Agnico Eagle Mines Limited has reported a positive investment decision for its Hope Bay project, in Nunavut, Canada, following the completion of a preliminary economic assessment that contemplates an underground mining operation supported by a 6,000 t/d processing facility with estimated annual gold production of between 400,000 and 435,000 oz.
The 2026 study outlines an initial mine life of 11 years, with substantial upside potential from regional exploration across the highly prospective 80-km greenstone belt extending south from the Doris mine to the Boston deposit, where the company continues to pursue an aggressive exploration program, Agnico says.
Ammar Al-Joundi, Agnico Eagle’s President and Chief Executive Officer, said: “We are incredibly proud of our team for transforming Hope Bay from a vision into one of Canada’s most important new mines in just five years. With expected annual production of over 400,000 oz and total cash costs below $1,000 per oz, based on only half the declared mineral resources drilled, Hope Bay has the potential to evolve into a long-life, district-scale mining camp for decades to come.
“The construction and redevelopment of Hope Bay will support the long‑term sustainability of our Nunavut operating platform at between 800,000 oz and 1 Moz of annual gold production and represents the first major milestone toward delivering our targeted 20% to 30% production growth over the next decade. We are also proud that this investment will contribute to the economic development of northern Canada and enable meaningful, long‑term economic participation for Indigenous organisations and partners, including the Kitikmeot Inuit Association.”
The start-up plan contemplates three mining fronts (Doris at the Doris deposit; and Madrid and Patch 7 at the Madrid deposit) supported by a conventional 6,000 t/d milling facility. This could see average annual steady state gold production of approximately 435,000 oz and an average of approximately 408,000 oz over the full initial 11-year mine life.
The initial development capital expenditures are estimated at approximately $2.4 billion, including reconstruction of the processing facility, addition of a 37 MW diesel generator power plant, mobile equipment, upgrades to the tailings facility and approximately 33 km in underground development, positioning the operation for multi-decade potential.
Detailed engineering on the project is approximately 62% complete, providing a high level of confidence in the capital cost estimate and execution plan, the company says. Significant surface infrastructure upgrades have been completed, including enhancements to port facilities, camp infrastructure and water management systems, supporting the ramp-up of construction activities.
The 2026 study is based on a mineral resource estimate which relies on a drill database cut-off of August 28, 2025. The company has since drilled more than 130 holes totalling over 100,000 m at Hope Bay to the end of April 2026 in an ongoing exploration program. Recent exploration results show the potential to significantly expand the underground mineral resource between Suluk and Patch 7, to the south of Patch 7 towards Patch 14, and at depth.
Over the next three years, as part of the company’s exploration budget, more than $100 million in exploration spending is planned at Hope Bay, primarily focused on conversion and expansion drilling of the current underground mineral resource. Work in 2026 includes continued testing and extension of the Patch 7 zone and the resumption of diamond drilling at Boston.
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