2028. This is expected to increase yearly production by 43%, or 300 000 oz/y of gold, from 2030 to 2043, compared to the current average production. The new plan extends Detour Lake’s mine life by two years to 2054, with potential for further exploration to add resources beyond this timeframe.

Agnico Eagle's commitment to developing the underground project is underscored by an approved $100-million investment over the next three years. This investment will focus on further de-risking the project, including the development of a 2-km-exploration ramp and the collection of a bulk sample. The company also plans an intensive drill programme to convert and expand the current underground mineral resource, particularly targeting the western plunge of the mineralisation.

Relative to the 2022 LoMP, the 2024 plan increases the LoM payable gold production by 27% to 22-million ounces, incorporating both the openpit and the underground project.

The underground mineral resource estimate includes 1.2-million ounces of indicated gold and 7.1-million ounces of inferred gold. Development and sustaining capital expenditures for the underground project and mill optimisation are forecasted at $731-million and $631-million, respectively, with an expected after-tax internal rate of return of 25% at current gold prices.

"The long mineral reserve life and significant production base at both Detour Lake and Canadian Malartic provide a solid foundation for Agnico Eagle's production profile and strongly position the company for decades to come," added Al-Joundi.