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A little hope for mine Eleanor

Finally some good news from the gold mine in far north Quebec. Annual production at the Eleonor mine in 2023 is expected to increase between 23% and 37%, compared to the previous year.

Its owner, Newmont, the world’s largest gold producer, plans to produce 265,000 to 295,000 ounces of the yellow metal this year at an all-inclusive cost of $1,300 to $1,400. An ounce sold for $1,970, or C$2,665, on March 31.

Newmont became owner of Éléonore in April 2019 when it entered into a partnership with Goldcorp. The first gold casting there occurred in April 2015. At that time, annual production of 500,000 to 600,000 ounces of gold was expected.

Located 350 kilometers north of Matagami, it was discovered by Andre Gaumond, president of the Virginia Mines Company, in the early 2000s.

Eleonor Mining Project, North 52H In parallel, he created an outburst among the gold prospectors who stormed the James Bay area.

“Eleonore has become the newest gold mine in Quebec from a new area, not from an old mine that has relaunched its activities,” explains Guy Bourgeois, general manager of the Quebec Mineral Exploration Association.

The Windfall deposit from world-class Osisko Mining, 100 kilometers east of Lebel-sur-Quévillon in northern Quebec, is a product of Éléonore.

Reserves are estimated at 1.57 million ounces

“Éléonore is expected to produce more in 2023 thanks to the increase in underground tonnage and production rate resulting from improvements in productivity. A steady improvement in production is expected over the long term,” read the documents from 4H Quarter 2022 Submitted to SEDAR by Newmont.

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On February 23, 2023, Newmont reported proven and probable reserves at the Quebec mine of 9.4 million tons with an average grade of 5.22 grams per ton for 1.57 million ounces of gold.

year to forget

The good news is welcome, because 2022 has not been an easy year with only 215,000 ounces of gold produced.

“Gold production decreased by 15%, mainly due to lower powder ore grade and mill productivity. Costs applied to sales per ounce of gold increased by 28%, mainly due to lower gold ounces sold, and higher fuel, energy and labor costs.” End report.

Note that in 2018, approximately 400,000 ounces of gold came out of the James Bay Mine.

This mine, which required investments of more than $2 billion to bring it into operation, had seen its reserves melt by 1.7 million ounces, or 43%, by Newmont in February 2020.

“Éléonore has proven to fall short of expectations,” independent mining analyst Eric Lemieux said today. These are not the initial deposits we imagined. Shows the difficulties in the mining sector. Mother Nature hides her gems and unearthing them is not always easy. »