TORONTO, June 9, 2015 /CNW/ - Agnico Eagle Mines
Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the "Company")
is pleased to report additional results from the 2015 Phase 1
exploration program at the Amaruq gold project in Nunavut, northern Canada. The Company last reported
results from this project in its news release dated April 30, 2015. The Company is also
reporting its initial drill results from the El Barqueno project in
west-central Mexico, which was
acquired in November 2014. In
addition, the acquisition of Soltoro Ltd. has closed.
Highlights include:
- Drilling at Amaruq has filled in the gap under Whale Lake
with significant gold grades and good widths - Drilling at
Whale Tail under Whale Lake continued to intersect high-grade gold
over significant widths, including 19.8 grams per tonne ("g/t")
gold (capped) over 5.0 metres at 130 metres depth (hole AMQ15-187),
and 15.9 g/t gold (capped) over 14.6 metres at 126 metres depth
(hole AMQ15-181)
- New gold structure confirmed north of Whale Tail deposit at
Amaruq - New mineralized structure approximately 100 metres
north of the Whale Tail deposit, including 6.1 g/t gold (capped)
over 4.0 metres at 284 metres depth and 9.7 grams g/t gold (capped)
over 3.8 metres at 306 metres depth (hole AMQ15-177).
- El Barqueno - Azteca and Angostura mineralization extended by
drilling - Infill drilling at Azteca yielded 4.02 g/t gold,
4.01 g/t silver and 0.03% copper (uncapped) over 12.2 metres at 31
metres depth (hole BDD0119). Angostura is being extended to the southwest
and deeper, including the BRQ15-153 intercept of 1.93 g/t gold,
5.84 g/t silver and 0.04% copper (uncapped) over 5.9 metres at 217
metres below surface.
- El Barqueno - Peña de Oro
prospect extended to southwest by drilling - Hole BRQ15-148
intersected 3.95 g/t gold, 15.65 g/t silver and 1.34% copper
(uncapped) over 9.6 metres at 135 metres below surface, suggesting
continuity of mineralization to the southwest.
- El Rayo project acquired
next to El Barqueno property - The acquisition of Soltoro Ltd.,
effective June 9, 2015, adds a
further 30,000 ha of property in Jalisco State to the Company's
holdings, including the El Rayo
gold-silver project, immediately east of El Barqueno
- Resource updates expected at both Amaruq and El Barqueno
later this year - Results from the first phase 2015 drill
program at Amaruq are expected to be incorporated into an updated
resource estimate near the end of this summer. At El
Barqueno, an initial resource estimate is expected to be completed
near the end of 2015.
"Results from drilling programs at both our
Amaruq project in Nunavut and our
El Barqueno project in Mexico
continue to exceed our expectations. In the coming weeks we
will be reviewing our programs at both projects with a view to
increase our drilling activities," said Sean Boyd, Chief Executive Officer. "At
Amaruq, the drilling shows good potential to infill and expand the
current resource at Whale Tail, and we continue to encounter new
zones of mineralization which may increase the resource over time.
Work at El Barqueno is extending the known mineralized zones and we
look forward to the initial resource on the property later this
year," added Mr. Boyd.
Amaruq Project - Drilling Under Whale Lake
Continues to Infill and Expand Known Mineralization
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 containing 1.5 million ounces of gold
(6.6 million tonnes at 7.07 g/t gold) at the project. Results
from this project were last reported in a Company news release
dated April 30, 2015.
More than 102 holes (27,750 metres) of the first
phase 2015 Amaruq drill program were completed as of May 31, 2015, when seven drill rigs were in
operation on the project, with another three expected to be added
by the end of June. Most of this drilling has been to fill the
former gap in the Whale Tail deposit (under Whale Lake), which is
now successfully completed to a depth of 200 metres. There
has also been initial reconnaissance drilling at Mammoth Lake and
the area between the R zone and Whale Tail.
Whale Tail Infill Drilling Suggests Larger
Resource to Come
The most recent results continue to yield
high-grade gold intercepts over substantial estimated true widths
in the Whale Tail deposit. To date the Whale Tail deposit has
been defined over at least 1.2 kilometres of strike length and
extends from surface to more than 370 metres depth. It
remains open at depth and to the southwest. These intercepts
are set out in the table below, and the drill hole collars are
located on the Amaruq project local geology map. The pierce points
are shown on the Whale Tail composite longitudinal section.
All intercepts reported for the Amaruq project show capped grades
over estimated true widths, based on a preliminary geological
interpretation that will be updated as new information becomes
available with further drilling.
Recent exploration drill results from the Whale Tail (WT)
deposit, 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)* |
AMQ15-176 |
WT
Central |
75.0 |
79.0 |
59 |
3.8 |
18.7 |
18.7 |
And |
|
132.8 |
136.5 |
106 |
3.5 |
3.5 |
3.5 |
And |
|
147.0 |
153.5 |
117 |
6.2 |
4.8 |
4.8 |
AMQ15-177 |
WT Central |
151.5 |
156.0 |
131 |
4.0 |
5.2 |
5.2 |
And |
|
170.8 |
174.5 |
143 |
3.2 |
10.2 |
10.2 |
And |
|
182.5 |
187.0 |
156 |
4.1 |
6.3 |
6.3 |
AMQ15-178 |
WT West |
144.2 |
151.0 |
117 |
5.8 |
3.4 |
3.4 |
And |
|
196.5 |
200.9 |
159 |
3.5 |
3.6 |
3.6 |
And |
|
265.7 |
278.4 |
217 |
11.2 |
7.5 |
7.5 |
including |
|
265.7 |
272.5 |
214 |
6.2 |
10.4 |
10.4 |
And |
|
308.0 |
313.8 |
248 |
4.1 |
5.3 |
5.3 |
AMQ15-179 |
WT Central |
87.0 |
96.0 |
74 |
8.5 |
5.2 |
5.2 |
And |
|
168.0 |
177.0 |
138 |
8.5 |
11.3 |
11.3 |
AMQ15-181 |
WT Central |
136.7 |
160.5 |
125 |
22.5 |
11.7 |
11.7 |
including |
|
143.0 |
158.8 |
126 |
14.6 |
15.9 |
15.9 |
AMQ15-184 |
WT West |
349.5 |
364.5 |
300 |
11.5 |
7.2 |
7.2 |
including |
|
356.5 |
363.5 |
303 |
5.4 |
11.1 |
11.1 |
And |
|
413.0 |
417.9 |
351 |
4.2 |
4.4 |
4.4 |
And |
|
436.5 |
442.0 |
371 |
4.6 |
3.6 |
3.6 |
AMQ15-185 |
WT East |
137.0 |
147.7 |
113 |
10.2 |
7.6 |
7.6 |
including |
|
137.0 |
145.0 |
113 |
7.6 |
9.5 |
9.5 |
AMQ15-186 |
WT Central |
90.0 |
96.0 |
77 |
4.8 |
3.5 |
3.5 |
AMQ15-187 |
WT Central |
126.2 |
130.9 |
100 |
4.5 |
3.7 |
3.7 |
And |
|
165.0 |
171.0 |
130 |
5.0 |
19.8 |
19.8 |
including |
|
166.5 |
170.0 |
130 |
3.1 |
31.9 |
31.9 |
And |
|
175.2 |
181.0 |
137 |
5.2 |
3.2 |
3.2 |
AMQ15-188 |
WT Central |
143.6 |
147.5 |
118 |
3.5 |
9.3 |
9.3 |
AMQ15-200 |
WT West |
277.0 |
281.2 |
230 |
3.4 |
8.9 |
8.9 |
AMQ15-208 |
WT West |
259.0 |
264.0 |
197 |
4.3 |
20.5 |
18.3 |
* Holes at Amaruq use a capping factor of 60 g/t
gold.
Amaruq project local geology map
Amaruq project - Whale Tail composite longitudinal section
The most recent results continue to yield
moderate to high-grade gold intercepts over substantial widths in
the Whale Tail deposit, between 60 and 270 metres below
surface. Drilling is being done from both sides of the
northeast-striking deposit to fully explore its geometry at depth;
Whale Tail ranges in dip from 60 degrees southeast (near surface)
through vertical to 60 degrees northwest (at greater depths). On
the east side of Whale Lake, hole AMQ15-187 intersected three
lenses between 100 and 137 metres depth including 19.8 g/t gold
over 5.0 metres at 130 metres depth. Approximately 200 metres to
the southwest, hole AMQ15-181 encountered one lens yielding 11.7
g/t gold over 22.5 metres, including 15.9 g/t gold over 14.6 metres
at 126 metres depth. Farther west, hole AMQ15-178 intersected
four lenses between 117 and 248 metres depth including 10.4 g/t
gold over 6.2 metres at 214 metres depth.
The Whale Tail program has defined higher grade
lenses with greater widths plunging toward the southwest, such as
hole AMQ15-184 which intersected three lenses below 300 metres
depth: 7.2 g/t gold over 11.5 metres including 11.1 g/t gold over
5.4 metres at 303 metres depth, 4.4 g/t gold over 4.2 metres at 351
metres depth, and the deepest intercept of the project so far: 3.6
g/t gold over 4.6 metres at 371 metres depth. Hole AMQ15-208
is one of the westernmost holes on Whale Lake and has hit one of
the best intercepts to date at Amaruq: 18.3 g/t gold over 4.3
metres at 197 metres depth.
New Gold-Bearing Structure Confirmed North of
Whale Tail Deposit at Amaruq
The recent drilling has also located what is
considered to be a new mineralized structure in a different
sedimentary rock unit. It is approximately 100 metres
northwest of the current Whale Tail resource envelope and its
strike direction appears to curve away from the Whale Tail deposit
to the west. These intercepts are set out in the table below,
and the drill hole collars are located on the Amaruq project local
geology map. The pierce points are shown on the Whale Tail
composite longitudinal section.
Recent exploration drill results from the new
gold structure, 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)* |
IVR14-145** |
- new
structure |
428.6 |
433.5 |
351 |
2.9 |
120.7 |
6.9 |
IVR14-150** |
- new
structure |
277.3 |
284.5 |
226 |
5.4 |
5.9 |
5.9 |
AMQ15-165*** |
- new
structure |
196.0 |
200.3 |
157 |
3.1 |
29.0 |
16.8 |
AMQ15-177 |
- new
structure |
333.4 |
337.9 |
284 |
4.0 |
6.1 |
6.1 |
And |
- new
structure |
359.5 |
363.8 |
306 |
3.8 |
14.8 |
9.7 |
* Holes at Amaruq use a capping factor of 60 g/t
gold.
** Holes IVR14-145 and IVR14-150 previously released in
Company's news release dated November 11,
2014
*** Hole AMQ15-165 previously released in Company's news release
dated April 30, 2015
The structure has been intersected by four holes
to date over more than 800 metres strike length between 150 and 350
metres depth. It was first encountered in 2014 west of Whale Lake
as the lowest intercept of hole IVR14-145 yielding 6.9 g/t gold
over 2.9 metres at 351 metres depth, and as the lower intercept in
hole IVR14-150, which intersected 5.9 g/t gold over 5.4 metres at
226 metres depth (both holes reported in the Company's news release
dated November 11, 2014).
Earlier this year, hole AMQ15-165 encountered what the Company
believes is the same mineralized structure in its lower intercept,
cutting 16.8 g/t gold over 3.1 metres at 157 metres depth (reported
in the Company news release dated April 30,
2015). Hole AMQ15-177 appears to have cut the same
structure in between these two extents in two closely-spaced
intercepts: 6.1 g/t gold over 4.0 metres at 284 metres depth and
9.7 g/t gold over 3.8 metres at 306 metres depth.
Initial Drilling at Mammoth Lake Encounters
Mineralized Structures
Two rigs have commenced drilling in the Mammoth
Lake area southwest of Whale Tail, approximately 1.3 kilometres
west of the known Whale Tail mineralization, to search for the
source of gold-bearing boulder trains previously outlined by
prospecting. Initial drilling has identified near-surface
mineralized structures with quartz veins, silicification,
arsenopyrite/pyrrhotite and visible gold under Mammoth Lake along a
strike length of more than 500 metres. Assay results from the
Mammoth Lake drilling are pending.
Future Work
Four drill rigs will move onto land from the ice
in June to complete the conversion drill program in the western
part of Whale Tail to a depth of 200 metres. Two other drill
rigs will explore Whale Tail for extensions below 200 metres.
Drilling in the Mammoth Lake area will continue from land using two
rigs to determine if the near-surface mineralized structures extend
to depth. Two more rigs will be added to resume investigation
of the I, R and V structures and other regional targets on the
property. The first phase 2015 drill program of 50,000 metres
is expected to be completed by the end of June.
Whale Tail mineralization is open at depth and
to the southwest. An updated resource is expected by the end
of this summer following the completion of the first phase 2015
drill program. Studies are ongoing to evaluate the potential
to develop the Amaruq deposit as a satellite operation to
Meadowbank.
El Barqueno Project - 2015 Exploration Program Underway,
Azteca-Zapoteca, Angostura and
Peña de Oro Yielding Positive Drill Results
Since the November
2014 acquisition of Cayden Resources Inc. ("Cayden"), Agnico
Eagle has compiled previous exploration data, and planned and
initiated a new exploration program at the El Barqueno property in
Jalisco State, Mexico,
approximately 150 kilometres west of the state capital of
Guadalajara.
The El Barqueno gold-silver project represents a
significant new land position for Agnico Eagle in the historic
Guachinango Mining District. The project contains
underexplored zones of gold mineralization in areas of past
small-scale production, and numerous prospects and drill
targets. The Company believes this property has the potential
to host a Pinos Altos style
gold-silver deposit that could be developed as a combination open
pit/underground mine with mill and heap leach processing
opportunities.
This release reports on holes drilled on the
Azteca-Zapoteca, Angostura, and
Peña de Oro prospects since the
last news release (Cayden, September 10,
2014). This includes 13 holes (3,398 metres) drilled
by Cayden from late August until November
2014, and 87 holes (28,744 metres) drilled by Agnico Eagle
from December 2014 to May 31, 2015.
Currently there are five drill rigs in
operation. The focus of the 2015 drilling program is to define the
limits of the Azteca-Zapoteca, Angostura, and Peña de Oro mineralized zones and to test for
additional sub-parallel or subsidiary mineralized structures.
Additional high-quality exploration targets defined by surface
mapping and sampling, geochemistry and geophysics elsewhere on the
project will be tested using two more diamond drill rigs, expected
to be on site in early July.
Gold, silver and copper grades of recent
intercepts from all three prospects are set out in the table below
and the drill collars are located in an accompanying table as well
as on the local project geology map. All intercepts reported
for the El Barqueno project show uncapped grades over estimated
true widths, based on a preliminary geological interpretation that
will be updated as new information becomes available with further
drilling.
Recent exploration drill results from the El
Barqueno project
Drill Hole |
Prospect |
From
(metres) |
To
(metres) |
Depth
of
midpoint
below
surface
(metres) |
Estimated
true width
(metres) |
Gold grade
(g/t)
(uncapped)* |
Silver
grade (g/t)
(uncapped) |
Copper
(%)
(uncapped) |
BDD0105 |
Angostura |
124.0 |
128.0 |
105 |
3.5 |
2.37 |
1.93 |
0.00 |
and |
|
133.0 |
140.0 |
112 |
6.2 |
1.00 |
4.26 |
0.02 |
BDD0106 |
Angostura |
222.0 |
234.0 |
182 |
10.7 |
1.07 |
3.81 |
0.11 |
BDD0107 |
Angostura |
167.0 |
181.0 |
136 |
11.8 |
1.62 |
2.96 |
0.04 |
BDD0119 |
Azteca-Zapoteca |
17.4 |
44.1 |
31 |
12.2 |
4.02 |
4.01 |
0.03 |
BDD0120 |
Azteca-Zapoteca |
115.5 |
121.8 |
86 |
3.3 |
3.36 |
3.48 |
0.08 |
BRQ15-121 |
Azteca-Zapoteca |
27.0 |
30.0 |
27 |
2.4 |
7.80 |
7.27 |
0.02 |
including |
|
27.0 |
28.5 |
27 |
1.2 |
11.15 |
9.10 |
0.02 |
BRQ15-122 |
Angostura |
180.0 |
184.0 |
175 |
2.8 |
6.34 |
12.10 |
0.05 |
and |
|
197.0 |
203.0 |
186 |
4.2 |
1.39 |
7.53 |
0.14 |
BRQ15-123 |
Angostura |
77.0 |
80.0 |
65 |
2.4 |
5.20 |
7.20 |
0.15 |
and |
|
85.0 |
89.0 |
74 |
3.2 |
1.56 |
7.00 |
0.26 |
and |
|
94.0 |
100.0 |
83 |
4.8 |
1.35 |
3.32 |
0.08 |
and |
|
110.0 |
112.0 |
95 |
1.6 |
1.58 |
14.35 |
0.15 |
BRQ15-124 |
Angostura |
101.0 |
108.0 |
105 |
4.3 |
4.41 |
11.73 |
0.10 |
and |
|
134.0 |
150.0 |
140 |
9.9 |
1.69 |
21.15 |
0.30 |
BRQ15-132 |
Peña de Oro |
171.0 |
172.0 |
162 |
0.9 |
4.84 |
119.00 |
5.98 |
BRQ15-133 |
Peña de Oro |
182.0 |
185.0 |
138 |
2.7 |
1.09 |
7.67 |
1.06 |
BRQ15-139 |
Azteca-Zapoteca |
42.0 |
46.0 |
43 |
3.4 |
5.38 |
8.08 |
0.15 |
BRQ15-140 |
Azteca-Zapoteca |
22.0 |
27.0 |
9 |
4.3 |
3.12 |
7.50 |
0.04 |
and |
|
33.0 |
40.0 |
14 |
6.0 |
3.14 |
2.60 |
0.04 |
BRQ15-144 |
Azteca-Zapoteca |
9.0 |
35.0 |
25 |
13.0 |
2.78 |
4.88 |
0.05 |
BRQ15-145 |
Azteca-Zapoteca |
151.0 |
165.0 |
155 |
11.8 |
3.67 |
18.27 |
0.69 |
BRQ15-148 |
Peña de Oro |
163.0 |
174.0 |
135 |
9.6 |
3.95 |
15.65 |
1.34 |
BRQ15-153 |
Angostura |
265.0 |
272.0 |
217 |
5.9 |
1.93 |
5.84 |
0.04 |
BRQ15-156 |
Azteca-Zapoteca |
18.0 |
20.0 |
19 |
1.0 |
8.01 |
15.45 |
0.21 |
BRQ15-158 |
Peña de Oro |
11.0 |
12.0 |
9 |
0.8 |
3.18 |
13.90 |
1.53 |
* Only intervals >0.4 g/t gold were included in the
interval calculations
El Barqueno project exploration drill hole collar
coordinates
|
Drill Hole Collar
Coordinates* |
Drill Hole
ID |
UTM
North |
UTM
East |
Elevation
(metres
above sea
level) |
Azimuth
(degrees) |
Dip
(degrees) |
Length
(metres) |
BDD0105 |
2280220 |
553701 |
1,291 |
318 |
-46 |
253 |
BDD0106 |
2280145 |
553663 |
1,291 |
318 |
-45 |
290 |
BDD0107 |
2280146 |
553662 |
1,292 |
359 |
-45 |
218 |
BDD0119 |
2279710 |
554772 |
1,278 |
345 |
-52 |
198 |
BDD0120 |
2279773 |
555249 |
1,266 |
346 |
-47 |
178 |
BRQ15-121 |
2279740 |
554571 |
1,259 |
359 |
-51 |
172 |
BRQ15-122 |
2280145 |
553662 |
1,291 |
0 |
-60 |
236 |
BRQ15-123 |
2280227 |
553764 |
1,284 |
0 |
-52 |
165 |
BRQ15-124 |
2280226 |
553764 |
1,284 |
1 |
-71 |
175 |
BRQ15-132 |
2282064 |
560205 |
1,328 |
335 |
-50 |
237 |
BRQ15-133 |
2282022 |
560136 |
1,307 |
335 |
-50 |
261 |
BRQ15-139 |
2279709 |
554577 |
1,244 |
335 |
-50 |
137 |
BRQ15-140 |
2279769 |
554638 |
1,276 |
335 |
-50 |
143 |
BRQ15-144 |
2279720 |
554660 |
1,257 |
335 |
-50 |
134 |
BRQ15-145 |
2279660 |
554687 |
1,256 |
335 |
-50 |
261 |
BRQ15-148 |
2281984 |
560065 |
1,305 |
335 |
-50 |
300 |
BRQ15-153 |
2280077 |
553441 |
1,298 |
335 |
-50 |
317 |
BRQ15-156 |
2279714 |
554754 |
1,277 |
335 |
-50 |
192 |
BRQ15-158 |
2282060 |
559941 |
1,298 |
335 |
-50 |
123 |
* Coordinate System UTM NAD WGS 13N Zone
El Barqueno project - Local geology map
Recent Drilling Infills Azteca-Zapoteca
Prospect
The Azteca-Zapoteca prospect had previously been
shown to extend approximately 1,200 metres along a northeast strike
from surface to 200 metres depth. Recent drilling has infilled the
deposit. It remains open at depth and along strike.
Encouraging recent drill intercepts from the
Azteca-Zapoteca prospect are for the most part fairly
shallow. Hole BDD0119 yielded 4.02 g/t gold, 4.01 g/t silver
and 0.03% copper over 12.2 metres at 31 metres depth. Hole
BRQ15-121 intersected 7.80 g/t gold, 7.27 g/t silver and 0.02%
copper over 2.4 metres at 27 metres depth, while hole BRQ15-139
yielded 5.38 g/t gold, 8.08 g/t silver and 0.15% copper over 3.4
metres at 43 metres depth. Hole BRQ15-145 is one of the
deepest recent holes testing the area; it intersected 3.67 g/t
gold, 18.27 g/t silver and 0.69% copper over 11.8 metres at 155
metres below surface. This drilling and additional surface mapping
demonstrates good continuity to the northeast and southwest as well
as at depth.
Angostura Prospect Extended Along
Strike
The previously reported extent of the
Angostura prospect was 700 metres
strike length from surface to a depth of 200 metres. As a
result of recent drilling, the prospect has been extended 300
metres farther to the southwest and deeper beneath a younger cap of
basalt flows. Angostura now
appears to extend approximately 1,000 metres along a northeast
strike and as deep as approximately 220 metres vertically.
One of the holes testing the area beneath the
younger basalt cap is hole BRQ15-122, which intersected two
mineralized lenses: 6.34 g/t gold, 12.10 g/t silver and 0.05%
copper over 2.8 metres at 175 metres below surface, and 1.39 g/t
gold, 7.53 g/t silver and 0.14% copper over 4.2 metres at 186
metres below surface. Approximately 225 metres west-southwest
from hole BRQ15-122, is hole BRQ15-153 which yielded 1.93 g/t gold,
5.84 g/t silver and 0.04% copper over 5.9 metres at 217 metres
below surface. Two other holes drilled through the basalt cap
approximately 100 metres northeast of hole BRQ15-122 encountered
shallower intersections of multiple lenses. Hole BRQ15-124
had two intercepts: 4.41 g/t gold, 11.73 g/t silver and 0.10%
copper over 4.3 metres at 105 metres depth, and 1.69 g/t gold,
21.15 g/t silver and 0.30% copper over 9.9 metres at 140 metres
depth. Nearby, hole BRQ15-123 intersected four mineralized
lenses between 65 and 95 metres depth, including one grading 5.20
g/t gold, 7.20 g/t silver and 0.15% copper over 2.4 metres at 65
metres below surface. Surface geochemistry and geophysics
suggest that the mineralization extends to the northeast, and this
area will require further drill-testing.
Strike Length Increased at Peña de
Oro
Previous work by Cayden had delineated the Peña
de Oro prospect along a strike
length of more than 400 metres and locally to a depth of 200
metres.
Recent drilling has extended the strike length
of the prospect to approximately 640 metres along a northeast
trend. Hole BRQ15-148 near the southwestern extent of the
prospect intersected 3.95 g/t gold, 15.65 g/t silver and 1.34%
copper over 9.6 metres at 135 metres below surface, suggesting good
continuity of the mineralization to the southwest. Two holes
farther northeast yielded positive grades at depth. Hole BRQ15-132
intersected 4.84 g/t gold, 119.00 g/t silver and 5.98% copper over
0.9 metres at 162 metres below surface, while hole BRQ15-133
intersected 1.09 g/t gold, 7.67 g/t silver and 1.06% copper over
2.7 metres at 138 metres below surface. In general, gold and copper
values initially appear to be increasing toward the southwest based
on the limited amount of drilling in this area to date.
Preliminary Metallurgical Testing
Preliminary metallurgical testing on composite
samples from the El Barqueno project was conducted in the first
half of 2014 (Cayden news release dated April 29, 2014). The results indicated
promise for recovering gold and silver from the lower grade
material by heap leach processing, and an opportunity for mill
processing of the higher grade material to maximize the gold and
silver recovery. The Company has conducted subsequent
metallurgical and mineralogical testing on selected samples, which
supports the initial Cayden results. Comprehensive
metallurgical test work will be conducted as part of the initial
scoping study for El Barqueno in an effort to confirm amenability
for heap leaching of lower grade domains and milling processes for
higher grade domains.
Future Work
The initial 2015 drill program is expected to be
completed by the end of the second quarter of this year. A
supplemental drill program is being studied to infill the
mineralized areas as well as to test extensions to the known
mineralization. A mineralogical study this year will
investigate the deportment of the gold in relation to the oxide and
sulphide mineralization, to increase the understanding of the
deposits. An inferred/indicated mineral resource is expected
to be completed by the end of the year for the Peña de Oro and Azteca-Zapoteca areas to open-pit
mineable depths (surface to 300 metres depth). The
Angostura prospect is also being
studied for a potential inferred resource estimate by year-end.
As well, an additional 10,000-metre
reconnaissance drill program is being proposed to commence in the
third quarter of the year. The program will be designed to test the
high-priority targets in the Azteca-Zapoteca, Peña de Oro, Zapote,
Poncho East and West, Esperanza
and Falco areas defined last year using prospecting, geological
mapping and sampling, and geochemical (stream sediment and soil
surveys) and geophysical surveys (magnetics, radiometrics, and EM),
which were subsequently reviewed and compiled by Agnico Eagle.
Acquisition of Soltoro Closes, Adding
Properties Contiguous With El Barqueno
Today the previously announced plan of
arrangement of Soltoro Ltd. (the "Arrangement") was completed
pursuant to which Agnico Eagle acquired ownership of 100% of the
issued and outstanding shares of Soltoro Ltd. ("Soltoro").
Immediately prior to the Arrangement, Soltoro had a total of
97,155,037 common shares issued and outstanding and Agnico Eagle
did not own any shares. Soltoro is now a wholly-owned
subsidiary of Agnico Eagle.
Through this transaction, Agnico Eagle will
acquire more than 30,000 hectares of property in Jalisco State,
including the El Rayo silver-gold
project and another property that are contiguous with and to the
east of Agnico Eagle's El Barqueno property.
The Arrangement was approved at a special
meeting of Soltoro securityholders held on June 4, 2015 by approximately 99.95% of the votes
cast by Soltoro securityholders. Final approval for the
Arrangement was obtained from the Ontario Superior Court of Justice
(Commercial List) on June 8,
2015.
The Soltoro common shares will be delisted from
the TSX Venture Exchange and Agnico Eagle will apply to the
relevant securities commissions for Soltoro to cease to be a
reporting issuer under Canadian securities laws.
Under the Arrangement, each Soltoro common share
was exchanged for 0.00793 of an Agnico Eagle common share,
C$0.01 in cash and one common share
of a newly formed Ontario company
named Palamina Corp. ("Palamina") valued at C$0.02 per share.
Full details of the Arrangement and certain
other matters are set out in the management information circular of
Soltoro dated May 5, 2015 (the
"Information Circular"). A copy of the Information Circular,
the Arrangement Agreement dated April 10,
2015 between the Company and Soltoro and certain other
principal agreements relating to the Arrangement can be found under
Soltoro's profile on SEDAR at www.sedar.com.
Agnico Eagle will file an early warning report
in accordance with applicable securities laws. To obtain a copy of
such early warning report, please contact Agnico Eagle at the
address or telephone number set out above.
Changes to the Board of Directors
It is with regret that during the quarter, the
Company received the resignation of Mr. Bernard Kraft due to health reasons. Mr.
Kraft had been a director since 1992 and has been associated with
Mr. Paul Penna (the founder of
Agnico Eagle) and associated companies of Agnico Eagle since
1965. "Bernie was a valued and active member of the Board of
Directors and various Committees of the Board, most notably the
Audit Committee, for many years. His knowledge, expertise and
contributions and above all his friendship, will be greatly missed
and we wish him well," said Mr. James D.
Nasso, Chairman of the Board.
To fill the vacancy created by the resignation
of Mr. Kraft, Agnico Eagle announces the appointment of Mr.
Jamie Sokalsky to the Board of
Directors. Mr. Sokalsky is widely known and well respected in
the gold mining industry, most recently serving as President and
Chief Executive Officer of Barrick Gold Corporation, where he
worked in various capacities for over 20 years. He holds an
Honours Bachelor of Commerce degree from Lakehead University and received his Chartered
Accountant designation in 1982. "Mr. Sokalsky is a tremendous
addition to our Board of Directors, and his extensive knowledge and
experience in the gold mining sector will be of great value to us,"
said Mr. Nasso.
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. 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 June 9, 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 or information.
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. 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; the volatility of the Company's stock
price; and the results of the exploration activity. 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 and El Barqueno 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 or El Barqueno exploration projects.
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. 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.
In prior periods, reserves 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
mineral reserves resources reported by the Company on February 11, 2015, 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 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.
Assay quality assurance and quality control
system for the Amaruq Project
The Quality Assurance / Quality Control (QA/QC)
program used for the Amaruq project is consistent with NI 43-101
and industry best practices. All samples are assayed at an
independent laboratory, ALS Chemex (ALS) in Val-d'Or, Que., with sample preparation at
Thunder Bay, Ont., and
Val-d'Or. A subset of samples
(approximately 10%) is sent to SGS laboratory in Vancouver, B.C., for check-assaying.
All drill core samples (NQ size) are fine
crushed to better than 70% of the sample passing 2 mm. A sample
split (rotary splitter) of up to 250 g is pulverized to better than
85% of the sample passing 75 microns.
Key components of the QA/QC program are:
systematic insertion into the sample stream of blank samples and
standards; analyses of duplicate samples, and confirmatory analyses
by a second laboratory. Approximately 12% of all samples submitted
for analysis are control samples. All control samples are inserted
at a frequency of one custom-prepared standard, one blank and one
coarse duplicate for every 24 core samples.
Control standard failure is defined by a
reported gold content outside of a 2 standard deviation range of
the reference standard certified gold content. A failure of a
control standard triggers an investigation into the cause. A blank
failure is defined by a reported gold content above 3 times
detection limit of the method.
All samples are assayed for gold by Fire Assay
AA finish with a second run by gravimetric finish (30 g) for those
with gold grades above 3 g/t. Silver is also reported, and
samples are aqua regia digested with Atomic Absorption Spectroscopy
finish.
Program design, management, and QA/QC are
governed by Agnico Eagle's exploration and reserves and resources
development groups, of which Daniel
Doucet, Corporate Director of Reserve Development, is the
Company's Qualified Person. The QA/QC data verification has been
completed by Agnico Eagle's Mirela
Saraci, P. Geo., Senior Geologist, Geological Data and QAQC
Protocol.
Assay quality assurance and quality control
system for the El Barqueno Project
(historic drilling by Cayden Resources Inc.)
All drill core done by Cayden reported in this
release (holes numbers up to and including BDD0117) were drilled at
PQ3 or HQ3 diameter and were sawn or split into equal halves on
site. All samples were assayed using standard 30 gram fire assay
with atomic absorption finish by Acme Labs in Vancouver. QA/QC programs using internal
standard samples, field and lab duplicates, re-assays, and blanks
indicated good accuracy and precision in a large majority of
standards assayed. No intercepts were reported that averaged less
than 0.5 g/t Au and/or 0.2 % Cu and no intercepts had more than six
consecutive metres of less than 0.2 g/t Au and/or 0.2% Cu, or begin
or end with values less than 0.2 g/t Au and/or 0.2% Cu.
Assay quality assurance and quality control
system for the El Barqueno Project
(current drilling by Agnico Eagle Mines Limited)
All drill core done by Agnico Eagle reported in
this release (holes numbers beginning with BDD0118 and all hole
beginning with BRQ) were drilled at PQ3, HQ3 and PQ diameter and
were sawn or split into equal halves on site. The QA/QC program
used for the El Barqueno project is consistent with NI 43-101 and
industry best practices. All samples are assayed at an independent
laboratory, ALS in Vancouver, with
sample preparation at ALS in Guadalajara,
Jalisco, Mexico. A subset of samples (approximately 10%) is
sent to SGS laboratory in Vancouver, for check-assaying.
All drill core samples are fine crushed to
better than 70% of the sample passing 2 mm. A sample split (rotary
splitter) of up to 250 g is pulverized to better than 85% of the
sample passing 75 microns.
Key components of the QA/QC program are:
systematic insertion into the sample stream of blank samples and
standards; analyses of duplicate samples, and confirmatory analyses
by a second laboratory. Approximately 12% of all samples submitted
for analysis are control samples. All control samples are inserted
at a frequency of one commercial standard, one blank, one field
duplicate (¼ split of core) and one coarse duplicate for every 24
core samples.
Control standard failure is defined by a
reported gold content outside of a 2 standard deviation range of
the reference standard certified gold content. A failure of a
control standard triggers an investigation into the cause. A blank
failure is defined by a reported gold content above 3 times
detection limit of the method.
All samples are assayed for gold by Fire Assay
AA finish with a second run by gravimetric finish (30 g) for those
with gold grades above 3 g/t. Silver and copper are also
reported, and samples are aqua regia digested with Inductively
Coupled Plasma Atomic Emission Spectroscopy finish.
Program design, management, and QA/QC are
governed by Agnico Eagle's exploration and reserves and resources
development groups, of which Daniel
Doucet, Senior Corporate Director of Reserve Development, is
the Company's Qualified Person. The QA/QC data verification has
been completed by Agnico Eagle's Mirela
Saraci, P. Geo., Senior Geologist, Geological Data and QAQC
Protocol.
SOURCE Agnico Eagle Mines Limited