Gold zones extended at Agnico-Eagle's Meadowbank mine project as higher grade intersections are encountered

    Stock Symbols: AEM (NYSE and TSX)

    (All dollar amounts expressed in U.S. dollars unless otherwise noted)

    TORONTO, Sept. 17 /CNW/ - Agnico-Eagle Mines Limited ("Agnico-Eagle" or
the "Company") is pleased to provide an update on its spring and summer
exploration activities at its Meadowbank gold mine project in Nunavut, Canada.
Significant drill results have been reported, both inside and outside of the
current open pit reserve envelope.
    Agnico-Eagle's company-wide budgeted exploration expenditure in 2007
exceeds $40 million, the highest level in the Company's history. Currently,
20 drill rigs are active targeting approximately 250,000 metres of drilling
for the year. Of this budget, $8 million is earmarked for exploration at the
Meadowbank mine project.

    Highlights of the recent exploration activity in Nunavut include:

    -   Several drill holes have intersected mineralization between the Goose
        South and the Goose Island zones, suggesting that they are linked at
        approximately 150 metres below surface. These zones remain open at
        depth and to the south;

    -   Drilling both within the main Portage zone pit outline, and
        immediately adjacent to it, has succeeded in extending the
        mineralized envelope at depth and along trend to both the north and

    -   Drilling suggests continuous gold mineralization over 3.5 kilometres,
        spanning the Cannu zone all the way to the Goose Island zone;

    -   None of the new mineralization at Goose South and Portage has been
        incorporated in the current mine plan; and

    -   The growing gold mineralization envelope and the higher grade
        intersections suggest the potential for longer mine life and possibly
        improved project economics as the results are incorporated into the
        operating plan.

    "The most recent Meadowbank exploration results give us further
confidence that we will be able to meet our previously stated gold reserve
target of 18 million to 20 million ounces by the end of 2008" said Sean Boyd,
Vice-Chairman and Chief Executive Officer. "We are gaining increasing
confidence in further reserve growth beyond this target as we continue to
encounter potentially ore-grade mineralization outside of our currently
defined gold reserve and resource envelope at several of our development
projects" added Mr. Boyd.

    Updated Meadowbank Feasibility Study Expected by the End of the Year

    An aggressive exploration program is currently underway at the Company's
100% owned Meadowbank mine project in Nunavut. Meadowbank has proven and
probable gold reserves of 2.9 million ounces (21.3 million tonnes grading
4.2 grams per tonne as presented in Cumberland Resources Ltd.'s ("Cumberland")
annual information form dated March 31, 2007). Since Agnico-Eagle assumed
control of Cumberland and the property in April 2007, the exploration focus
has been resource to reserve conversion in the vicinity of the open pit
reserves and resource exploration around recent discoveries that show
excellent potential.

    To date, three drills have completed 14,700 metres of drilling from
84 holes. Numerous intercepts have been returned that are higher grade than
the current reserves and resources providing further confidence that the
overall project economics at Meadowbank may continue to improve with further
drilling and mine plan optimization.
    Drilling has been focused along the main Meadowbank Trend, over a strike
length of three kilometres, exploring for potential extensions and new zones
of mineral resources at the Goose South and Cannu zones. The drilling is also
testing the mineral resource envelopes in, or near, the open pit reserves at
the Portage and Goose Island zones. Results from the current exploration
program will be considered in the update of the Meadowbank Feasibility Study
that will be completed this fall.

    Goose South Zone Now Linked to Goose Island Resource, Including Higher
    Grade Intersections

    Drilling early in the season focused on linking the Goose Island gold
resource envelope to the Goose South zone (2006 discovery), located almost
450 metres to the south of the planned Goose Island open pit. Drilling results
previously disclosed by Cumberland (press release dated June 22, 2006) at
Goose South demonstrate the high grade potential and include 5.61 grams per
tonne of gold over 3.6 metres in hole G06-635 and 110.5 grams per tonne of
gold over 1.7 metres in hole G06-638.

    Agnico-Eagle has completed seven diamond drill holes at Goose South which
have encountered higher than average gold grades when compared with the
overall Meadowbank mine project; some of the more significant results are
presented in the following table:

                                                                   Gold (g/t)
    Drill                      True Width     From          To       (cut to
    Hole           Zone         (metres)    (metres)     (metres)    100 g/t)
    G07-675    Goose South        11.3       236.96       261.87       11.84
      and      Goose South         2.5       302.57       307.86        8.26
    G07-685    Goose South         5.0       213.25       220.00        8.87
      and      Goose South        12.0       260.50       278.80        6.40

    Significant gold results included 11.8 grams per tonne gold over
11.3 metres in drill hole G07-675 and two separate intervals in hole G07-685
returning 8.9 grams per tonne gold over 5.0 metres and 6.4 grams per tonne
gold over 12.0 metres.
    Drilling has successfully traced mineralization, at moderate to shallow
depth, from the Goose South zone over 300 metres north to the limits of the
Goose Island mineral resource envelope. The relationship between this gold
discovery and the deep zone of mineralization at Goose Island are not yet
    Continuous gold mineralization can now be traced for approximately
1.2 kilometres, from just north of the Goose Island open pit reserves
southward to Goose South. Both zones are open on strike and at depth. Future
exploration planned for Goose South will further define this new discovery
area with the purpose of potentially establishing a new mineral resource.

    Goose Island Reserve Conversion Program Intersects Higher Grades Over
    Increasing Thicknesses

    Seventeen diamond drill holes were completed to attempt to convert
resources to reserves near the proposed limits of the Goose Island open pit
and to explore underneath it for extensions. Expansion of the Goose Island
reserve would improve the results of the overall economics at Meadowbank since
the proven and probable reserve grade is 35% higher at Goose Island (5.7 grams
per tonne gold) than the overall grade of the Meadowbank project proven and
probable reserve (4.2 grams per tonne gold).
    Infill drilling in the pit outline returned 19.5 grams per tonne gold
over 12.0 metres in drill hole G07-683, including 6.0 metres grading
31.7 grams per tonne gold. Slightly beneath the proposed pit outline, holes
G07-676 and G07-679 returned 5.8 grams per tonne gold over 18.5 metres,
including 10.1 grams per tonne gold over 5.0 metres, and 15.3 grams per tonne
gold over 8.0 metres, respectively. In addition, approximately 100 metres
beneath the proposed pit, hole G07-692 returned 5.5 grams per tonne gold over
9.5 metres. Results from this drilling could potentially lead to increases in
the resources and reserves in the Goose Island pit zone.

                                                                   Gold (g/t)
    Drill                      True Width     From          To       (cut to
    Hole           Zone         (metres)    (metres)     (metres)    100 g/t)
    G07-676    Goose Island       18.5       164.00       185.00        5.84
      Incl     Goose Island        4.8       164.00       170.00        9.16
      Incl     Goose Island        5.0       179.11       185.00       10.12
    G07-679    Goose Island        8.0       152.59       161.84       15.25
    G07-683    Goose Island       12.0        76.00        90.00       19.45
      Incl     Goose Island        6.0        77.00        84.00        31.7
    G07-692    Goose Island        9.5       258.00       269.60        5.49

    Visible Gold and Higher Grade Intersections at Portage Bay Island Suggest
    Potential Convergence at Depth with Goose Island Zone

    Recent drilling at the Portage zone, located immediately to the north of
Goose Island, has targeted sectors of mineral resource within, or immediately
adjacent to, the current Portage open pit limit. The Portage mineral resource
has been traced for over 2.5 kilometres, to date, from the Portage Bay Island
area, near the current southern limit of the Portage pit reserve, northward to
the Cannu zone. An indicated gold resource at Cannu of almost 100,000 ounces
has been estimated abutting the northern limit of the main Portage pit, but
has not yet been incorporated into the Meadowbank reserves and mine design.
    At the southern limit of the proposed Portage open pit, ten drill holes
were completed on the nearby Portage Bay Island zone. The program's goal was
to better define the resource at the southern limit of the Portage main pit
and to test for extensions leading to the Goose Island zone, approximately
400 metres to the south. Some of the more significant results are presented

                                                                   Gold (g/t)
    Drill                      True Width     From          To       (cut to
    Hole           Zone         (metres)    (metres)     (metres)    100 g/t)
    TP07-689A   Portage Bay
                 Island            3.0        45.00        49.50        4.25
       and      Portage Bay
                 Island            3.0        58.25        63.00        4.81
       and      Portage Bay
                 Island            4.5       137.00       143.90       10.16
    Including   Portage Bay
                 Island            2.5       140.00       143.90       15.93
       and      Portage Bay
                 Island           11.0       156.00       168.00        8.13
    Including   Portage Bay
                 Island            4.5       156.00       161.00       17.08
    TP07-694    Portage Bay
                 Island            5.0        84.00        90.00        8.98
       and      Portage Bay
                 Island            9.0        97.00       108.00       22.98
    Including   Portage Bay
                 Island            5.7       101.00       108.00       34.60
    TP07-695    Portage Bay
                 Island            7.5       108.55       120.60       13.76
    Including   Portage Bay
                 Zone Island       3.2       115.50       120.60       20.11
    TP07-704    Portage Bay
                 Zone Island       3.0        16.30        19.80       31.76
       and      Portage Bay
                 Zone Island       2.8        27.50        30.50       12.81

    Several positive and unexpected results were returned to the south of the
proposed Portage pit limit that will be the focus of drilling in the near
term. Within approximately 20 metres from surface, hole TP07-704 intersected
two intervals containing visible gold that returned 12.8 gram per tonne gold
over 2.8 metres and 31.8 grams per tonne gold over 3.0 metres.
    Also, at approximately 150 metres depth and immediately to the south of
the proposed pit outline, several significant intercepts were recorded. These
included high grade gold mineralization, multiple intervals within a single
hole and some thicker intervals. Drill hole TP07-689A intersected four
mineralised intervals including 4.3 grams per tonne gold over 3.0 metres,
followed by 4.8 grams per tonne gold over 3.0 metres, and 10.2 grams per tonne
gold over 4.5 metres (with a further subinterval of 15.9 grams per tonne gold
over 2.5 metres) and 8.1 grams per tonne gold over 11.0 metres (including a
further subinterval of 17.1 grams per tonne gold over 4.5 metres). The depths
and strength of the mineralization traced by this hole, suggests the potential
for the Portage zone to connect at moderate depths to the Goose Island zone.
    This recent drilling suggests continuous gold mineralization over
3.5 kilometres spanning the Cannu, Portage, North Portage, Portage Bay Island,
Goose South and Goose Island zones.

    Drilling at Portage and North Portage Confirm High Grade Sectors within
    the Portage Pit and also Gold Extensions Below the Pit

    Throughout the south-central and northern portions of the Portage Pit,
36 drill holes were completed for potential resource-to-reserve conversion.
These holes help to better define the sectors where the gold zone continues to
be open at depth.
    The best intervals from the south-central sector of the Portage open pit
were in hole TP07-706 with 4.3 grams per tonne gold over 4.6 metres and in
drill hole TP07-726, which included 4.4 grams per tonne gold over 4.5 metres.
    Drilling in the northern sector of the Portage pit returned one of the
highest grade intercepts to date and indicates that the zone may have further
depth potential below the current pit outline. Hole NP07-721 intersected two
gold intervals returning 3.7 grams per tonne gold over 6.0 metres (almost at
pit bottom) and an uncut grade of 296.1 grams per tonne gold (100 grams per
tonne gold cut value) over 1.0 metres. At depth, drill holes NP07-731 and
NP07-734 returned respectively 5.0 grams per tonne gold over 5.1 metres and
10.2 grams per tonne gold over 7.4 metres, potentially extending the economic
envelope approximately 25 metres below the currently proposed pit bottom.

                                                                   Gold (g/t)
    Drill                      True Width     From          To       (cut to
    Hole           Zone         (metres)    (metres)     (metres)    100 g/t)
    TP07-706     Portage           4.6        68.4         73.0         4.34
    TP07-726     Portage           4.5        73.0         77.5         4.42
    NP07-721     North
                  Portage          6.0        77.0         83.0         3.72
      and        North
                  Portage          1.0        89.0         90.0        100.0
    NP07-731(*)  North
                  Portage          5.1        78.0         83.1         4.98
    NP07-734(*)  North
                  Portage          7.4        95.2        102.6        10.18
    (*) preliminary results

    Further Work at Meadowbank Underway Including Drilling at Nearby Vault
    and Marge Bay Deposits

    The expected return of frozen conditions in November will facilitate
additional access to the various drill targets. Several of the most attractive
targets are best accessed from the ice on the nearby lakes.
    Currently, drilling is partly focused on extending mineralization in the
Cannu zone immediately north of the Portage open pit and also on the Vault
open pit reserve and resource. The Vault deposit is located five kilometres to
the north of the Portage Pit and drilling is in preparation for possible
reserve conversion and pit design once the feasibility review has been
completed this fall. To date, 13 drill holes have been completed on Vault,
mostly testing resource definition targets while some were extended 150 to
250 metres underneath the main lens to test for a possible repetition of the
rock sequence along an interpreted shallow fault structure. The results for
all of these holes are pending.
    The limited drilling program that is underway in the Marge Bay area,
located four kilometres northeast of the Vault zone, is significant because it
is the first attempt in 2007 to drill test outside of the mining area at
Meadowbank. Marge Bay is a prospect associated with a strong magnetic feature
but exploration has been hampered by its proximity to a small lake. The first
hole intersected significant layers of iron formation with local sulphide
replacement (which is generally an indicator of gold mineralization at
Meadowbank) and assays are pending.
    In addition, regional exploration has been initiated with a detailed
helicopter-borne geophysical survey that was flown recently over the entire
37,054 hectares property in order to accelerate future exploration outside of
the known gold reserve and resource areas.

    Notes to Investors Concerning Estimates of Mineral 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 U.S. Securities and Exchange Commission
(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

    Guy Gosselin, Ing., the Company's Exploration Manager for Canada, who is
a Qualified Person and supervises the exploration program underway at
Meadowbank, has also prepared, verified and reviewed the exploration results
that are disclosed in this press release. The location and grade of the
samples disclosed were verified against original documents and no significant
limitations to this process are known.
    The Meadowbank mineral reserves and resources (Q4/2005) have been
prepared in accordance with NI 43-101. Dr. Mike Armitage, Managing Director of
SRK Consulting (UK) Limited, is the independent Qualified Person responsible
for preparation of stated reserves.
    The Cannu mineral resource estimate (January, 2007) was prepared in
accordance with the requirements set out in NI 43-101 under the direction of
Dr. Mike Armitage, Managing Director of SRK Consulting (UK) Limited, who is an
independent Qualified Person as defined by NI 43-101. The Cannu zone resources
are not included in the feasibility study of the Meadowbank project.
    Required information for the Meadowbank project that is set out in
Canadian Securities Administrators' National Instrument 43-101 Sections 3.2,
3.3 and 3.4 can be found either in the Technical Report filed by Cumberland
Resources Ltd. on SEDAR on March 1, 2004, or in press releases filed by
Cumberland Resources Ltd. on December 12, 2005 and January 17, 2007. Mineral
resources that are not mineral reserves do not have demonstrated economic
    Preliminary drill hole results contain assays for which QA/QC results are
acceptable but for which check assays have not yet been completed.

    Forward-Looking Statements

    The information in this press release has been prepared as at
September 17, 2007. 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, the words "anticipate", "expect", "estimate,"
"forecast," "planned" and similar expressions are intended to identify
forward-looking statements or information.
    Such statements and information include without limitation: statements
regarding estimates of reserves and resources, potential exploration and
drilling results, timing and amounts of capital expenditures and other
assumptions; estimates of future mineral production and sales; estimates of
mine life; estimates of future mining costs, cash costs, minesite costs and
other expenses; estimates of future capital expenditures and other cash needs,
and expectations as to the funding thereof; statements and information as to
the projected development of certain ore deposits, including estimates of
exploration, development and production and other capital costs, and estimates
of the timing of such exploration, development and production or decisions
with respect to such exploration, development and production; and statements
and information regarding anticipated future exploration and feasibility study
results; the anticipated timing of events with respect to the Company's
minesites; statements and information regarding the sufficiency of the
Company's cash resources; and other statements and information regarding
anticipated trends with respect to the Company's capital resources and results
of operations. Such statements and information reflect the Company's views as
at the date of this press release and are subject to certain risks,
uncertainties and assumptions, and undue reliance should not be placed on such
statements and information. Many factors, known and unknown, could cause the
actual results to be materially different from those expressed or implied by
such forward looking statements and information. 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 Company's Annual Information
Form and Annual Report on Form 20-F for the year ended December 31, 2006, as
well as the Company's other filings with the Canadian Securities
Administrators and the U.S. Securities and Exchange Commission. The Company
does not intend, and does not assume any obligation, to update these
forward-looking statements and information.
    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, and location of
surface infrastructure and actual results and final decisions may be
materially different from those currently anticipated.

    About Agnico-Eagle

    Agnico-Eagle is a long established Canadian gold producer with operations
located in Quebec and exploration and development activities in Canada,
Finland, Mexico and the United States. Agnico-Eagle's LaRonde Mine is Canada's
largest gold deposit in terms of reserves. The Company has full exposure to
changes in gold prices consistent with its policy of no forward gold sales. It
has paid a cash dividend for 25 consecutive years.

For further information:

For further information: David Smith, Vice-President, Investor
Relations, (416) 947-1212

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