Stock Symbol: AEM (NYSE and TSX)
TORONTO, Aug. 19, 2015 /PRNewswire/ - Agnico Eagle
Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the
"Company") is pleased to provide an update on exploration drilling
results at its Amaruq gold project in Nunavut, northern Canada. This rapidly growing deposit
remains a focus for the Company given its economic potential,
partly due to its close proximity to Agnico Eagle's nearby
Meadowbank mine and mill. This update includes an expanded
resource estimate for the Whale Tail deposit based on drilling
through June 30, 2015. The
Company last reported drill results from this project in its news
release dated July 29, 2015.
Highlights for the 2015 program include:
- Mineral resources expanded by 35% in the Whale tail
deposit - Drilling in the first half of 2015 has resulted in an
updated inferred resource estimate of 2.0 million ounces of gold
(9.7 million tonnes grading 6.47 grams per tonne (g/t) gold) as of
June 30, 2015, representing a 35%
increase in gold content compared to the December 31, 2014 estimate
- Thick, high-grade ore shoot defined in Whale Tail
deposit - An open-ended east-plunging high-grade ore shoot in
the Whale Tail deposit has yielded intersections of 6.7 g/t gold
(capped) over 32.3 metres at 284 metres depth (AMQ15-310), and 10.4
g/t gold (capped) over 21.9 metres at 311 metres depth (hole
AMQ15-330)
- Gold mineralization encountered in gap between Mammoth Lake
and Whale Tail deposit - Gold mineralization has been found in
the gap between the Whale Tail deposit and the eastern part of
Mammoth Lake, including 10.8 g/t gold (capped) over 6.9 metres at
132 metres depth (hole AMQ15-351) and 9.3 g/t gold (capped) over
4.2 metres, also at 132 metres depth (hole AMQ15-302)
- Infill drilling yields multiple intercepts at open pit and
underground depths - Successful infill and deep exploration
drilling in the western part of the Whale Tail deposit confirms
multiple high-grade lenses, such as in hole AMQ15-289 with 4.4 g/t
gold (capped) over 7.7 metres at 107 metres depth, 10.6 g/t gold
(capped) over 5.6 metres at 189 metres depth and 5.9 g/t gold
(capped) over 45.0 metres at 253 metres depth including 9.0 g/t
gold (capped) over 13.0 metres at 273 metres depth
- New prospecting results - An intensive till sampling
program is currently underway to cover approximately 2,000 hectares
in the area surrounding the known discoveries. The program is
confirming previously identified boulder trends and identifying new
target areas. Regional reconnaissance prospecting on the
entire property has led to the discovery of several new
gold-anomalous areas along the belt, outside of the Whale Tail -
Mammoth area.
- Engineering studies and permitting progressing -
Engineering and environmental baseline studies are underway to
support the permitting process for Amaruq as a potential satellite
open pit to the Meadowbank mine; The application to construct an
all-weather access road between Meadowbank and the Amaruq site was
filed in the first quarter of 2015
"While it is still at an early stages of
exploration, in less than two years, the Amaruq property has
advanced from a grassroots discovery to a project that now hosts a
significant and growing inferred gold resource. We also
see good potential to expand the known deposits and discover new
areas of mineralization on the property," said Sean Boyd, Agnico Eagle's Chief Executive
Officer. "The updated resource estimate demonstrates that the
Whale Tail deposit appears amenable to open pit mining, and there
is potential for a higher grade underground operation," added Mr.
Boyd.
Amaruq Project Resources Expanded
Agnico Eagle has a 100% interest in the Amaruq
project. The large property consists of 114,761 hectares of
Inuit-owned and federal crown land, approximately 50 kilometres
northwest of the Meadowbank mine.
In February 2015,
the Company announced an initial inferred mineral resource. This
release announces an updated estimate of the inferred resources in
the Whale Tail deposit and I, V and R zones as of June 30, 2015.
It is expected that the Whale Tail mineral
resource estimate will be updated as of year-end 2015, which will
be reported in mid-February 2016,
incorporating all remaining assays from the 2015 phase one drill
program (approximately 65 drill holes) as well as all of the
ongoing 50,000-metre phase two drill program results.
[Amaruq local geology map, showing new drill
hole collars]
Whale Tail Zone Shows Significant Resource
Growth
The I, V and R mineralized zones were discovered
in 2013 shortly after the Company acquired the Amaruq property, and
the Whale Tail deposit was discovered in 2014, to the south of the
R zone. The initial resource estimate at Amaruq was 1.5
million ounces of gold (6.6 million tonnes grading 7.07 g/t gold)
in inferred resources as of December 31,
2014 (see Company news release dated April 30, 2015). Of this amount 93% was in the
Whale Tail deposit, while the rest was in the I, V and R zones.
The updated resource estimate as of June 30, 2015 is based on drilling completed from
2013 to the end of the 2015 phase one drill program on the Whale
Tail deposit and I, V and R zones. The 2015 phase one drilling
included 108 holes (25,916 metres) of infill drilling on the Whale
Tail deposit, as well as exploration drilling completed by
June 30, 2015. Highlights from the
first portion of the 2015 phase one drilling were reported in
Company's news releases dated April 30,
2015, June 9, 2015 and
July 29, 2015.
The infill drilling on the Whale Tail deposit
was done to a depth of approximately 200 metres at 40-metre
spacing, while the exploration drilling probed as deep as 400
metres locally in the Whale Tail deposit. The number of drill
holes completed in the Mammoth Lake area is not yet sufficient to
allow resources to be estimated in the area; additional drilling
from the winter ice will be required in 2016.
The table below summarizes the updated resources
for the Whale Tail deposit and the I, V and R zones. This
estimate uses the same metal price and exchange rate assumptions as
the December 31, 2014 resource
estimate. The cut-off grades for the Whale Tail deposit and I,
V, R zones are 2.4 g/t gold for open pit resources and 4.5 g/t gold
for underground resources.
As of June 30,
2015, the inferred gold resource of the Amaruq project is
estimated to be 2.0 million ounces of gold (9.7 million tonnes
grading 6.47 g/t). This represents a 35% increase in
contained gold compared with the inferred resources estimated as of
December 31, 2014. Of the updated
inferred resource, 53% (based on contained gold) is within the
preliminary pit shell limit in the Whale Tail deposit and 42% is
outside the preliminary Whale Tail pit shell, mostly underneath
it. The rest of the inferred resource (5%) is in the I, V and
R zones.
Mineral resources at the Whale Tail deposit and the I, V and
R zones of the Amaruq project
Category/Zone |
December 31,
2014 |
June 30,
2015 |
|
Gold
(ounces) |
Tonnes |
Gold
grade (g/t) |
Gold
(ounces) |
Tonnes |
Gold
grade (g/t) |
Inferred
Resources |
|
|
|
|
|
|
Whale Tail |
|
|
|
|
|
|
Open pit |
952,000 |
4,366,000 |
6.78 |
1,060,000 |
5,419,000 |
6.09 |
Underground |
449,000 |
1,643,000 |
8.51 |
858,000 |
3,683,000 |
7.25 |
Total Whale Tail
inferred Resources |
1,401,000 |
6,008,000 |
7.25 |
1,919,000 |
9,102,000 |
6.56 |
I, V and R zones |
|
|
|
|
|
|
Open pit |
71,000 |
454,000 |
4.90 |
72,000 |
459,000 |
4.87 |
Underground |
29,000 |
141,000 |
6.37 |
29,000 |
143,000 |
6.35 |
Total I, V and R
inferred Resources |
100,000 |
595,000 |
5.25 |
101,000 |
601,000 |
5.22 |
Total open pit
inferred Resources |
1,023,000 |
4,819,000 |
6.60 |
1,132,000 |
5,878,000 |
5.99 |
Total underground
inferred Resources |
478,000 |
1,783,000 |
8.34 |
887,000 |
3,826,000 |
7.21 |
Total inferred
Resources |
1,501,000 |
6,603,000 |
7.07 |
2,020,000 |
9,704,000 |
6.47 |
The cut-off grade for the Whale Tail deposit and I, V, R
zones is 2.4 g/t gold for open pit resources and 4.5 g/t gold for
underground resources. Amounts presented in this table may not add
up due to rounding.
The following table shows the sensitivity of the resources
estimate to changes in the gold cut-off grades, which are related
to mining costs. The table shows that the Amaruq resources are
not very sensitive to variations in the cut-off grades.
Sensitivity of resources estimate to cut-off gold
grade
Type |
Cut-off
gold
grade (g/t) |
Inferred Resources |
Tonnes |
Gold
grade
(g/t) |
Ounces
gold |
Open Pit |
2.0 |
6,594,000 |
5.58 |
1,183,000 |
2.2 |
6,234,000 |
5.78 |
1,158,000 |
2.4 |
5,878,000 |
5.99 |
1,132,000 |
2.6 |
5,578,000 |
6.18 |
1,108,000 |
2.8 |
5,275,000 |
6.38 |
1,082,000 |
Type |
Cut-off
Grade
(g/t gold) |
Inferred Resources |
Tonnes |
Gold
grade
(g/t) |
Ounces
gold |
Underground |
3.5 |
5,605,000 |
6.18 |
1,114,000 |
4.0 |
4,605,000 |
6.71 |
993,000 |
4.5 |
3,826,000 |
7.21 |
887,000 |
5.0 |
3,129,000 |
7.77 |
782,000 |
5.5 |
2,581,000 |
8.30 |
689,000 |
Amounts presented in this table may not add
up due to rounding.
A composite of the updated Whale Tail deposit
resources outline is shown on the Whale Tail longitudinal
section.
[Whale Tail Deposit Composite Longitudinal
Section with pierce points]
Phase Two Drill Results Continue to Expand
Mineralized Zones
To date the Whale Tail deposit has been defined
over at least 1.2 kilometres of strike length and extends from
surface to 450 metres depth. It remains open at depth and
along strike.
The 2015 phase two drilling program at the
Amaruq project began in July with several purposes, including
step-out drilling to try to link Whale Tail and Mammoth Lake
mineralization; defining the extent of the mineralization in the
western part of Mammoth Lake; drilling at the I, V and R zones to
test for a potential link with the Whale Tail deposit; testing
areas east of I, V, R and Whale Tail where there are coincident
geophysical and geochemical anomalies; and additional deep drilling
at Whale Tail.
The 2015 phase two drilling and exploration
program is expected to be completed by the end of the third quarter
of 2015, with additional drilling potentially extending into
October 2015. Engineering and
environmental baseline studies are underway to support the
permitting process for the Amaruq project as a potential satellite
open pit to the Meadowbank mine. The most recent drilling also
indicates that the Whale Tail deposit hosts significant high-grade
intercepts below the preliminary pit shell, suggesting that Whale
Tail could have significant underground potential. An
application to construct an all-weather access road between
Meadowbank and the Amaruq site was filed in the first quarter of
2015. The timing of future capital expenditures on the Amaruq
project beyond 2015 and the determination of whether to build a
satellite deposit at Amaruq are subject to approval by Agnico
Eagle's Board of Directors.
Recent intercepts from the project are set out
in the table below, and the drill hole collars are located on the
Amaruq project local geology map. The Whale Tail deposit pierce
points are shown on the Whale Tail composite longitudinal section,
while the coordinates from Mammoth Lake and elsewhere are given
further below. 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 Mammoth Lake area, 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)** |
AMQ15-251 |
WT East
Shoot |
280.1 |
300.0 |
221 |
19.2 |
5.7 |
5.7 |
including |
|
283.7 |
298.5 |
222 |
14.3 |
6.5 |
6.5 |
AMQ15-262 |
WT West |
59.3 |
74.0 |
49 |
14.2 |
6.9 |
6.9 |
and |
WT West |
86.0 |
95.0 |
66 |
8.5 |
5.6 |
5.6 |
AMQ15-265 |
WT West |
54.2 |
70.5 |
44 |
15.0 |
5.5 |
5.5 |
and |
WT West |
81.0 |
87.0 |
60 |
5.6 |
7.7 |
7.7 |
AMQ15-266* |
Mammoth
Lake East |
303.0 |
308.0 |
219 |
4.5 |
6.2 |
6.2 |
AMQ15-275* |
Mammoth
Lake East |
401.0 |
406.6 |
319 |
4.8 |
4.6 |
4.6 |
AMQ15-280 |
WT Central |
99.7 |
106.0 |
73 |
5.8 |
19.3 |
12.5 |
AMQ15-289 |
WT West |
122.7 |
135.0 |
107 |
7.7 |
4.4 |
4.4 |
And |
WT West |
223.0 |
232.7 |
189 |
5.6 |
32.5 |
10.6 |
And |
WT Deep |
260.0 |
349.9 |
253 |
45.0 |
5.9 |
5.9 |
Including |
|
315.5 |
341.5 |
273 |
13.0 |
9.0 |
9.0 |
AMQ15-291 |
WT West |
120.0 |
131.0 |
106 |
8.7 |
12.1 |
10.6 |
And |
WT Deep |
260.0 |
274.0 |
222 |
8.0 |
6.1 |
6.1 |
AMQ15-296 |
WT West |
139.5 |
147.6 |
104 |
6.0 |
7.4 |
7.4 |
And |
WT West |
198.0 |
225.0 |
154 |
16.9 |
9.4 |
9.4 |
And |
WT Deep |
349.0 |
355.5 |
259 |
6.0 |
7.2 |
7.2 |
AMQ15-302* |
Gap WT -
Mammoth |
176.6 |
181.0 |
132 |
4.2 |
9.3 |
9.3 |
AMQ15-304* |
Mammoth
Lake West |
225.5 |
231.3 |
170 |
5.4 |
4.5 |
4.5 |
AMQ15-310* |
WT East
Shoot |
320.0 |
369.0 |
284 |
32.3 |
6.7 |
6.7 |
AMQ15-311* |
WT West |
99.0 |
110.5 |
79 |
9.2 |
4.9 |
4.9 |
And |
WT West |
117.0 |
126.0 |
92 |
8.2 |
10.8 |
10.8 |
And |
WT West |
133.0 |
141.0 |
103 |
7.5 |
4.9 |
4.9 |
AMQ15-318* |
WT West |
55.5 |
66.0 |
42 |
10.1 |
5.4 |
5.4 |
And |
WT West |
72.0 |
78.5 |
52 |
6.1 |
12.6 |
12.6 |
And |
WT West |
108.0 |
113.3 |
77 |
4.7 |
7.4 |
7.4 |
AMQ15-319* |
WT West |
47.0 |
51.3 |
37 |
4.2 |
28.3 |
23.9 |
AMQ15-321* |
WT East
Shoot |
321.8 |
365.5 |
293 |
21.9 |
5.5 |
5.5 |
Including |
|
321.8 |
336.0 |
280 |
7.1 |
7.9 |
7.9 |
AMQ15-328* |
WT West |
9.7 |
52.0 |
22 |
38.9 |
2.8 |
2.8 |
Including |
|
9.7 |
18.0 |
10 |
7.6 |
6.2 |
6.2 |
AMQ15-330* |
WT East
Shoot |
361.4 |
391.2 |
311 |
21.9 |
10.4 |
10.4 |
And |
WT East |
434.9 |
439.2 |
361 |
3.5 |
7.5 |
7.5 |
And |
WT East |
447.0 |
458.0 |
374 |
9.1 |
5.9 |
5.9 |
AMQ15-335* |
WT West |
11.0 |
16.5 |
10 |
3.3 |
59.3 |
20.0 |
AMQ15-343* |
WT West |
73.0 |
84.0 |
57 |
9.7 |
16.9 |
10.8 |
AMQ15-345A* |
WT West |
149.0 |
161.0 |
120 |
10.3 |
10.0 |
10.0 |
And |
WT West |
183.0 |
235.0 |
163 |
28.3 |
7.6 |
7.6 |
And |
WT West |
247.0 |
251.0 |
194 |
3.5 |
9.6 |
9.6 |
And |
WT West |
267.0 |
277.0 |
212 |
6.6 |
5.1 |
5.1 |
AMQ15-351* |
Gap WT -
Mammoth |
163.5 |
172.7 |
132 |
6.9 |
37.7 |
10.8 |
Including |
|
167.1 |
172.7 |
133 |
4.2 |
59.4 |
15.1 |
*Holes not included in the June 30,
2015 resource estimate
** Holes at Amaruq use a capping factor of 60 g/t gold
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) |
AMQ15-266 |
|
7254705 |
|
605415 |
|
153 |
|
|
341 |
|
|
-50 |
|
|
564 |
AMQ15-275 |
|
7254725 |
|
605470 |
|
153 |
|
|
340 |
|
|
-57 |
|
|
441 |
AMQ15-304 |
|
7254632 |
|
603933 |
|
154 |
|
|
160 |
|
|
-50 |
|
|
531 |
AMQ15-335 |
|
7255179 |
|
606311 |
|
156 |
|
|
322 |
|
|
-46 |
|
|
240 |
* Coordinate System UTM Nad 83 zone 14
Highlights of the recent drilling include the
interpretation of a high-grade shoot plunging to the east from the
eastern part of the Whale Tail deposit, detected as deep as 311
metres; hole AMQ15-330 yielded 10.4 g/t gold over 21.9 metres at
this depth. Hole AMQ15-310 yielded 6.7 g/t gold over 32.3 metres at
284 metres depth, while holes AMQ15-251 and AMQ15-321 also
intersected the shoot, which is open to the east and at depth.
Recent drilling in the gap area between the
Whale Tail deposit and in the east part of Mammoth Lake has
encountered additional mineralization, such as hole AMQ15-351 that
yielded 10.8 g/t gold over 6.9 metres at 132 metres depth including
15.1 g/t over 4.2 metres. Approximately 575 metres farther
west, hole AMQ15-302 yielded 9.3 g/t gold over 4.2 metres also at
132 metres depth.
Recent drilling at Mammoth Lake continues to
yield intercepts at depth beneath the eastern part of the lake,
where hole AMQ15-266 intersected 6.2 g/t gold over 4.5 metres at
219 metres depth. On the west part of the lake, hole
AMQ15-304 intersected 4.5 g/t gold over 5.4 metres at 170 metres
depth.
The ongoing infill drill program has located a
number of wide intercepts in the west part of the Whale Tail
deposit between surface and more than 300 metres depth. Hole
AMQ15-289 intersected three lenses between 107 and 273 metres depth
including 4.4 g/t gold over 7.7 metres at 107 metres depth, 10.6
g/t gold over 5.6 metres at 189 metres depth, and 9.0 g/t gold over
13.0 metres at 273 metres depth. Hole AMQ15-296 intersected
three lenses between 104 and 259 metres depth including 7.4 g/t
gold over 6.0 metres at 104 metres depth, 9.4 g/t gold over 16.9
metres at 154 metres depth and 7.2 g/t gold over 6.0 metres at 259
metres depth.
At shallower depths, hole AMQ15-328 intersected
2.8 g/t gold over 38.9 metres at 22 metres depth including 6.2 g/t
gold over 7.6 metres. Hole AMQ15-319 intersected 23.9 g/t
gold over 4.2 metres at 37 metres depth, and hole AMQ15-343
intersected 10.8 g/t gold over 9.7 metres at 57 metres depth.
Drilling on the I, V, R area resumed
mid-July 2015. Since then, 11
holes totaling 3,636 metres have been drilled in this
area. This recent drilling, combined with ongoing detailed
surface mapping and geological knowledge acquired at the Whale Tail
deposit, has allowed for a better understanding of geometry and
controls of the gold mineralization. A newly-recognized
East-North-East structural corridor in the V zone area, sitting at
the transition between mafic and ultramafic rock packages, is
currently being drilled. Preliminary indications suggest
gold-bearing mineralization comprising south-dipping, sulphide and
chert-rich horizons along with significant quartz veining locally
containing numerous occurrences of visible gold. Assay
results are currently pending.
The surface exploration program is improving the
understanding of the geology and mineralization on the
property. So far, 1,850 samples have been collected as part of
an intensive, 100-metre spaced till sampling program that is
currently underway to cover 2,000 hectares in the area surrounding
the Whale Tail deposit and I, V and R zones as well as the Mammoth
Lake area discoveries. The program is providing preliminary
arsenic till anomalies confirming previously identified boulder
trends and identifying new target areas.
The preliminary arsenic anomalies are determined
on-site by analyzing till samples using a hand-held X-ray
fluorescence spectrometer. The device detects a wide range of
elements, but at the moment, only the arsenic results are being
compiled. The same till samples are re-assayed using conventional
laboratory techniques. Arsenic is considered to be the most
efficient gold pathfinder at Amaruq, based on the significant
correlation of arsenic and gold in core samples.
Regional reconnaissance prospecting on the
entire property is underway with a total of more than 4,000 rock
samples collected so far. Several gold-anomalous areas (in
particular Shrek, T-Rex and Grizzly) have been identified along the
belt, outside the central Whale Tail - Mammoth area, that warrant
follow-up drilling. The regional targets map below shows
results from the rock and till sampling.
[Regional targets outlined from prospecting and
geochemical sampling]
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 August 19, 2015.
Certain statements contained in this document 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, the words "anticipate", "expect", "estimate", "forecast",
"will", "planned", "should" and similar expressions are intended to
identify forward-looking statements.
Such statements include without limitation:
estimates of mineral grades, the estimated extent and timing of
anticipated future exploration activity; the results of future
interpretation of geological information; whether results thereof
will lead to estimated reserves or resources and the timing of such
estimates; and the nature and timing of permitting work and
construction of a camp or road access to the Amaruq project and
whether the project will ever be developed into a
mine. Such forward-looking statements reflect the
Company's views as at the date of this document and are subject to
certain risks, uncertainties and assumptions, and undue reliance
should not be placed on such statements and information. 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 grades; cost of exploration and development programs;
governmental and environmental regulation; and the volatility of
the Company's stock price. 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, 2014 filed with Canadian
securities regulators and that are included in its Annual Report on
Form 40-F for the year ended December 31,
2014 ("Form 40-F") filed with the U.S. Securities and
Exchange Commission (the "SEC") as well as: that there are no
significant disruptions affecting exploration; that permitting and
exploration at Amaruq proceed on a basis consistent with current
expectations and plans; that Agnico Eagle's current estimates of
mineral grades are accurate; and that there are no material delays
in the timing for completion of the Amaruq phase two exploration
project.
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 document, see the Company's AIF, MD&A and Form 40-F, as
well as the Company's other filings with the Canadian securities
regulators and the SEC. The Company does not intend, and does not
assume any obligation, to update these forward-looking statements
and information other than as required by law. For a detailed
breakdown of the Company's reserve and resource position see the
Company's Annual Information Form or Form 40-F.
Notes to Investors Regarding the Use of
Resources
Cautionary Note to Investors Concerning
Estimates of Measured and Indicated Resources
This document uses the terms "measured
resources" and "indicated resources". Investors are advised that
while those terms are recognized and required by Canadian
regulations, the SEC does not recognize them. Investors are
cautioned not to assume that any part or all of mineral deposits in
these categories will ever be converted into reserves.
Cautionary Note to Investors Concerning
Estimates of Inferred Resources
This document also uses the term "inferred
resources". Investors are advised that while this term is
recognized and required by Canadian regulations, the SEC does not
recognize it. "Inferred resources" have a great amount of
uncertainty as to their existence, and great uncertainty as to
their economic and legal feasibility. It cannot be assumed that all
or any part of an inferred mineral resource will ever be upgraded
to a higher category. Under Canadian rules, estimates of inferred
mineral resources may not form the basis of feasibility or
pre-feasibility studies, except in rare cases. Investors are
cautioned not to assume that part or all of an inferred resource
exists, or is economically or legally mineable.
Scientific and Technical Disclosure
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
reports mineral resource and reserve estimates in accordance with
the CIM guidelines for the estimation, classification and reporting
of resources and reserves in accordance with the Canadian
securities regulatory authorities' (the "CSA") National Instrument
43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").
These standards are similar to those used by the SEC's Industry
Guide No. 7, as interpreted by Staff at the SEC ("Guide 7").
However, the definitions in NI 43-101 differ in certain respects
from those under Guide 7. Accordingly, mineral reserve information
contained herein may not be comparable to similar information
disclosed by U.S. companies. Under the requirements of the SEC,
mineralization may not be classified as a "reserve" unless the
determination has been made that the mineralization could be
economically and legally produced or extracted at the time the
reserve determination is made. A "final" or "bankable" feasibility
study is required to meet the requirements to designate reserves
under Industry Guide 7. Agnico Eagle uses certain terms in
this news 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.
Prior to 2013, mineral reserves and mineral
resources for all properties were typically estimated using
historic three-year average metals prices and foreign exchange
rates in accordance with the SEC guidelines. These guidelines
require 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. Given the current lower commodity price environment,
Agnico Eagle has decided to use price assumptions that are below
the three-year averages. The assumptions used for the Amaruq
project mineral resources reported by the Company on August 19, 2015, are the same as those used for
the mineral reserves reported by the Company on February 11, 2015, which are $1,150 per ounce gold, $18.00 per ounce silver, $1.00 per pound zinc, $3.00 per pound copper, $0.91 per pound lead and C$/US$, US$/Euro and
MXP/US$ exchange rates of 1.08, 1.30 and 13.00, respectively.
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 and/or indicated mineral resource. It includes
diluting materials and allowances for losses, which may occur when
the material is mined or extracted and is defined by studies at
pre-feasibility or feasibility level as appropriate that include
application of modifying factors. Such studies demonstrate that, at
the time of reporting, extraction could reasonably be
justified.
Modifying factors are considerations used to
convert mineral resources to mineral reserves. These include, but
are not restricted to, mining, processing, metallurgical,
infrastructure, economic, marketing, legal, environmental, social
and governmental factors.
A proven mineral reserve is the economically
mineable part of a measured mineral resource. A proven mineral
reserve implies a high degree of confidence in the modifying
factors. A probable mineral reserve is the economically mineable
part of an indicated and, in some circumstances, a measured mineral
resource. The confidence in the modifying factors applying to a
probable mineral reserve is lower than that applying to a proven
mineral reserve.
A mineral resource is a concentration or
occurrence of solid material of economic interest in or on the
Earth's crust in such form, grade or quality and quantity that
there are reasonable prospects for eventual economic extraction.
The location, quantity, grade or quality, continuity and other
geological characteristics of a mineral resource are known,
estimated or interpreted from specific geological evidence and
knowledge, including sampling.
A measured mineral resource is that part of a
mineral resource for which quantity, grade or quality, densities,
shape and physical characteristics are estimated with confidence
sufficient to allow the application of modifying factors to support
detailed mine planning and final evaluation of the economic
viability of the deposit. Geological evidence is derived from
detailed and reliable exploration, sampling and testing and is
sufficient to confirm geological and grade or quality continuity
between points of observation. An indicated mineral resource is
that part of a mineral resource for which quantity, grade or
quality, densities, shape and physical characteristics are
estimated with sufficient confidence to allow the application of
modifying factors in sufficient detail to support mine planning and
evaluation of the economic viability of the deposit. Geological
evidence is derived from adequately detailed and reliable
exploration, sampling and testing and is sufficient to assume
geological and grade or quality continuity between points of
observation. An inferred mineral resource is that part of a
mineral resource for which quantity and grade or quality are
estimated on the basis of limited geological evidence and
sampling. Geological evidence is sufficient to imply but not
verify geological and grade or quality continuity.
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
applicable modifying factors 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.
Guy Gosselin,
Vice-President Exploration for Agnico Eagle Mines Limited, approved
the scientific and technical information related to exploration in
this news release. Mr. Gosselin verified the data disclosed in this
news release, including the sampling, analytical and testing data
underlying the information. Verification included a review and
validation of the applicable assay databases and reviews of assay
certificates. Mr. Gosselin is a P.Eng. with the Ordre ingenieurs du
Quebec, and is a qualified person as defined by NI 43-101.
The scientific and technical information related
to Agnico Eagle's mineral resources contained herein has been
approved by Daniel Doucet, Senior
Corporate Director, Reserve Development. Mr. Doucet is a
designated Ing. with the Ordredes ingénieurs du Québec and a
qualified person as defined by NI 43-101.
SOURCE Agnico Eagle Mines Limited