Stock Symbol: AEM (NYSE and TSX)
TORONTO, July 27, 2016 /PRNewswire/ - Agnico Eagle
Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the
"Company") is pleased to provide an update on its 2016 exploration
activities at the Amaruq project in Nunavut, the Sisar Zone at Kittila, the
Barsele project in Sweden, the 50%
owned Odyssey prospect adjoining the Canadian Malartic mine, the
Madrono prospect adjoining the Pinos
Altos and Creston Mascota operations and the El Barqueno
project in Mexico. Highlights include:
- Drilling at Amaruq discovers an additional vein structure in
V Zones and further infills the Whale Tail deposit –
Exploration drilling has encountered a new vein structure in the V
Zones, with results up to 15.5 grams per tonne ("g/t") gold
(capped) over 9.4 metres estimated true width at 18 metres depth in
drill hole AMQ16-706. The V Zones have been shown to include
multiple parallel structures. A recent lower intercept was
15.5 g/t gold (capped) over 5.4 metres estimated true width at 349
metres depth in drill hole AMQ16-833. The V Zones are being
evaluated as a potential second source of open pit ore at
Amaruq.
- Kittila drilling continues to extend Sisar Zone to the north
and south – Recent exploration drilling continues to return
good intercepts such as in drill hole ROD16-700D that intersected
7.4 g/t gold (uncapped) over 9.6 metres estimated true width at
1,161 metres depth, and hole ROD16-700B that intersected 6.4 g/t
gold (uncapped) over 6.5 metres estimated true width at 1,261
metres depth. Optimization studies are ongoing to evaluate
the potential to bring Sisar into the Kittla mine plan.
- At the Barsele Project in Sweden, drilling extends the Skirasen Zone
– Recent drilling at the Skirasen Zone has extended the
mineralization at depth by approximately 100 metres, and 80
metres to the southeast. Highlights include hole
SKI16-006 grading 1.31 g/t gold (capped) over an estimated true
width of 69.8 metres at 445 metres depth. This drill
intercept is located roughly 850 metres southeast of the core of
the Central Zone, indicating that the current known mineralization
could be part of a larger mineralized system. The Skirasen
and Central zones are intrusive-hosted deposits that appear similar
to the Goldex mine deposit.
- Odyssey prospect at 50%-owned Canadian Malartic mine –
Drilling outlines significant areas of mineralization in the North
and South Odyssey zones – In the first half of 2016, 57 drill
holes were completed, continuing the investigation of the Odyssey
prospect. Recent drilling continues to return significant
intercepts such as 2.63 g/t gold (capped) over 33.5 metres
estimated true width at 1,138 metres depth in drill hole
ODY16-5039, showing similarities to the Goldex mine deposit.
Additional drilling totalling C$5.5
million (35,000 metres) has been added to the original
budget of C$8.0 million (60,000
metres) (on a 100% basis).
- New zones of mineralization outlined at the Madrono prospect
– Agnico Eagle has undertaken a first campaign of drilling on
this recently acquired property surrounded by its Pinos Altos mine property, just 0.5 kilometres
from the Creston Mascota pit. Mapping and sampling of
historical mine workings have quickly identified high-potential
targets. The initial drilling has returned up to 4.1 g/t gold
and 64.5 g/t silver (both grades uncapped) over 6.2 metres
estimated true width at 45 metres depth in hole MAD16-005,
confirming the potential to outline additional high-grade satellite
zones close to the existing mines.
- El Barqueno Project – Drilling outlines new, 700-metre-long
Olmeca structure and extends existing deposits – Drilling is
currently moving beyond the deposits that host the mineral
resources. Significant high-grade intercepts are reported at
the new Olmeca prospect, which has been traced over 700 metres of
strike length. Results from Olmeca include up to 4.5 g/t gold
(capped) and 4.7 g/t silver (uncapped) over 11.0 metres estimated
true width at 85 metres depth in drill hole OLM16-010, and 9.4 g/t
gold (capped) and 14.1 g/t silver (uncapped) over 5.1 metres
estimated true width at 67 metres depth in drill hole in
OLM16-003.
"Despite a significant downturn in the gold price over the past
few years, we continued to invest in our operations and advance our
development projects, and we significantly increased exploration
spending. As a result, we have made several new discoveries
and we are now seeing the potential for many of these projects to
have a positive impact on our production profile in the coming
years," said Sean Boyd, Chief
Executive Officer of Agnico Eagle. "Based on current
exploration results, we believe that there is good potential to
expand and upgrade the mineral resources at most of our key
projects by year-end 2016, "added Mr. Boyd.
Amaruq Project – Focus on Infilling Whale Tail Mineral
Resources and Defining Multiple Lenses of V Zones
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 most recent drill results from the Amaruq project were reported
in the Company news release dated April
28, 2016. The inferred mineral resource estimate as of
December 31, 2015 is 3.3 million
ounces gold (16.9 million tonnes grading 6.05 g/t gold).
The goals of the first phase of the 2016 exploration program
were to infill and expand the known mineral resource areas and to
test other favourable targets with a focus on identifying a second
source of open pit ore. Drilling began at the end of January
and continued through May based mainly on lake ice; the drilling
since June has been land-based supported by helicopters.
Exploration and infill drilling to the end of June has totalled
77,517 metres (338 holes), using up to nine rigs, completing the
initial 75,000-metre 2016 drill program. Almost half of this
drilling was in the IVR deposit (36,545 metres, 152 holes), with
30% at Whale Tail (24,820 metres, 103 holes) and the rest at
Mammoth (16,153 metres, 83 holes). In addition, there was
2,186 metres (nine holes) related to engineering studies (rock
mechanics / geotechnical drilling and metallurgical testing) in
this period.
Selected recent drill results are set out in the table below;
drill hole collar coordinates are set out in a table in the
Appendix of this news release. Drill hole collars are also
shown on the Amaruq Project Local Geology Map. 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 the V Zones, 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)*
|
AMQ16-600
|
WT
|
168.0
|
174.2
|
141
|
3.1
|
268.8
|
31.8
|
and
|
WT
|
300.0
|
322.2
|
257
|
19.2
|
5.2
|
5.2
|
AMQ16-611
|
WT
|
148.0
|
170.0
|
135
|
15.6
|
3.5
|
3.5
|
and
|
WT
|
241.6
|
252.3
|
211
|
10.1
|
8.8
|
8.8
|
and
|
WT
|
274.4
|
305.8
|
248
|
28.5
|
7.7
|
7.7
|
AMQ16-613
|
WT
|
310.4
|
318.7
|
261
|
6.8
|
10.3
|
10.3
|
and
|
WT
|
328.4
|
337.1
|
277
|
7.1
|
5.8
|
5.8
|
AMQ16-629A
|
WT
|
300.0
|
304.5
|
244
|
4.1
|
16.8
|
16.8
|
AMQ16-637
|
WT
|
140.0
|
156.8
|
121
|
15.8
|
11.9
|
11.9
|
AMQ16-653A
|
WT
|
92.1
|
105.0
|
84
|
6.5
|
4.1
|
4.1
|
and
|
WT
|
295.0
|
326.4
|
271
|
28.5
|
9.6
|
9.6
|
including
|
|
308.8
|
315.7
|
272
|
6.3
|
16.3
|
16.3
|
AMQ16-673
|
WT
|
290.7
|
337.0
|
262
|
40.1
|
7.3
|
7.3
|
including
|
|
327.2
|
337.0
|
277
|
8.5
|
12.1
|
12.1
|
AMQ16-683
|
V
Zones
|
27.0
|
33.5
|
25
|
6.1
|
16.8
|
15.1
|
AMQ16-688
|
WT
|
153.6
|
197.7
|
143
|
31.2
|
5.0
|
5.0
|
and
|
WT
|
249.7
|
263.7
|
209
|
12.1
|
10.7
|
10.7
|
and
|
WT
|
291.2
|
312.1
|
246
|
18.1
|
13.5
|
13.5
|
AMQ16-690
|
WT
|
34.3
|
57.8
|
34
|
15.1
|
3.1
|
3.1
|
AMQ16-694
|
V
Zones
|
72.0
|
83.7
|
68
|
10.6
|
17.7
|
12.7
|
including
|
|
78.5
|
83.7
|
70
|
4.7
|
18.7
|
15.2
|
AMQ16-701
|
WT
|
234.0
|
245.5
|
198
|
10.4
|
9.1
|
9.1
|
and
|
WT
|
295.2
|
308.2
|
249
|
11.3
|
6.2
|
6.2
|
AMQ16-703
|
WT
|
296.7
|
339.0
|
262
|
36.6
|
6.1
|
6.1
|
including
|
|
296.7
|
305.0
|
248
|
7.2
|
17.1
|
17.1
|
AMQ16-706
|
V
Zones
|
16.0
|
26.4
|
18
|
9.4
|
18.1
|
15.5
|
including
|
|
16.0
|
22.2
|
16
|
5.6
|
29.3
|
25.0
|
AMQ16-709
|
WT
|
141.8
|
150.5
|
119
|
6.2
|
5.8
|
5.8
|
and
|
WT
|
206.6
|
225.2
|
177
|
16.1
|
7.5
|
7.5
|
and
|
WT
|
272.8
|
292.5
|
232
|
17.9
|
4.7
|
4.7
|
including
|
|
280.0
|
285.5
|
232
|
5.0
|
12.4
|
12.4
|
AMQ16-720
|
V
Zones
|
72.0
|
80.0
|
62
|
7.3
|
7.2
|
7.2
|
and
|
V
Zones
|
249.4
|
263.1
|
212
|
12.9
|
13.4
|
6.6
|
including
|
|
249.4
|
253.2
|
208
|
3.6
|
41.7
|
17.2
|
AMQ16-722
|
WT
|
20.3
|
36.0
|
21
|
13.6
|
5.7
|
5.7
|
AMQ16-731
|
V
Zones
|
63.7
|
71.8
|
56
|
7.0
|
11.2
|
9.3
|
AMQ16-736
|
WT
|
22.5
|
26.8
|
20
|
4.3
|
17.2
|
17.2
|
AMQ16-741
|
V
Zones
|
69.0
|
72.9
|
58
|
2.8
|
65.9
|
25.4
|
AMQ16-748
|
V
Zones
|
73.8
|
83.7
|
65
|
7.0
|
14.0
|
10.6
|
AMQ16-755
|
V
Zones
|
97.0
|
106.2
|
81
|
8.0
|
18.8
|
7.6
|
and
|
V
Zones
|
130.4
|
146.8
|
112
|
14.9
|
3.5
|
3.5
|
AMQ16-758
|
V
Zones
|
79.6
|
86.0
|
77
|
4.5
|
6.8
|
6.8
|
AMQ16-765
|
V
Zones
|
76.5
|
83.8
|
75
|
7.2
|
65.5
|
14.2
|
including
|
|
76.5
|
79.5
|
73
|
3.0
|
156.5
|
31.6
|
AMQ16-776
|
V
Zones
|
261.1
|
273.3
|
221
|
11.1
|
28.7
|
14.0
|
AMQ16-793
|
WT
|
63.4
|
73.9
|
62
|
5.3
|
14.6
|
14.0
|
and
|
WT
|
205.7
|
214.0
|
190
|
7.8
|
8.5
|
8.5
|
AMQ16-810
|
V
Zones
|
186.0
|
196.3
|
156
|
8.9
|
6.1
|
6.1
|
AMQ16-812
|
V
Zones
|
306.9
|
310.9
|
268
|
3.1
|
6.8
|
6.8
|
and
|
V
Zones
|
407.0
|
410.4
|
353
|
3.3
|
25.6
|
21.2
|
AMQ16-819
|
V
Zones
|
293.0
|
297.4
|
241
|
3.8
|
16.4
|
14.7
|
AMQ16-830
|
V
Zones
|
112.0
|
128.0
|
112
|
13.1
|
5.8
|
5.2
|
AMQ16-833
|
V
Zones
|
362.5
|
368.7
|
349
|
5.4
|
15.7
|
15.5
|
and
|
V
Zones
|
399.0
|
413.0
|
387
|
12.7
|
5.5
|
4.3
|
*Holes at Whale Tail deposit use a capping factor of 80 g/t
gold. Holes at IVR Zone use a capping factor of 60 g/t
gold.
[Amaruq Project - Local Geology Map]
[Amaruq Project – Schematic Cross Section 15650E]
Approximately half of the exploration drilling so far this year
has been in the V Zones, which form a series of parallel quartz
vein structures within a 1.3-kilometre-long by 400-metre-wide area
immediately north of the Whale Tail deposit. The mineralized
structures in the V Zones strike northeast and dip shallowly to the
southeast, as shown on the Amaruq Project Schematic Cross
Section.
Within the V Zones, the largest structure found to date has a
high-grade core traced over more than 1,000 metres along strike
from near surface to 387 metres depth. Among the better
recent intercepts in this structure is hole AMQ16-776 that
intersected 14.0 g/t gold over 11.1 metres at 221 metres depth, and
hole AMQ16-833 that intersected 15.5 g/t gold over 5.4 metres at
349 metres depth.
Recent drilling has discovered an additional significant
structure approximately 125 metres above and to the southeast of
previously known V Zones structures, with a strike length of 300
metres from near surface to approximately 270 metres below
surface. Hole AMQ16-706 yielded 15.5 g/t gold over 9.4 metres
at 18 metres depth, including 25.0 g/t gold over 5.6 metres in the
new structure. Hole AMQ16-720 yielded 7.2 g/t gold over 7.3
metres at 62 metres depth (in the new structure), as well as 6.6
g/t gold over 12.9 metres at 212 metres depth (in a deeper parallel
structure of the V Zones).
Drilling in the Whale Tail deposit continues to encounter
multiple mineralized horizons. Infill drilling is helping to
increase confidence in the geometry and grade of the Whale Tail ore
shoot, which plunges about 30 degrees to the east from surface to
at least 430 metres depth. The thickening of the ore shoot
appears to be due to folding of the mineralized horizons.
Most of the recent drilling has therefore been directed from
north into the ore shoot, to help ascertain the geometry and true
thickness in this important area. For example, hole AMQ16-688
returned an intercept 5.0 g/t gold over 31.2 metres at 143 metres
depth above the ore shoot, as well as two intercepts within the ore
shoot: 10.7 g/t gold over 12.1 metres at 209 metres depth, and 13.5
g/t gold over 18.1 metres at 246 metres depth. Slightly to
the east of this, hole AMQ16-703 intersected 6.1 g/t gold over 36.6
metres at 262 metres depth, including 17.1 g/t over 7.2
metres. Approximately 300 metres to the southwest of these
two holes, hole AMQ16-613 intersected 10.3 g/t gold over 6.8 metres
at 261 metres depth, as well as 5.8 g/t gold over 7.1 metres at 277
metres depth.
Shallow drilling east of Mammoth Lake, in the region where the
Whale Tail and Mammoth mineralized lenses interfinger has infilled
the westernmost Whale Tail deposit. Hole AMQ16-722 is of
particular interest as a near-surface intercept in the westernmost
part of the Whale Tail deposit, intersecting 5.7 g/t gold over 13.6
metres at 21 metres depth. Approximately 200 metres to the
east is another near-surface intercept: hole AMQ16-690 intersected
3.1 g/t gold over 15.1 metres at 34 metres depth.
Drilling is ongoing with six rigs on the property. The
goal of the current Whale Tail program is to expand the deposit,
while the V Zones program is aiming to gain a better understanding
of the geometry and to determine if the V Zones could become a
potential second source of open pit ore for Amaruq. Regional
exploration is also testing targets outside the currently known
deposits. The Company is actively exploring the Amaruq
deposit with the goal of potentially developing the deposit as a
satellite operation to Meadowbank. An updated Amaruq mineral
resource is expected late in the third quarter of 2016,
incorporating the results of the phase 1 drill program in the V
Zones and Whale Tail deposit.
A budget of $14 million has been
approved for a second phase of exploration this year, including
50,000 metres of drilling as well as the purchase of equipment and
supplies for the 2017 exploration program. Phase 2 is already
underway.
Construction of the Amaruq Exploration Access Road began in the
first quarter of 2016, with 13 kilometres of the expected total
length of 62 kilometres completed to the end of June.
Permitting is ongoing to allow for the development of an
exploration ramp and the potential collection of a bulk
sample. The permit is anticipated in late 2016 or early
2017.
In order to mine the Whale Tail deposit, a Project Certificate
for this satellite pit must be obtained from the Nunavut Impact
Review Board (the "NIRB") along with an amendment of the existing
Meadowbank Type A water license. A positive land use
conformity determination was received from the Nunavut Planning
Commission on June 17, 2016 for the
Amaruq Whale Tail pit project confirming that the planned activity
meets conformity with the existing land use plan. On
June 30, 2016 the Company submitted
an application and environmental impact statement for the Whale
Tail satellite pit with both the NIRB and Nunavut Water
Board. This application is currently undergoing screening by
the NIRB which initiates the permitting process, a process that is
expected to take place over a period of approximately two
years.
Kittila Drilling Continues to Extend Sisar Zone to the North
and South
The goal of the current drill campaign at Kittila is to infill
and extend the mineralization in the Sisar Zone, which is
subparallel to and slightly to the east of the Main ore
zones. The current drilling is from the exploration ramp
which accesses the Sisar Zone at about 800 metres below
surface. The ramp is being driven northward into the Rimpi
Deep Zone. In the second quarter of 2016, 14 holes (5,843
metres) were drilled in the Sisar Top, Central and Deep
zones. The total drilling in Sisar for the first half of 2016
was 24 holes (12,773 metres). Assays are pending for many
holes.
Selected recent drill results are set out in the table below;
drill hole collar coordinates are set out in a table in the
Appendix of this news release. Pierce points for all these
holes are shown on the Kittila Composite Longitudinal
Section. All intercepts reported for the Kittila mine show
uncapped grades over estimated true widths, based on a current
geological interpretation that is being updated as new information
becomes available with further drilling.
Recent exploration drill results from the Sisar Zone at the
Kittila mine
Drill
hole
|
Zone
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
RIE16-600
|
Sisar
Top
|
316.0
|
321.1
|
997
|
3.6
|
4.8
|
RIE16-601
|
Sisar
Top
|
194.8
|
202.0
|
847
|
6.8
|
7.6
|
RIE16-603
|
Sisar
Top
|
247.8
|
256.6
|
902
|
7.7
|
3.0
|
RIE16-604
|
Sisar
Top
|
302.0
|
308.3
|
977
|
4.5
|
4.3
|
RIE16-606
|
Sisar
Top
|
263.0
|
271.0
|
903
|
6.1
|
4.1
|
RIE16-607
|
Sisar
Top
|
185.0
|
190.4
|
771
|
5.4
|
4.1
|
ROD16-700B
|
Sisar
Central
|
691.0
|
706.1
|
1,261
|
6.5
|
6.4
|
including
|
|
694.7
|
702.0
|
1,261
|
3.1
|
9.7
|
ROD16-700C
|
Sisar
Central
|
620.5
|
631.0
|
1,176
|
6.9
|
6.3
|
ROD16-700D
|
Sisar
Central
|
441.6
|
450.2
|
1,069
|
6.9
|
4.7
|
and
|
Sisar
Central
|
587.3
|
592.8
|
1,153
|
3.3
|
4.4
|
and
|
Sisar
Central
|
597.0
|
613.0
|
1,161
|
9.6
|
7.4
|
including
|
|
604.6
|
613.0
|
1,163
|
5.1
|
11.2
|
ROD16-700E
|
Sisar
Central
|
642.4
|
655.6
|
1,203
|
6.9
|
7.0
|
[Kittila composite longitudinal section]
Recent holes drilled from the exploration ramp continue to
extend the Sisar Zone upward and to the north and south. For
the purposes of description, the zone has been divided into two
depths, referred to as "Sisar Top" (approximately 775 to 1,000
metres below surface), and "Sisar Central" (between 1,100 and 1,300
metres below the surface). Some of the Sisar mineralized
lenses extend from one depth to another.
A campaign of conversion drilling in Sisar Top has returned
several good intercepts suggesting the potential of this area to
become a new production source in the near term. The best
recent result in this area was hole RIE16-601 that intersected 7.6
g/t gold over 6.8 metres at 847 metres depth. Hole RIE16-604
intersected 4.3 g/t gold over 4.5 metres at 977 metres depth; this
intercept extends the Sisar Zone 53 metres to the north at this
depth. Hole RIE16-607 intersected 4.1 g/t gold over 5.4
metres at 771 metres depth, extending the Sisar Zone 40 metres
shallower than previous intercepts. Assays are pending on
several other recent holes even farther north in this area.
Sisar Top is approximately 100 metres east of the Rimpi Zone.
Follow-up exploration drilling in Sisar Central, close to the
discovery hole (hole ROU10-037, reported in a Company news release
dated April 28, 2011), has yielded
good results confirming the continuation of the Sisar Zone at this
depth. Hole ROD16-700 and its wedged branches are
investigating the area. The best two recent intercepts are
hole ROD16-700D that intersected 7.4 g/t gold over 9.6 metres at
1,161 metres depth including 11.2 g/t gold over 5.1 metres, and
hole ROD16-700B that intersected 6.4 g/t gold over 6.5 metres at
1,261 metres depth including 9.7 g/t gold over 3.1 metres.
Sisar Central is approximately 150 metres east of the Roura
Zone. Directional drilling in the area continues with two
high-capacity drilling units.
Underground exploration drilling will continue to the north as
the exploration ramp is extended, allowing the small gap between
the Sisar and Rimpi zones to be investigated at approximately 1,000
metres depth. The continued extension of the Sisar Zone could
prove to be significant for the future of the Kittila mine, given
its close proximity to the existing mine instrastructure
(approximately 150 to 200 metres away). The results of the
Sisar Zone infill drilling campaign will be reflected in the
year-end 2016 mineral resources estimate for Kittila.
Barsele Project – Drilling Extends Skirasen Zone
In June 2015, Agnico Eagle
acquired a 55% interest in the Barsele project in Västerbotten
County, northern Sweden. The Company can earn an additional
15% interest in the project through the completion of a
pre-feasibility study. The most recent results from the
28,600-hectare property were released in a Company news release
dated April 28, 2016.
The Barsele property is known to contain intrusive-hosted gold
mineralization (the Central, Avan and Skirasen zones), which
appears to be similar to the Goldex deposit. The property
also hosts gold-rich polymetallic volcanogenic massive sulphide
mineralization (the Norra Zone).
The Avan, Central and Skirasen zones extend over a strike length
of 2.6 kilometres within a granodiorite that ranges in width from
200 to 500 metres over a strike length of more than eight
kilometres. Gold is generally associated with arsenopyrite
and low base metal content, but also occurs as native metal
locally.
A second phase of drilling commenced the end of April with one
drill rig, and a second rig was added in early June. During
the second quarter, drilling was done on the Skirasen and Avan
zones testing induced polarization and magnetotelluric geophysical
anomalies (similar to anomalies in the Central Zone) that were
identified in a Titan-24 geophysical survey conducted in the second
quarter.
Drilling at Barsele during the second quarter totalled 3,972
metres (6 holes). The total drilling in the first half of
2016 is 8,807 metres, while a cumulative total of 17,192 metres has
been drilled since the start of the Company's program in
October 2015.
Recent intercepts from this program are set out in the table
below; drill hole collar coordinates are set out in a table in the
Appendix of this news release. The drill hole pierce points
are also shown on the Barsele Project Composite Schematic
Longitudinal Section. All intercepts reported for the Barsele
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 Barsele
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)*
|
SKI16-006
|
Skirasen
|
279.0
|
303.5
|
210
|
18.4
|
1.08
|
1.08
|
and
|
|
461.0
|
471.0
|
345
|
7.5
|
2.51
|
2.51
|
and
|
|
551.0
|
644.0
|
445
|
69.8
|
1.31
|
1.31
|
including
|
|
556.3
|
582.0
|
420
|
19.3
|
2.17
|
2.17
|
SKI16-007
|
Skirasen
|
364.0
|
408.0
|
310
|
33.0
|
4.08
|
1.87
|
and
|
|
496.0
|
518.4
|
410
|
16.8
|
2.24
|
2.24
|
and
|
|
560.0
|
570.0
|
455
|
7.5
|
6.11
|
1.59
|
and
|
|
670.0
|
690.0
|
550
|
15.0
|
0.70
|
0.70
|
and
|
|
714.0
|
729.0
|
580
|
11.3
|
0.74
|
0.74
|
*Holes at Barsele use a capping factor of 20 g/t
gold.
Multiple lenses of mineralization are intersected in the
Skirasen Zone. Recent exploration drill results include hole
SKI16-006 that had three intersections: 1.08 /t gold over 18.4
metres at 210 metres depth; 2.51 g/t gold over 7.5 metres at 345
metres depth; and 1.31 g/t gold over 69.8 metres at 445 metres
depth, including 2.17 g/t gold over 19.3 metres. This hole
extends the known Skirasen mineralization by approximately 200
metres down-plunge towards the southeast.
Drill hole SKI16-007 was designed to probe for mineralization
below SKI16-006. Assay results have returned several
mineralized lenses, including 1.87 g/t gold over 33.0 metres at 310
metres depth, 2.24 g/t gold over 16.8 metres at 410 metres depth
and 1.59 g/t gold over 7.5 metres at 455 metres depth. The
lowest intersection in this hole is at 580 metres depth, which
extends the currently known depth of the Skirasen Zone by 95
metres.
These drill intercepts are located roughly 850 metres southeast
of the core of the Central Zone.
[Barsele Project Composite Schematic Longitudinal Section]
In 2016, the Company plans to spend approximately $4.9 million on exploration to further evaluate
the mineral potential of the property. This includes 19,000
metres of diamond drilling, a Titan-24 induced polarization
geophysical survey, till sampling and hyperspectral core
scanning. A basic environmental assessment will be done, as
well as ongoing community relations programs to engage with the
various stakeholders in the region.
Odyssey Prospect at Canadian Malartic Mine – Drilling
Outlines Significant Areas of Mineralization in the North and South
Odyssey Zones
The Odyssey prospect lies on the east side of the Canadian
Malartic property in northwestern Quebec, approximately 1.5 kilometres east of
the current limit of the Canadian Malartic open pit. The
Canadian Malartic property is owned by the Canadian Malartic
General Partnership (the "Partnership") in which Agnico Eagle and
Yamana Gold Inc. each have an indirect 50% ownership
interest. This news release discloses some of the
first drill results from Odyssey since it was first acquired in
June 2014.
The Odyssey Zone is composed of multiple mineralized bodies
spatially associated with a porphyritic intrusion, "Porphyry 12",
close to the contact of the Pontiac Group sediments and the Piché
Group of volcanic rocks. They are grouped into two elongated
zones — the Odyssey North and Odyssey South zones — which strike
east-southeast and dip south. Odyssey North has been traced
from a depth of 600 to 1,300 metres below surface along a strike
length of approximately 1.5 kilometres. Odyssey South has a
strike length of 0.5 kilometres, and has been located between
approximately 200 and 550 metres depth.
Gold occurs preferentially along lithological contacts but also
within the porphyry. The Odyssey mineralization appears to be
controlled by structures associated with the Sladen Fault or its
splays. The gold mineralization is associated with an
alteration halo of feldspar-hematite-sericite and local silica with
1-3% disseminated pyrite. Grades are in the range of 1.5 to
3.0 g/t gold, but higher grades are observed locally within
stockwork and silicified breccia zones.
The Partnership's initial budget in 2016 was C$8.0 million for approximately 60,000 metres of
drilling to infill and expand the known mineralized zones on the
Odyssey prospect. To the end of June, 57 holes (53,417
metres) have been completed.
Selected drill results are set out in the table below; drill
hole collar coordinates are set out in a table in the Appendix of
this news release. Drill hole collars are also shown on the
Odyssey Prospect Local Geology Map. All intercepts reported
for the Odyssey prospect 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 Odyssey North and
Odyssey South zones
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)*
|
ODY11-2404***
|
North
|
1,223.0
|
1,333.2
|
1,136
|
78.1
|
3.66
|
3.06
|
ODY14-2480
|
South
|
546.0
|
587.7
|
480
|
41.1
|
2.55
|
2.55
|
ODY14-2480***
|
North
|
1,111.0
|
1,124.5
|
936
|
10.6
|
4.64
|
4.64
|
ODY14-2480A
|
North
|
1,056.0
|
1,065.9
|
838
|
8.6
|
2.46
|
2.46
|
ODY14-2482***
|
North
|
1,163.4
|
1,169.3
|
996
|
4.7
|
9.61
|
9.61
|
ODY14-2483***
|
North
|
1,170.0
|
1,212.5
|
988
|
33.0
|
2.37
|
2.37
|
ODY14-2486***
|
North
|
1,205.5
|
1,224.1
|
959
|
16.8
|
2.29
|
2.29
|
ODY14-2491BExt
|
South
|
518.9
|
533.8
|
471
|
14.6
|
5.44
|
5.44
|
And
|
North
|
1,165.7
|
1,185.0
|
1,034
|
13.6
|
1.60
|
1.60
|
ODY14-2492Ext
|
North
|
1,188.2
|
1,211.0
|
988
|
18.3
|
5.22
|
5.04
|
including
|
|
1,196.6
|
1,204.7
|
|
6.5
|
10.22
|
9.73
|
ODY14-2493Ext
|
North
|
1,261.5
|
1,281.2
|
1,151
|
13.4
|
3.81
|
3.81
|
ODY15- 2494Ext
|
North
|
1,298.9
|
1,324.0
|
1,213
|
15.6
|
3.31
|
3.31
|
including
|
|
1,308.4
|
1,315.8
|
|
4.6
|
6.92
|
6.92
|
ODY15-2495
|
South
|
520.6
|
537.8
|
449
|
17.3
|
2.73
|
2.73
|
ODY15-2498
|
South
Contact
|
367.9
|
384.0
|
272
|
12.3
|
2.50
|
2.50
|
ODY15-2500
|
North
|
1,148.5
|
1,157.8
|
998
|
7.3
|
2.16
|
2.16
|
ODY15-5003
|
South
Contact
|
344.8
|
360.4
|
292
|
13.4
|
2.28
|
2.28
|
ODY15-5004
|
North
|
1,309.0
|
1,334.0
|
1,139
|
18.4
|
2.13
|
2.13
|
including
|
|
1,319.5
|
1,328.2
|
|
6.4
|
3.73
|
3.73
|
ODY15-5007
|
North
|
1,359.0
|
1,377.0
|
1,104
|
14.8
|
2.22
|
2.22
|
including
|
|
1,368.9
|
1,375.5
|
|
5.4
|
4.62
|
4.62
|
ODY15-5008
|
South
|
436.9
|
452.9
|
340
|
15.8
|
3.36
|
3.36
|
including
|
|
436.9
|
445.4
|
|
8.4
|
4.62
|
4.62
|
ODY15-5010
|
North
|
1,222.9
|
1,232.8
|
1,000
|
7.8
|
2.55
|
2.55
|
ODY15-5023
|
South
|
529.0
|
547.5
|
410
|
17.5
|
1.63
|
1.63
|
ODY15-5024
|
North
|
1,153.0
|
1,166.2
|
899
|
11.2
|
5.12
|
5.12
|
ODY15-5025
|
North
|
1,129.3
|
1,144.5
|
936
|
12.2
|
2.25
|
2.25
|
ODY15-5026
|
South
|
463.5
|
474.8
|
316
|
11.3**
|
3.52
|
3.52
|
including
|
|
466.0
|
474.8
|
|
8.8**
|
4.13
|
4.13
|
ODY15-5029
|
North
|
1,036.2
|
1,042.6
|
781
|
5.6
|
2.83
|
2.83
|
ODY16-5033
|
South
|
473.9
|
491.5
|
427
|
17.6
|
1.50
|
1.50
|
ODY16-5039
|
North
|
1,355.5
|
1,398.3
|
1,171
|
33.5
|
2.63
|
2.63
|
including
|
|
1,380.8
|
1,393.6
|
|
10.0
|
4.63
|
4.63
|
ODY16-5040A
|
North
|
1,236.8
|
1,268.0
|
1,018
|
27.7
|
1.93
|
1.93
|
Including
|
|
1,258.4
|
1,268.0
|
|
8.5
|
3.50
|
3.50
|
ODY16-5042
|
North
|
995.5
|
1019.5
|
822
|
18.4
|
1.11
|
1.11
|
ODY16-5043
|
North
|
1,380.0
|
1,388.0
|
1,236
|
5.4
|
3.40
|
3.40
|
ODY16-5044
|
North
|
1,404.2
|
1,417.8
|
1,299
|
8.6
|
1.95
|
1.95
|
ODY16-5051
|
North
|
1,260.2
|
1,285.5
|
1,135
|
17.8
|
1.76
|
1.76
|
ODY16-5054
|
North
|
1,312.5
|
1,366.8
|
1,234
|
33.2
|
1.54
|
1.54
|
* Holes at the Odyssey prospect use a capping factor of 20
g/t gold.
** True thickness not determined; these values are core
length.
*** Drill-hole results previously reported by former owners.
Some were previously reported with different grades and
thicknesses.
[Odyssey Prospect – Local Geology Map]
Odyssey North
The estimated true thickness of the mineralized bodies in the
Odyssey North Zone varies from 5 to 35 metres with local wider
intercepts, with grades generally ranging from 1.5 to 3.0 g/t
gold.
Additional drilling is currently underway to better understand
areas where mineralization appears to be more consistent with
better continuity. Three main mineralized areas have been
outlined.
Intercepts in the western, shallower part of the zone include
hole ODY14-2482 that intersected 9.61 g/t gold over 4.7 metres at
996 metres depth, and approximately 200 metres to the west, hole
ODY14-2483 that intersected 2.37 g/t gold over 33.0 metres at 988
metres depth. Other intercepts in this region were in holes
ODY14-2480, ODY15-5024 and ODY16-5040A.
The central part of the zone is somewhat deeper.
Intercepts in this area include hole extension ODY14-2492Ext that
intersected 5.04 g/t gold over 18.3 metres at 988 metres depth,
including 9.73 g/t gold over 6.5 metres; approximately 200 metres
below this, hole extension ODY14-2493Ext intersected 3.81 g/t gold
over 13.4 metres at 1,151 metres depth.
Intercepts in the deepest, eastern part of the zone include hole
ODY16-5039 that intersected 2.63 g/t gold over 33.5 metres at 1,171
metres depth, including 4.63 g/t gold over 10.0 metres;
approximately 100 metres west of this, hole ODY16-5054 intersected
1.54 g/t gold over 33.2 metres at 1,234 metres depth. Other
intercepts in this region are in holes ODY14-2494Ext and
ODY15-5004.
Odyssey South
The Odyssey South Zone is located at the southern contact of the
upper portion of Porphyry 12, at depths varying from 200 to 550
metres. It ranges from 5 to 15 metres thick with grades from
1.5 to 5 g/t gold. It remains open to the east along the
south contact near the apex of the porphyry.
The Odyssey South Zone has yielded strong, wide intercepts as
shown by hole ODY14-2491BExt that intersected 5.44 g/t gold over
14.6 metres at a depth of 471 metres. Approximately 300
metres east of this hole, ODY15-5008 returned 3.36 g/t gold over an
estimated thickness of 15.8 metres at 340 metres depth.
Drilling is ongoing with nine drill rigs on the property.
A supplemental budget of C$5.5
million was recently approved by the Partnership, which will
add 35,000 metres of drilling in 2016. An initial inferred
mineral resource estimate for the Odyssey zones is expected as of
year-end 2016.
The Odyssey prospect appears to have similarities to Agnico
Eagle's Goldex deposit in terms of grade and potential amenability
to underground bulk mining. Additional drilling and economic
studies are needed to better assess these opportunities.
Creston Mascota deposit at Pinos
Altos - New Zones of Mineralization Outlined at the Madrono
Prospect
A recent agreement allows access to the 51-hectare Madrono
property for exploration and mining. Madrono is within the
Pinos Altos property area,
approximately 0.5 kilometres east of the Creston Mascota pit, and
includes at least three gold-silver veins: Madrono, Santa Martha and El Salto. Previous
mining in this area included small-scale bonanza production from
underground mine development on three levels in the 1930s.
Mapping, surface sampling, drilling and exploration planning for
Madrono are underway.
The first phase of exploration, with a $1.25-million budget, began at the end of May and
will include 5,500 metres of diamond drilling to determine the
extent of mineralized structures found by surface
exploration. Three rigs are currently working at Madrono; 12
holes (2,978 metres) were completed to the end of June.
Permits have recently been obtained for this phase of
exploration drilling. The initial drilling was limited to the
prior permitted locations, but drilling will now move to the higher
priority targets that have become accessible through the permits
obtained in June.
Gold and silver grades of recent intercepts from the Madrono
prospect are set out in the table below; drill hole collar
coordinates are set out in a table in the Appendix of this news
release. The drill hole collar locations are shown on the
Madrono Prospect Local Geology Map. All intercepts reported
for the Madrono prospect show uncapped gold and silver grades over
estimated true widths, based on a preliminary geological
interpretation that will be updated as new information becomes
available with further drilling.
Selected recent exploration drill results from the Madrono
prospect on the Pinos Altos
property
Drill
Hole
|
Location
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)
|
Silver grade
(g/t)
(uncapped)
|
MAD16-003
|
Madrono
vein
|
60.0
|
66.3
|
54
|
4.4
|
2.3
|
28.4
|
and
|
Madrono
vein
|
75.9
|
88.0
|
79
|
8.5
|
2.4
|
26.3
|
and
|
Madrono
vein
|
314.8
|
317.8
|
200
|
2.1
|
2.3
|
5.0
|
MAD16-004
|
Madrono
vein
|
72.7
|
80.0
|
86
|
5.1
|
1.3
|
23.1
|
and
|
Madrono
vein
|
173.4
|
176.4
|
229
|
2.1
|
1.6
|
8.0
|
MAD16-005
|
Madrono
vein
|
60.3
|
69.1
|
45
|
6.2
|
4.1
|
64.5
|
including
|
|
63.0
|
66.8
|
45
|
2.7
|
7.7
|
103.0
|
[Madrono Prospect -Local Geology Map]
The Madrono vein structure has been followed over a strike
length of 350 metres in an east-west direction, and appears to
comprise multiple separate veins. The best intersections to
date are from two holes in the eastern portion of the Madrono
structure. Hole MAD16-003 intersected five veins; the three
widest intercepts were 2.3 g/t gold and 28.4 g/t silver over 4.4
metres at 54 metres depth, 2.4 g/t gold and 26.3 g/t silver over
8.5 metres at 79 metres depth, and 2.3 g/t gold and 5.0 g/t silver
over 2.1 metres at 200 metres depth. Hole MAD16-005
intersected two veins at shallow depths; the widest intercept was
4.1 g/t gold and 64.5 g/t silver over 6.2 metres at 45 metres
depth.
In all the cases the highest gold values are associated with
green to white quartz as well as iron/manganese oxide structures,
which is similar to both the Pinos
Altos and Creston Mascota mineralization. Quartz
veinlets that are centimetres wide generally occur up to 2 metres
from the margins of the major veins.
The Santa Martha and
El Salto structures will be
investigated through drilling before the end of the year. The
exploration program should indicate the grade and size of the
mineralization, and if the structure continues at depth.
El Barqueno Project - Drilling Outlines New Zones and Extends
Existing Deposits
Agnico Eagle has a 100% interest in the El Barqueno
project. The 32,840-hectare property is in the Guachinango gold-silver mining district,
Jalisco State, Mexico,
approximately 150 kilometres west of the state capital of
Guadalajara. As of
December 31, 2015, the El Barqueno
project has an inferred mineral resource of 19.7 million tonnes
grading 0.96 g/t gold and 5.78 g/t silver (containing 608,000
ounces of gold and 3.7 million ounces of silver) at the
Azteca-Zapoteca, Angostura and
Pena de Oro zones. The Company
last reported on this project in a news release dated April 28, 2016. This news release
summarizes the results of exploration programs completed on the
project to the end of June 2016.
From April through June 2016, 58
holes (17,462 metres) were drilled using six drill rigs in order to
test several mineralized structures and prospects (Angostura, Zapote-Mixteca, San Diego, Olmeca, Huichol, Tarasca and
Pena Blanca areas). This
brings the year-to-date total drilling to 214 holes (44,985 metres)
on this project.
Gold and silver grades of recent intercepts from the
Azteca-Zapoteca and Angostura
zones and the recently discovered Olmeca prospect are set out in
the table below; drill hole collar coordinates are set out in a
table in the Appendix of this news release. The drill hole
collars are located on the El Barqueno Project Local Geology
Map. All intercepts reported for the El Barqueno project show
uncapped gold and silver grades (except for capped gold grades for
the Olmeca prospect) over estimated true widths, based on a
preliminary geological interpretation that will be updated as new
information becomes available with further drilling.
Selected recent exploration drill results from the El
Barqueno project
Drill
Hole
|
Zone
|
From
(metres)
|
To
(metres)
|
Depth of
midpoint
below
surface
(metres)
|
Estimated
true width
(metres)
|
Gold grade
(g/t)
(uncapped)*
|
Gold grade
(g/t)
(capped)**
|
Silver grade
(g/t)
(uncapped)
|
AZP16-308
|
Azteca-Zapoteca
|
25.0
|
39.0
|
12
|
11.2
|
1.5
|
|
6.3
|
AZP16-312
|
Azteca-Zapoteca
|
137.0
|
142.0
|
122
|
4.0
|
1.6
|
|
11.4
|
AZP16-315
|
Azteca-Zapoteca
|
54.0
|
62.0
|
42
|
8.0
|
3.9
|
|
42.0
|
including
|
|
56.0
|
60.0
|
42
|
4.0
|
7.3
|
|
82.1
|
AZP16-317
|
Azteca-Zapoteca
|
14.0
|
18.0
|
11
|
4.0
|
6.3
|
|
167.8
|
AZP16-319
|
Azteca-Zapoteca
|
29.0
|
34.0
|
18
|
5.0
|
1.9
|
|
3.3
|
AZP16-322
|
Azteca-Zapoteca
|
106.0
|
118
|
113
|
9.6
|
0.5
|
|
12.3
|
and
|
Azteca-Zapoteca
|
130.0
|
145
|
132
|
12.0
|
7.3
|
|
53.1
|
AZP16-323
|
Azteca-Zapoteca
|
36.0
|
39.0
|
38
|
3.0
|
1.1
|
|
2.9
|
AZP16-329
|
Azteca-Zapoteca
|
47.0
|
52.0
|
37
|
5.0
|
1.5
|
|
10.5
|
AZP16-330
|
Azteca-Zapoteca
|
149.0
|
174.0
|
154
|
12.5
|
1.2
|
|
24.9
|
BRQ15-304
|
Olmeca
|
118.0
|
125.0
|
72
|
5.5
|
20.6
|
11.1
|
8.8
|
BRQ15-309
|
Olmeca
|
148.0
|
153.0
|
110
|
4.0
|
2.2
|
2.2
|
5.9
|
BRQ16-325
|
Angostura
|
451.0
|
456.0
|
335
|
4.0
|
5.2
|
|
19.8
|
OLM16-003
|
Olmeca
|
123.0
|
129.0
|
67
|
5.1
|
19.1
|
9.4
|
14.1
|
OLM16-008
|
Olmeca
|
160.0
|
165.0
|
100
|
4.0
|
2.8
|
2.8
|
4.8
|
OLM16-010
|
Olmeca
|
131.0
|
145.0
|
85
|
11.0
|
7.0
|
4.5
|
4.7
|
* Cut-off grade of 0.4 g/t gold; only intervals longer than
2.8 metres estimated true width were included.
** Holes at the Olmeca prospect use a capping factor of 20 g/t
gold.
[El Barqueno Project – Local Geology Map]
Newly Discovered Olmeca Structure
A total of six drill holes (2,211 metres) have been completed in
the new Olmeca prospect, which is a 700-metre-long
east-northeast-striking, steeply north-dipping gold-bearing
structure that includes high-grade gold. Olmeca is located
approximately 5 kilometres east of the Azteca-Zapoteca Zone.
The new Olmeca prospect is open to the east and west and at
depth. Hole OLM16-003 yielded 9.4 g/t gold and 14.1 g/t
silver over 5.1 metres at 67 metres depth. Approximately 700
metres to the east, hole BRQ15-304 intersected 11.1 g/t gold and
8.8 g/t silver over 5.5 metres at 72 metres depth; hole OLM16-008
intersected 2.8 g/t gold and 4.8 g/t silver over 4.0 metres at 100
metres depth; and hole OLM16-010 intersected 4.5 g/t gold and 4.7
g/t silver over 11.0 metres at 85 metres depth. The
mineralization is found in a high-strain zone including hematite-
and specularite-rich gouge material at the contact of diorite
intrusive with andesitic tuff. Additional subparallel
structures have been denoted within the Olmeca prospect through
geological mapping and sampling and soil geochemical surveys.
Additional drilling is planned later this year along strike in both
directions and at depth to properly define the limits of this
high-grade auriferous structure.
Azteca-Zapoteca Zone
To date, the Azteca-Zapoteca Zone has been defined over more
than 1.4 kilometres of strike length along a northeasterly
direction and has been intersected as deep as 300 metres. The
steeply north-dipping Azteca structure and moderately south-dipping
Zapoteca structure appear to coalesce at a depth of 100-150 metres
below surface into a near-vertical structure with generally higher
grades. The zone remains open at depth and along strike to
the southwest.
Areas of higher grade were intersected during the quarter by
holes that were testing the continuity and extensions of the
mineralization. Examples include hole AZP16-315 that yielded
3.9 g/t gold and 42.0 g/t silver over 8.0 metres at 42 metres
depth; hole AZP16-317 that yielded 6.3 g/t gold and 167.8 g/t
silver over 4.0 metres at 11 metres depth; and hole AZP16-322 that
yielded 7.3 g/t gold and 53.1 g/t silver over 12.0 metres at 132
metres depth.
Additional drilling is planned along strike to the southwest as
well as in the footwall to the Zapoteca structure. The
Company believes there is potential for parallel mineralized
structures between the Azteca-Zapoteca and Angostura mineral resource areas. Drilling
will continue to test this area in conjunction with the drilling in
the Angostura area.
Angostura Zone
The Angostura Zone lies approximately 800 metres northwest of
the Azteca-Zapoteca Zone. Angostura is defined over a strike length of
more than 1,000 metres, and appears to plunge shallowly to the
southwest. The structure is open along strike to the
southwest and at depth.
Recent results include hole BRQ16-325 that intersected 5.2 g/t
gold and 19.8 g/t silver over 4.0 metres at 335 metres depth.
This is the deepest Angostura intercept to date.
Drilling to date suggests Angostura could become part of a multi-pit
operation along with a larger deposit at Azteca-Zapoteca.
Additional drilling is planned along strike to the northeast and
southwest searching for other potential shallowly-plunging shoots
as well as testing the potential for parallel mineralized
structures. Further drilling is required in this area to
confirm the geometry of the mineralized vein structure.
Additional Target Areas
Approximately 10,000 metres of additional drilling is expected
to be completed by the end of 2016 at the El Barqueno project,
principally at the Azteca-Zapoteca, Angostura, Pena de
Oro deposits as well as on high potential targets such
as: Pena Blanca, Olmeca, San
Diego, El Camino, Tierra Blanca, Tecolote and
Tortuga. Exploration expenditures in 2016 are expected to
total approximately $16 million.
In addition to the drilling activities, studies are underway to
evaluate potential development scenarios for the project. It
is currently envisioned that the project's gold-silver deposits
could potentially be developed into a series of open pits utilizing
heap leach processing, similar to the Creston Mascota deposit at
Pinos Altos and the La India
mines.
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
July 27, 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", "forecast",
"plan", "potential", "will" and similar expressions are intended to
identify forward-looking statements. Such statements include,
without limitation: 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; statements concerning 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; statements 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; estimates
of mineral reserves and mineral resources, and statements regarding
anticipated future exploration; the anticipated timing of events
with respect to the Company's projects and statements. Such
statements and information 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.
Scientific and Technical Data
The scientific and technical information contained in this news
release relating to Quebec
operations has been approved by Christian Provencher, Eng.,
Vice-President, Canada; relating
to Nunavut operations has been
approved by Dominique Girard, Eng., Vice-President Nunavut
Operations; relating to the Kittila operations has been approved by
Francis Brunet, Eng., Corporate Director Mining; relating to
Southern Business operations has been approved by Tim Haldane, P.Eng., Senior Vice-President,
Operations – USA and Latin America; and relating to exploration has
been approved by Alain Blackburn,
Eng., Senior Vice-President, Exploration and Guy Gosselin,
Eng. and P.Geo., Vice-President, Exploration. Each of them is
a "Qualified Person" for the purposes of National Instrument 43-101
Standards of Disclosure for Mineral Projects ("NI
43-101").
The scientific and technical information relating to Agnico
Eagle's mineral reserves and mineral resources contained herein
(other than the Canadian Malartic mine) has been approved by Daniel
Doucet, Eng., Senior Corporate Director, Reserve Development; and
relating to mineral reserves and mineral resources at the Canadian
Malartic mine contained herein has been approved by Donald Gervais, P.Geo., Director of Technical
Services at CMC. Each of them is a "Qualified Person" for the
purposes of NI 43-101.
Additional Information
Additional information about each of the mineral projects that
is required by NI 43-101, sections 3.2 and 3.3 and paragraphs 3.4
(a), (c) and (d) can be found in Technical Reports, which may be
found at www.sedar.com. Other important operating
information can be found in the Company's AIF and Form 40-F.
Property/Project
name
and
location
|
Date of most
recent
Technical Report (NI
43-101) filed on
SEDAR
|
LaRonde, Bousquet
&
Ellison, Quebec,
Canada
|
March 23,
2005
|
Canadian Malartic, Quebec,
Canada
|
June 16,
2014
|
Kittila, Kuotko
and
Kylmakangas,
Finland
|
March 4,
2010
|
Swanson, Quebec,
Canada
|
|
Meadowbank,
Nunavut,
Canada
|
February 15,
2012
|
Goldex, Quebec,
Canada
|
October 14,
2012
|
Lapa, Quebec,
Canada
|
June 8,
2006
|
Meliadine,
Nunavut,
Canada
|
February 11,
2015
|
Akasaba, Quebec,
Canada
|
|
Amaruq, Nunavut,
Canada
|
|
Hammond Reef, Ontario,
Canada
|
July 2,
2013
|
Upper Beaver (Kirkland Lake
project),
Ontario, Canada
|
November 5,
2012
|
Pinos Altos and Creston
Mascota, Mexico
|
March 25,
2009
|
La India,
Mexico
|
August 31,
2012
|
Appendix: Selected drill collar coordinates
Amaruq project exploration drill collar coordinates of
selected holes
|
Drill collar
coordinates*
|
Drill hole
ID
|
UTM
North
|
UTM
East
|
Elevation
(metres above
sea level)
|
Azimuth
|
Dip
(degrees)
|
Length
(metres)
|
AMQ16-600
|
7255594
|
606682
|
153
|
143
|
-54
|
363
|
AMQ16-611
|
7255592
|
606751
|
153
|
142
|
-57
|
345
|
AMQ16-613
|
7255520
|
606513
|
153
|
142
|
-55
|
426
|
AMQ16-629A
|
7255478
|
606413
|
153
|
143
|
-55
|
381
|
AMQ16-637
|
7255561
|
607029
|
153
|
323
|
-56
|
222
|
AMQ16-653A
|
7255632
|
606799
|
153
|
146
|
-57
|
354
|
AMQ16-673
|
7255637
|
606750
|
153
|
142
|
-54
|
375
|
AMQ16-683
|
7256236
|
607173
|
153
|
323
|
-54
|
279
|
AMQ16-688
|
7255614
|
606775
|
153
|
146
|
-54
|
351
|
AMQ16-690
|
7255107
|
606051
|
153
|
323
|
-48
|
144
|
AMQ16-694
|
7256272
|
607236
|
153
|
319
|
-58
|
245
|
AMQ16-701
|
7255592
|
606716
|
153
|
144
|
-54
|
350
|
AMQ16-703
|
7255671
|
606817
|
153
|
143
|
-56
|
366
|
AMQ16-706
|
7256276
|
607188
|
153
|
321
|
-55
|
222
|
AMQ16-709
|
7255564
|
606696
|
153
|
143
|
-55
|
303
|
AMQ16-720
|
7256229
|
607229
|
153
|
321
|
-55
|
318
|
AMQ16-722
|
7255061
|
605868
|
153
|
323
|
-48
|
120
|
AMQ16-731
|
7256331
|
607282
|
153
|
322
|
-54
|
273
|
AMQ16-736
|
7255966
|
607099
|
153
|
321
|
-55
|
201
|
AMQ16-741
|
7256409
|
607240
|
153
|
323
|
-55
|
291
|
AMQ16-748
|
7256355
|
607042
|
153
|
323
|
-57
|
147
|
AMQ16-755
|
7256370
|
607343
|
153
|
319
|
-53
|
200
|
AMQ16-758
|
7256234
|
606762
|
153
|
329
|
-70
|
180
|
AMQ16-765
|
7256294
|
607258
|
153
|
321
|
-71
|
352
|
AMQ16-776
|
7256339
|
607489
|
153
|
322
|
-54
|
396
|
AMQ16-793
|
7255401
|
606541
|
153
|
145
|
-65
|
270
|
AMQ16-810
|
7256004
|
606861
|
153
|
323
|
-54
|
243
|
AMQ16-812
|
7256188
|
607510
|
153
|
321
|
-65
|
474
|
AMQ16-819
|
7256349
|
607555
|
153
|
324
|
-58
|
378
|
AMQ16-830
|
7256258
|
606925
|
153
|
321
|
-70
|
159
|
AMQ16-833
|
7256124
|
607407
|
153
|
319
|
-75
|
1021
|
* Coordinate System UTM Nad 83 zone 14
Sisar Zone exploration drill collar coordinates of selected
holes
|
Drill collar
coordinates*
|
Drill hole
ID
|
UTM
North
|
UTM
East
|
Elevation
(metres above
sea level)
|
Azimuth
|
Dip
(degrees)
|
Length
(metres)
|
RIE16-600
|
7538900
|
2558637
|
-615
|
090
|
-30
|
402
|
RIE16-601
|
7538900
|
2558637
|
-614
|
090
|
-2
|
315
|
RIE16-603
|
7538900
|
2558637
|
-614
|
079
|
-17
|
348
|
RIE16-604
|
7538900
|
2558637
|
-615
|
080
|
-30
|
381
|
RIE16-606
|
7538899
|
2558637
|
-614
|
101
|
-16
|
350
|
RIE16-607
|
7538900
|
2558637
|
-613
|
085
|
20
|
280
|
ROD16-700B
|
7537848
|
2558625
|
-464
|
090
|
-67
|
859
|
ROD16-700C
|
7537848
|
2558625
|
-464
|
090
|
-67
|
684
|
ROD16-700D
|
7537848
|
2558625
|
-464
|
090
|
-67
|
785
|
ROD16-700E
|
7537848
|
2558625
|
-464
|
090
|
-67
|
723
|
* Finnish Coordinate System KKJ Zone 2
Barsele project exploration drill collar coordinates of
selected holes
|
Drill collar
coordinates*
|
Drill hole
ID
|
UTM
North
|
UTM
East
|
Elevation
(metres above
sea level)
|
Azimuth
|
Dip
(degrees)
|
Length
(metres)
|
SKI16-006
|
7214505
|
619155
|
305
|
40
|
-51
|
788
|
SKI16-007
|
7214505
|
619155
|
305
|
40
|
-59
|
882
|
* Coordinate System Sweref 99
Odyssey prospect exploration drill collar coordinates of
selected holes
|
Drill collar
coordinates*
|
Drill hole
ID
|
UTM
North
|
UTM
East
|
Elevation
(metres above
sea level)
|
Azimuth
|
Dip
(degrees)
|
Length
(metres)
|
ODY11-2404
|
5333934
|
717976
|
311
|
020
|
-63
|
1,455
|
ODY14-2480
|
5333964
|
718070
|
312
|
012
|
-63
|
1,180
|
ODY14-2480A
|
5333964
|
718070
|
312
|
012
|
-63
|
1,116
|
ODY14-2482
|
5333964
|
718070
|
312
|
000
|
-64
|
1,209
|
ODY14-2483
|
5333934
|
717976
|
310
|
008
|
-66
|
1,272
|
ODY14-2486
|
5333852
|
717700
|
316
|
012
|
-59
|
1,298
|
ODY14-2491B
|
5333984
|
718160
|
312
|
008
|
-65
|
1,254
|
ODY14-2492
|
5333880
|
718295
|
312
|
012
|
-61
|
1,323
|
ODY14-2493
|
5333962
|
718400
|
311
|
005
|
-68
|
1,341
|
ODY15- 2494
|
5333970
|
718546
|
311
|
006
|
-72
|
1,508
|
ODY15-2495
|
5333987
|
718157
|
312
|
012
|
-60
|
635
|
ODY15-2498
|
5333853
|
719049
|
309
|
008
|
-54
|
791
|
ODY15-2500
|
5333964
|
718065
|
311
|
007
|
-67
|
1,299
|
ODY15-5003
|
5333937
|
718850
|
310
|
009
|
-58
|
789
|
ODY15-5004
|
5333807
|
718849
|
312
|
011
|
-65
|
1,407
|
ODY15-5007
|
5333696
|
718650
|
312
|
007
|
-62
|
1,440
|
ODY15-5008
|
5333957
|
718500
|
311
|
004
|
-53
|
855
|
ODY15-5010
|
5333840
|
718495
|
315
|
009
|
-61
|
1,275
|
ODY15-5023
|
5333965
|
718065
|
311
|
004
|
-51
|
633
|
ODY15-5024
|
5333864
|
717904
|
314
|
006
|
-61
|
1,212
|
ODY15-5025
|
5333929
|
718000
|
312
|
009
|
-59
|
1,167
|
ODY15-5026
|
5333984
|
718160
|
312
|
000
|
-52
|
684
|
ODY15-5029
|
5333929
|
718000
|
312
|
001
|
-56
|
1,107
|
ODY16-5033
|
5333962
|
718400
|
311
|
010
|
-65
|
1,256
|
ODY16-5039
|
5333728
|
718819
|
312
|
014
|
-66
|
1,497
|
ODY16-5040A
|
5333862
|
717904
|
314
|
007
|
-65
|
1,329
|
ODY16-5042
|
5334058
|
717544
|
311
|
012
|
-61
|
1,101
|
ODY16-5043
|
5333874
|
718294
|
314
|
010
|
-68
|
1,545
|
|
|
|
|
|
-71
|
1,537
|
ODY16-5051
|
5333931
|
718709
|
316
|
009
|
-68
|
1,335
|
ODY16-5054
|
5333931
|
718709
|
316
|
009
|
-69
|
1,400
|
* Coordinate System UTM Nad 83 zone 17
Madrono prospect exploration drill hole collar
coordinates
|
Drill Hole Collar
Coordinates*
|
Drill Hole
ID
|
UTM
North
|
UTM
East
|
Elevation
(metres above
sea level)
|
Azimuth
|
Dip
(degrees)
|
Length
(metres)
|
(degrees)
|
MAD16-003
|
3134418
|
761977
|
2,146
|
000
|
-45
|
348
|
MAD16-004
|
3134991
|
761465
|
2,014
|
065
|
-45
|
350
|
MAD16-005
|
3134957
|
761712
|
2,157
|
000
|
-45
|
279
|
* Coordinate System UTM NAD 27
El Barqueno project exploration drill hole collar
coordinates
|
Drill Hole Collar
Coordinates*
|
Drill Hole
ID
|
UTM
North
|
UTM
East
|
Elevation
(metres above
sea level)
|
Azimuth
|
Dip
(degrees)
|
Length
(metres)
|
(degrees)
|
AZP16-308
|
2279872
|
555113
|
1,267
|
155
|
-50
|
85
|
AZP16-312
|
2279710
|
554046
|
1,274
|
155
|
-50
|
168
|
AZP16-315
|
2279774
|
554153
|
1,262
|
335
|
-50
|
116
|
AZP16-317
|
2279812
|
554083
|
1,255
|
335
|
-50
|
52
|
AZP16-319
|
2279790
|
554063
|
1,255
|
335
|
-50
|
70
|
AZP16-322
|
2279765
|
554239
|
1,234
|
155
|
-55
|
171
|
AZP16-323
|
2279788
|
554064
|
1,255
|
0
|
-90
|
76
|
AZP16-329
|
2279828
|
554432
|
1,255
|
350
|
-45
|
256
|
AZP16-330
|
2279799
|
554224
|
1,239
|
155
|
-60
|
267
|
BRQ15-304
|
2280615
|
561300
|
1,387
|
155
|
-50
|
316
|
BRQ15-309
|
2280531
|
561113
|
1,381
|
155
|
-55
|
406
|
BRQ16-325
|
2279956
|
554684
|
1,280
|
335
|
-50
|
689
|
OLM16-003
|
2280468
|
560672
|
1,384
|
155
|
-50
|
488
|
OLM16-008
|
2280598
|
561191
|
1,393
|
155
|
-50
|
323
|
OLM16-010
|
2280658
|
561386
|
1,402
|
155
|
-50
|
287
|
* Coordinate System UTM WGS84 13N Zone
SOURCE Agnico Eagle Mines Limited