Agnico-Eagle LaRonde mine exploration update

November 07, 2001
    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
    -------------------------------------------------------------------------

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(%)
    -------------------------------------------------------------------------
    3215-12       53.1         0.16          2.80          1.46       2.71
    -------------------------------------------------------------------------

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
    -------------------------------------------------------------------------

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(%)
    -------------------------------------------------------------------------
    106-01-07    9.2      0.14(cut 1.5oz)     0.58         0.35        0.65
    -------------------------------------------------------------------------
    >>

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