Lynn Lake Project Canada

Home Operations Development Projects Lynn Lake, Canada

Quick Facts

Ownership
100%
Location
Manitoba, Canada
Status
Permitting
Operation
Open Pit, Milling
Commodity
Gold

Lynn Lake is one of the highest-grade open pit gold deposits in Canada. With its low costs and excellent infrastructure already in place, the project represents a significant opportunity to drive the future growth of our business in Canada.

Feasibility Study Highlights - 2017

Average Annual Production1

oz Au (thousands)

143

Total cash cost1

US$/oz

$645

Mine-Site All-in Sustaining Costs2

US$/oz

$745

1 Average annual gold production for years 1 to 10.
2 Please refer to Cautionary Notes on non-GAAP Measures and Additional GAAP Measures.

Mineral Reserves and Resources

as of December 31, 20192

Proven and Probable
Mineral Reserves

000 oz Au

1,884

Measured and Indicated
Mineral Resources

000 oz Au

560

Inferred
Mineral Resources

000 oz Au

1,663

2 M&I Mineral Resources exclusive of Mineral Reserves. Please see 2019 year end Mineral Reserves and Resources statement for additional detail.

Lynn Lake Mine Map Larger

The Lynn Lake project is located in northern Manitoba and consists of two primary sites, MacLellan and Gordon, which are just east of the Town of Lynn Lake.

The Lynn Lake gold project is a strategic, lower-risk opportunity in a past-producing gold camp. It consists of five near surface deposits and has significant existing infrastructure. Its two primary deposits are the MacLellan mine and the Gordon mine, which were the subject of a positive feasibility study published in December 2017. The study outlines average annual production of 143,000 ounces over a 10-year mine life at mine-site all-in sustaining costs of $745 per ounce. The Environmental Impact Study (EIS) was submitted in May 2020 to satisfy federal and provincial environmental assessment requirements. The permitting process is expected to take approximately two years followed by two years of construction.

AuRico Gold acquired a 25% interest in the Lynn Lake project in 2014 by entering into a joint venture agreement with Carlisle Goldfields. The agreement provided AuRico with an option to earn up to a 60% interest by continuing to fund the project and delivering a feasibility study. Following Alamos Gold’s merger with AuRico Gold in 2015, Alamos acquired Carlisle Goldfields, consolidating full ownership of Lynn Lake. A positive feasibility study was completed on the project in December 2017.

The project is situated in the North belt of the Lynn Lake Greenstone Belt within the Churchill Structural Province of the Canadian Shield. The North belt is a north-facing homocline and consists of rhyolites, overlain by andesite and basalt, sedimentary rocks and an upper balaltic unit. Both the MacLellan and Gordon deposits are located within this belt, which has been termed the “Rainbow Trend”.

MacLellan mine project: The mineralized system is hosted within a unique stratigraphic sequence known as the Agassiz Metallotect within the Wasekwan Group rocks of the North belt. The Agassiz Metallotect comprises interlayered siltstones, basalts, iron formations and minor felsic volcanics. The MacLellan mine is hosted by an interbedded sequence of biotite-rich to siliceous siltstone and high magnesium basaltic flows and minor tuffs. Overlying and underlying this mine sequence are massive and fragmental mafic volcanic rocks. The mine is subdivided longitudinally into three mineralized deposits, from west to east they are the Rainbow-Dot deposit, the MacLellan deposit and the Nisku deposit. All of these deposits are located south of a major east-west trending fault structure known as the North Shear Zone.

Gordon mine project: The deposit is hosted in a Pre-Cambrian sedimentary iron formation. The iron formation in the Gordon area is six kilometres long by 600 metres wide and is predominantly composed of an oxide facies iron formation that is intercalated with clastic sediments. Mineralization is in discordant sulphide lenses within silicified, chloritized and sulphidized oxide facies iron formation.

The Gordon and MacLellan deposits will be developed using conventional truck and shovel open pit mining methods. They are expected to operate concurrently for the first six years of operation, with Gordon being depleted first given its higher grades and lower stripping ratio. As the Gordon pit nears depletion, mining equipment will be transferred to MacLellan and utilized over the remainder of its mine life. Following pre-production periods, combined mining rates are expected to range between 20.5 and 27.0Mt per year over the first seven years.

Lynn Lake’s proposed process plant will be a conventional milling and leaching/carbon-in-pulp (“CIP”) operation with a 7,000 tpd capacity. It will consist of crushing, grinding, thickening, pre-aeration and leaching, CIP, cyanide detoxification, carbon elution and regeneration, and gold smelting. Low-cost hydroelectric power will be supplied by Manitoba Hydro. Over the life of mine, combined gold recoveries are expected to average 92%. A tailings management facility will be constructed approximately 3 kilometres northeast of the planned open pit and plant site at MacLellan.