Joint venture partners Yamana Gold and Agnico Eagle have approved the C$1.7-billion construction of the Odyssey gold project at Canadian Malartic, in Quebec.

The underground project will extend the life Canadian Malartic – Canada’s largest operating openpit gold mine – to 2039, yielding an average of 545 000 oz/y from 2029 to 2039, at a total cash cost of $630/oz.

“One of Canada's largest underground gold mining projects will come to fruition right here in Malartic. The future mine's life is expected to extend until 2039 and operations could continue well beyond that, given the deposit's significant potential," said operator Canadian Malartic mine GM Serge Blais in a statement.

Between 200 and 500 people will be working at the site of the future Odyssey mine until 2028. An estimated 1 500 full-time employees will be needed at the peak of operations by 2031.

“This is huge for the region's economy and that of Québec,” Blais pointed out.

The future Odyssey mine will be accessed by a ramp and a shaft estimated at 1.8 km deep. Plans are to extract 19 000 t of ore at an estimated grade of about 2.75 g/t gold and roughly 5 000 t/d of waste rock during peak operations.

The ore will be processed at Canadian Malartic mine's existing plant, which will eventually be adapted to the future mine's needs.

Partner Yamana pointed out that Odyssey will be one of the most modernised electric underground mines. All major mobile production equipment, such as trucks, scoop trams, jumbos, bolters, and longhole drill rigs, will be electric powered.

The mine will also feature an LTE mobile communication network, automated trucks operated from the surface and on-demand ventilation.

The technical study for Odyssey delivered robust returns. At a gold price of $1 550/oz, Odyssey has a net present value of $1.14-billion and an internal rate of return of 17.5%.