THE MIDWAY PROJECT
The Midway Project is located east and south of the Canadian Malartic Mine. It is owned and operated by the Canadian Malartic Mine, a partnership between Agnico Eagle and Yamana Gold, which acquired the project in 2016.
The NSR covers Shaft 1 of the formerly producing Malartic Goldfields Mine, which operated from 1939 to 1965, to a depth of approximately 800 metres below surface (Fig. 1). The Malartic Goldfields Mine produced approximately 1.7 million ounces of gold (A breakdown of the gold production covered by Abitibi Royalties' 1.5% NSR is unknown. Please see the Technical Report link below for an overview of Malartic Goldfields historical production). A decline ramp into the near surface zones, believed to be covered by the Company's NSR, was most recently advanced up until 2010.
In 2008, Northern Star filed a NI 43-101 resource estimate Technical Report. The Technical Report can be downloaded here. The Technical Report is for informational proposes only, historical in nature and should not be relied upon. Abitibi Royalties' NSR does not include two claims referenced in the Technical Report (CM306 and CM309). Northern Star's SEDAR profile contains additional news releases that highlights drill results and underground development after the Technical Reports publication. Abitibi Royalties believes the Midway Project has similar underground bulk tonnage potential as the East Malartic and Odyssey zones. In 2017, approximately US$1.3 million was budgeted for 9,000 meters of drilling at Midway.
A total of 1.0% of the NSR can be repurchased by the Canadian Malartic Mine by paying US$1.0 million (CDN$1.3 million based on current exchange rates) to Abitibi Royalties.