AUGUST 2022- NEWSLETTER

Agnico Eagle is pleased to provide an update on its activities in the Kirkland Lake area and, more specifically, the Upper Beaver Project in our August 2022 newsletter.

Agnico Eagle is a senior Canadian gold mining company with more than 65 years of experience, operating mines in Canada, Australia, Finland and Mexico, and employs over 15,000 people worldwide.

KIRKLAND LAKE AREA – GENERAL UPDATE ON EXPLORATION AND LEGACY SITES

EXPLORATION

Exploration work in the Kirkland Lake area is shifting towards different targets in the third quarter of 2022 as conversion drilling at Upper Beaver and Amalgamated Kirkland wrap up.  Other, earlier-stage targets such as Bidgood and Avalard will take priority with an increase in field-work (prospecting, mapping and sampling). A single diamond drill is forecast to continue drilling through the rest of 2022, starting near the historic Bidgood mine and moving to other targets based on results from the drilling and mapping programs.

LEGACY SITES 

Agnico Eagle has taken a proactive approach to managing legacies mine sites within the Kirkland Lake camp. Activities are continuing in 2022 with the following activities:

•    Conducted geotechnical drilling and void surveys at the former Bidgood mine to understand potential reclamation and rehabilitation requirements.
•    Inspector from the Ministry of Mines, Ministry of Northern Development, and Ministry of Natural Resources and Forestry conducted a site visit at the Swastika property to understand remediation research and planning underway.
•    Other monitoring and management work including fence inspection and repairs and hazard identification ongoing.

UPPER BEAVER PROJECT UPDATE

UPPER BEAVER PROJECT REVIEW

In the 1930s, this deposit was mined from surface to a 400-metre depth, exploiting narrow high-grade zones containing gold and copper. Agnico Eagle is planning to develop, operate and eventually reclaim a new open pit and underground, gold and copper mine and processing facility at the Upper Beaver project site.

Upper Beaver is mainly an underground project that was initially planned to be developed by ramp and shaft only (underground development).  However, to address a rock stability issue at surface related to the historical underground development, Agnico Eagle is proposing an open pit mine that would operate for only the first four to five years of the project.

Several development scenarios are now under review, some of which are evaluating the potential to use existing infrastructure at the Macassa mine or the Holt property, which is currently on care and maintenance.

Agnico Eagle also intends to conduct an Advanced Exploration program at Upper Beaver, to collect underground bulk samples to confirm the mineral value, mining parameters, model and ore body and extraction methods.

FIELD WORK ON SITE

Agnico Eagle plans to install additional monitoring wells on the Upper Beaver Property. Installation of these monitoring wells were initially planned for 2021, but was postponed to this year. Agnico Eagle is hoping to start the work around mid-September.

These wells will serve to monitor groundwater quality and levels around the site prior and during activities on site. The new monitoring wells will provide better coverage of the Upper Beaver proposed site.

FIGURE – Groundwater quality and level program at Upper Beaver

Work continues with baseline field work, such as surface water quality sampling, ambient air monitoring, terrestrial and aquatic surveys that will be used as reference information in future assessments of the project.

AGNICO EAGLE UPPER BEAVER PROJECT PUBLIC INFORMATION SESSION

As we continue to explore Upper Beaver’s potential, we are committed to sharing information about the project on a regular basis and to conducting meaningful community engagement. Agnico Eagle has regular meetings with, and provides updates to, Indigenous Nations and various stakeholders. To reach a larger audience, all citizens of Larder Lake, Township of Gauthier, Kirkland Lake Town and the surrounding areas, were invited to participate in a Public Information Session that was held on June 15, 2022, at the municipal building in Larder Lake.

During this information session, Agnico Eagle:

•    provided an update following the merger of equals with Kirkland Lake Gold;
•    provided an update on the Advanced Exploration program;
•    provided an update on the Upper Beaver Gold Project and the Impact Assessment process; and
•    answered questions and collected feedback.

Over 50 participants were present during this session, coming from different areas close to the project such as Larder Lake, Kirkland Lake, Dobie, Virginia Town, King Kirkland, and more. There was a discussion period before and after the presentation made by Agnico Eagle to allow participants time to ask questions and receive more information. At the end of the session, participants were invited to fill out a survey to share feedback about the Project and the Information Session.

Participants were satisfied with the session, and overall were pleased with the information presented. Through the survey, people were asked to identify the topics they would like to have more information on. The majority mentioned that they wanted to know more about impact on the local residents and community, resources for the community, local accommodations, housing, population growth, etc. Agnico Eagle will consider input gathered through this session for the coming communications and engagement activities. For more information, the report of this session and the results of the survey can be found on the project website at: https://upperbeaver.agnicoeagle.com/documents-downloads/.

FEDERAL IMPACT ASSESSMENT PROCESS

In December 2021, the Impact Assessment Agency of Canada (IAAC) confirmed that a federal impact assessment under the Impact Assessment Act is required for the Upper Beaver Gold Project.

From January to March, the Agency conducted its 40-day public comment period on the draft Tailored Impact Statement Guidelines (TISG) and the draft Public Participation Plan for the Upper Beaver Project and invited the public and the Indigenous groups to provide feedback on both documents. The Guidelines outline the specific factors to be considered in the assessment of the project and provide direction to the proponent on the information and studies required in its Impact Statement.

In April 2022, the IAAC released the Notice of Commencement of an Impact Assessment. Agnico Eagle will proceed in collecting all required information and conducting the relevant studies to evaluate the potential effects and impacts of the project in accordance with the requirements outlined in the TISG.

NEXT STEPS

Agnico Eagle’s project team continue to assess the potential for operational synergies between our combined assets in Kirkland Lake and getting prepared for the impact statement preparation. Agnico Eagle is presently collecting all required information that will be used to evaluate the potential effects and impacts of the project in accordance with the requirements outlined in the Tailored Impact Statement Guidelines provided by IAAC.

This will require additional engagement activities with Indigenous Nations and the public. We invite you to consult the News and Events tab on the website at upperbeaver.agnicoeagle.com. If you have not already signed up to receive our email alerts, please go to the «Contact Us» section of the project website to register.

TALK TO US – WE’RE HERE TO HELP YOU STAY INFORMED

It is by talking to each other that we can learn about your concerns or observations and provide the best information on our project. Your feedback can help us improve our practices and contribute to the development of the best possible project for everyone.  Please feel free to contact us with any questions.