Agnico-Eagle provides exploration update on 2008 activities
Stock Symbol: AEM (NYSE and TSX)
(All amounts expressed in U.S. dollars unless otherwise noted)
TORONTO, March 4 /CNW/ - Agnico-Eagle Mines Limited ("Agnico-Eagle" or
the "Company") is pleased to provide an update on its 2008 exploration
program. During 2008, the Company spent approximately $72 million on
exploration, including $38 million of exploration capitalized at its
development projects.
Exploration during 2008 resulted in a significant increase to the
Company's overall reserves and resources. See the following section titled
"Detailed Mineral Reserve and Resource Data" for the full details of the
Company's 2008 reserve and resource position.
Highlights of the 2008 Exploration Program Include:
- 8% increase in gold reserves to a record level of 18.1 million ounces
- 13% increase in the indicated gold resource to 3.2 million ounces
- 21% increase in the inferred gold resource to 5.8 million ounces
- At Meadowbank, mineralized zones extended at depth, and along strike,
at Goose South and Vault
- At Pinos Altos, new gold-silver reserves at San Eligio and Creston
Mascota zones total 0.5 million ounces of gold and 8.9 million ounces
of silver
- Kittila adds more than 1.3 million ounces of inferred gold resource
at depth on Suuri and Roura zones
"In 2008, we moved steadily towards our goal of 20 million ounces of gold
reserves from our existing projects with the addition of 1.4 million ounces of
reserves and 1.4 million ounces of resources" said Sean Boyd, Vice-Chairman
and CEO. "With improving drill access at several of our deposits, we expect to
reach 20 million to 21 million ounces of gold reserves by year end 2010. The
ongoing growth in our reserves is driving our scoping studies on four internal
production growth opportunities" added Mr. Boyd.
The Company's budgeted exploration expenditure in 2009 is approximately
$54 million and is expected to result in total drilling of approximately 221
kilometres utilizing 25 drill rigs.
Meadowbank Exploration Update
-----------------------------
At Meadowbank, the 2008 exploration campaign began in March with a
diamond drilling program followed by regional prospecting through early
September. Overall, 85 drill holes were completed for a total of 24,028
metres. Most of the drilling took place near the current resource envelopes at
Portage, Goose Island and Goose South and on other targets on the large
Meadowbank property, outside of the area of the mining licence.
http://www.agnico-eagle.com/files/Mar09_MeadowbankGeologyMap.pdf
A scoping study is underway to consider an increase in the production
rate at Meadowbank from the design rate of 8,500 tonnes per day to a target
rate of 10,000 tonnes per day. The study is considering a higher production
rate from the open pits, as well as a scenario where the pit material is
supplemented by underground ore from the Goose South deposit. Results of the
scoping study are expected in the third quarter of 2009.
Portage Deposit Extends On Southern End
On the Portage zone of the Meadowbank deposit, over 29 drill holes were
completed for a total of 5,451 metres in 2008. The focus of the exploration
program at Portage was to convert inferred resource located inside, or near,
the southern limit of the Portage Pit, and to explore the potential for
extending the Portage Pit to the south. In this area, the Bay and Portage
zones occur adjacent to each other.
One of the northernmost holes of the Portage exploration program, hole
TP08-774 (Section 5650N), cut two intervals corresponding to the Portage zone,
averaging 4.5 grams per tonne ("g/t") over 5.5 metres and 2.4 g/t over 6.0
metres, respectively. The thickness of each intersection in this news release
is considered to be true width, unless otherwise indicated.
Fifty metres to the south, hole TP08-769 (Section 5600N) returned several
Bay zone intersections, with the best averaging 11.8 g/t over 4.1 metres. On
the same section, hole TP08-768 intersected a Portage zone interval grading
1.8 g/t over 4.1 metres. These drill holes are highlighted on the vertical
cross section shown in the following link.
http://www.agnico-eagle.com/files/Mar09_PortageandBayZoneCrossSection.pdf
A further 50 metres to the south, hole TP08-767 (Section 5550N) also cut
two intervals of the Bay zone and returned 19.0 g/t over 4.3 metres and 5.2
g/t over 6.5 metres.
Another 50 metres to the south on Section 5500N, one of the most
significant results to date on the Bay zone structure came from drill hole
TP08-785, which intersected two separate lenses, grading 6.3 grams per tonne
of gold over 4.7 metres and 5.6 g/t over 4.1 metres. The same drill hole
intersected the Portage zone as well, returning 13.9 g/t of gold over 8.3
metres.
These results contributed to increasing the year-end gold reserves at
Meadowbank by 5% or 0.2 million ounces. The Portage and Bay zones remain open
to the south at depth for approximately 375 metres towards the Goose Island
deposit.
-------------------------------------------------------------------------
True Width From To
Drill hole Lens (metres) (metres) (metres) Gold (g/t)
-------------------------------------------------------------------------
TP08-767 Bay Zone 1 4.3 5.5 10.3 19.0
-------------------------------------------------------------------------
Bay Zone 2 6.5 12.5 23.3 5.2(*)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
TP08-768 Portage 4.1 128.2 132.6 1.8
-------------------------------------------------------------------------
-------------------------------------------------------------------------
TP08-769 Bay Zone 2 4.2 118.5 123 5.4
-------------------------------------------------------------------------
Bay Zone 3 11.3 129.5 142.9 2.9
-------------------------------------------------------------------------
including 4.2 129.5 134.5 5.3
-------------------------------------------------------------------------
Bay Zone 4 4.1 165 171 11.8
-------------------------------------------------------------------------
Bay Zone 5 7.9 194 206 2.0
-------------------------------------------------------------------------
including 2.5 201 205 4.1
-------------------------------------------------------------------------
-------------------------------------------------------------------------
TP08-773 Portage 8.8 164.2 173 4.8
-------------------------------------------------------------------------
-------------------------------------------------------------------------
TP08-774 Portage 105 5.5 73.0 78.5 4.5
-------------------------------------------------------------------------
Portage 100 6.0 129.0 135.1 2.4
-------------------------------------------------------------------------
-------------------------------------------------------------------------
TP08-782 Bay Zone 3 4.3 143.0 149.0 8.6
-------------------------------------------------------------------------
-------------------------------------------------------------------------
TP08-785 Bay Zone 2 4.7 77.4 82.6 6.3
-------------------------------------------------------------------------
Bay Zone 3 4.1 87.6 92.2 5.6
-------------------------------------------------------------------------
Portage 104 8.3 171.0 181.0 13.9(*)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(*) Cutting factors of 38 g/t and 145 g/t have been applied to these
sample results
Goose South Underground Potential Increasing
On the Goose South zone, 36 drill holes were completed in 2008 for a
total of 14,328 metres, to test the underground extension of the Goose Island
open pit deposit. This program was planned to increase the definition of the
zone to a depth of 300 metres, and also to test its depth potential from 300
metres to 600 metres.
In the upper portion, drill hole G08-797 on Section 4300N returned
encouraging values, as it intersected two intervals. The first, which was
associated with significant visible gold, returned 63.4 g/t over 3.0 metres
(6.4 g/t cut to 60 g/t ), while the second averaged 7.1 g/t over 3.8 metres.
In the deeper portion, at approximately 375 metres below surface, drill
hole G08-821 on Section 4600N returned 5.6 g/t of gold over 4.5 metres,
including 7.7 g/t over 3.4 metres. In the same area, drill hole G08-818 on
Section 4500N returned 7.9 g/t over 4.3 metres, including 12.0 g/t over 2.7
metres.
http://www.agnico-eagle.com/files/Mar09_GooseIslandGooseSouthLongSection.
pdf
Based on these encouraging results, the indicated gold resource at Goose
South has increased to approximately 0.4 million ounces in 2.9 million tonnes,
grading 4.2 g/t. In light of the zone being open at depth, an underground
exploration program, including a ramp system, is being evaluated to provide
better access to this zone.
-------------------------------------------------------------------------
Gold (g/t
True Width From To cut to
Drill hole Lens (metres) (metres) (metres) 60 g)
-------------------------------------------------------------------------
-------------------------------------------------------------------------
G08-797 Zone 1 3.0 317.6 324.5 6.4
-------------------------------------------------------------------------
Zone 2 3.8 295.1 300.9 7.1
-------------------------------------------------------------------------
-------------------------------------------------------------------------
G08-801 Zone 1 3.4 230.5 235 3.4
-------------------------------------------------------------------------
Zone 3 6.7 282 291.5 4.5
-------------------------------------------------------------------------
-------------------------------------------------------------------------
G08-805 Zone 2 4.4 310.5 317.2 5.3
-------------------------------------------------------------------------
-------------------------------------------------------------------------
G08-810 Zone 2 7.1 338 347 5.0
-------------------------------------------------------------------------
including 3.5 341 345 8.5
-------------------------------------------------------------------------
-------------------------------------------------------------------------
G08-818 Zone 1 4.3 548.7 555.3 7.9
-------------------------------------------------------------------------
including 2.7 548.7 552.8 12
-------------------------------------------------------------------------
-------------------------------------------------------------------------
G08-821 Zone 2 4.5 524.5 534 5.6
-------------------------------------------------------------------------
including 3.4 525.4 531.2 7.7
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Regional Exploration at Meadowbank Yielding Encouraging Results at Vault
South
In addition to regional prospecting to follow up on anomalies discovered
in 2007, twenty drill holes, for a total of 4,442 metres, were also completed
in 2008 on different targets outside of the current resource limits at
Meadowbank.
One of the most significant results occurred at Vault South. Following
the prospecting discovery of a similar style of gold mineralization to Vault,
one shallow drill hole VLT08-273, 180 metres in length, was completed to test
this new structure. This new zone of mineralization sits approximately one
kilometre to the southeast of the deposit.
This hole intersected 2.6 g/t of gold over a 4.1 metre thick interval at
a shallow depth (27 metres to 31.1 metres from the drill hole collar). This
discovery opens a new drilling area in the Vault deposit area and is typical
and similar to previous historical discoveries on the Meadowbank property.
For 2009, $11 million is budgeted for exploration in Meadowbank region in
Nunavut, including an estimated 47,800 metres in diamond drilling for resource
to reserve conversion and discovery of new gold zones.
Pinos Altos Exploration Update
------------------------------
During 2008, at Pinos Altos in Mexico, exploration crews focused on
converting resources to reserves on the Creston Mascota area and at the main
mine development area. In addition to the successful conversion of
approximately 0.4 million ounces of gold resources to reserves, the program
also confirmed new gold zones in areas identified during previous prospecting
campaigns. Creston Mascota is roughly seven kilometres to the northwest of the
main Santo Nino deposit at Pinos Altos.
http://www.agnico-eagle.com/files/Mar09_PinosAltosClaimMap.pdf
http://www.agnico-eagle.com/files/Mar09_PinosAltosGeologyMap.pdf
Good Results at Creston Mascota on the Pinos Altos Property
As a result of exploration activities in 2008, the Company reported a new
probable reserve at Creston Mascota of 0.4 million ounces of gold and 3.7
million ounces of silver from 6.7 million tonnes grading 1.7 g/t of gold and
17.1 g/t of silver.
Prospecting and mapping programs carried out in 2008, and to date in
2009, have traced the Creston Mascota mineralization further to the southwest
of the original deposit. A road and drill pads have been built. Approximately
5,000 metres of drilling in 2009 are planned to extend mineralization in this
zone.
A feasibility study is expected to be released soon on the potential to
add incremental production from the Creston Mascota deposit. The study is
considering a stand-alone heap leach operation.
http://www.agnico-eagle.com/files/Mar09_CrestonMascotaCrossSection.pdf
San Eligio Returns High Grade Intersections
Drilling on the San Eligio deposit (a zone roughly 600 metres to the
north and parallel to the main Santo Nino deposit at Pinos Altos) has shown
the presence of a higher grade core located less than 200 metres below the
surface. The deposit has been traced for approximately one kilometre east-west
and is still open along strike and at depths below 300 metres. An initial
reserve at San Eligio was estimated in 2008, with probable open pit and
underground reserves totaling 118,000 ounces of gold and 5.2 million ounces of
silver from 1.4 million tonnes, grading 2.6 g/t of gold and 115 g/t of silver.
http://www.agnico-eagle.com/files/Mar09_SanEligioLongitudinalSection.pdf
At San Eligio, the geological interpretations and the results obtained
from deep and lateral exploration drilling suggest that there is a high grade
area in the Eastern part of the deposit. Several drill holes testing this area
returned high grade gold intersections. Hole PA-08-318 on Section 5300E
returned 5.2 g/t of gold and 150.5 g/t of silver over 3.8 metres. Hole
PA-08-325 on Section 5500E returned 16.8 g/t of gold and 361.7 g/t of silver
over 4.2 metres associated with significant visible gold and silver, while
hole PA-08-327, also on Section 5500E, returned 8.8 g/t of gold and 171.1 g/t
of silver over 6.9 metres at approximately 200 metres below surface.
-------------------------------------------------------------------------
True Width From To Gold Silver
Drill hole (metres) (metres) (metres) (g/t) (g/t)
-------------------------------------------------------------------------
PA-08-309 4.0 147.0 151.0 5.08 279.3
-------------------------------------------------------------------------
PA-08-312 5.2 171.0 182.0 2.89 130.6
-------------------------------------------------------------------------
PA-08-316 6.3 179.5 193.3 1.23 96.0
-------------------------------------------------------------------------
PA-08-318 3.8 95.5 101.0 5.24 150.5
-------------------------------------------------------------------------
including 2.1 98.0 101.0 8.69 164.3
-------------------------------------------------------------------------
PA-08-320 7.2 58.8 67.2 5.05 128.0
-------------------------------------------------------------------------
including 1.7 62.0 64.0 14.75 251.0
-------------------------------------------------------------------------
PA-08-322 3.7 222.5 230.0 2.36 125.7
-------------------------------------------------------------------------
including 0.6 225.0 226.3 11.30 461.0
-------------------------------------------------------------------------
PA-08-325 4.1 302.8 315.2 16.82 361.7
-------------------------------------------------------------------------
including 0.6 304.3 306.0 20.00 402.5
-------------------------------------------------------------------------
also including 0.6 312.0 313.7 97.26 613.3
-------------------------------------------------------------------------
PA-08-327 6.9 235.1 242.0 8.86 171.1
-------------------------------------------------------------------------
including 3.9 235.1 239.0 13.65 229.1
-------------------------------------------------------------------------
One drill rig is currently pursuing the extensions of the deposit,
including delineating the high-grade area. It is expected that this initial
reserve will grow during 2009 as almost 18,700 metres of drilling are planned
in minesite exploration in 2009.
Exploration results at Creston Mascota and San Eligio contributed to the
1.1 million ounce increase in gold reserves and 27 million ounce increase in
silver reserves at Pinos Altos (increases of 41% and 37% respectively). Almost
$11 million in exploration spending is budgeted in 2009, mainly on the Pinos
Altos region, including an estimated 38,700 metres of diamond drilling.
Kittila Exploration Update
--------------------------
Exploration at the Kittila mine in northern Finland in 2008 has increased
proven and probable gold reserves to 3.2 million ounces (21.4 million tonnes
grading 4.7 g/t) and more than doubled the inferred gold resource to almost
2.5 million ounces (17.6 million tonnes grading 4.4 g/t), compared to 2007.
http://www.agnico-eagle.com/files/Mar09_KittilaClaimMap.pdf
The increase in probable reserves at Kittila is largely due to
underground exploration success on the Roura zone. This led to an increase in
year-end gold probable reserves at Roura of 150,000 ounces (a 27% increase to
0.7 million ounces in 5.1 million tonnes grading 4.4 g/t), as well as an
additional 190,000 ounces of inferred gold resource (a 19% increase compared
to year-end 2007 to almost 250,000 ounces in 2.6 million tonnes grading 3.0
g/t). Underground ramp access has now reached both the Roura and the Suuri
zones, where exploration with two diamond drills in 2009 will begin to explore
its potential and better define known underground reserves, which currently
extend to a depth of 675 metres below surface.
http://www.agnico-eagle.com/files/Mar09_KittilaLongitudinalSection.pdf
Three Lenses Extend at Depth
The main Suuri zone is made up of three roughly parallel lenses - East,
Central and West. Prior to 2008, resource exploration at depth had focused on
the East lens only. During 2008, the potential of all three lenses had begun
to be tested. Additional drills were added which were capable of testing all
three gold structures below the depths of the current Suuri zone reserves and
resources.
http://www.agnico-eagle.com/files/Mar09_KittilaCrossSections.pdf
Since September 2008, when the initial 1.0 million ounce inferred
resource for the East lens was announced, a new inferred resource has been
discovered below the Suuri zone reserves associated with the Central lens. In
addition, a new deep intercept on the Suuri zone's West lens suggests that all
three lenses may extend to depth.
Additional drilling at depths up to 1,000 metres has continued to
intersect the East Zone over a one kilometre long strike length, north to
south. In holes SUU08005, SUU08006 and SUU08007 (see table below), multiple
medium to high grade gold intercepts have been cut over significant
thicknesses at depths of 800 metres or more, similar to results at the
original Suuri deposit. Accordingly, more deep exploration at Suuri is planned
for 2009.
The discovery of the Central lens resource has helped increase the Suuri
inferred gold resource at depth by 1.3 million ounces compared to year end
2007 to 2.0 million ounces in 12.7 million tonnes grading 4.8 g/t.
Since July 2008, when the possible depth extension of the Central lens
was interpreted, several drill holes, including SUU08005 and SUU08008B have
confirmed an inferred resource. SUU08005 intercepted the Central lens at Suuri
at a depth of approximately 1,000 metres and returned 4.0 g/t gold over 13.1
metres (including a 5.3 m interval grading 6.4 g/t). Hole SUU08008B cut a
similar thick interval of mineralization associated with the Central lens (2.8
g/t over 21.0 metres including 4.1 g/t over a more narrow interval of 2.8
metres), but at a more shallow depth over 200 metres away from SUU08005.
One of the most significant intercepts was in hole ETE08002 on Section
36170N, which cut the Western lens and returned 5.6 g/t gold over 3.5 metres
in mineralization at a depth of approximately 500 metres. Although this
intercept is not the deepest (about five intersections in the Western lens are
known at about 700 metres depth further North at Suuri), it is significant
because, prior to this intersection, the drilling had been so widely spaced
and continuity was not as certain.
Central Roura Zone May Be Strike Extension of Main Suuri Deposit at
Kittila
Over 500 metres north of the Suuri zone intercepts, deep drilling of the
Central Roura zone has continued to return significant results which may
eventually lead to another expansion of the deep gold resource at Kittila.
Hole ROU08002 cut 4.0 g/t gold over 6.1 metres at a depth of almost 750
metres. In 2009, four drills will test Suuri and Roura at depth. A scoping
study is currently underway to investigate the economic potential of mining
these deep gold resources at Suuri and Roura and expand gold production at
Kittila. The study is expected to be complete in the fourth quarter of 2009.
-------------------------------------------------------------------------
True Width From To
Drill hole Lens (metres) (metres) (metres) Gold (g/t)
-------------------------------------------------------------------------
SUU08005 EAST 1 7.7 844.95 856.00 2.00
-------------------------------------------------------------------------
SUU08005 EAST 2 4.9 860.00 867.00 6.91
-------------------------------------------------------------------------
SUU08006 EAST 1 8.8 862.50 875.00 4.34
-------------------------------------------------------------------------
SUU08007 EAST 1 3.9 872.00 877.60 7.06
-------------------------------------------------------------------------
SUU08007 EAST 2 6.4 891.00 900.15 3.53
-------------------------------------------------------------------------
-------------------------------------------------------------------------
SUU08005 CENTRAL 13.1 1067.25 1086.00 3.95
-------------------------------------------------------------------------
including CENTRAL 5.3 1073.45 1081.00 6.36
-------------------------------------------------------------------------
SUU08008B CENTRAL 21.0 839.00 869.00 2.84
-------------------------------------------------------------------------
including 1 CENTRAL 2.8 847.00 851.00 4.11
-------------------------------------------------------------------------
including 2 CENTRAL 9.1 856.00 869.00 3.39
-------------------------------------------------------------------------
-------------------------------------------------------------------------
ETE08002 WESTERN 3.5 617.00 622.00 5.55
-------------------------------------------------------------------------
-------------------------------------------------------------------------
ROU08002 ROURA-B 6.1 844.60 853.35 3.98
-------------------------------------------------------------------------
Additional delineation drilling is planned to test for extensions to open
pit and underground reserves at shallow depths of the Kittila deposit, which
is open to the north.
The Kittila mine and the surrounding Suurikuusikko property in Finland
are beginning to show their potential for the discovery of 5 million ounces or
more of gold reserves, similar to the LaRonde deposit and the entire
Doyon-LaRonde gold trend in the Abitibi. Consequently, the 2009 exploration
budget for Kittila is the largest ever at approximately $16 million, and
includes 67,500 metres in diamond drilling, with up to 8 drill rigs operating
throughout the year to help identify the gold reserve and resource potential
of the Kittila mine property. In addition, almost $5 million of exploration
expense, including an estimated 18,500 metres of diamond drilling, is planned
for exploration along the 25 kilometre Suurikuusikko gold trend and other
targets in Finland.
About Agnico-Eagle
Agnico-Eagle is a long established Canadian gold producer with operations
located in Quebec and Finland and exploration and development activities in
Canada, Finland, Mexico and the United States. Agnico-Eagle's LaRonde mine is
Canada's largest operating gold mine in terms of reserves. The Company has
full exposure to higher gold prices consistent with its policy of no forward
gold sales. It has declared a cash dividend for 27 consecutive years.
Agnico-Eagle's registered office is located at 145 King Street East, Suite
400, Toronto, Ontario M5C 2Y7.
Supplementary Information
Portage and Vault Drillhole Location Table
-------------------------------------------------------------------------
Length
Drill Hole ID N(*) E Z Azimuth Dip (m)
-------------------------------------------------------------------------
TPO8-767 5550 1895 5134 90 -53 207
-------------------------------------------------------------------------
TPO8-768 5600 1959 5134 91 -78 177
-------------------------------------------------------------------------
TPO8-769 5600 1788 5134 89 -66 311
-------------------------------------------------------------------------
TPO8-773 5575 1944 5135 87 -77 186
-------------------------------------------------------------------------
TPO8-774 5650 1911 5138 92 -59 210
-------------------------------------------------------------------------
TPO8-782 5550 1814 5135 88 -70 299
-------------------------------------------------------------------------
TPO8-785 5500 1858 5135 87 -63 222
-------------------------------------------------------------------------
VLT08-273(xx) 641259 7219245 139.8 320 -50 180
-------------------------------------------------------------------------
(*) Coordinate System is local mine grid in metres
(xx)Coordinate System is UTM NAD83 Z15
Detailed Mineral Reserve and Resource Data (as at December 31, 2008)
-------------------------------------------------------------------------
Au Ag Cu Zn Pb Au (000s Tonnes
Category and Zone (g/t) (g/t) (%) (%) (%) oz.) (000s)
-------------------------------------------------------------------------
Proven Mineral Reserve
-------------------------------------------------------------------------
Goldex 1.95 27 434
-------------------------------------------------------------------------
Kittila 4.84 31 199
-------------------------------------------------------------------------
Lapa 7.53 6 23
-------------------------------------------------------------------------
LaRonde 2.76 67.87 0.33 3.27 0.37 362 4,075
-------------------------------------------------------------------------
Pinos Altos 1.35 19.08 4 97
-------------------------------------------------------------------------
Subtotal Proven Mineral
Reserve 2.77 430 4,828
-------------------------------------------------------------------------
Probable Mineral Reserve
-------------------------------------------------------------------------
Goldex 2.05 1,544 23,391
-------------------------------------------------------------------------
Kittila 4.69 3,193 21,171
-------------------------------------------------------------------------
Lapa 8.80 1,055 3,730
-------------------------------------------------------------------------
LaRonde 4.52 31.18 0.28 1.42 0.12 4,612 31,735
-------------------------------------------------------------------------
Meadowbank 3.45 3,638 32,773
-------------------------------------------------------------------------
Pinos Altos 2.68 74.61 3,589 41,669
-------------------------------------------------------------------------
Subtotal Probable
Mineral Reserve 3.55 17,631 154,469
-------------------------------------------------------------------------
Total Proven and
Probable Mineral
Reserves 3.53 18,061 159,297
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Au Ag Cu Zn Pb Tonnes
Category and Zone (g/t) (g/t) (%) (%) (%) (000s)
-------------------------------------------------------------------------
Indicated Mineral
Resource
-------------------------------------------------------------------------
Bousquet 5.63 1,704
-------------------------------------------------------------------------
Ellison 5.68 415
-------------------------------------------------------------------------
Goldex 1.79 220
-------------------------------------------------------------------------
Kittila 2.99 3,471
-------------------------------------------------------------------------
Lapa 4.36 987
-------------------------------------------------------------------------
LaRonde 1.83 26.77 0.15 1.55 0.16 6,349
-------------------------------------------------------------------------
Meadowbank 2.17 21,956
-------------------------------------------------------------------------
Pinos Altos 1.00 26.08 12,468
-------------------------------------------------------------------------
Total Indicated Resource 2.07 47,569
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Au Ag Cu Zn Pb Tonnes
Category and Zone (g/t) (g/t) (%) (%) (%) (000s)
-------------------------------------------------------------------------
Inferred Mineral
Resource
-------------------------------------------------------------------------
Bousquet 7.45 1,667
-------------------------------------------------------------------------
Ellison 5.81 786
-------------------------------------------------------------------------
Goldex 2.42 11,949
-------------------------------------------------------------------------
Kittila 4.42 17,550
-------------------------------------------------------------------------
Lapa 7.97 761
-------------------------------------------------------------------------
LaRonde 5.91 18.91 0.44 0.77 0.08 4,937
-------------------------------------------------------------------------
Meadowbank 2.78 4,953
-------------------------------------------------------------------------
Pinos Altos 1.65 39.95 4,000
-------------------------------------------------------------------------
Total Inferred Resource 3.84 46,603
-------------------------------------------------------------------------
Forward-Looking Statements
The information in this press release has been prepared as at March 3,
2009. Certain statements contained in this press release constitute
"forward-looking statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and forward looking information under
the provisions of Canadian provincial securities laws. When used in this
document, words such as "anticipate", "expect", "estimate," "forecast,"
"planned", "will", "likely" and similar expressions are intended to identify
forward-looking statements and are referred to herein as "forward-looking
statements".
Such statements include without limitation: the Company's forward looking
production guidance, including estimated ore grades, metal production, life of
mine horizons, and projected exploration and capital expenditures, including
costs and other estimates upon which such projections are based; the Company's
goal to increase its mineral reserves and resources; and other statements and
information regarding anticipated trends with respect to the Company's
operations and exploration. Such statements reflect the Company's views as at
the date of this press release and are subject to certain risks, uncertainties
and assumptions. Forward-looking statements are necessarily based upon a
number of factors and assumptions that, while considered reasonable by
Agnico-Eagle as of the date of such statements, are inherently subject to
significant business, economic and competitive uncertainties and
contingencies. The factors and assumptions of Agnico-Eagle contained in this
news release, which may prove to be incorrect, include, but are not limited
to, the assumptions set forth herein and in management's discussion and
analysis as well as: that there are no significant disruptions affecting
operations, whether due to labour disruptions, supply disruptions, damage to
equipment, natural occurrences, political changes, title issues or otherwise;
that permitting, development and expansion at each of Agnico-Eagle's
development projects proceeds on a basis consistent with current expectations,
and that Agnico-Eagle does not change its development plans relating to such
projects; that the exchange rate between the Canadian dollar, European Union
euro, Mexican peso and the United States dollar will be approximately
consistent with current levels or as set out in this news release; prices for
gold, silver, zinc, copper and lead will be consistent with Agnico-Eagle's
expectations; that prices for key mining and construction supplies, including
labour costs, remain consistent with Agnico-Eagle's current expectations; that
production meets expectations; that Agnico-Eagle's current estimates of
mineral reserves, mineral resources, mineral grades and mineral recovery are
accurate; that there are no material delays in the timing for completion of
ongoing development projects; and that there are no material variations in the
current tax and regulatory environment. Many factors, known and unknown, could
cause the actual results to be materially different from those expressed or
implied by such forward looking statements. Such risks include, but are not
limited to: the volatility of prices of gold and other metals; uncertainty of
mineral reserves, mineral resources, mineral grades and mineral recovery
estimates; uncertainty of future production, capital expenditures, and other
costs; currency fluctuations; financing of additional capital requirements;
cost of exploration and development programs; mining risks; risks associated
with foreign operations; governmental and environmental regulation; the
volatility of the Company's stock price; and risks associated with the
Company's byproduct metal derivative strategies. For a more detailed
discussion of such risks and other factors, see the Company's Annual
Information Form and Annual Report on Form 20-F for the year ended December
31, 2007, as well as the Company's other filings with the Canadian Securities
Administrators and the U.S. Securities and Exchange Commission (the "SEC").
The Company does not intend, and does not assume any obligation, to update
these forward-looking statements and information, except as required by law.
Accordingly, readers are advised not to place undue reliance on
forward-looking statements. Certain of the foregoing statements, primarily
related to projects, are based on preliminary views of the Company with
respect to, among other things, grade, tonnage, processing, mining methods,
capital costs, total cash costs, minesite costs, and location of surface
infrastructure and actual results and final decisions may be materially
different from those current anticipated.
Notes To Investors Regarding The Use Of Resources
Cautionary Note To Investors Concerning Estimates Of Measured And
Indicated Resources.
This press release may use the terms "measured resources" and "indicated
resources". We advise investors that while those terms are recognized and
required by Canadian regulations, the SEC does not recognize them. Investors
are cautioned not to assume that any part or all of mineral deposits in these
categories will ever be converted into reserves.
Cautionary Note To Investors Concerning Estimates Of Inferred Resources.
This press release may also use the term "inferred resources". We advise
investors that while this term is recognized and required by Canadian
regulations, the SEC does not recognize it. "Inferred resources" have a great
amount of uncertainty as to their existence, and great uncertainty as to their
economic and legal feasibility. It cannot be assumed that all or any part of
an inferred mineral resource will ever be upgraded to a higher category. Under
Canadian rules, estimates of inferred mineral resources may not form the basis
of feasibility or pre-feasibility studies, except in rare cases. Investors are
cautioned not to assume that part or all of an inferred resource exists, or is
economically or legally mineable.
Scientific And Technical Data
Agnico-Eagle Mines Limited is reporting mineral resource and reserve
estimates in accordance with the CIM guidelines for the estimation,
classification and reporting of resources and reserves.
Cautionary Note To U.S. Investors - The SEC permits U.S. mining
companies, in their filings with the SEC, to disclose only those mineral
deposits that a company can economically and legally extract or produce. We
use certain terms in this press release, such as "measured", "indicated", and
"inferred", and "resources" that the SEC guidelines strictly prohibit U.S.
registered companies from including in their filings with the SEC. U.S.
Investors are urged to consider closely the disclosure in our Form 20-F, which
may be obtained from us, or from the SEC's website at: http://idea.sec.gov. A
"final" or "bankable" feasibility study is required to meet the requirements
to designate reserves under Industry Guide 7. Estimates were calculated using
historic three-year average metals prices and foreign exchange rates in
accordance with the SEC Industry Guide 7. Industry Guide 7 requires the use of
prices that reflect current economic conditions at the time of reserve
determination which Staff of the SEC has interpreted to mean historic
three-year average prices. The assumptions used for the mineral reserves and
resources estimate reported by the Company on February 18th, 2009 were based
on three year average prices for the period ending December 31, 2008 of $725
per ounce gold, $13.32 per ounce silver, $1.27 per pound zinc, $3.15 per pound
copper, $0.90 per pound lead and C$/US$, US$/Euro and MXP/US$ exchange rates
of 1.09, 1.37 and 11.00, respectively.
The Canadian Securities Administrators' National Instrument 43-101 ("NI
43-101") requires mining companies to disclose reserves and resources using
the subcategories of "proven" reserves, "probable" reserves, "measured"
resources, "indicated" resources and "inferred" resources. Mineral resources
that are not mineral reserves do not have demonstrated economic viability.
A mineral reserve is the economically mineable part of a measured or
indicated resource demonstrated by at least a preliminary feasibility study.
This study must include adequate information on mining, processing,
metallurgical, economic and other relevant factors that demonstrate, at the
time of reporting, that economic extraction can be justified. A mineral
reserve includes diluting materials and allows for losses that may occur when
the material is mined. A proven mineral reserve is the economically mineable
part of a measured resource for which quantity, grade or quality, densities,
shape and physical characteristics are so well established that they can be
estimated with confidence sufficient to allow the appropriate application of
technical and economic parameters, to support production planning and
evaluation of the economic viability of the deposit. A probable mineral
reserve is the economically mineable part of an indicated mineral resource for
which quantity, grade or quality, densities, shape and physical
characteristics can be estimated with a level of confidence sufficient to
allow the appropriate application of technical and economic parameters, to
support mine planning and evaluation of the economic viability of the deposit.
A mineral resource is a concentration or occurrence of natural, solid,
inorganic or fossilized organic material in or on the earth's crust in such
form and quantity and of such a grade or quality that it has reasonable
prospects for economic extraction. The location, quantity, grade, geological
characteristics and continuity of a mineral resource are known, estimated or
interpreted from specific geological evidence and knowledge. A measured
mineral resource is that part of a mineral resource for which quantity, grade
or quality, densities, shape, physical characteristics, can be estimated with
a level of confidence sufficient to allow the appropriate application of
technical and economic parameters, to support mine planning and evaluation of
the economic viability of the deposit. The estimate is based on detailed and
reliable exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes that are spaced closely enough to confirm both
geological and grade continuity. An indicated mineral resource is that part of
a mineral resource for which quantity, grade or quality, densities, shape and
physical characteristics can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and economic
parameters, to support mine planning and evaluation of the economic viability
of the deposit. The estimate is based on detailed and reliable exploration and
testing information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes that are spaced
closely enough for geological and grade continuity to be reasonable assumed.
An inferred mineral resource is that part of a mineral resource for which
quantity and grade or quality can be estimated on the basis of geological
evidence and limited sampling and reasonably assumed, but not verified,
geological and grade continuity. The estimate is based on limited information
and sampling gathered through appropriate techniques from locations such as
outcrops, trenches, pits, workings and drill holes.
The mineral reserves presented in this disclosure are exclusive of
mineral resources.
The contents of this press release have been prepared under the
supervision of, and reviewed by, Marc Legault P.Eng., Vice-President Project
Development and a "Qualified Person" for the purposes of NI 43-101.
The effective date for all of the Company's mineral resource and reserve
estimates in this press release is December 31st, 2008. No independent
verification of the data has been published. Additional information about each
of the mineral projects that is required by NI 43-101, sections 3.2 and 3.3
and paragraphs 3.4 (a), (c) and (d) can be found in the Technical Reports
referred to below, which may be found at www.sedar.com. Other important
operating information can be found in the Company's press release dated
December 3, 2008.
-------------------------------------------------------------------------
Qualified Person Date of most recent
responsible for the SEDAR Technical
current Mineral Resource Report (NI 43-101)
Property and Reserve Estimate disclosure
-------------------------------------------------------------------------
LaRonde, Bousquet & François Blanchet Ing., March 24, 2005
Ellison, Quebec, LaRonde Division
Canada Superintendent of geology
-------------------------------------------------------------------------
Kittila, Finland Marc Legault P.Eng., December 11, 2008
VP Project Development
-------------------------------------------------------------------------
Pinos Altos, Chihuhua, Dyane Duquette, P.Geo., September 24, 2007
Mexico senior geologist, Abitibi
Technical Services Group
-------------------------------------------------------------------------
Meadowbank, Nunavut, Dyane Duquette, P.Geo., December 15, 2008
Canada senior geologist, Abitibi
Technical Services Group
-------------------------------------------------------------------------
Goldex, Quebec, Canada Richard Genest, Ing., October 27, 2005
Goldex Division
Superintendent of geology
-------------------------------------------------------------------------
Lapa, Quebec, Canada Normand Bédard, P.Geo., June 8, 2006
Lapa Superintendant of
geology
-------------------------------------------------------------------------
For further information: David Smith, VP, Investor Relations, (416)
947-1212
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