Canadian Malartic Mine
3% NSR Odyssey and East Malartic

Odyssey Project

Odyssey Zones

Odyssey North is proximate to the Odyssey South Zone and together, these zones comprise the "Odyssey Project" that is east of the main Canadian Malartic Mine open pit.  Abitibi Royalties' holds a 3% NSR on the Odyssey North and other portions of the Odyssey Project.

East Malartic

East Malartic was the largest historical gold producer in the Malartic camp and is directly adjacent to the Canadian Malartic Mine.   In 2017, an initial inferred mineral resource was declared on the East Malartic property by the mine operators.

Resource Estimate

The inferred resource estimate for Odyssey, East Malartic, Barnat & Jeffrey that is subject to Abitibi Royalties' 3% NSR (as at December 31, 2017) is listed below.

Inferred Resource Estimate for Odyssey, East Malartic, Barnat & Jeffrey (3% NSR)

Category Area Tons Metric) Gold Grade (g/t) Contained Ounces
Inferred Resource ODY-EM-BA-JF 32,779,651 2.2 2,313,925

*BA = Barnat, Jeffrey = JF, Odyssey = ODY, East Malartic = EM

Exploration Update

The mine operators reported that during 2017, a total of 125 holes (86,051 metres) were completed at the Odyssey Property.

The mine operators also reported that the planned exploration program for 2018 consists of 140,000 metres of drilling. The focus will be on the shallower portions of the Odyssey South and East Malartic Zone and further drilling to better define the geometry of the higher-grade Internal Zones.

Odyssey - Possible Production

Odyssey is envisioned as a bulk tonnage underground deposit, similar to the Agnico Eagle Goldex mine located 15 km to the southeast. Yamana states in its Q3-2016 News Release "This deposit (Odyssey) supports optionality for enhanced production and life of mine" and has stated that Odyssey could operate between 8,000-10,000 tonnes per day (tpd).

Internal Zones at Odyssey

In 2017, the mine operators also announced a number of significant drill results from the newly discovered internal zones that extend from the Odyssey North Zone.

The mine operators announced in February 2018 that the inferred mineral resource for Odyssey only included a small contribution from the Jupiter Zone which is an internal zone that extends from the Odyssey North Zone (Fig. 2). The mine operators state that drilling carried out to date suggests that the Internal Zones could increase mineral resources and enhance the economics of the project by adding higher-grade ounces that would require minimal additional infrastructure to access.  Additional drilling is required to fully understand the complex nature of these zones so that they might be integrated into the mineral resource model.  Please see Fig. 3 for the area of focus at East Malartic that Abitibi Royalties believes was the basis for the resource estimate relative to East Malartic's mineralized envelope.

Norrie – Bulk Tonnage Underground Deposit

The Norrie Zone is located 200 metres southeast of the ultimate Canadian Malartic open pit. Limited drilling from the 1960s and drilling from 2007 encountered wide intersections of gold mineralization similar to Agnico Eagle's Goldex mine. Results included 1.7 gpt gold over 236.3 metres, 1.4 gpt gold over 234.7 metres and 1.5 gpt gold over 107 metres.

Drilling at the Norrie Zone indicates a mineralized zone measuring at least 380 metres long, up to 260 metres wide and approximately 100 metres thick. Although deep, these intersections appear to indicate the presence of a very large system of Canadian Malartic-style disseminated gold mineralization.

Technical Information

Based on publicly-available information, Abitibi Royalties believes the majority of the Jupiter Zones (1-4) and Internal North Zones (N1-N8) that are collectively part of the Internal Zone are located inside Abitibi Royaltie's 3% NSR (Fig. 2). Abitibi Royalties can make no assurances that all or any of the potential future additions to the Internal Zones resources stated by Agnico Eagle would come from the area covered by Abitibi Royalties' 3% NSR. Please see Fig. 3 for a schematic longitudinal section of the Canadian Malartic Mine and the area of focus at the East Malartic Zone that is believed to be the basis for the resource estimate at East Malartic relative to East Malartic's mineralized envelope. Abitibi Royalties can make no assurances that all or any potential resource additions at East Malartic would come from the area covered by Abitibi Royaltie's 3% NSR.  Abitibi Royalties believes that the areas at East Malartic covered by its NSR include the deep portions of the respective Main/East Zones and the Porphyry Swarm, East Porphyry and Chert/Wedge Zone (Fig. 4). The latter three zones may straddle the southern boundary of Abitibi Royaltie's NSR at depth and the Chert/Wedge Zone along strike to the east, although there can be no assurances that this is the case.  These zones are in addition to the Norrie Zone, which straddles the boundary of Abitibi Royaltie's NSR to the west and south (Fig. 4). Abitibi Royalties can make no assurance that all or any of the planned 140,000 metres of drilling in 2018 will be in the areas covered by Abitibi Royalties' various royalties. For more information on the reserves and resources at the Canadian Malartic Mine, please see Agnico Eagle and Yamana Gold's news releases dated February 14 and 15, 2018. 

For more information regarding the resource estimate, see press release dated March 19, 2018.

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