Odyssey is envisioned as a bulk tonnage underground deposit, similar to the Agnico Eagle Goldex mine located 15 km to the southeast. Abitibi Royalties holds a 3% NSR on portions of the Odyssey Project (Fig 1).
East Malartic was the largest historical gold producer in the Malartic camp and is directly adjacent to the Canadian Malartic Mine.
Abitibi Royalties was informed that the resource estimate for East Malartic used a depth cut-off of 1,000 metres below surface. Mineralization below this depth, which is evidenced by prior underground mining and exploration drilling, has not yet been calculated into a NI 43-101 resource estimate. Abitibi Royalties’ management believes there remains good potential to add additional resources below 1,000 metres based on the several mineral horizons that are known to extend below this depth.
The inferred resource estimate for Odyssey, East Malartic, Barnat & Jeffrey that is subject to Abitibi Royalties' 3% NSR (as at December 31, 2018) is listed below.
Resource Estimate for Odyssey, East Malartic, Barnat & Jeffrey (3% NSR)
|Total M & I Resources
*BA = Barnat, Jeffrey = JF, Odyssey = ODY, East Malartic = EM
Agnico Eagle has stated that the Canadian Malartic exploration programs in 2019 will consist of 47,300 metres of drilling. Exploration programs are ongoing to evaluate several deposits to the east of the Canadian Malartic open pit where the Company holds an NSR on all or part of the mineralized zone, including Odyssey, East Malartic, Sladen, Sheehan and Midway.
and East Malartic
During 2018, a total of 66,396 metres were drilled at East Malartic and 54,825 metres at the Odyssey Project.
In December 2018, the mine operators received the permit and Certificate of Authorization for the development of an underground ramp at Odyssey. The ramp will provide access for underground drilling and collection of a bulk sample. Abitibi Royalties' 3% NSR royalty at Odyssey and East Malartic applies to any bulk sample or other form of production within the NSR boundaries. The goal of the underground development program is to provide higher grader feed to the Canadian Malartic mill and extend the current mine life.
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.
Although Abitibi Royalties believes there is potential to expand the East Malartic resource estimate within the area covered by its 3% NSR, Abitibi Royalties can make no assurances that all or any potential increase will come from the area covered by the 3% NSR. In addition, Abitibi Royaltiescan make no assurances that all or any of the planned 47,300 metres of drilling in 2019 will be in the areas covered by Abitibi Royalties’ various royalties. Furthermore, Abitibi Royalties can make no assurances that all or any bulk sample will come from the area covered by Abitibi Royalties’ 3% NSR. 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, 2019.
For more information regarding the resource estimate, see press release dated March 14, 2019.