Gold zones extended at Agnico-Eagle's Meadowbank mine project as higher grade intersections are encountered
17 Setembro 2007 - 8:27PM
PR Newswire (US)
Stock Symbols: AEM (NYSE and TSX) TORONTO, Sept. 17
/PRNewswire-FirstCall/ -- 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
south; - 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.
http://www.agnico-eagle.com/files/MeadowbankGeologyMap.pdf 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.
http://www.agnico-eagle.com/files/MeadowbankLongitudinalSection.pdf
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:
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Gold (g/t) Drill True Width From To (cut to Hole Zone (metres)
(metres) (metres) 100 g/t)
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G07-675 Goose South 11.3 236.96 261.87 11.84
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and Goose South 2.5 302.57 307.86 8.26
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G07-685 Goose South 5.0 213.25 220.00 8.87
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and Goose South 12.0 260.50 278.80 6.40
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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 known. 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.
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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
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Incl Goose Island 4.8 164.00 170.00 9.16
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Incl Goose Island 5.0 179.11 185.00 10.12
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G07-679 Goose Island 8.0 152.59 161.84 15.25
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G07-683 Goose Island 12.0 76.00 90.00 19.45
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Incl Goose Island 6.0 77.00 84.00 31.7
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G07-692 Goose Island 9.5 258.00 269.60 5.49
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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 below:
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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
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and Portage Bay Island 3.0 58.25 63.00 4.81
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and Portage Bay Island 4.5 137.00 143.90 10.16
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Including Portage Bay Island 2.5 140.00 143.90 15.93
-------------------------------------------------------------------------
and Portage Bay Island 11.0 156.00 168.00 8.13
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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
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and Portage Bay Island 9.0 97.00 108.00 22.98
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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
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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
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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
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TP07-726 Portage 4.5 73.0 77.5 4.42
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NP07-721 North Portage 6.0 77.0 83.0 3.72
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and North Portage 1.0 89.0 90.0 100.0
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NP07-731(x) North Portage 5.1 78.0 83.1 4.98
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NP07-734(x) North Portage 7.4 95.2 102.6 10.18
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(x) 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 viability. 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. DATASOURCE: Agnico-Eagle Mines Limited CONTACT: David Smith,
Vice-President, Investor Relations, (416) 947-1212
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