Agnico’s $2.4B Hope Bay mine: production, cost and risk notes for engineers
Reviewed by Joe Ashwell

First reported on MINING.com
30 Second Briefing
Agnico Eagle Mines has approved construction of the $2.4 billion Hope Bay underground complex in Nunavut’s Kitikmeot region, targeting first production in about four years from three long-hole stoping deposits (Doris, Madrid and Patch 7) feeding a 6,000 t/d plant. The project is scoped for 400,000–435,000 oz. gold per year over an initial 11-year life, with total cash costs of about $942/oz, AISC of $1,199/oz and sustaining capex of $1.1 billion, based on measured and indicated resources of 31.97 Mt at 5.63 g/t. Agnico has already secured key environmental permits and leases, is advancing water licence amendments, and will spend over $100 million on exploration to 2028, including conversion drilling and potential satellite development at Boston.
Technical Brief
- Economic analysis shows after-tax NPV of $2.7B and 19% IRR at $3,600/oz gold.
- At current ~$4,500/oz gold, NPV increases to $4.3B with IRR rising to 26%.
- Land package covers 1,951 sq. km, combining Crown claims, mining leases and Inuit‑owned lands.
- Orogenic gold deposits (Doris, Madrid, Patch 7) are structurally controlled within the Hope Bay greenstone belt.
- Measured and indicated resources: 31.97 Mt at 5.63 g/t for 5.79 Moz contained gold.
- Inferred resources: 17.33 Mt at 5.97 g/t, totalling 3.33 Moz contained gold.
- More than 100,000 m of drilling since August 2025 is excluded from the current resource model.
- Hope Bay is projected to generate about C$2.6B per year in export value once in steady state.
- Asset was acquired via Agnico’s 2021 takeover of TMAC Resources, with mining suspended for exploration refocus.
Our Take
Hope Bay’s gold development in Nunavut comes as Agnico Eagle is simultaneously committing C$14 billion to projects in Ontario by 2030, signalling that the company is comfortable running multiple large Canadian build-outs in parallel rather than sequencing them region by region.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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