AGNICO-EAGLE PROVIDES EXPLORATION UPDATE ON 2010 ACTIVITIES:
MINERALIZATION EXTENDED AT DEPTH AT KITTILA;
NEW ZONE FOUND AT PINOS ALTOS;
AGGRESSIVE PROGRAM UNDERWAY AT MELIADINE
(All amounts expressed in U.S. dollars unless otherwise noted)
Toronto, ON - September 8, 2010 - Agnico-Eagle Mines Limited (�Agnico-Eagle� or the �Company�) is pleased to provide an update on its 2010 exploration program. During the course of 2010, the Company�s programs have resulted in expansions of several mineralized zones at the Company�s operations, most significantly at Kittila and Pinos Altos.
Additionally, due to the acquisition of the Meliadine property on July 6, 2010 and the acceleration of exploration at other properties, and the positive results overall, the company�s exploration budget for 2010 has been increased by more than 45% to $110 million. This is double of what was spent in 2009, with $25 million having been spent to the end of July.
Highlights of the 2010 exploration program to date include:
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At Kittila:
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Deep mineralization at the Suuri and Roura zones has been extended northward, increasing the strike length by approximately 30% at 900 metres below surface. Deposit remains open on strike and at depth
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Hole ROU-09-002, containing one of the thickest drill intersections to date on the property, indicates the potential for underground mining in a previously untested area
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Rimpi zone mineralization deepened by 100 metres to almost 700 metres below surface as gold continues to be encountered along strike to the north
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At Pinos Altos:
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Cubiro vein continues to yield quality gold intercepts. Mineralization now extends to 230 metres below surface. May result in a stand-alone mining operation.
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Step-out drilling discovered the new Cubiro West vein zone approximately 200 metres away
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At Meliadine:
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$130-million budget approved, including 200-kilometre drill program, bulk sample, permitting and proposed all-season road construction over next 2.5 years
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High grade drill results continue to suggest growth and conversion potential of the five million ounce resource over the next several years
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Early drilling results suggest possible combination of open pit and underground scenarios at F zone
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Feasibility study expected to be completed in 2013.
�With six operating mines driving record operating and financial results, the focus for Agnico-Eagle turns to continued production growth through optimization and expansion of these mines. At the same time, we have begun an aggressive exploration program at all of our new mines and our newly acquired Meliadine project, as we feel the exploration potential is excellent and these deposits are still relatively under-explored� said Sean Boyd, Vice-Chairman and CEO. �Recent exploration results, particularly at Kittila, Pinos Altos, Goldex and Meliadine, have confirmed our understanding of the potential to continue to grow our reserve and resource base through exploration. With the largest drilling program in our history now underway, we look forward to getting a better under standing of the ultimate size of our deposits and incorporating these results into our ongoing expansion studies� added Mr. Boyd.
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About Agnico-Eagle
Agnico-Eagle Mines Limited is a long established Canadian gold producer with operations located in Canada, Finland and Mexico and exploration and development activities in Canada, Finland, Mexico and the United States. Agnico-Eagle�s LaRonde mine is Canada's largest operating gold mine in terms of reserves. The Company has full exposure to higher gold prices consistent with its policy of no forward gold sales. It has declared a cash dividend for 28 consecutive years. Agnico-Eagle's registered office is located at 145 King Street East, Suite 400, Toronto, Ontario M5C 2Y7.
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Forward-Looking Statements
The information in this news release has been prepared as at September 8, 2010. 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 and are referred to herein as �forward-looking statements�. When used in this document, words such as "anticipate", "expect", "estimate," "forecast," "planned", "will", "likely", �schedule� and similar expressions are intended to identify forward-looking statements.
Such statements include without limitation: the Company's forward-looking production guidance, including estimated ore grades, project timelines, drilling results, orebody configurations, metal production, life of mine horizons, commencement of production estimates, the estimated timing of scoping studies, recovery rates, mill throughput, and projected exploration and capital expenditures, including costs and other estimates upon which such projections are based; the Company's goal to increase its mineral reserves and resources; and other statements and information regarding anticipated trends with respect to the Company's operations, exploration and the funding thereof. Such statements reflect the Company's views as at the date of this press release and are subject to certain risks, uncertainties and assumptions. Forward-looking statements are necessarily based upon a number of factors and assum ptions 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 factors and assumptions of Agnico-Eagle contained in this news release, which may prove to be incorrect, include, but are not limited to, the assumptions set forth herein and in management�s discussion and analysis and the Company�s Annual Report on Form 20-F for the year ended December 31, 2009 (�Form 20-F�) as well as: that there are no significant disruptions affecting operations, whether due to labour disruptions, supply disruptions, damage to equipment, natural occurrences, political changes, title issues or otherwise; that permitting, production and expansion at each of Agnico-Eagle's mines and growth projects proceeds on a basis consistent with current expectations, and that Agnico-Eagle does not change its plans relating to such projects; that the exchange rate between the Canadian dollar, European Union euro, Mexican peso and the United States dollar will be approximately consistent with current levels or as set out in this news release; that prices for gold, silver, zinc, copper and lead will be consistent with Agnico-Eagle's expectations; that prices for key mining and construction supplies, including labour costs, remain consistent with Agnico-Eagle's current 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 metal 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 the Form 20-F, as well as the Company's other filings with the Canadian Securities Administrators and the U.S. Securities and Exchange Commission (the �SEC�). The Company does not intend, and does not assume any obligation, to update these
forward-looking statements and information, except as required by law. Accordingly, readers are ad vised not to place undue reliance on forward-looking statements. 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, recoveries, mining methods, capital costs, total cash costs, minesite costs, and location of surface infrastructure. Actual results and final decisions may be materially different from those currently anticipated. |
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