Canadian Mining Journal


GOLD: TMAC plans $290M spending to put Hope Bay into production in 2017

NUNAVUT – Thanks to the proceeds of an initial public offering and other financial arrangements, TMAC Resources of Toronto raised $350 million with which to prepare the Hope Bay gold project for production in 2017.

Preproduction capital expenditures this year and next total $290 million:

Principle purpose

Estimated amount

     Mine equipment purchase

$18 million

     Mine development

$4 million

     Surface equipment purchase

$4 million

     Process equipment

$78 million

     Process equipment

$16 million

     Sub-total directs

$120 million


$20 million

     Capitalized pre-production operating costs

$39 million

     Sub-total directs and indirects

$179 million

Contingency (15%)

$27 million

     Project development sub-total

$206 million

Collateral for letters of credit

$26 million

Corporate, exploration, permitting, general expenditures

$58 million


$290 million

At the project site 65 km east of Bathurst Inlet, this year TMAC completed the sealift of underground mobile mining equipment, 15 million litres of diesel fuel, the mill building, and a year’s worth of mining parts and supplies. The processing plant has been ordered from Gekko Systems of Australia, and it will be shipped in Q3 2016. Construction of the mill foundations is underway. At the Doris mine, the vent raise has been widened and an escape way installed. A narrow vein undercut test drift has been developed to validate the mining model and cost assumptions made in the prefeasibility study.

TMAC continues to explore both the Doris and Madrid deposits at Hope Bay. In the second half of this year, a helicopter-borne drill program was initiating at the North zone of the Doris deposit and the northern expression of the Naartok zone at the Madrid North deposit.

The November 2015 presentation available at contains additional information about the Hope Bay gold project.

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