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Forward-Looking Statements
The information in this news release has been prepared
as at October 19, 2011. 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, reserves and resources, project timelines, drilling results,
orebody configurations, metal production, life of mine trends,
production estimates, the estimated timing of scoping and other
studies, the methods by which ore will be extracted or processed,
recovery rates, mill throughput, and projected exploration and capital
expenditures, including costs and other estimates upon which such
projections are based; the Company's plans to assess, monitor and
remediate subsidence issues at Goldex and the related costs; the
Company's plans to continue exploration drilling at Goldex; the
potential to resume mining or other discontinued operations at Goldex;
the Company's intent to write off the book value of the Goldex mine,
including the after tax impact, and the accounting provision for the
anticipated costs of remediation at Goldex; 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 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 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 the Company's
Annual Report on Form 20-F (the "Form 20-F") in respect of
the year ended December 31, 2010 and management�s discussion for the
periods ended March 31, 2011 and June 30, 2011, all of which are filed
with securities regulators in Canada and the United States, as well as:
that there are no significant disruptions affecting operations, whether
due to labour disruptions, supply disruptions, damage to equipment,
natural occurrences, equipment failures, accidents, 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 United States 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 advised 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.
Scientific and Technical Data
Agnico-Eagle Mines Limited is reporting mineral resource
and reserve estimates in accordance with the CIM guidelines for the
estimation, classification and reporting of resources and reserves.
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 uses certain terms in this press release, such as
�measured�, �indicated�, and �inferred�, and �resources� that the SEC
guidelines strictly prohibit U.S. registered companies from including
in their filings with the SEC. U.S. investors are urged to consider
closely the disclosure in our Form 20-F, which may be obtained from us,
or from the SEC�s website at: http://sec.gov/edgar.shtml.
A �final� or �bankable� feasibility study is required to meet the
requirements to designate reserves under Industry Guide 7.
Estimates for all properties were calculated using
historic three-year average metals prices and foreign exchange rates in
accordance with the SEC Industry Guide 7. Industry Guide 7
requires the use of prices that reflect current economic conditions at
the time of reserve determination, which the Staff of the SEC has
interpreted to mean historic three-year average prices. The
assumptions used for the mineral reserves and resources estimates
reported by the Company on February 16, 2011 were based on three-year
average prices for the period ending December 31, 2010 of $1,024 per
ounce gold, $16.62 per ounce silver, $0.86 per pound zinc, $2.97 per
pound copper, $0.90 per pound lead and C$/US$, US$/Euro and MXP/US$
exchange rates of 1.08, 1.40 and 12.43, respectively.
The Canadian Securities Administrators� National
Instrument 43-101 (�NI 43-101�) requires mining companies to disclose
reserves and resources using the subcategories of �proven� reserves,
�probable� reserves, �measured� resources, �indicated� resources and
�inferred� 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 or indicated resource demonstrated by at least a preliminary
feasibility study. This study must include adequate information on
mining, processing, metallurgical, economic and other relevant factors
that demonstrate, at the time of reporting, that economic extraction
can be justified. A mineral reserve includes diluting materials and
allows for losses that may occur when the material is mined. A proven
mineral reserve is the economically mineable part of a measured
resource for which quantity, grade or quality, densities, shape and
physical characteristics are so well established that they can be
estimated with confidence sufficient to allow the appropriate application
of technical and economic parameters, to support production planning
and evaluation of the economic viability of the deposit. A probable
mineral reserve is the economically mineable part of an indicated
mineral resource for which quantity, grade or quality, densities, shape
and physical characteristics can be estimated with a level of
confidence sufficient to allow the appropriate application of technical
and economic parameters, to support mine planning and evaluation of the
economic viability of the deposit.
A mineral resource is a concentration or occurrence of
natural, solid, inorganic or fossilized organic material in or on the
Earth�s crust in such form and quantity and of such a grade or quality
that it has reasonable prospects for economic extraction. The location,
quantity, grade, geological characteristics and continuity of a mineral
resource are known, estimated or interpreted from specific geological
evidence and knowledge. A measured mineral resource is that part of a
mineral resource for which quantity, grade or quality, densities, shape
and physical characteristics can be estimated with a level of
confidence sufficient to allow the appropriate application of technical
and economic parameters, to support mine planning and evaluation of the
economic viability of the deposit. The estimate is based on detailed
and reliable exploration, sampling and testing information gathered
through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes that are spaced closely enough
to confirm both geological and grade continuity. An indicated mineral
resource is that part of a mineral resource for which quantity, grade
or quality, densities, shape and physical characteristics can be
estimated with a level of confidence sufficient to allow the
appropriate application of technical and economic parameters, to
support mine planning and evaluation of the economic viability of the
deposit. The estimate is based on detailed and reliable exploration and
testing information gathered through appropriate techniques from
locations such as outcrops, trenches, pits, workings and drill holes
that are spaced closely enough for geological and grade continuity to
be reasonably assumed. An inferred mineral resource is that part of a
mineral resource for which quantity and grade or quality can be
estimated on the basis of geological evidence and limited sampling and
reasonably assumed, but not verified, geological and grade continuity.
The estimate is based on limited information and sampling gathered
through appropriate techniques from locations such as outcrops,
trenches, pits, workings and drill holes.
Investors are cautioned not to assume that part or all
of an inferred 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 realistically
assumed mining, processing, metallurgical, economic, marketing, legal,
environmental, social and governmental considerations 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.
The mineral reserves presented in this disclosure are
separate from and not a portion of the mineral resources.
Additional information the Goldex mineral project 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 the Technical Report referred to below,
which may be found at www.sedar.com.
Other important operating information can be found in the Company�s
Form 20-F and its news releases dated December 15, 2010, February 16,
2011, April 28, 2011, July 27, 2011 and October 11, 2011.
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Property/Project name
and location
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Qualified Person
responsible for the current Mineral Resource and Reserve Estimate and
�relationship to Agnico-Eagle
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Qualified Person
responsible for Exploration and �relationship to Agnico-Eagle
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Date of most recent
Technical Report (NI 43-101) filed on SEDAR
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Goldex, Quebec, Canada
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Richard Genest, Ing.,
Goldex Division Superintendent of geology
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Richard Genest, Ing.,
Goldex Division Superintendent of geology
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October 27, 2005
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The contents of this press release have been prepared
under the supervision of, and reviewed by, Marc Legault P.Eng.,
Vice-President Project Development and a �Qualified Person� for the
purposes of NI 43-101.
U.S. Shareholders
This press release does not constitute an offer to
purchase or sell or a solicitation of an offer to sell or purchase
shares of Grayd Resources Corporation ("Grayd") or
Agnico-Eagle made to any person in the United States of America, its
possessions and other areas subject to its jurisdiction or to, or for
the account or benefit of, a U.S. person (as defined in Regulation S
under the United States Securities Act of 1933, as amended). On October
13, 2011, Agnico-Eagle filed with the SEC a Registration Statement on
Form F-80, which includes the offer and take-over bid circular
and other offer documents. INVESTORS AND SECURITY HOLDERS ARE URGED TO
READ THE DISCLOSURE DOCUMENTS FILED BY AGNICO-EAGLE FROM TIME TO TIME
WITH THE SEC REGARDING THE PROPOSED TRANSACTION BECAUSE THEY CONTAIN
IMPORTANT INFORMATION. The Offer and take-over bid circular have been
sent to shareholders of Grayd. Investors may also obtain a free copy of
the offer and take-over bid circular and other disclosure documents
filed by Agnico-Eagle with the SEC at the SEC's website at www.sec.gov. Free copies of these
documents can also be obtained by directing a request to Agnico-Eagle.
INVESTORS AND SECURITY HOLDERS SHOULD READ THE OFFER, TAKE-OVER BID
CIRCULAR AND OTHER OFFER DOCUMENTS CAREFULLY BEFORE MAKING A DECISION
CONCERNING THE OFFER.
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