Page 54 expanding the V Zone westward at depth Confrmation drilling in the Whale T ail deposit returned 195 gt gold over 70 metres at 477 metres depth Intercepts such as 142 gt gold over 51 metres at 698 metres depth re open and expand the deep potential of the Whale T ail deposit to the west Under ground ramp development started in January 2018 is continuing at Amaruq and the Company is eval uating potentia l under ground mining scenarios How much gold The initial plan calls for the produc tion of approximately 21 million ounces of gold between 2019 and 2024 The Amaruq satellite deposit at Mead owbank has an estimated initial open pit mineral reserve of 24 million oz of gold 201 million tonnes grading 367 gt and an open pit and under ground indicated mineral resource of 10 million ounces gold 88 million tonnes grading 362 gt and an open pit and under ground inferred mineral resource of 17 million ounces gold 87 million tonnes grading 625 gt Agnico Eagle expects to produce be tween 135000 and 190000 oz of gold in 2019 at Amaruq s Whale T ail location The quantity will increase to between 260000 and 270000 oz in 2020 The mil l capac ity will be 9000 tonnes of ore per day The costs sustaining Amaruq s opera tion are projec ted to be about 330 million in capital costs and approxi mately 25 million operating costs per year Mine reclamation costs are estimated to be approximately 25 million Capital expenditures at Ama ruq in 2018 are forecast to be approxi mately 175 million and 66 million in 2019 On June 15 2017 the Company and the Kivalliq Inuit Association signed an Inuit Impact and Beneft Agree ment IIBA for the Whale T ail project The Whale T ail IIBA address es protection of Inuit values culture and language and provides for en hanced access by the Kivalliq Inuit to local employment training and busi ness opportunities arising from all phases of the project The IIBA con tains implemen tation and monitoring measures that will ensure these goals are achieved The Meliadine Gold Project is also lo cated in the Kivalliq District of Nuna vut approximately 25km northwest of Rankin Inlet on the west coast of Hudson Bay Canada That s 290 km south of the Meadowbank and Ama ruq location Meliadine once operational will be Agnico Eagle s biggest development project based on reserves and re sources The Meliadine Gold Mine Project is 1 1 1358hectare property loca ted near the western shore of Hudson Bay in the Kivalliq region of Nunavut about 25 km north of Rankin Inlet and 290 km southeast of Agnico Eagle s Meadowbank mine Meliadine is on budget and slightly ahead of schedule At the end of Q3 2018 construction was 89 complet ed and under ground development was proceeding as planned Commission ing of the process plant is expected to begin in Q1 2019 followed by the expected commencement of commer cial production in Q2 2019 Meliadine gold project has 37 million ounces of gold in proven and probable reserves 161 million tonnes at 712 gt and a lar ge mineral resource as of December 31 2017 The reserves are in the T irigania q and W esmeg depos its and the resources are in T iriganiaq and W esmeg plus another fve nearby deposits within a lar ge land package covering an 80kilometrelon g green stone belt W ith the advancement of the produc tion schedule new guidance estimates for 2019 gold production is approxi mately 170000 ounces and 385000 ounces of gold production in 2020 Overall production for the Meliadine gold project is now forecast to be ap proximately 57 million ounces of gold over a 15year mine life As a result of the two Agnico Eagle mining projects the Conference Board of Canada calls for increased economic activity in Nunavut In a statement issued in November the Conference reported that Nuna vut s economy will stay at or near the top of the growth charts for the next few years posting average annual growth of 73 per cent from 2018 to 2020 Mining will be the mai n driver of growth as Agnico Eagle prepares to bring its Meliadine mine and Ama ruq satellite deposit into operation and Sabina works on its Back River project The territory s gold produc tion is expecte d to peak in 2024 af ter which the territorial economy will grow at a more moderate pace Contd from pg 53 Page 54