Ontario Gold Mines
Ontario is Canada’s primary gold-producing province as of 2018, simply forward of Quebec. The main gold-producing geological construction in Ontario is the Abitibi Gold Belt. This gold belt is liable for a number of main gold-producing camps in Ontario, together with the Timmins Camp and the Kirkland Lake space.
It goes with out saying that Ontario is house to most of the main gold-producing corporations all through the world. And what firm would not wish to personal among the world’s largest gold mines in a protected, mining-friendly jurisdiction similar to Ontario? For those who do not personal any of the gold mining corporations in Ontario, you might wish to rethink. This text on Ontario gold mines can be a very good place to begin.
To start, listed below are the general public gold mining corporations which have gold-producing mines in Ontario. This text will solely give attention to corporations with producing mines, whereas a follow-up article will speak concerning the exploration and growth gold prospects in Ontario.
Public Gold Mining Corporations in Ontario
- Alamos Gold (AGI)
- Barrick Gold Corp. (GOLD)
- Kirkland Lake Gold (KL)
- McEwen Mining (MUX)
- Newmont Corp. (NEM)
- New Gold Inc. (NGD)
- Pan American Silver Corp. (PAAS)
- Wesdome Gold Mines (OTCPK:WDOFF)
Ontario Gold Mines 2019 Manufacturing and 2020 Forecast
Supply: Created by the creator
| Gold Mine – Firm |
2019 Manufacturing Gold Ounces |
2020 Forecast Gold Ounces |
| Detour Lake – Kirkland Lake Gold | 601,566 | 530,000 |
| Wet River – New Gold | 257,000 | 227,000 |
| Macassa – Kirkland Lake Gold | 241,297 | 215,000 |
| Porcupine – Newmont Corp. | 223,000 | 325,000 |
| Hemlo – Barrick Gold Corp. | 213,000 | 210,000 |
| Younger-Davidson – Alamos Gold | 188,000 | 140,000 |
| Island Gold – Alamos Gold | 150,400 | 135,000 |
| Timmins – Pan American Silver | 143,800 | 152,000 |
| Holt – Kirkland Lake Gold | 113,952 | 29,000 |
| Eagle River – Wesdome | 91,866 | 95,000 |
| Black Fox – McEwen | 35,693 | 25,000 |
| Musselwhite – Newmont Corp. | 3,000 | 95,000 |
Ontario Gold Mines 2019 AISC Per Ounce
Supply: Created by the creator
| Gold Mine – Firm | 2019 AISC Per Ounce |
| Island Gold – Alamos Gold | $656 |
| Macassa – Kirkland Lake Gold | $695 |
| Porcupine – Newmont Corp. | $935 |
| Eagle River – Wesdome | $975 |
| Timmins – Pan American Silver | $998 |
| Younger-Davidson – Alamos Gold | $1,047 |
| Hemlo – Barrick Gold Corp. | $1,140 |
| Black Fox – McEwen | $1,225 |
| Holt – Kirkland Lake Gold | $1,353 |
| Wet River – New Gold | $1,630 |
| Detour Lake – Kirkland Lake Gold | NA |
| Musselwhite – Newmont Corp. | NA |
Ontario Gold Mines 2020 Reserves and Sources
Supply: Created by the creator
| Gold Mine – Firm |
2020 Reserves & Sources (thousands and thousands) |
| Detour Lake – Kirkland Lake Gold | 19.67 |
| Porcupine – Newmont Corp. | 12.79 |
| Hemlo – Barrick Gold Corp. | 5.4 |
| Wet River – New Gold | 4.5 |
| Younger-Davidson – Alamos Gold | 4.45 |
| Island Gold – Alamos Gold | 3.68 |
| Macassa – Kirkland Lake Gold | 3.64 |
| Musselwhite – Newmont Corp. | 3.37 |
| Holt – Kirkland Lake Gold | 3.04 |
| Timmins – Pan American Silver | 2.2 |
| Black Fox – McEwen | 1.84 |
| Eagle River – Wesdome | 1.03 |
*Reserves and sources embody sum of confirmed & possible reserves, measured & indicated sources, and inferred sources.
Ontario Gold Mines 2019 Manufacturing/AISC/Reserves and Sources
Supply: Created by the creator
*The bubble represents the relative dimension of reserves and sources.
| Gold Mine – Firm | 2019 AISC |
2019 Manufacturing Gold Ounces |
Reserves & Sources (Hundreds of thousands) |
| Detour Lake – Kirkland Lake Gold | NA | 601,566 | 19.67 |
| Wet River – New Gold | $1,630 | 257,000 | 4.5 |
| Macassa – Kirkland Lake Gold | $695 | 241,297 | 3.64 |
| Porcupine – Newmont Corp. | $935 | 223,000 | 12.79 |
| Hemlo – Barrick Gold Corp. | $1,140 | 213,000 | 5.4 |
| Younger-Davidson – Alamos Gold | $1,047 | 188,000 | 4.45 |
| Island Gold – Alamos Gold | $656 | 150,400 | 3.68 |
| Timmins – Pan American Silver | $998 | 143,800 | 2.2 |
| Holt – Kirkland Lake Gold | $1,353 | 113,952 | 3.04 |
| Eagle River – Wesdome | $975 | 91,866 | 1.03 |
| Black Fox – McEwen | $1,225 | 35,693 | 1.84 |
| Musselwhite – Newmont Corp. | NA | 3,000 | 3.37 |
*Reserves and sources embody sum of confirmed & possible reserves, measured & indicated sources, and inferred sources.
Full Listing of Producing Gold Mines in Ontario
| Firm | Gold Mine |
| Alamos Gold | Island |
| Alamos Gold | Younger-Davidson |
| Barrick Gold Corp. | Hemlo |
| Kirkland Lake Gold | Detour Lake |
| Kirkland Lake Gold | Holt Complicated |
| Kirkland Lake Gold | Macassa |
| McEwen Mining | Black Fox |
| Newmont Corp. | Musselwhite |
| Newmont Corp. | Porcupine |
| New Gold | Wet River |
| Pan American Silver | Timmins |
Let me know if I’ve left any off of the listing within the feedback part.
Alamos Gold
Alamos Gold is the proprietor of the Island Gold and Younger-Davidson gold mines. These two gold mines are two out of Alamos Gold’s three producing gold mines. The third is the Mulatos gold mine situated close to Sonora, Mexico. Alamos Gold has a number of different exploration tasks, however it additionally has some initiatives to extend manufacturing at current gold mines. Alamos Gold presently trades with a market cap of about $4 billion.
Island Gold
The Island Gold Mine is situated simply to the northeast of Lake Superior and north of Hawk Junction about 45 kilometers. Island Gold is an underground mine whose mill has a processing price of 1,100 TPD. In July 2020, the corporate introduced it might be making an improve to deliver the power’s capability to 2,000 TPD.
In 2019, the mine produced 150,400 ounces of gold with an AISC of $656 per ounce. In 2020, manufacturing can be barely down at 135,000 ounces, with an estimated AISC of $760 per ounce. However with the COVID-19 disaster and the power improve coming, count on manufacturing to rebound and enhance within the coming years.
The mine has confirmed and possible reserves of 1.2 million ounces. It additionally has .18 of measured and indicated and a pair of.3 of inferred sources.
The next slide offers a very good overview of the efficiency at Island Gold since 2011. With the grade and the low AISC that this mine creates, continued progress in reserves and sources ought to imply important returns for shareholders.
Supply: Alamos Gold presentation
Younger-Davidson
The Younger-Davidson gold mine is situated in southeast Ontario and north of Sudbury, about 300 kilometers. The mine is an underground mine, which the corporate claims will “function Alamos’ basis for progress for a few years to return.”
In 2019, the Younger-Davidson mine produced 188,000 ounces of gold at an AISC of $1,047 per ounce. In 2020, it’s anticipated to supply 140,000 ounces of gold with an AISC of about $1,200 per ounce. A multi-year enlargement was accomplished in July of this 12 months, so search for manufacturing steering to be considerably increased in 2021.
The mine has confirmed and possible reserves of three.15 million ounces. It additionally has measured and indicated sources of 1.2 million ounces and inferred sources of .1 million ounces.
Barrick Gold Corp.
Barrick Gold Corp. is the proprietor of the Hemlo Gold Mine, situated in Ontario, east of Thunder Bay, about 350 km. The Hemlo mine has produced 21 million ounces and has operated repeatedly for 30 years. The mine is made up of each an underground mine and an open pit.
In 2019, the mine produced 213,000 ounces of gold with an AISC of $1,140 per ounce. In 2020, the mine is predicted to supply about 210,000 ounces at an AISC of $1,225 per ounce.
The mine has confirmed and possible reserves of 1.3 million ounces with measured and indicated sources of three.1 million ounces and inferred sources of 1 million ounces.
Here is the newest slide on the Hemlo mine from Barrick Gold Corp.’s Q2 presentation.
Supply: Barrick Gold Corp. Q2 2020 presentation
Barrick Gold Corp. presently trades with a market cap of $52 billion.
Kirkland Lake Gold
Kirkland Lake Gold is an Ontario success story all its personal. The corporate’s meteoric rise over the previous 5-10 years is way partially on account of its Ontario operations. Kirkland Lake Gold owns three gold mines in Ontario: Detour Lake, Macassa, and the Holt Complicated.
Detour Lake
The Detour Lake mine was acquired from Detour Gold in January of this 12 months. Kirkland Lake Gold bought the corporate for $4.9 billion in an all-stock deal. Many buyers imagine the Detour Lake deal was bought on sale by Kirkland Lake Gold. Solely time will inform, however the Detour Lake mine is a world-class asset.
In 2019, the mine produced 601,566 ounces of gold. The AISC numbers in 2019 weren’t instantly obtainable, because the Detour Gold firm now not exists. Nonetheless, in 2020, the mine is predicted to supply 530,000 ounces of gold at an AISC of $984 per ounce. Given this mine’s unbelievable manufacturing, it’s outstanding that this mine is predicted to have a 22-year mine life.
This mine has confirmed and possible reserves of 14.66 million ounces. It additionally has measured and indicated sources of three.88 million ounces and inferred sources of 1.13 million ounces.
Here is a slide exhibiting Detour Lake’s outcomes by means of Q2 2020.
Supply: Kirkland Lake Gold presentation
Holt Complicated
The Holt Complicated is situated close to Matheson, Ontario, and is an underground mine that produced 113,952 ounces of gold in 2019.
In 2020, the mine is predicted to supply simply 29,000 ounces with an AISC of $1,403 per ounce. The operations on the Holt Complicated are presently suspended and, as of Q2 outcomes, are anticipated to stay so for the foreseeable future. The corporate is reviewing all operations, and I imagine it’s seemingly that the Holt Complicated can be placed on care and upkeep.
Macassa
The Macassa mine is an underground mine situated close to Kirkland Lake Gold, Ontario. In 2019, it produced 241,297 ounces of gold with an AISC of $695 per ounce. In 2020, the mine is predicted to supply 215,000 ounces at an AISC of $897 per ounce.
The mine has confirmed and possible reserves of two.36 million ounces. It additionally has measured and indicated sources of .72 million ounces and inferred sources of .56 million ounces.
At present, the corporate is investing within the #4 shaft challenge on the Macassa mine, which it hopes will maintain and enhance manufacturing when accomplished.
McEwen Mining
McEwen Mining is the proprietor of the Black Fox Complicated close to the Timmins mining camp in Ontario. The mine is an underground mine, and manufacturing started in 2011. The mine facility has a capability of two,000 TPD.
In 2019, the mine produced 35,700 ounces of gold at an AISC of $1,225 per ounce. In 2020, the mine is predicted to supply 25,000 ounces with an AISC of $1,800 per ounce. As a disclaimer, McEwen did not have strong estimates, so I used its numbers by means of Q2 2020 and made my finest estimate on ounces and AISC for the 12 months 2020.
The corporate has confirmed and possible reserves of .064 million ounces. It additionally has 1.572 million ounces of measured and indicated sources and .2 million inferred ounces.
Though the Black Fox Complicated does not seem like something particular by the above manufacturing numbers and reserves, do not be fooled. McEwen Mining has motive to imagine it has one thing important for shareholders. The slide under illustrates among the extraordinarily high-grade deposits the corporate has discovered and compares them to different deposits it believes to be comparable. It’s presently implementing methods that can deliver the mine to 100,000 ounces of manufacturing per 12 months. If the corporate is appropriate, it might simply be scratching the floor.
Supply: McEwen Mining presentation
Newmont Corp.
Newmont Corp. is likely one of the largest gold mining corporations on the planet. It might make sense that the corporate has a few gold mines in Ontario. Newmont owns the Musselwhite mine and the Porcupine mine.
Musselwhite
The Musselwhite mine is situated 500 km north of Thunder Bay, Canada. Musselwhite is an underground mine situated beneath Lake Opapimiskan.
In 2019, the mine produced 3,000 ounces of gold at an AISC of $8,174 per ounce. This, clearly, is not thought-about commercially viable manufacturing.
In 2020, Newmont has continued work on a cloth dealing with system on the web site by putting in a shaft that can hoist the ore and scale back haulage distances. The corporate additionally put in a conveyor that can enhance supplies dealing with. These tasks, which have been in progress for fairly some time, are close to full and can be commissioned close to the tip of 2020.
In 2020, the corporate expects to supply 95,000 ounces at an AISC of $2,020 per ounce. It is going to be fascinating to see what manufacturing steering can be for 2021 with the brand new supplies dealing with system totally commissioned.
Porcupine
The Porcupine mine is situated close to town of Timmins, Ontario. At present, the mine produces ore from an underground mine in addition to an open-pit mine. As of now, the ore is processed on the Dome facility, although the Dome Underground mine now not produces ore.
In 2019, the Porcupine mine produced 223,000 ounces of gold at an AISC of $935 per ounce. In 2020, it expects to supply 325,000 ounces of gold at an AISC of $975 per ounce.
The mine has confirmed and possible reserves of two.82 million ounces. It additionally has measured and indicated sources of seven.36 million ounces and inferred sources of two.61 million ounces. This mine has an extended life forward of it.
New Gold, Inc.
New Gold is the proprietor of the Wet River mine situated 65 km northwest of Fort Frances, Ontario. Manufacturing started in September 2017, and the mine is comprised of a land package deal of 17,240 hectares.
In 2019, the mine produced 257,000 ounces of gold at an AISC of $1,630 per ounce. In 2020, the mine is predicted to supply 227,000 ounces at an AISC of $1,650 per ounce.
The mine has confirmed and possible reserves of two.6 million ounces and measured and indicated sources of 1.9 million ounces of gold.
Wet River was shut down briefly in 2020 for COVID-19 however restarted on April third. Here is the outlook for the mine per the corporate’s presentation.
Supply: New Gold presentation
Pan American Silver
Pan American Silver is the proprietor of the Timmins property made up of a number of mines, together with the Bell Creek mine.
In 2019, the mine produced 143,800 ounces of gold at an AISC of $998 per ounce. In 2020, it’s anticipated to supply 152,000 ounces at an AISC of $1,200 per ounce.
The mine has confirmed and possible reserves of .96 million ounces. It additionally has measured and indicated sources of .71 million ounces and inferred sources of .53 million ounces.
Pan American Silver presently trades with a market cap of $6.9 billion.
Wesdome Gold Mines
Wesdome Gold Mines is the proprietor of the Eagle River Complicated situated 50 kilometers west of Wawa, Ontario. The Eagle River Complicated is made up of two mines that feed the identical processing facility. This mine has produced 1.3 million ounces of gold from 1995 till at present.
In 2019, the mine produced 91,866 ounces of gold at an AISC of $975 per ounce. In 2020, it expects to supply 95,000 ounces of gold at an AISC of $1,110 per ounce.
The mine has confirmed and possible reserves of .55 million ounces. It additionally has measured and indicated sources of .11 million ounces and inferred sources of .37 million ounces.
Here is an outline of Eagle River mine supplied by Wesdome.
Supply: Wesdome Gold Mines presentation
Wesdome Gold Mines presently trades with a market cap of $1.5 billion.
Conclusion
Ontario is a prolific gold producing area on the planet. In 2019, simply the businesses talked about above produced 2.26 million ounces of gold. In accordance with the Ontario Mining Affiliation, the area produced 73,733 kilograms of gold in 2019, which equates to 2.6 million ounces of gold. Meaning I am lacking some gold manufacturing someplace, however it’s seemingly from different mines the place gold is not the first focus of manufacturing.
When a few of these corporations, it is exhausting to judge them by wanting on the gold mines alone, since most of them are a number of gold mine corporations. However out of those mines, those that stand out are the 2 mines from Alamos Gold and the Kirkland Lake Gold Detour Mine.
The rationale the 2 Alamos Gold mines stand out is that they match the corporate’s Lynn Lake challenge in Manitoba with good manufacturing numbers at enticing all-in sustaining prices. The Lynn Lake challenge is not producing but, however its projections are much like the corporate’s Ontario gold mines. Alamos Gold additionally has the Mulatos mine in Mexico, and while you take all that in conjunction, it appears this firm could also be price wanting into additional when it trades with a $4 billion market cap.
Second, I can not assist however be enamored by the Detour Lake mine. It is a 22-year challenge that’s producing over 500,000 ounces per 12 months. The probabilities are that the lifetime of mine can be for much longer than 22 years. I could not say with out digging into the numbers, however I are inclined to agree that Kirkland Lake Gold received an awesome take care of the Detour Lake acquisition. One has to surprise what gold can be price in 22 years. The money move from one 12 months alone may be capable of pay for this mine.
One of many classes to remove from the Detour Lake mine is that this mine was largely underexploited throughout its first 16 years earlier than it grew to become simply an exploration property. It produced 1.8 million ounces in its first 16 years, and at present, it produces that quantity in almost three years. The takeaway must be that while you see an organization that’s exploring a brownfield challenge, do not write it off, as a result of it could possibly be the following Detour Lake mine.
Additionally, when you think about the Detour Lake mine together with the Macassa mine, it solely makes Kirkland Lake Gold that rather more enticing. Though extra analysis is required, as Kirkland Lake Gold trades at a market cap of round $14.6 billion.
Lastly, based mostly on the Detour Lake mine, you possibly can see why some buyers are very enthusiastic about Wallbridge Mining (WLBMF) and even Probe Metals (PROBF), simply throughout the Ontario border.
That concludes this abstract of manufacturing Ontario gold mines. If I’ve left any producing mines off of the listing, please let me learn about them within the feedback part.
Disclosure: I/we have now no positions in any shares talked about, and no plans to provoke any positions throughout the subsequent 72 hours. I wrote this text myself, and it expresses my very own opinions. I’m not receiving compensation for it (aside from from Looking for Alpha). I’ve no enterprise relationship with any firm whose inventory is talked about on this article.
Extra disclosure: The creator of this text just isn’t a Registered Funding Advisor or Monetary Planner. This writing is for informational functions solely. It doesn’t represent a suggestion to promote, a solicitation to purchase, or a suggestion relating to any securities transaction. The knowledge contained on this writing shouldn’t be construed as monetary or funding recommendation on any subject material. The creator of this text expressly disclaims all legal responsibility in respect to actions taken based mostly on any or the entire info on this writing.