Agnico-Eagle provides annual operating guidance; Declares 28th consecutive
annual cash dividend; Technical session at King Edward Hotel, Toronto on Dec.
17
Stock Symbol: AEM (NYSE and TSX)
(All amounts expressed in U.S. dollars unless otherwise noted)
"As we complete the last of our five new mines, our gold production is set to double in 2010," said
Highlights of this corporate update include: - 2010 dividend of $0.18 per share. Declared a dividend for 28th consecutive year - Pinos Altos declared commercial as of November 1, 2009 - Payable gold production(1) forecast for 2010 remains unchanged at 1.0 million to 1.1 million ounces. Total cash costs per ounce(2) are expected to average $399 in 2010 - Gold production expected to average nearly 1.4 million ounces annually from 2011 to 2014 with total cash operating costs expected to average of approximately $393 per ounce - Exploration upside remains intact with approximately $76 million of exploration expenditures budgeted in 2010, comprising 300 kilometres of drilling
Analysts, bankers, salespeople and investors are invited to attend a technical update on the Company's mines and projects on
Via Webcast:
A live audio webcast of the meeting will be available on the Company's website homepage at www.agnico-eagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial 416-644-3415 or Toll-free 800-814-4860. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.
Replay archive:
Please dial the 416-640-1917 or Toll-free access number 877-289-8525, passcode 4190782 followed by the number sign.
The conference call will be replayed from
Continued Gold Production Growth At Low Cash Costs
The Company is announcing its production and cost guidance for 2010 through 2014. In 2010, payable gold production is expected to be between 1.0 million and 1.1 million ounces, up more than 100% from the projected level in 2009, as all of the Company's six gold mines should be in commercial production. Total cash costs per ounce in 2010 are expected to average approximately
With the Meadowbank commissioning underway and start-up expected in
During the past year there have been significant changes in certain factors which will continue to affect Agnico-Eagle's total cash cost per ounce going forward. For example, the Canadian dollar and the Euro have strengthened against the US dollar. Additionally, there has been recent escalation in labour and shipping and transportation costs. Also, the slower than expected ramp-up at Pinos Altos has resulted in a lower expectation for gold production in 2010 at this mine.
------------------------------------------------------------------------- Estimated Payable Gold Production and Total Cash Costs per Ounce 2010 2011 2012 2013 2014 ------------------------------------------------------------------------- Payable Gold Production LaRonde 179,700 172,100 208,200 283,100 328,600 Meadowbank 299,900 347,300 390,400 433,300 455,600 Goldex 164,000 166,800 175,000 169,500 164,800 Lapa 115,600 118,500 118,400 116,500 118,300 Kittila 147,100 151,500 153,200 166,100 159,500 Pinos Altos 150,900 206,000 226,000 202,100 203,700 Pinos Altos - Creston Mascota - 60,700 52,300 40,900 36,100 ------------------------------------------------------ 1,057,200 1,222,900 1,323,500 1,411,500 1,466,600 ------------------------------------------------------ Total cash costs per ounce* LaRonde $220 $186 $289 $370 $359 Meadowbank 460 534 469 414 399 Goldex 318 307 332 342 329 Lapa 506 515 519 525 515 Kittila 502 541 515 497 525 Pinos Altos 401 272 188 299 294 Pinos Altos - Creston Mascota - 322 344 423 493 ------------------------------------------------------ $399 $398 $379 $399 $393 ------------------------------------------------------ * Total cash cost per ounce for all years were calculated using the following metals prices and exchange rates (royalties included where applicable): ------------------------------------------------------------------------- Effect on Total Cash Cost Per Ounce of 10% Base Case Assumptions Change in Base Case Assumptions ($/oz) ------------------------------------------ 2010 2011 2012 2013 2014 ------------------------------------------------------------------------- Silver ($/oz) 14.00 7 8 8 4 3 Zinc ($/lb) 0.82 6 5 4 1 1 Copper ($/lb) 2.77 2 2 2 2 2 C$/US$ 1.10 37 35 33 30 29 US$/Euro 1.40 7 6 6 6 6 -------------------------------------------------------------------------
Major Capital Projects Nearing Completion
Agnico-Eagle is nearing the end of a significant construction phase during which the Company has spent more than
The Company's balance sheet is well positioned to fund these initiatives. The cash balance at
Capital expenditures are expected to total approximately
2010 Capital Exploration Budget Expenditures -------------------------- Capital Budget Capitalized Expensed LaRonde Sustaining 28,039 3,472 LaRonde Depth Extension 64,872 Goldex 13,785 3,376 Lapa 28,175 3,237 Meadowbank 95,300 6,352 Kittila 57,315 16,262 Pinos Altos 37,267 3,377 Creston Mascota construction 51,715 Grassroots exploration 38,949 Corporate Devt. & Project Evaluations 2,135 ---------------------------------------- ---------------------------------------- Sub-total 376,468 36,076 40,084 Capitalized commissioning costs 50,000 ---------------------------------------- Total 426,468 36,076 40,084 ---------------------------------------- ----------------------------------------
The following link may be pasted into a web browser for more detailed information on the capital expenditures by project, by year.
http://www.agnico-eagle.com/files/EstimatedCapitalExpenditures_Dec09.pdf
In 2011, capital expenditures are expected to decline to approximately
Through 2011, the Company expects to be self-funding as significant internal cash flow is expected to be generated from the sale of approximately 2.3 million ounces of gold and the associated byproduct metals.
The capital expenditure budget does not include the expected expenditures for the eventual expansions at Kittila, Meadowbank and Pinos Altos. The studies for Meadowbank and Pinos Altos are expected to be reviewed during 2010 while the Kittila study is expected in early 2011. The capital and more specific timelines will be presented following the reviews. Based on initial timelines and costs, Agnico-Eagle expects to be able to internally fund these growth projects.
Operational Improvements Ongoing
The attached table presents the status of each of the Company's mines and projects. Significant operational improvements have been made and further optimization is expected in 2010.
http://www.agnico-eagle.com/files/ProjectStatusUpdate_Dec09.pdf
LaRonde's Solid and Steady Performance Continues
At the 100% owned LaRonde mine in northwestern
In 2010, payable gold production at LaRonde is expected to decline to approximately 180,000 ounces, as gold grades are scheduled to decline until 2012 when the deeper, and richer, ore of the LaRonde Extension is accessed. From 2011 through 2014, gold production of approximately 248,000 ounces annually is expected, reflecting these higher gold grades.
Minesite costs per tonne(3) at LaRonde are expected to remain approximately C$75 in 2010. For the period of 2011 through 2014, minesite costs per tonne are expected to average C$78, as the mine continues its good cost performance.
In 2010, total cash costs at LaRonde are expected to be approximately
The table in the following link presents more detailed data on the LaRonde mine, including projections of tonnes, grades, mill recoveries, payable metal production and Canadian dollar minesite costs per tonne.
http://www.agnico-eagle.com/files/LaRondeOperationsForecast_Dec09.pdf
Goldex Operating At Design Rates
At the 100% owned Goldex mine in northwestern
The Goldex mine achieved commercial production on
In 2010, payable gold production at Goldex is expected to be approximately 164,000 ounces, while from 2011 through 2014, the expected average gold production is approximately 169,000 ounces annually.
Minesite costs per tonne at Goldex are expected to be approximately C$23 in 2010. For the period of 2011 through 2014 minesite costs per tonne are expected to average
In 2010, total cash costs at Goldex are expected to be approximately
The table in the following link presents more detailed data on the Goldex mine, including projections of tonnes, grades, mill recoveries, payable metal production and Canadian dollar minesite costs per tonne.
http://www.agnico-eagle.com/files/GoldexOperationsForecast_Dec09.pdf
Kittila Mine Achieves Record Monthly Production in November
The 100% owned Kittila mine in northern
Kittila achieved record production of 14,500 ounces of gold in the month of November, with approximately 3,100 tpd as compared to the design rate of 3,000 tpd. Recovery rates continue to approach design parameters and averaged approximately 76% in November.
In 2010, payable gold production at Kittila is expected to be approximately 147,000 ounces, while from 2011 through 2014 the expected average gold production is approximately 158,000 ounces annually.
Minesite costs per tonne at Kittila are expected to be approximately (euro)49 in 2010. For the period of 2011 through 2014 minesite costs per tonne are expected to average (euro)53.
In 2010, total cash costs at Kittila are expected to be approximately
The following link presents more detailed data on the Kittila mine, including projections of tonnes, grades, mill recoveries, payable metal production and local currency minesite cost per tonne.
http://www.agnico-eagle.com/files/KittilaOperationsForecast_Dec09.pdf
A scoping study is underway which is contemplating a significantly higher production rate at Kittila. This would require an expansion of the mill and accessing the deeper ore via a mine shaft. The results of the study are expected to be reviewed in early 2011 as drill results from the next few quarters will be incorporated.
Lapa Mine Undergoing Optimization
The 100% owned Lapa mine in northwestern
In 2010, payable gold production at Lapa is expected to be approximately 116,000 ounces, while from 2011 through 2014, the expected average gold production is approximately 118,000 ounces annually.
Minesite costs per tonne at Lapa are expected to be approximately C$125 in 2010. For the period of 2011 through 2014 minesite costs per tonne are expected to average C$123.
In 2010, total cash costs at Lapa are expected to be approximately
The following link presents more data on the Lapa mine including projections of tonnes, grades, mill recoveries, payable metal production and Canadian dollar minesite costs per tonne.
http://www.agnico-eagle.com/files/LapaOperationsForecast_Dec09.pdf
Due to ongoing issues with higher than expected ore dilution underground, a more conservative budget has been put in place going forward. Ore dilution is now assumed to be 50% as compared to the previous assumption of 35%. Efforts are ongoing to improve and optimize the mining cycle in an effort to maximize the profitability of this higher grade orebody.
Pinos Altos Declares Commercial Production as of
At the 100% owned Pinos Altos mine, located in the state of Chihuahua in northern
During the fourth quarter of 2009, the ramp-up at Pinos Altos has been slower than expected due to issues commissioning the dry tailings pressure filters. However, the throughput in the mill is improving as a result of better performance from the tailings filters. November's throughput was 2,110 tpd, compared to 893 tpd in September.
In 2010, payable gold production at Pinos Altos is expected to be approximately 151,000 ounces, while from 2011 through 2014, the expected average gold production is approximately 210,000 ounces annually.
Minesite costs per tonne(3) at Pinos Altos are expected to be approximately
In 2010, total cash costs at Pinos Altos are expected to be approximately
The following link presents more detailed data on the Pinos Altos mine, including projections of tonnes, grades, mill recoveries, payable metal production and minesite cost per tonne.
http://www.agnico-eagle.com/files/PinosAltosOperationsForecast_Dec09.pdf
A study is underway considering the expansion of the Pinos Altos mill from 4,000 tpd to 6,000 tpd. The study is expected to be reviewed in 2010.
Creston Mascota Expansion On Track To Commence Production in 2011
The 100% owned Creston Mascota deposit at Pinos Altos, located approximately 10 kilometres to the northwest of the main
Construction on the Creston Mascota expansion is well underway. Payable gold production from Creston Mascota is expected to commence in 2011, with approximately 61,000 ounces of gold expected to be produced in that year. From 2011 through 2014 period, average gold production is expected to be 48,000 ounces per year.
Minesite costs per tonne at Creston Mascota are expected to be approximately
In 2011, total cash costs at Creston Mascota are expected to be approximately
Creston Mascota is the first of a series of satellite deposits at Pinos Altos that have the potential to incrementally add to the production profile over the next several years. Other zones that are being explored include the nearby Sinter, San Eligio and Cubiro zones. A scoping study on bringing the Sinter zone into production will commence in 2010.
The following link presents more detailed data on Creston Mascota, including projections of tonnes, grades, mill recoveries, payable metal production and local currency minesite cost per tonne.
http://www.agnico-eagle.com/files/CrestonMascotaOperationsForecast_Dec09.pdf
Meadowbank Start Up Anticipated In The First Quarter Of 2010
Agnico-Eagle's 100% owned Meadowbank mine project in Nunavut has probable gold reserves of 3.6 million ounces (32.8 million tonnes grading 3.5 grams per tonne). With a large additional gold resource, the project remains open for expansion. Initial gold production is anticipated in
To date, the performance in the open pit has been better than planned. By the end of December, approximately 600,000 tonnes of ore is expected to be stockpiled. The power plant has been completed and the commissioning of the process plant is well underway.
In 2010, payable gold production at Meadowbank is expected to be approximately 300,000 ounces, reflecting a budgeted contingency for an extended commissioning period of three months of production. From 2011 through 2014, the expected average gold production is approximately 407,000 ounces annually.
Minesite costs per tonne at Meadowbank are expected to be approximately C$68 in 2010. For the period of 2011 through 2014 minesite costs per tonne are expected to average C$65. These minesite costs are higher than previous estimates largely due to increases in labour and shipping and transportation costs.
In 2010, total cash costs at Meadowbank are expected to be approximately
The following link presents more detailed data on the Meadowbank mine, including projections of tonnes, grades, mill recoveries, payable metal production and Canadian dollar minesite costs per tonne.
http://www.agnico-eagle.com/files/MeadowbankOperationsForecast2_Dec09.pdf
A scoping study is underway to consider an increase in the proposed production rate at Meadowbank from 8,500 tonnes per day to approximately 10,000 tonnes per day. This additional production would come initially from accelerated development of the Goose Island and Portage open pits and potentially from underground on the southern end of the deposit via ramp access. The study is expected to be reviewed mid-year 2010.
Shareholders Can Reinvest Dividends In Shares At A Discount
Under the Company's Dividend Reinvestment Plan, shareholders have the opportunity to reinvest their dividends, commission-free, in shares of Agnico-Eagle, at 95% of the Average Market Price, as calculated under the Plan. Individual shareholders can purchase up to
http://www.agnico-eagle.com/files/DividendReinvestmentPlan.pdf
About Agnico-Eagle
Agnico-Eagle is a long established Canadian gold producer with operations located in
Detailed Mineral Reserve and Resource Data (as at
------------------------------------------------------------------------- Category Au and Au Ag Cu Zn Pb (000s Tonnes Operation (g/t) (g/t) (%) (%) (%) oz.) (000s) ------------------------------------------------------------------------- Proven Mineral Reserve ------------------------------------------------------------------------- Goldex (underground) 1.95 27 434 ------------------------------------------------------------------------- Kittila (open pit) 4.84 31 199 ------------------------------------------------------------------------- Lapa (underground) 7.53 6 23 ------------------------------------------------------------------------- LaRonde (underground) 2.76 67.87 0.33 3.27 0.37 362 4,075 ------------------------------------------------------------------------- Pinos Altos (open pit) 1.35 19.08 4 97 ------------------------------------------------------------------------- Subtotal Proven Mineral Reserve 2.77 430 4,828 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Probable Mineral Reserve ------------------------------------------------------------------------- Goldex (underground) 2.05 1,544 23,391 ------------------------------------------------------------------------- Kittila (open pit) 5.05 664 4,092 ------------------------------------------------------------------------- Kittila (underground) 4.61 2,530 17,079 ------------------------------------------------------------------------- Kittila total probable 4.69 3,193 21,171 ------------------------------------------------------------------------- Lapa (underground) 8.80 1,055 3,730 ------------------------------------------------------------------------- LaRonde (underground) 4.52 31.18 0.28 1.42 0.12 4,612 31,735 ------------------------------------------------------------------------- Meadowbank (open pit) 3.45 3,638 32,773 ------------------------------------------------------------------------- Pinos Altos (open pit) 2.34 55.08 1,402 18,594 ------------------------------------------------------------------------- Pinos Altos (underground) 2.95 90.34 2,187 23,075 ------------------------------------------------------------------------- Pinos Altos total probable 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 ------------------------------------------------------------------------- ---------------------------------------------------------------- Category and Au Ag Cu Zn Pb Tonnes Operation (g/t) (g/t) (%) (%) (%) (000s) ---------------------------------------------------------------- Indicated Mineral Resource ---------------------------------------------------------------- Bousquet (underground) 5.63 1,704 ---------------------------------------------------------------- Ellison (underground) 5.68 415 ---------------------------------------------------------------- Goldex (underground) 1.79 220 ---------------------------------------------------------------- Kittila (underground) 2.99 3,471 ---------------------------------------------------------------- Lapa (underground) 4.36 987 ---------------------------------------------------------------- LaRonde (underground) 1.83 26.77 0.15 1.55 0.16 6,349 ---------------------------------------------------------------- Meadowbank (open pit) 1.87 19,073 ---------------------------------------------------------------- Meadowbank (underground) 4.16 2,883 ---------------------------------------------------------------- Meadowbank total indicated 2.17 21,956 ---------------------------------------------------------------- Pinos Altos (open pit) 0.76 12.17 7,160 ---------------------------------------------------------------- Pinos Altos (underground) 1.31 44.85 5,308 ---------------------------------------------------------------- Pinos Altos total indicated 1.00 26.08 12,468 ---------------------------------------------------------------- Total Indicated Resource 2.07 47,569 ---------------------------------------------------------------- ---------------------------------------------------------------- Category and Au Ag Cu Zn Pb Tonnes Operation (g/t) (g/t) (%) (%) (%) (000s) ---------------------------------------------------------------- Inferred Mineral Resource ---------------------------------------------------------------- Bousquet (underground) 7.45 1,667 ---------------------------------------------------------------- Ellison (underground) 5.81 786 ---------------------------------------------------------------- Goldex (underground) 2.42 11,949 ---------------------------------------------------------------- Kittila (underground) 4.42 17,550 ---------------------------------------------------------------- Lapa (underground) 7.97 761 ---------------------------------------------------------------- LaRonde (underground) 5.91 18.91 0.44 0.77 0.08 4,937 ---------------------------------------------------------------- Meadowbank (open pit) 2.65 4,593 ---------------------------------------------------------------- Meadowbank (underground) 4.50 360 ---------------------------------------------------------------- Meadowbank total inferred 2.78 4,953 ---------------------------------------------------------------- Pinos Altos (open pit) 0.96 15.87 2,093 ---------------------------------------------------------------- Pinos Altos (underground) 2.41 66.38 1,907 ---------------------------------------------------------------- Pinos Altos total inferred 1.65 39.95 4,000 ---------------------------------------------------------------- Total Inferred Resource 3.84 46,603 ----------------------------------------------------------------
Tonnage amounts and contained metal amounts presented in the tables in this news release have been rounded to the nearest thousand. Reserves are not a sub-set of resources.
Forward-Looking Statements
The information in this press release has been prepared as at
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://sec.gov/edgar.shtml. 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
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 a 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 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, 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 reasonably 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. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
A feasibility study is a comprehensive study of a mineral deposit in which all geological, engineering, legal, operating, economic, social, environmental and other relevant factors are considered in sufficient detail that it could reasonably serve as the basis for a final decision by a financial institution to finance the development of the deposit for mineral production.
The mineral reserves presented in this disclosure are separate from and not a portion of the mineral resources.
------------------------------------------------------------------------- Property/Project Qualified Person Date of most recent name and location responsible for the SEDAR Technical Report current Mineral Resource (NI 43-101) disclosure and Reserve Estimate and relationship to Agnico-Eagle ------------------------------------------------------------------------- LaRonde, Bousquet & François Blanchet Ing., March 23, 2005 Ellison, Quebec, LaRonde Division Canada Superintendent of geology ------------------------------------------------------------------------- Kittila, Finland Marc Legault P.Eng., December 11, 2008 VP Project Development ------------------------------------------------------------------------- Pinos Altos, Dyane Duquette, P.Geo., March 25, 2009 Chihuahua, Mexico Principal geologist, Abitibi Technical Services Group ------------------------------------------------------------------------- Meadowbank, Nunavut, Dyane Duquette, P.Geo., December 15, 2008 Canada Principal geologist, Abitibi Technical Services Group ------------------------------------------------------------------------- Goldex, Quebec, Richard Genest, Ing., October 27, 2005 Canada Goldex Division Superintendent of geology ------------------------------------------------------------------------- Lapa, Quebec, Canada Normand Bédard, P.Geo., June 8, 2006 Lapa Division Superintendent of geology -------------------------------------------------------------------------
The effective date for all of the Company's mineral resource and reserve estimates in this press release is
The contents of this press release have been prepared under the supervision of, and reviewed by,
Note Regarding Certain Measures Of Performance
This news release presents measures including "total cash costs per ounce" and "minesite costs per tonne" that are not recognized measures under US GAAP. This data may not be comparable to data presented by other gold producers. The Company believes that these generally accepted industry measures are realistic indicators of operating performance and useful for year-over-year comparisons. However, both of these non-GAAP measures should be considered together with other data prepared in accordance with US GAAP, these measures, taken by themselves, are not necessarily indicative of operating costs or cash flow measures prepared in accordance with US GAAP. A reconciliation of the Company's total cash cost per ounce and minesite cost per tonne to the most comparable financial measures calculated and presented in accordance with US GAAP for the Company's historical results of operations is set out in Note 1 to the financial statements of the Company for the period ended
----------------------------- (1) Payable production means the quantity of a mineral produced during a period contained in products that are sold by the Company, whether such products are sold during the period or held as inventory at the end of the period. (2) Total cash costs per ounce is a non-GAAP measure. For reconciliation of historical total cash costs per ounce to production costs, as reported in the Company's historical financial statements, please see the Company's financial statements and Form 20-F, as filed with US and Canadian securities regulators. (3) Minesite costs per tonne is a non-GAAP measure. For reconciliation of this measure to production costs, as reported in the Company's historical financial statements, please see the Company's financial statements and Form 20-F, as filed with US and Canadian securities regulators.
For further information: David Smith, VP, Investor Relations, (416) 947-1212
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