Stock Symbol: AEM (NYSE and TSX)
TORONTO, Sept. 15, 2016 /CNW/ - Agnico Eagle Mines
Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the "Company")
is pleased to provide an update on exploration drilling results at
its Amaruq gold project in Nunavut, northern Canada. This deposit
continues to grow and remains a focus for the Company given its
potential and its proximity to Agnico Eagle's Meadowbank mine and
mill. This update includes an expanded mineral resource
estimate for the project based on drilling through June 30, 2016.
Highlights include:
- Overall mineral resources increased by 13% at the Amaruq
project – Drilling in the first half of 2016 has resulted
in an updated inferred mineral resource estimate of 3.71 million
ounces of gold (19.4 million tonnes grading 5.97 grams per tonne
("g/t") gold) as of June 30, 2016.
This represents an increase of 432,000 ounces (on a contained
gold basis) compared to the December 31,
2015 estimate
- Open pit mineral resources increase by 33% – The updated
estimate includes a 598,000-ounce increase (on a contained gold
basis) in open pit inferred mineral resources to 2.42 million
ounces gold (13.6 million tonnes grading 5.53 g/t), compared to the
December 31, 2015
estimate.
- 319% expansion in the IVR deposit mineral resources; V Zone
confirmed as potential second source of open pit ore –
Contained gold in inferred mineral resources at the IVR deposit
increased by 649,000 ounces (an increase of 319%) to 852,000 ounces
(3.9 million tonnes grading 6.84 g/t gold) compared to the
December 31, 2015 estimate. The
IVR deposit contains 549,000 ounces of gold (2.5 million tonnes
grading 6.71 g/t gold) within the overall open pit mineral
resources –– The majority of this mineral resource is
contained in the V Zone which has been traced down to 542 metres
below surface and remains open at depth.
"The 2016 exploration program at Amaruq has resulted in an
increase in gold resources and the delineation of a potential
second source of open pit ore at the V Zone. In just a short
period of time, we have seen Amaruq advance from a grassroots
discovery to a significant development project with 3.7 million
ounces of gold resources", said Sean
Boyd, Agnico Eagle's Vice-Chairman and Chief Executive
Officer. "We anticipate an updated mineral resource estimate
in February 2017, and Amaruq is
expected to provide a new source of ore for the Meadowbank mill
starting in 2019", added Mr. Boyd.
Amaruq Project Mineral Resources Expanded
Agnico Eagle has a 100% interest in the Amaruq project.
The large property consists of 116,717 hectares, located
approximately 50 kilometres northwest of the Meadowbank mine.
The I, V and R mineralized zones were discovered in 2013 shortly
after the Company acquired the Amaruq property and the Whale Tail
deposit was discovered in 2014, to the south of the R
zone.
[Amaruq local geology map]
In February 2016, the Company
announced inferred mineral resources as of December 31, 2015. This news release
provides an updated estimate of the inferred mineral resources in
the Whale Tail and IVR deposits as of June
30, 2016. The updated mineral resource estimate is
based on drilling completed from 2013 to June 30, 2016 in the Whale Tail and IVR
deposits. Earlier results from the 2016 Amaruq exploration
program have been reported in the Company's news releases dated
April 28, 2016, and July 27, 2016.
The table below sets out the updated mineral resource estimate
for the Whale Tail and IVR deposits as at June 30, 2016. This estimate uses the same
metal price and exchange rate assumptions as the December 31, 2015 mineral resource estimate,
which are a gold price of US$1,100
per ounce and a US$/C$ exchange rate of 1.16. The Company
believes that these assumptions are conservative when compared to
the three-year trailing average gold price and the current spot
prices for gold and the US$/C$ exchange rate. The weighted
average cut-off grades for the Whale Tail and IVR deposits are 2.2
g/t gold for open pit mineral resources and 4.5 g/t gold for
underground mineral resources.
Comparison of the mineral resource estimates at the Whale
Tail deposit and the IVR deposit at the Amaruq project, as of
December 31, 2015 and June 30, 2016
Category/Zone
|
December 31,
2015
|
June 30,
2016
|
|
Gold
(ounces)
|
Tonnes
|
Gold
grade (g/t)
|
Gold
(ounces)
|
Tonnes
|
Gold
grade (g/t)
|
Inferred
Resources
|
|
|
|
|
|
|
Whale
Tail*
|
|
|
|
|
|
|
Open
pit
|
1,732,000
|
9,889,000
|
5.45
|
1,874,000
|
11,084,000
|
5.26
|
Underground
|
1,347,000
|
6,041,000
|
6.93
|
988,000
|
4,403,000
|
6.98
|
Total Whale
Tail
inferred resources
|
3,079,000
|
15,930,000
|
6.01
|
2,862,000
|
15,487,000
|
5.75
|
IVR
deposit
|
|
|
|
|
|
|
Open
pit
|
93,000
|
475,000
|
6.09
|
549,000
|
2,542,000
|
6.71
|
Underground
|
111,000
|
474,000
|
7.26
|
304,000
|
1,335,000
|
7.07
|
Total IVR
inferred
resources
|
204,000
|
949,000
|
6.67
|
852,000
|
3,877,000
|
6.84
|
Total open
pit
inferred resources
|
1,825,000
|
10,365,000
|
5.48
|
2,423,000
|
13,626,000
|
5.53
|
Total
underground
inferred resources
|
1,457,000
|
6,515,000
|
6.96
|
1,292,000
|
5,738,000
|
7.00
|
Total inferred
resources
|
3,283,000
|
16,880,000
|
6.05
|
3,714,000
|
19,364,000
|
5.97
|
*The Whale Tail mineral resources shown in the table above
combine the Whale Tail and Mammoth zone mineral resources; these
two zones were reported separately in the mineral resources
estimate reported in the Company's news release dated February 10, 2016.
The weighted average cut-off grade for the Whale Tail and IVR
deposits is 2.2 g/t gold for open pit mineral resources and 4.5 g/t
gold for underground mineral resources. Amounts in this table
may not add up due to rounding.
Tonnage amounts and contained metal amounts presented in this
table have been rounded to the nearest thousand, so aggregate
amounts may differ from column totals. Please refer to the
Company press release dated February 10,
2016 and the Company's Annual Information Form for the year
ended December 31, 2015, for further
details on the mineral reserves and mineral resources.
In this news release open pit mineral resources and
underground mineral resources refer to the ore that the Company
believes may be extracted through open pit and underground mining
methods, respectively.
The following table indicates the sensitivity of the mineral
resources estimate to changes in the gold cut-off grades. The
table shows that the mineral resources at Amaruq are not very
sensitive to variations in the cut-off grades.
Sensitivity of inferred mineral resources estimate at the
Amaruq project (as of June 30, 2016)
to cut-off gold grade
Type
|
Cut-off
gold
grade (g/t)
|
Inferred Mineral
Resources
|
Tonnes
|
Gold
grade
(g/t)
|
Ounces
gold
|
Open
Pit
|
1.8
|
15,781,000
|
5.08
|
2,580,000
|
2.0
|
14,754,000
|
5.31
|
2,517,000
|
2.2
|
13,626,000
|
5.53
|
2,423,000
|
2.4
|
13,013,000
|
5.72
|
2,394,000
|
2.6
|
12,181,000
|
5.94
|
2,327,000
|
Type
|
Cut-off
Grade
(g/t gold)
|
Inferred Mineral
Resources
|
Tonnes
|
Gold
grade
(g/t)
|
Ounces
gold
|
Underground
|
3.5
|
9,788,000
|
5.84
|
1,838,000
|
4.0
|
7,796,000
|
6.38
|
1,598,000
|
4.5
|
5,738 ,000
|
7.00
|
1,292,000
|
5.0
|
5,026,000
|
7.43
|
1,200,000
|
5.5
|
4,110,000
|
7.92
|
1,046,000
|
A composite of the updated Whale Tail and IVR mineral resources
outline is shown on the linked Amaruq composite longitudinal
section set out below.
[Amaruq Composite Longitudinal Section with pierce points]
The aggregate inferred mineral resource at the Amaruq project is
estimated to be 3.71 million ounces of gold (19.4 million tonnes
grading 5.97 g/t gold) as of June 30,
2016. This represents a 13% increase in contained gold
compared with the December 31, 2015
estimate. Of the updated inferred mineral resource, 2.86
million ounces of gold are in the Whale Tail deposit, and 852,000
ounces of gold are in the IVR deposit. The updated mineral
resource is divided into 65% open pit and 35% underground mineral
resources.
The largest increase since the December
31, 2015 estimate has been in the IVR inferred mineral
resources where contained gold has increased by 319% (649,000
ounces) to 852,000 ounces gold (3.9 million tonnes grading 6.84 g/t
gold). This was the result of an aggressive V Zone
exploration drilling program in the first half of 2016 that
extended the mineralized structures to the east and at depth and
increased the number of known structures. Most of the
increase has been in the V Zone pit shell with a maximum depth of
150 metres and is now considered to be a potential second source of
open pit ore at the project. The contained gold in the IVR
open pit mineral resources has increased by 456,000 ounces to
549,000 ounces of gold (2.5 million tonnes grading 6.71 g/t
gold). The mineral resources outside the V Zone pit (mostly
below it) have increased by 193,000 ounces to 304,000 ounces gold
(1.3 million tonnes grading 7.07 g/t gold).
The updated inferred mineral resources in the Whale Tail deposit
have decreased by 7% (217,000 ounces) to 2.86 million ounces of
gold (15.5 million tonnes grading 5.75 g/t gold). This
decrease is largely due to further refinements to the geological
model at Whale Tail as a result of infill drilling.
Exploration drilling continues below the current mineral resources
to expand the deposit.
As a result of the recent refinements, the bottom of the
preliminary Whale Tail pit was lowered by 75 metres to a depth of
approximately 275 metres, moving a portion of the former
underground mineral resources into the new pit plan. The
updated mineral resources within the Whale Tail pit have increased
by 142,000 ounces to 1.87 million ounces of gold (11.1 million
tonnes grading 5.26 g/t gold), while the Whale Tail underground
mineral resources have decreased by 359,000 ounces to 988,000
ounces gold (4.4 million tonnes grading 6.98 g/t gold).
Overall, the Amaruq open pit mineral resources, including both
Whale Tail and IVR, have increased by 33% (598,000 ounces) to 2.42
million ounces of gold (13.6 million tonnes grading 5.53 g/t)
compared to the December 31, 2015
estimate. Of this, 1.87 million ounces of gold are in the
Whale Tail deposit and 0.55 million ounces of gold are in the IVR
deposit. Having two viable sources of open pit ore could
expand and add flexibility to the potential open pit mining
operations at Amaruq.
Drilling Continues to Extend Mineralized Zones
The highlight of the exploration work at Amaruq in the first
half of 2016 has been the discovery of additional lenses in the V
Zone. The V Zone forms a series of parallel quartz vein
structures dipping shallowly toward Whale Tail from surface to a
depth of 542 metres. The surface expression of the V Zone at
this time has a strike length of 1.2 kilometres; the zone is open
at depth and laterally. To date, the Whale Tail deposit has
been defined over at least 2.2 kilometres of strike length and
extends from surface to 650 metres depth; it remains open at
depth.
Recent intercepts from the project are set out in the table
below and the drill hole collars are located on the Amaruq project
local geology map. The pierce points are shown on the Amaruq
project composite longitudinal section. All intercepts
reported for the Amaruq project show capped grades over estimated
true widths, based on a preliminary geological interpretation that
is being updated as new information becomes available with further
drilling.
Recent exploration drill results from the Whale Tail (WT)
deposit and V Zone (V), Amaruq project
Drill hole
|
Location
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Gold
grade (g/t)
(capped)**
|
AMQ16-724
|
WT
|
43.2
|
64.4
|
43
|
7.3
|
11.7
|
11.7
|
and
|
WT
|
183.4
|
187.9
|
148
|
3.9
|
7.8
|
7.8
|
AMQ16-730
|
WT
|
166.3
|
184.7
|
146
|
9.2
|
16.5
|
13.4
|
including
|
|
175.9
|
184.7
|
150
|
4.4
|
28.7
|
22.2
|
and
|
WT
|
195.0
|
206.1
|
167
|
7.8
|
8.8
|
8.8
|
and
|
WT
|
258.5
|
271.0
|
222
|
11.3
|
8.4
|
8.4
|
and
|
WT
|
290.5
|
305.4
|
250
|
13.5
|
17.1
|
17.1
|
including
|
|
290.5
|
300.0
|
247
|
8.6
|
25.4
|
25.4
|
AMQ16-800
|
V
|
240.1
|
245.5
|
229
|
4.7
|
6.7
|
6.7
|
and
|
V
|
261.5
|
270.2
|
251
|
6.2
|
4.5
|
4.5
|
AMQ16-819
|
V
|
293.0
|
297.4
|
241
|
3.9
|
16.4
|
16.4
|
AMQ16-824
|
WT
|
555.6
|
562.5
|
475
|
6.8
|
10.3
|
10.3
|
including
|
|
557.1
|
560.2
|
474
|
3.1
|
21.1
|
21.1
|
AMQ16-829
|
V
|
440.3
|
447.7
|
406
|
6.4
|
7.5
|
7.3
|
AMQ16-837
|
V
|
112.5
|
124.2
|
117
|
10.1
|
11.0
|
7.4
|
including
|
|
112.5
|
120.0
|
115
|
6.5
|
16.1
|
10.5
|
AMQ16-842
|
WT
|
23.0
|
29.0
|
21
|
3.2
|
5.7
|
5.7
|
and
|
WT
|
107.0
|
115.0
|
91
|
6.6
|
9.1
|
9.1
|
AMQ16-858
|
WT
|
41.0
|
51.0
|
38
|
5.0
|
4.2
|
4.2
|
and
|
WT
|
149.3
|
191.0
|
142
|
36.1
|
7.2
|
7.2
|
including
|
|
150.0
|
156.8
|
128
|
5.9
|
11.5
|
11.5
|
including
|
|
161.0
|
168.0
|
137
|
6.1
|
9.5
|
9.5
|
including
|
|
180.0
|
187.0
|
153
|
6.1
|
11.4
|
11.4
|
AMQ16-869*
|
WT
|
96.0
|
101.9
|
90
|
3.2
|
12.9
|
12.9
|
and
|
WT
|
121.8
|
128.8
|
114
|
4.5
|
7.0
|
7.0
|
and
|
WT
|
152.4
|
194.8
|
157
|
38.4
|
4.8
|
4.8
|
including
|
|
159.1
|
163.7
|
146
|
4.2
|
9.2
|
9.2
|
including
|
|
177.9
|
188.1
|
166
|
9.2
|
7.6
|
7.6
|
and
|
WT
|
205.8
|
212.0
|
189
|
5.6
|
12.8
|
12.8
|
AMQ16-886*
|
WT
|
144.0
|
154.4
|
119
|
9.4
|
6.4
|
6.4
|
AMQ16-888*
|
V
|
478.1
|
482.3
|
456
|
3.4
|
20.5
|
7.4
|
and
|
V
|
569.5
|
573.2
|
542
|
3.2
|
37.2
|
22.2
|
AMQ16-898*
|
V
|
11.8
|
15.7
|
13
|
3.5
|
9.5
|
9.5
|
and
|
V
|
117.7
|
126.6
|
115
|
8.4
|
6.0
|
6.0
|
and
|
V
|
139.0
|
146.9
|
134
|
6.1
|
4.8
|
4.8
|
AMQ16-953*
|
V
|
354.3
|
359.0
|
338
|
3.9
|
12.8
|
12.2
|
and
|
V
|
428.0
|
436.8
|
407
|
8.0
|
6.0
|
6.0
|
and
|
V
|
466.3
|
477.1
|
445
|
10.1
|
6.2
|
6.2
|
AMQ16-978*
|
V
|
256.0
|
259.0
|
228
|
2.9
|
5.9
|
5.9
|
and
|
V
|
357.0
|
360.7
|
318
|
2.8
|
10.9
|
10.9
|
AMQ16-983*
|
V
|
142.5
|
147.0
|
123
|
3.7
|
183.4
|
10.6
|
and
|
V
|
193.0
|
197.1
|
166
|
3.4
|
8.2
|
8.2
|
and
|
V
|
254.0
|
258.0
|
218
|
3.9
|
18.3
|
17.3
|
*Holes not included in the June 30,
2016 mineral resource estimate
** Holes at the
Whale Tail deposit use a capping factor of 80 g/t gold. Holes
at the IVR deposit use a capping factor of 60 g/t gold.
Drilling in the V Zone has extended the zone laterally and at
depth to 540 metres locally. Drill hole AMQ16-837 yielded 7.4
g/t gold over 10.1 metres at 117 metres depth including 10.5 g/t
gold over 6.5 metres. Two other holes display the high-grade
potential and the lateral continuity of multiple V Zone structures
at depth. Drill hole AMQ16-953 intersected three structures:
12.2 g/t gold over 3.9 metres at 338 metres depth, 6.0 g/t
gold over 8.0 metres at 407 metres depth, and 6.2 g/t gold over
10.1 metres at 445 metres depth. (This hole is shown on the
IVR deposit schematic cross section below.) Hole AMQ16-888
pierced the V Zone at its deepest point to date: the hole
intersected 7.4 g/t gold over 3.4 metres at 456 metres depth,
followed by 22.2 g/t gold over 3.2 metres at 542 metres depth.
[IVR Deposit schematic cross section 15750E]
The infill drilling on the Whale Tail deposit has covered most
of the open pit mineral resources to a depth of approximately 275
metres, and the 2016 program is now almost completed. The
program continues to demonstrate robustness in gold grade and width
in the central part of the deposit. An example is hole
AMQ16-730 that has yielded four high-grade intersections: 13.4 g/t
gold over 9.2 metres at 146 metres depth (including 22.2 g/t gold
over 4.4 metres); 8.8 g/t gold over 7.8 metres at 167 metres depth;
8.4 g/t gold over 11.3 metres at 222 metres depth; and 17.1 g/t
gold over 13.5 metres at 250 metres depth (including 25.4 g/t gold
over 8.6 metres). Exploration drilling of this deposit has
recently restarted, probing below 500 metres depth. Drill
hole AMQ16-824 has intersected 10.3 g/t gold over 6.8 metres at 475
metres depth, including 21.1 g/t gold over 3.1 metres. The
intercepts from this hole extend the high-grade ore shoot by 65
metres to the east-southeast, as shown in the longitudinal
section.
Future Activities – 2016 Drill Program Expected to Continue into
October
The 2016 drilling and exploration program is expected to be
completed by mid-October using seven diamond drill rigs. Four
will explore below the existing Whale Tail open pit mineral
resources, two at the eastern and down-plunge extents of the
deposits and one on regional targets. The Company anticipates
that an updated mineral resource estimate incorporating the balance
of the 2016 drill results (approximately 75 holes) will be released
with the Company's year-end results in February 2017. The
updated mineral resource estimate is expected to include an initial
estimate of indicated mineral resources for the Amaruq project.
Construction of the 62-kilometre long Amaruq Exploration Access
Road continues. To date 13.3 kilometres have been completed
with an additional 2.7 kilometres expected to be completed by
year-end.
Permitting is ongoing to allow for development of an exploration
ramp. The permit is anticipated in late 2016 or early
2017.
At the end of June 2016, Agnico
Eagle submitted an Environmental Impact Assessment to the Nunavut
Impact Review Board ("NIRB"), in support of a request to amend the
Meadowbank Mine project certificate and Type A Water License, to
include development of resources from Whale Tail Pit. Acting
on a recommendation from NIRB, the Minister of Indigenous and
Northern Affairs Canada opted for a separate review of the
project. In the decision issued to NIRB in September 2016, the Minister agreed that a
coordinated process between NIRB and the Nunavut Water Board with
harmonized timelines should be adopted for a comprehensive
assessment. The Company anticipates that the timing of the
regulatory process will meet its expectations for the potential
start-up of mining operations at the Whale Tail Pit project.
The timing of future capital expenditures on the Amaruq project
beyond 2016 and the determination of whether to build a satellite
mining operation at Amaruq are subject to approval by Agnico
Eagle's Board of Directors.
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has
produced precious metals since 1957. Its eight mines are
located in Canada, Finland and Mexico, with exploration and development
activities in each of these countries as well as in the United States and Sweden. The
Company and its shareholders have full exposure to gold prices due
to its long-standing policy of no forward gold sales. Agnico
Eagle has declared a cash dividend every year since 1983.
Forward-Looking Statements
The information in this news release has been prepared as at
September 15, 2016. Certain
statements contained in this news 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 and are referred to herein as
"forward-looking statements". When used in this news release,
the words "anticipate", "could", "estimate", "expect", "plan",
"potential", "will" and similar words or expressions are intended
to identify forward-looking statements. Such statements
include, without limitation statements regarding: the Company's
forward-looking project timelines; the estimated timing and
conclusions of technical reports and other studies; the methods by
which ore might be extracted or processed; projected exploration
expenditures, including costs and other estimates upon which such
projections are based; statements regarding timing and amounts of
capital expenditures and other assumptions; estimates of future
expenditures; 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; estimates of
mineral reserves and mineral resources, the source of ore at the
Meadowbank mill and anticipated future exploration and the possible
conversion of mineral resources to mineral reserves; the
anticipated timing of events with respect to the Company's
projects. Such statements reflect the Company's views as at
the date of this news release and are subject to certain risks,
uncertainties and assumptions, and undue reliance should not be
placed on such statements and information. 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 material factors and assumptions used in
the preparation of the forward looking statements contained herein,
which may prove to be incorrect, include, but are not limited to,
the assumptions set forth herein and in management's discussion and
analysis ("MD&A") and the Company's Annual Information Form
("AIF") for the year ended December 31,
2015 filed with Canadian securities regulators and that are
included in its Annual Report on Form 40-F for the year ended
December 31, 2015 ("Form 40-F") filed
with the U.S. Securities and Exchange Commission (the "SEC") as
well as: that there are no significant disruptions affecting
operations; that production, permitting, development and expansion
at each of Agnico Eagle's properties proceeds on a basis consistent
with current expectations and plans; that the relevant metal
prices, exchange rates and prices for key mining and construction
supplies will be consistent with Agnico Eagle's expectations; that
Agnico Eagle's current estimates of mineral reserves, mineral
resources, mineral grades and metal recovery are accurate; that
there are no material delays in the timing for completion of
ongoing growth projects; that the Company's current plans to
optimize production are successful; 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,
project development, capital expenditures and other costs; exchange
rate fluctuations; financing of additional capital requirements;
cost of exploration and development programs; mining risks;
community protests; risks associated with foreign operations;
governmental and environmental regulation; the volatility of the
Company's stock price; and risks associated with the Company's
currency, fuel and by-product metal derivative strategies.
For a more detailed discussion of such risks and other factors that
may affect the Company's ability to achieve the expectations set
forth in the forward-looking statements contained in this news
release, see the AIF and MD&A filed on SEDAR at www.sedar.com
and included in the Form 40-F filed on EDGAR at www.sec.gov, as
well as the Company's other filings with the Canadian securities
regulators and the SEC. Other than as required by law, the
Company does not intend, and does not assume any obligation, to
update these forward-looking statements.
Notes to Investors Regarding the Use of Mineral
Resources
Cautionary Note to Investors Concerning Estimates of Measured
and Indicated Mineral Resources
This news release uses the terms "measured mineral resources"
and "indicated mineral resources". Investors are advised 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 mineral
reserves.
Cautionary Note to Investors Concerning Estimates of Inferred
Mineral Resources
This news release also uses the term "inferred mineral
resources". Investors are advised that while this term is
recognized and required by Canadian regulations, the SEC does not
recognize it. "Inferred mineral 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 any part or all of an
inferred mineral resource exists, or is economically or legally
mineable.
Scientific and Technical Data
Guy Gosselin, Vice-President
Exploration for Agnico Eagle Mines Limited, approved the scientific
and technical information related to exploration in this news
release. Mr. Gosselin is a P.Eng. with the Ordre ingenieurs
du Quebec, and is a qualified person as defined by National
Instrument ("NI 43-101).
The scientific and technical information related to Agnico
Eagle's mineral resources contained in this news release has been
approved by Daniel Doucet, Eng., Senior Corporate Director, Reserve
Development of the Company, a "qualified person" as defined by
National Instrument 43-101 Standards of Disclosure for Mineral
Projects ("NI 43-101"). The qualified person responsible
for the Amaruq mineral resources estimate is David Paquin, P.Geo., Resource Geologist,
Technical Services Group.
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. Agnico Eagle reports mineral reserve and
mineral resource estimates in accordance with the Canadian
Institute of Mining, Metallurgy and Petroleum Best Practice
Guidelines for Exploration and for Estimation of Mineral
Resources and Mineral Reserves, in accordance with NI 43-101.
These standards are similar to those used by the SEC's
Industry Guide No. 7, as interpreted by Staff at the SEC ("Guide
7"). However, the definitions in NI 43-101 differ in certain
respects from those under Guide 7. Accordingly, mineral
reserve information contained herein may not be comparable to
similar information disclosed by U.S. companies. Under the
requirements of the SEC, mineralization may not be classified as a
"reserve" unless the determination has been made that the
mineralization could be economically and legally produced or
extracted at the time the reserve determination is made. A
"final" or "bankable" feasibility study is required to meet the
requirements to designate mineral reserves under Industry Guide
7. Agnico Eagle uses certain terms in this news release, such
as "measured", "indicated", "inferred", and "resources" that the
SEC guidelines strictly prohibit U.S. registered companies from
including in their filings with the SEC.
NI 43-101 requires mining companies to disclose mineral reserves
and mineral resources using the subcategories of "proven mineral
reserves", "probable mineral reserves", "measured mineral
resources", "indicated mineral resources" and "inferred mineral
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 and/or indicated mineral resource. It includes
diluting materials and allowances for losses, which may occur when
the material is mined or extracted and is defined by studies at
pre-feasibility or feasibility level as appropriate that include
application of modifying factors. Such studies demonstrate
that, at the time of reporting, extraction could reasonably be
justified.
Modifying factors are considerations used to convert mineral
resources to mineral reserves. These include, but are not
restricted to, mining, processing, metallurgical, infrastructure,
economic, marketing, legal, environmental, social and governmental
factors.
A proven mineral reserve is the economically mineable part of a
measured mineral resource. A proven mineral reserve implies a
high degree of confidence in the modifying factors. A
probable mineral reserve is the economically mineable part of an
indicated and, in some circumstances, a measured mineral resource.
The confidence in the modifying factors applying to a
probable mineral reserve is lower than that applying to a proven
mineral reserve.
A mineral resource is a concentration or occurrence of solid
material of economic interest in or on the Earth's crust in such
form, grade or quality and quantity that there are reasonable
prospects for eventual economic extraction. The location,
quantity, grade or quality, continuity and other geological
characteristics of a mineral resource are known, estimated or
interpreted from specific geological evidence and knowledge,
including sampling.
A measured mineral resource is that part of a mineral resource
for which quantity, grade or quality, densities, shape and physical
characteristics are estimated with confidence sufficient to allow
the application of modifying factors to support detailed mine
planning and final evaluation of the economic viability of the
deposit. Geological evidence is derived from detailed and
reliable exploration, sampling and testing and is sufficient to
confirm geological and grade or quality continuity between points
of observation. An indicated mineral resource is that part of
a mineral resource for which quantity, grade or quality, densities,
shape and physical characteristics are estimated with sufficient
confidence to allow the application of modifying factors in
sufficient detail to support mine planning and evaluation of the
economic viability of the deposit. Geological evidence is
derived from adequately detailed and reliable exploration, sampling
and testing and is sufficient to assume geological and grade or
quality continuity between points of observation. An inferred
mineral resource is that part of a mineral resource for which
quantity and grade or quality are estimated on the basis of limited
geological evidence and sampling. Geological evidence is
sufficient to imply but not verify geological and grade or quality
continuity.
Investors are cautioned not to assume that part or all of an
inferred mineral resource exists, or is economically or legally
mineable.
A feasibility study is a comprehensive technical and economic
study of the selected development option for a mineral project that
includes appropriately detailed assessments of applicable modifying
factors together with any other relevant operational factors and
detailed financial analysis that are necessary to demonstrate, at
the time of reporting, that extraction is reasonably justified
(economically mineable). The results of the study may
reasonably serve as the basis for a final decision by a proponent
or financial institution to proceed with, or finance, the
development of the project. The confidence level of the study
will be higher than that of a pre-feasibility study.
Additional Information
Other important information regarding the Amaruq project can be
found in the Company's AIF and Form 40-F.
SOURCE Agnico Eagle Mines Limited