Meadowbank gold mine sets production record

Agnico-Eagle Mines says it set a three-month production record at the Meadowbank gold mine outside Baker Lake in the second quarter of 2012.

The company released its second-quarter financial results Thursday, reporting Meadowbank achieved a record quarterly production of 98,403 ounces. The company also reports an overall net income of $43.3 million.

Nunavut's only operating mine has battledhigh costs and operational issues. Earlier this year the company said it would shorten the life of the mine to close in 2017 rather than 2020, after reporting anoverall loss of $600 millionin the fourth quarter of 2011.

Agnico-Eagle president Sean Boyd said addressing some of the challenges and restructuring the way it operates could mean a longer mine life at Meadowbank.

"We've seen how it's performed for two quarters so we will be working on that over the next six to 12 months," said Boyd.

"We do have some flexibility that was built into the new plan to allow us to extend it a couple of years."

The Meadowbank mine poured its first gold bar in 2010. Agnico-Eagle is planning to open another gold mine at its Meliadine project near Rankin Inlet.

The Meadowbank mine contributes roughly 15 per cent of the GDP for the entire territory.

Elizabeth Kingston,with the N.W.T. and Nunavut Chamber of Mines in Iqaluit, said the emerging mining industry could pave the way to Nunavut's economic self-reliance.

"Broadly speaking, Nunavut could see as many as 4,000-plus workers being introduced to the economy within the next five years," she said.