Stock Symbols: AEM (NYSE)
AGE (TSE)
TORONTO, Nov. 7 /CNW/ - Agnico-Eagle Mines Limited ("Agnico-Eagle") is
pleased to report today that its ongoing exploration program has identified
additional high grade gold mineralization at LaRonde. In addition, exploration
drilling continues to indicate that the mineralized zones at LaRonde are
thicker and higher grade at depth.
With eight drills working underground at LaRonde and one surface drill on
the El Coco property, the flow of exploration data has increased
significantly. Furthermore, several new areas that were previously not
accessible can now be drilled from recently completed underground
infrastructure. A primary element of Agnico-Eagle's strategy to build value is
through an aggressive exploration program on LaRonde and east of LaRonde on
the Company's large property holdings.
"The initial results of our new phase of exploration at LaRonde are
providing an early indication that the LaRonde deposit may be larger than the
current gold reserve and resource of 7.8 million ounces", said Sean Boyd,
President and CEO. "As we expand annual gold output over the next few years,
we will also focus on creating additional value by increasing the size of the
LaRonde deposit and developing a mine plan to exploit the gold reserves that
are being found at depth," added Mr. Boyd.
As previously reported in the October 25th, 2001 press release,
exploration drilling had extended Zone 20 South at depth and definition
drilling on Levels 194 and 215 had returned higher gold grades than used in
the reserve model. Since that time, an additional six drill holes have been
completed: four on Level 194, one on Level 215 and one surface drill hole on
the El Coco Property.
The definition drilling on Level 194 focused predominantly on Zone 20
North with holes drilled in sequence from east to west. The following results
were obtained:
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Drill True Gold(oz/ton)
Hole Thickness(ft) Cut(1.5 oz) Silver(oz/ton) Copper(%) Zinc(%)
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3194-12 17.7 0.24 8.65 0.71 5.27
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3194-13 40.4 0.14 2.78 1.03 1.02
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3194-14 40.4 0.13 1.97 1.38 0.90
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3194-15 27.6 0.28 1.75 1.39 0.71
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On Level 215 one drill hole was completed. Drill hole 3215-12 was the
third drill hole completed on Level 215. The following result was obtained:
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Drill True Gold(oz/ton)
Hole Thickness(ft) Cut(1.5 oz) Silver(oz/ton) Copper(%) Zinc(%)
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3215-12 53.1 0.16 2.80 1.46 2.71
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To date, a total of eight drill holes have been completed of the proposed
20 drill hole program. The overall results have exceeded expectations in terms
of both gold and copper grades and confirmed mineralized thicknesses and were
generally higher grade than what was incorporated into the 2001 reserve model.
The results continued to confirm the historical relationship and
correlation between gold and copper grades that was originally noted at Shaft
No. 1 and the transition from zinc-silver mineralization to gold-copper
mineralization at depth. Over 25 occurences of visible gold were noted in
quartz veining sub parallel to the schistosity in drill hole 3194-15
suggesting the existence of north-south fractures containing visible gold.
These north-south fractures are believed to be responsible for the historical
higher than estimated production grades at Shaft No. 1. The remainder of the
program on both Levels 194 and 215 will continue to test the western portion
of Zone 20 North.
The Level 194 drilling also appears to confirm our original
interpretations with respect to increased gold and copper grades towards the
west of Zone 20 North, however more importantly, they also appear to correlate
with the most recent deep drilling results obtained in drill hole 3220-05
which had intersected 0.17 ounces per ton of gold, 0.96 ounces per ton of
silver, and 0.41% copper over 82 feet, located approximately 2,500 feet below
the current drill results. The results continue to suggest that a very broad
gold-copper zone is developing at depth, confirming the original LaRonde
exploration model.
Drill hole 3215-12 was extended to Zone 20 South. The drill hole
intersected the zone approximately 400 feet to the west of drill hole 3215-11,
reported the previous month. Drill Hole 3215-12 intersected the following
values:
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Drill True
Hole Thickness(ft) Gold(oz/ton) Silver(oz/ton) Copper(%) Zinc(%)
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3215-12 13.1 0.70(cut 2.0oz) 1.12 1.00 0.40
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13.1 0.95 (uncut) 1.12 1.00 0.40
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The result was the highest-grade intersection obtained from Zone 20 South
at depth. Four occurences of visible gold were noted in the core. With the
results obtained in October from drill hole 3220-04 located approximately 450
feet below drill hole 3215-12, the result continued to confirm the high-grade
potential of the Zone 20 South horizon and the existence of a higher-grade
zone at depth. Zone 20 South will continue to be defined from both Levels 194
and 215. An additional 14 drill holes are currently planned to outline Zone 20
South at depth.
In the current mine plan, no production has been planned in 2002 from
Zone 20 South at depth. Production is scheduled to start from this area in
2003. Under the 7,000 ton per day plan, LaRonde is projected to produce over
370,000 ounces of gold in 2003, however, continued high-grade values from Zone
20 South could have a positive production impact, as these values have not
been factored into the mine plan.
Surface drill hole 106-01-07 was completed on the El Coco Property. The
drill hole was drilled as a follow up on the results previously obtained in
drill hole 106-01-01 which returned 0.08 ounces per ton over 3.0 feet,
including an occurrence of visible gold, along the Zone 20 South horizon. The
new drill hole encountered massive sulphide fragments up to eight inches large
at a depth of 400 feet below the previous drill hole and 1,000 feet below
surface. The fragments were gold bearing. The drill hole encountered the
following value:
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Drill True
Hole Thickness(ft) Gold(oz/ton) Silver(oz/ton) Copper(%) Zinc(%)
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106-01-07 9.2 0.14(cut 1.5oz) 0.58 0.35 0.65
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>>
The style of mineralization and the occurrence of massive sulphide
mineralization is especially significant as in the past, the identification of
this type of mineralization ultimately lead to the discovery of a large
massive sulphide zone in the immediate vicinity. The sulphide mineralization
noted was similar to what has been mined from Zone 20 South at the Penna
Shaft. The discoveries of both Zone No. 6 at Shaft No. 2 and Zone 20 North at
the Penna Shaft were the result of follow up diamond drilling due to the
discovery of initial massive sulphide fragments. Surface drilling is
continuing in this area to follow up on these recent results.
The Longitudinal illustrations that detail the drill results presented in
this report can be viewed and/or downloaded from the Company's website.
www.agnico-eagle.com (Press Release)
A "Qualified Person" as defined by the Ontario Securities Commission
National Instrument 43-101, within Agnico Eagle Mines Limited, has reviewed
the exploration results contained within this release.
This press release contains certain "forward-looking statements" (within
the meaning of the United States Private Securities Litigation Reform Act of
1995) that involve a number of risks and uncertainties. There can be no
assurance that such statements will prove to be accurate; actual results and
future events could differ materially from those anticipated in such
statements. Risks and uncertainties are disclosed under the heading "Risk
Factors" in the Company's Annual Information Form (AIF) filed with certain
Canadian securities regulators (including the Ontario and Quebec Securities
Commissions) and with the United States Securities and Exchange Commission (as
Form 20-F).
Agnico-Eagle Mines Limited is an established Canadian gold producer with
operations located principally in Northwestern Quebec and exploration and
development activities in Canada and the Southwestern United States. Agnico-
Eagle's operating history includes almost three decades of gold production
primarily from underground mining operations. The Company is focused on an
expansion program at LaRonde that is expected to increase annual gold
production and reduce cash costs to produce an ounce of gold. Current proven
and probable reserves stand at 3.3 million contained ounces, with an
additional 4.5 million ounces in the mineral resource category at its LaRonde
Mine.
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For further information: Sean Boyd, President and CEO or Ebe Scherkus,
Executive V.P. & COO, (416) 947-1212