Agnico update for Malartic gold complex extends life to 2042, notes resource growth

Agnico Eagle Mines (TSX:AEM; NYSE:AEM) has shared an update on the Odyssey mine, part of the 100%-owned Canadian Malartic gold mine complex […]
The transition from open pit to underground at the Odyssey gold mine will extend the Canadian Malartic complex through 2042. Credit: Agnico Eagle Mines

Agnico Eagle Mines (TSX:AEM; NYSE:AEM) has shared an update on the Odyssey mine, part of the 100%-owned Canadian Malartic gold mine complex 25 km west of Val d’Or, Que. Since development of Odyssey was approved, resources have grown significantly and allow the company to extend the life of the complex. Project construction is underway.

"Since the initial discovery of the East Gouldie deposit in late 2018, the company has made tremendous progress bringing the Odyssey mine into production, initiating the transition from the largest open pit gold mine in Canada to the largest underground gold mine in Canada. We have added approximately 1.7 million oz. of gold to the mine plan and extended the mine life to 2042," said Ammar Al-Joundi, Agnico's president and CEO.

The company forecasts a 23% increase in payable gold from the Odyssey mine, supported by a larger resource. The mine plan now includes 2.8 million tonnes of reserves grading 2.22 g/t gold or 200,000 contained oz. The indicated resource is 45.5 million tonnes at 3.31 g/t gold or 4.8 million oz., and the inferred resource is 53.5 million tonnes at 2.32 g/t gold or 4.0 million oz.

Canadian Malartic is forecast to generate a positive free cash flow as the complex transitions from open pit to underground operation, even with a US$1,650/oz. gold price. Odyssey ore is expected to expanded production during the 2023 to 2028 transition period. From 2019 onward, the complex is expected to average 558,000 oz. of gold per year over 13 years at total cash costs of US$768/oz.

Construction of the new mine is largely on track, with $429 million spent from 2021 to June 2023. That number is about 11% higher than estimated three years ago, but the larger mineable resource partially offsets the effect of inflation on capital expenditures.  

Continuing capex costs for the last half of 2023 through to production in 2028 are expected to be $1.28 billion. Additional capex costs of $140 million have been added to access the East Malartic Deep area, and sustaining capital requirements are forecast to be about $66 million per  year.

Agnico expects to have up to 40,000 t/d of excess mill capacity at the Canadian Malartic complex starting in 2028 as processing of open pit ore and low-grade stockpiles transitions to the higher-grade Odyssey mine. This additional mill capacity provides significant optionality for organic growth at Odyssey, property-wide exploration upside and from the development of other projects in the company's regional pipeline.

Find information about Agnico’s regional exploration efforts on


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