Backgrounder

From the Prime Minister's Web Site (http://www.pm.gc.ca/)

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Meadowbank gold mine

August 24, 2011
Baker Lake, Nunavut

The Meadowbank gold mine, Nunavut's only operating mine, is owned and operated by Agnico-Eagle Mines Ltd. (AEM)

Since beginning commercial production in March 2010, the mine has been providing substantial economic benefits to local residents and businesses. In addition to providing many years of seasonal employment for residents of Baker Lake and other local communities, the mine also used northern based suppliers for 41% of the $1.26 billion expended on mine construction and operations between 2007 and 2010.

The mine has also provided significant benefits for the local Inuit communities. In addition to 39% of the mine's permanent workforce being Inuit, the mining company pays royalties to Nunavut Tunngavik Inc. (the Inuit land claim organization in Nunavut) given that it is located on Inuit land. In 2010/11 the mine dispensed approximately $10 million in royalties to the Inuit.

The Federal Government has provided support to get the mine up and running. Several federal departments participated in the environmental and socio-economic assessment of the Meadowbank Project conducted by the Nunavut Impact Review Board. As well, the Government has supported the advancement of mineral exploration in Nunavut through many regional and detailed geological mapping and structural geology research projects.

Meadowbank is a good example of how government geoscience supports mineral exploration and development in the North. It also shows how the new generation of northern mines are bringing direct benefits to Inuit communities while ensuring the protection the environment.

The Meadowbank mine and its transportation infrastructure operate under strict environmental management and monitoring conditions.

Quick Facts on the Meadowbank Mine:

• Full-time AEM Employees (as of July 31, 2011): 769
  
• Inuit Full-time AEM Employees (as of July 31, 2011): 289
  
• Estimated mine life: 2010-2019
  
• Type of mine: open-pit mining
  
• Average Annual Gold Production (year 1-4): 400,000 ounces
  
• Total cash costs per ounce: 2011e - $700
  
• Open Pit Gold Reserves: 3.64 million ounces (34 million tonnes at 3.2 grams/tonne (g/t))
  
• Indicated resource: 1.4 million ounces (26 million tonnes at 1.7 g/t)
  
• Inferred resource: 0.7 million ounces (10 million tonnes at 2.2 g/t)

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The Prime Minister's Office - Communications
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