Stock Symbol: AEM (NYSE and TSX) TORONTO, Dec. 10
/PRNewswire-FirstCall/ -- Agnico-Eagle Mines Limited
("Agnico-Eagle") is pleased to announce that its Board of Directors
has approved the payment of a cash dividend of $0.18 per common
share, 50% higher than the dividend paid in 2007. The dividend will
be paid on March 28, 2008 to shareholders of record as of March 14,
2008. Agnico-Eagle has now declared a dividend to its shareholders
for 26 consecutive years. Due to a successful summer drilling
program, the gold reserves at the Meadowbank project continue to
grow. The Company is announcing an increase of 20% in probable gold
reserves, or almost 600,000 ounces to 3.5 million ounces from 27.7
million tonnes grading 3.9 grams per tonne. Additionally, the
Company is announcing that the Meadowbank project has been
accelerated by six months and is now expected to begin production
in January 2010. "Over the next two years, we plan to bring five
new gold mines into production while continuing to add to our gold
reserves. During this expansion period, we have also been able to
increase our dividend," said Sean Boyd, Vice Chairman and CEO.
"Despite higher anticipated US dollar construction expenditures,
due largely to US dollar weakness and further scope changes to one
of our major projects, our large cash position, expected cash flow
and available credit facility will allow us to fund our growth
without the need for equity financing," added Mr. Boyd. Highlights
of this corporate update include: - A 50% increase in the 2008
dividend to $0.18 per share - A 20% increase in gold reserves at
Meadowbank to 3.5 million ounces increasing the mine life by one
year and Agnico-Eagle's total gold reserves to 16.3 million ounces
- Annual payable gold production(1) to increase over five-fold to
approximately 1.4 million ounces by 2011 with total cash cost per
ounce(2) expected to be approximately $200 - Steady state gold
production expected to average 1.3 million ounces from 2010 to 2017
with total cash operating costs expected to be approximately $250
per ounce - Exploration upside intact with over $65 million of
exploration expenditures budgeted in 2008 towards 270,000 meters of
drilling as the Company targets 18 to 20 million ounces of gold
reserves within the next 15 months - An agreement with its
syndicate of lenders to refinance its currently secured facility
with a $300 million unsecured five year revolving credit facility
(1) Payable gold production means the quantity of a mineral
produced during a period contained in products that are sold by the
Company, whether such products are sold during the period or held
as inventory at the end of the period. (2) Total cash costs per
ounce is a non-GAAP measure. For reconciliation of historical total
cash costs per ounce to production costs, as reported in the
Company's historical financial statements, please see the Company's
financial statements and 20-F, as filed. Low Cost Gold Production
Growth On Schedule The Company today is announcing its production
and cost guidance for 2008. Payable gold production is expected to
total approximately 360,000 ounces, up approximately 50% from the
expected level in 2007 as two new gold mines are expected to be
commissioned during 2008. Total cash costs per ounce are expected
to average under $50, as good cost control and strong byproduct
pricing are expected to continue to contribute to one of the lowest
unit costs in the gold industry. With the planned startup of Goldex
(100% owned, western Quebec) in April 2008 and the planned startup
of Kittila (100% owned, northern Finland) in September 2008,
Agnico-Eagle is taking the first steps towards achieving growth in
gold production which is expected to see it achieve steady state
gold production of approximately 1.3 million ounces per year over
the period of 2010 through 2017 with total cash costs estimated to
be approximately $250 per ounce. This level of costs would be
expected to place Agnico-Eagle in the lowest decile among gold
producers globally.
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Estimated Payable Gold Production(x) 2012-2017 (000's ounces) 2008
2009 2010 2011 Average
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LaRonde 216 206 184 210 381 Meadowbank - - 438 474 351 Goldex 93
174 174 174 161 Lapa - 77 144 146 88 Kittila 50 135 161 172 150
Pinos Altos - 91 232 234 185
--------------------------------------------------------- 358 682
1,333 1,410 1,317
--------------------------------------------------------- (x)metal
amounts by mine have been rounded to the nearest thousand
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Estimated Total Cash Costs 2012-2017 ($/oz)(x) 2008 2009 2010 2011
Average
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LaRonde (189) (189) (162) 15 191 Meadowbank - - 211 235 312 Goldex
401 262 209 219 227 Lapa - 438 289 264 281 Kittila 338 307 273 261
299 Pinos Altos - 355 142 152 213
--------------------------------------------------------- Weighted
Average 48 167 163 193 249
--------------------------------------------------------- (x) Total
cash costs for all years were calculated using the following
trailing 3-year average metals prices and exchange rates and
include royalties where applicable:
----------------------------------------------- Base Case
Assumptions ----------------------------------------------- Silver
($/oz) 10.55 Zinc ($/tonne) 2,596 Copper ($/tonne) 5,628 C$/US$
1.146 US$/Euro 1.288
----------------------------------------------- Agnico-Eagle
remains fully financed for its gold growth program which is
expected to see the startup of five new gold projects, beginning
with Goldex in the second quarter of 2008. The Company currently
has approximately $480 million in cash and equivalents, strong cash
provided by operating activities from LaRonde ($226 million in 2006
and $186 million for the first nine months of 2007), and
substantially undrawn bank lines of $300 million. Excellent Cost
Control On Project Development Over the years 2008 to 2010,
Agnico-Eagle's current estimate to complete its capital projects is
$880 million. The increase in capital expenditures versus the
previous estimate of approximately $735 million is primarily due to
foreign exchange and changes in scope. The following table presents
the approximate variance from the previous estimate by factor:
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2008-2010 Capital Expenditures ($, millions)
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Previous estimate 735
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Currency impact 80
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Additional scope changes 45
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General cost escalation 20
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Current estimate 880
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Sustaining 55
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Total 935
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The original feasibility studies contemplated C$/US$ rates as high
as 1.30 and US$/Euro rates as low as 1.20. Currency remains the
factor to which the Company's operating and capital costs are most
sensitive. However, in spite of the negative impact of the relative
decline in the US dollar, each of Agnico-Eagle's mine projects is
expected to demonstrate improved returns versus their feasibility
studies as a result of the increased gold price, and improved
production profiles in the case of Pinos Altos and Meadowbank. At
Pinos Altos, scope changes comprise $40 million related to a
previously announced 21% increase in gold reserve ounces (see press
release August 9, 2007). The remaining $5 million is related to the
purchase of capital equipment at Kittila. General cost escalation
has been experienced at Lapa ($20 million) due largely to the
additional development required to access the orezones which have
been more lenticular than expected. The grade, tonnes and in-situ
gold ounces remain unchanged. The specific project expenditures for
2008 are presented in the following table. The exploration
expenditures are expected to be the highest in the Company's
history as several of the properties are believed to have
significant exploration upside. 2008 Capital and Exploration
Expenditures ($, 000's) Exploration Capital
--------------------------- Budget Capitalized Expensed
------------- ------------- ------------- LaRonde Sustaining 30,262
3,165 LaRonde Extension 34,972 Meadowbank 173,995 9,517 Goldex
22,571 2,377 Lapa 77,766 226 Kittila 88,623 6,955 Pinos Altos
126,015 13,894 Exploration and Evaluations 29,339
----------------------------------------- Total 554,204 36,134
29,339 The following link may be pasted into a web browser for more
detailed information on the capital expenditures by project, by
year. http://www.agnico-eagle.com/files/CapitalExpenditures.pdf
LaRonde To Continue To Provide Strong Foundation In 2008, payable
gold production at LaRonde is expected to decline to approximately
215,000 ounces, as gold grades are scheduled to be lower during the
year. Minesite costs per tonne at LaRonde are expected to rise
slightly to approximately C$66 per tonne, from the expected level
of C$65 per tonne in 2007, due to general inflation. This reflects
the success that the employees at LaRonde have had in controlling
costs via economies of scale, efficiency and optimization efforts.
Also contributing were the finalization of long-term contracts with
suppliers and the stable energy costs in Quebec. Total cash costs
at LaRonde are expected to be approximately minus $189 per ounce
assuming three year average byproduct prices and C$/US$ exchange
rates. Byproduct production is expected to be at similar levels to
recent years, as presented in the table found with the following
link. Also presented is more detailed data on the LaRonde mine,
including projections of tonnes, grades, mill recoveries, payable
metal production, local currency minesite cost per tonne and total
cash cost per ounce. Life of mine total cash costs are expected to
average $150 per ounce, with average gold production of 340,000
ounces annually. To date, the Company has invested $40 million on
the LaRonde Extension project. A further $185 million is projected
to its anticipated completion in early 2012.
http://www.agnico-eagle.com/files/LaRondeOperationsSummary.pdf
During 2008, the exploration focus will be on drilling the massive
sulphide structure to the west of the orebody (below the Bousquet
infrastructure) from the 215 Exploration drift. Additionally, from
Level 86, a geophysical target to the east of the orebody will be
drilled as a resumption of the program on the El Coco property.
Approximately $3 million will be spent on exploration drilling
during 2008. Goldex On Budget, Production To Begin Ahead Of
Schedule The Goldex mine is expected to be completed on budget and
is expected to begin production in April 2008, approximately two
months ahead of schedule. The mine is anticipated to produce
approximately 90,000 ounces of gold in 2008 at estimated initial
total cash costs per ounce of approximately $400. This higher cost
is a result of the lower grades mined during the initial ramp up.
The low grade material is largely stockpiled development ore.
Minelife total cash costs are estimated to be approximately $230
per ounce with average gold production of approximately 175,000
ounces annually. To date, $160 million has been invested at Goldex,
with a further $23 million expected to be invested by completion.
http://www.agnico-eagle.com/files/GoldexOperationsSummary.pdf In
2008, the exploration focus at Goldex will be drilling the zone
downtrend to the east of the orebody. Also, a small program of five
drill holes is planned to drill to the west of the orebody
targeting the South zone which, historically, has yielded
high-grade gold assays. More than $2 million is expected to be
invested in exploration at Goldex during 2008. Kittila To Become
Europe's Largest Producing Gold Mine The Kittila mine is expected
to begin production, on schedule, in September 2008 with initial
gold production estimated to be 50,000 ounces at total cash costs
estimated at $338 per ounce during the year. Life of mine total
cash costs are estimated to be approximately $300 per ounce with
anticipated average gold production of approximately 150,000 ounces
annually. To date, $100 million has been invested at Kittila, with
$90 million projected to be invested prior to completion in the
third quarter of 2008.
http://www.agnico-eagle.com/files/KittilaOperationsSummary.pdf The
Kittila deposit remains open at depth and along strike. One of the
thickest and richest drill holes to date was completed in 2007.
This hole (SUBH07003: 8.3 g/t gold over 15.1 metres true thickness,
previously released) intersected the main Suuri deposit at a depth
of approximately 1,000 metres, or 400 metres below the current
reserves. This area continues to be the focus of exploration with
drilling from surface using two drills. Additionally, surface
drilling continues to focus on targets along the 25 kilometres
strike length of mineralization on the mining lease. Underground
drilling from the new underground decline will begin this month and
will focus on definition of the Roura and Main zones. Also, two
additional surface drills will begin resource conversion and
definition of the Main zone at depth in the new year. The large
6,000 hectare property position that contains the Kittila deposit
is still in the early stages of exploration, with numerous targets
of interest scheduled for exploration in 2008. The focus of the
program will be the Kuotko (drilling), Paha (induced polarization
(IP) surveys and drilling) and Hako zones (drilling) to the north
of the mining lease area. Approximately $7 million is expected to
be invested in exploration in 2008. Lapa Shaft Complete, Lateral
Development Underway The 100% owned Lapa project, located just 11
kilometres east of LaRonde in northwestern Quebec, is anticipated
to begin production by mid-year 2009. The mine is expected to
produce an average of 125,000 ounces of gold per year over a seven
year mine life with average total cash costs of $300 per ounce. The
production shaft was completed in early October to a final depth of
1,369 metres. Lateral development is now underway as is the "Lapa
Circuit" at LaRonde, where the ore will be processed. To date, $45
million has been invested at Lapa, with a further $120 million
projected to be required to completion.
http://www.agnico-eagle.com/files/LapaOperationsSummary.pdf The
exploration focus at Lapa in 2008 will be on the deeper regions to
the east of the orebody, as the zones are trending in that
direction. Approximately $0.2 million is expected to be invested in
exploration during the year, as the driving of priority lateral
development for production will limit the access for diamond
drilling during the year. Pinos Altos Economics Continue To Improve
The 100% owned Pinos Altos project, located in the state of
Chihuahua in northern Mexico, is also expected to begin production
by mid-year 2009. The mine is expected to produce an average of
190,000 ounces of gold per year over a 12 year mine life. Total
cash costs are expected to average $210 per ounce over these years.
The production plan has been updated with the increase in reserves.
As a result, over the minelife, payable gold production is expected
to increase 29% and payable silver production is expected to
increase 42%. To date, $30 million has been invested at Pinos
Altos, with $200 million projected to completion in mid-2009.
http://www.agnico-eagle.com/files/PinosAltosOperationsSummary.pdf
Drilling on the main Santo Nino and Cerro Colorado zones is
expected to be the exploration focus during the year, inside the
mining lease area. The underground decline has provided better
access to test for extensions in these zones. Five drill rigs will
be active on these zones in 2008 with total expenditures likely to
be approximately $14 million. Currently, two underground diamond
drills are mobilized and underground drilling for deeper targets
began this month. Development work on the underground production
ramp at Pinos Altos has also been started. All the necessary land
agreements with the four local ejidos are in place. Negotiations
for additional surface rights with the underlying royalty holder
are ongoing. If these negotiations are not successful,
modifications to the proposed mine plan contained in the base case
feasibility study will be implemented. New Mascota Gold Zone
Continues To Develop On Pinos Altos Property Approximately seven
kilometres to the northeast of Pinos Altos' Santo Nino zone is the
new Mascota zone. Drilling began on this shallow deposit in 2007
and an initial resource estimate is expected to be released in
February 2008. The focus of the exploration will be to extend the
Mascota zone to the north and west. To this end, new roads are
being built to allow better access and exploration in this
developing gold region. Meadowbank Start Up Now Anticipated In
Early 2010 At the 100% owned Meadowbank project in Nunavut, Canada,
construction of the mine is underway with a 110 kilometre all
season road to the site nearly complete. Gold production is now
scheduled to begin at the beginning of January 2010, approximately
six months before previously anticipated. Recent deliveries to the
site include materials for the construction of the cement plant and
approximately 25% of the mining fleet. Recently completed work
includes construction of the permanent camp and erection of the
fuel tank farm at Baker Lake. The construction of the mill
foundations is underway. To date, $110 million has been invested at
Meadowbank, with $280 million projected to completion in early
2010. The mine is expected to produce an average of 360,000 ounces
of gold per year over a nine year minelife. Total cash costs are
expected to average $300 per ounce over these years.
http://www.agnico-eagle.com/files/MeadowbankOperationsSummary.pdf
Approximately 600,000 ounces were converted from resource to
reserve in the recent drilling season. This 20% increase to
probable gold reserves resulted in the total rising to 3.5 million
ounces. The majority of the ounces were converted from drilling
within the revised and updated pit envelopes. The new reserves also
include recently converted resources from the Cannu zone. The focus
of exploration in 2008 will be to extend the Portage and Goose
Island zones to the south, the Cannu zone to the north, and the
Goose South zone at depth. It is expected that approximately $10
million will be spent on this exploration program in 2008. In this
developing gold district, Agnico-Eagle has already discovered new
gold mineralization along strike to the north of the main Portage
zone. Approximately seven kilometres to the north is mineralization
including the Vault deposit and a further four kilometres northeast
is the new Marge Bay gold occurrence. Additionally, surface
programs will be executed to follow up on the successful summer
exploration program which resulted in the discovery of several base
metals showings on the eastern and western sides of the property.
Bank Credit Facility Extended Subject to the execution of
definitive documentation, the Company has agreed with a syndicate
of lenders to extended its $300 million bank credit facility a
further five years to December 31, 2012, and to convert the
facility from secured to unsecured. The current facility remains
substantially undrawn. The extended credit facility will be
provided by a syndicate of lenders led by Scotia Capital and
Societe Generale, and including Toronto Dominion Bank, National
Bank of Canada, N M Rothschild & Sons, and Bank of Montreal.
Shareholders Can Reinvest Dividends In Shares At A Discount Under
the Company's Dividend Reinvestment Plan, shareholders will have
the opportunity to reinvest their dividends, commission-free, in
shares of Agnico-Eagle, at 95% of the Average Market Price.
Individual shareholders can also make optional cash payments of up
to $20,000 to purchase additional shares, commission-free, at the
same price. Shareholders can obtain details of the Plan from the
Company or via the internet by copying the following link into a
browser.
http://www.agnico-eagle.com/files/DividendReinvestmentPlan.pdf
Forward-Looking Statements The information in this press release
has been prepared as at December 10, 2007. Certain statements
contained in this press release constitute "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and forward looking
information under the provisions of Canadian provincial securities
laws. When used in this document, words such as "anticipate",
"expect", "estimate," "forecast," "planned", "will", "likely" and
similar expressions are intended to identify forward-looking
statements or information. Such statements include without
limitation: the Company's forward looking production guidance,
including estimated ore grades, metal production, minesite costs
per tonne, total cash costs per ounce and projected exploration and
capital expenditures, including costs and other estimates upon
which such projections are based; the expected growth of the
Company's business; the Company's goal to increase its mineral
reserves, resources, and dividends as its business grows, and other
statements and information regarding anticipated trends with
respect to the Company's operations and exploration. Such
statements reflect the Company's views as at the date of this press
release and are subject to certain risks, uncertainties and
assumptions, and undue reliance should not be placed on such
statements. Many factors, known and unknown, could cause the actual
results to be materially different from those expressed or implied
by such forward looking statements. Such risks include, but are not
limited to: the volatility of prices of gold and other metals;
uncertainty of mineral reserves, mineral resources, mineral grades
and mineral recovery estimates; uncertainty of future production,
capital expenditures, and other costs; currency fluctuations;
financing of additional capital requirements; cost of exploration
and development programs; mining risks; risks associated with
foreign operations; risks related to title issues at the Pinos
Altos project; governmental and environmental regulation; the
volatility of the Company's stock price; and risks associated with
the Company's byproduct metal derivative strategies. For a more
detailed discussion of such risks and other factors, see Company's
Annual Information Form and Annual Report on Form 20-F for the year
ended December 31, 2006, as well as the Company's other filings
with the Canadian Securities Administrators and the U.S. Securities
and Exchange Commission. The Company does not intend, and does not
assume any obligation, to update these forward-looking statements
and information, except as required by law. Accordingly, readers
are advised not to place undue reliance on forward-looking
statements. Certain of the foregoing statements, primarily related
to projects, are based on preliminary views of the Company with
respect to, among other things, grade, tonnage, processing, mining
methods, capital costs, total cash costs, minesite costs, and
location of surface infrastructure and actual results and final
decisions may be materially different from those current
anticipated. About Agnico-Eagle Agnico-Eagle is a long established
Canadian gold producer with operations located in Quebec and
exploration and development activities in Canada, Finland, Mexico
and the United States. Agnico-Eagle's LaRonde Mine is Canada's
largest gold deposit in terms of reserves. The Company has full
exposure to higher gold prices consistent with its policy of no
forward gold sales. It has declared a cash dividend for 26
consecutive years. Notes To Investors Regarding The Use Of
Resources Cautionary Note To Investors Concerning Estimates Of
Measured And Indicated Resources. This press release may use the
terms "measured resources" and "indicated resources". We advise
investors that while those terms are recognized and required by
Canadian regulations, the U.S. Securities and Exchange Commission
(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 press release may
also use the term "inferred resources". We advise investors 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 Data Agnico-Eagle Mines Limited is reporting mineral
resource and reserve estimates in accordance with the CIM
guidelines for the estimation, classification and reporting of
resources and reserves. Meadowbank Detailed Mineral Reserve and
Resource Data
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Category Au(g/t) Au Tonnes (000's oz.) (000's)
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Total Probable Mineral Reserves 3.90 3,475 27,676
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Category Au(g/t) Au Tonnes (000's oz.) (000's)
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Total Indicated Resource 1.64 543 10,321
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Category Au(g/t) Au Tonnes (000's oz.) (000's)
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Total Inferred Resource 4.55 442 3,023
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Tonnage amounts and contained metal amounts presented in the tables
in this news release have been rounded to the nearest thousand.
Mineral reserves are separate from resources. The effective date of
the Meadowbank mineral resources and reserves is November 12, 2007.
Inferred Resource includes PDF deposit. 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. We use
certain terms in this press release, such as "measured",
"indicated", and "inferred", and "resources" that the SEC
guidelines strictly prohibit U.S. registered companies from
including in their filings with the SEC. U.S. Investors are urged
to consider closely the disclosure in our Form 20-F, which may be
obtained from us, or from the SEC's website at:
http://sec.gov/edgar.shtml. A "final" or "bankable" feasibility
study is required to meet the requirements to designate reserves
under Industry Guide 7. Estimates were calculated using historic
three-year average metals prices and foreign exchange rates in
accordance with the SEC Industry Guide 7. Industry Guide 7 requires
the use of prices that reflect current economic conditions at the
time of reserve determination which Staff of the SEC has
interpreted to mean historic three-year average prices. The
assumptions used for the November 12, 2007 Meadowbank mineral
reserves and resources estimate reported by the Company were based
on three-year average prices for the period ending September 30,
2007, of $553 per ounce gold, and $C/US$ exchange rate of 1.16. The
Canadian Securities Administrators' National Instrument 43-101 ("NI
43-101") requires mining companies to disclose reserves and
resources using the subcategories of "proven" reserves, "probable"
reserves, "measured" resources, "indicated" resources and
"inferred" resources. Mineral resources that are not mineral
reserves do not have demonstrated economic viability. A mineral
reserve is the economically mineable part of a measured or
indicated resource demonstrated by at least a preliminary
feasibility study. This study must include adequate information on
mining, processing, metallurgical, economic and other relevant
factors that demonstrate, at the time of reporting, that economic
extraction can be justified. A mineral reserve includes diluting
materials and allows for losses that may occur when the material is
mined. A proven mineral reserve is the economically mineable part
of a measured resource for which quantity, grade or quality,
densities, shape and physical characteristics are so well
established that they can be estimated with confidence sufficient
to allow the appropriate application of technical and economic
parameters, to support production planning and evaluation of the
economic viability of the deposit. A probable mineral reserve is
the economically mineable part of an indicated mineral resource for
which quantity, grade or quality, densities, shape and physical
characteristics can be estimated with a level of confidence
sufficient to allow the appropriate application of technical and
economic parameters, to support mine planning and evaluation of the
economic viability of the deposit. A mineral resource is a
concentration or occurrence of natural, solid, inorganic or
fossilized organic material in or on the earth's crust in such form
and quantity and of such a grade or quality that it has reasonable
prospects for economic extraction. The location, quantity, grade,
geological characteristics and continuity of a mineral resource are
known, estimated or interpreted from specific geological evidence
and knowledge. A measured mineral resource is that part of a
mineral resource for which quantity, grade or quality, densities,
shape, physical characteristics, can be estimated with a level of
confidence sufficient to allow the appropriate application of
technical and economic parameters, to support mine planning and
evaluation of the economic viability of the deposit. The estimate
is based on detailed and reliable exploration, sampling and testing
information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes that are
spaced closely enough to confirm both geological and grade
continuity. An indicated mineral resource is that part of a mineral
resource for which quantity, grade or quality, densities, shape and
physical characteristics can be estimated with a level of
confidence sufficient to allow the appropriate application of
technical and economic parameters, to support mine planning and
evaluation of the economic viability of the deposit. The estimate
is based on detailed and reliable exploration and testing
information gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes that are
spaced closely enough for geological and grade continuity to be
reasonable assumed. An inferred mineral resource is that part of a
mineral resource for which quantity and grade or quality can be
estimated on the basis of geological evidence and limited sampling
and reasonably assumed, but not verified, geological and grade
continuity. The estimate is based on limited information and
sampling gathered through appropriate techniques from locations
such as outcrops, trenches, pits, workings and drill holes. Mineral
resources which are not mineral reserves do not have demonstrated
economic viability. 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 study of a
mineral deposit in which all geological, engineering, legal,
operating, economic, social, environmental and other relevant
factors are considered in sufficient detail that it could
reasonably serve as the basis for a final decision by a financial
institution to finance the development of the deposit for mineral
production. Daniel Racine, P.Eng. Ing., Vice-president Operations,
a Qualified Person under the Canadian Securities Administrator's
National Instrument 43-101 ("NI 43-101"), has supervised revisions
to the operating and capital cost estimates, and production
forecasts prepared by each of the Company's divisions. Alain
Blackburn, Ing., Senior Vice-president Exploration, also a
Qualified Person under NI 43-101, has reviewed the exploration
information reported in this press release. The Qualified Person
responsible for the Meadowbank mineral resource estimate (except
for PDF) is Daniel Doucet, Ing., Principal Engineer Geology for the
Company's Technical Services Group, Abitibi Regional Office. The
effective date of the estimate is November 12, 2007. Except for
some differences in the key assumptions (namely, a $553 per ounce
gold, a $C/US$ exchange rate of 1.16, and a resource cut-off grade
of 1.0 gram per tonne gold over a minimum thickness of 4.0 metres)
the parameters and methods used to estimate the mineral resources
are essentially identical to those reported in the Technical Report
disclosed by Cumberland Resources Ltd. on SEDAR on March 31, 2005.
The PDF deposit resource estimates (Aug. 2000) were prepared by
Cumberland in accordance with standards outlined in National
Instrument 43-101 and CIM Standards on Mineral Resources and
Reserves (August 2000). James McCrea, P.Geo., Manager, Mineral
Resources for Cumberland, is the Qualified Person under NI 43-101.
PDF deposit resources are not included in the feasibility study of
the Meadowbank project. The Meadowbank open pit mineral reserves
have been prepared in accordance with NI 43-101; the open pit
reserves were derived from the measured and indicated mineral
resource model using a cut-off gold grade of 1.5 grams per tonne.
Pierre Matte, Ing., Principal Engineer Mining for the Company's
Technical Services Group, Abitibi Regional Office, and Martin
Bergeron Ing., General Manager fro the Company's Meadowbank mining
project, and Paul-Henri Girard, General Manager Technical Services
are the Qualified Persons who supervised the preparation of the
stated reserves which were based on revisions of the operating and
capital cost estimates contained in the Technical Report describing
Meadowbank Feasibility study which was disclosed by Cumberland
Resources Ltd. on SEDAR on March 31, 2005. The PDF deposit resource
estimates (Aug. 2000) were prepared by Cumberland in accordance
with standards outlined in National Instrument 43-101 and CIM
Standards on Mineral Resources and Reserves (August 2000). James
McCrea, P.Geo., Manager, Mineral Resources for Cumberland, is the
Qualified Person under NI 43-101. PDF deposit resources are not
included in the feasibility study of the Meadowbank project.
Required information for the Meadowbank project that is set out in
Canadian Securities Administrators' National Instrument 43-101
Sections 3.2, 3.3 and 3.4 can be found either in the Technical
Report filed by Cumberland Resources Ltd. on SEDAR on March 1,
2004, or in press releases filed by Cumberland Resources Ltd on
December 12, 2005 and January 17, 2007. There are no known
environmental, permitting, legal, title, taxation, socio-political,
marketing, or other relevant issues that materially affect the
Meadowbank mineral resources or mineral reserves. Mineral resources
that are not mineral reserves do not have demonstrated economic
viability. Note Regarding Certain Measures Of Performance This
press release presents measures including "total cash costs per
ounce" and "minesite cost per tonne" that are not recognized
measures under US GAAP. This data may not be comparable to data
presented by other gold producers. The Company believes that these
generally accepted industry measures are realistic indicators of
operating performance and useful for year over year comparisons.
However, both of these non-GAAP measures should be considered
together with other data prepared in accordance with US GAAP, and
these measures, taken by themselves, are not necessarily indicative
of operating costs or cash flow measures prepared in accordance
with US GAAP. The Company provides a reconciliation of realized
total cash costs per ounce and minesite costs per tonne to the most
comparable US GAAP measures in its annual and interim filings with
securities regulators in Canada and the United States. The
estimates presented herein are based upon the total cash costs per
ounce and minesite cost per tonne that the Company expects to incur
to mine gold during 2008 and beyond and do not include production
costs attributable to accretion expense and other asset retirement
costs, which will vary over time. It is therefore not practicable
to reconcile these forward-looking non-US GAAP financial measures
to the most comparable US GAAP measure. A reconciliation of the
Company's total cash cost per ounce and minesite cost per tonne to
the most comparable financial measures calculated and presented in
accordance with US GAAP for the Company's historical results of
operations is set forth in the Company's Annual Information Form
and Annual Report on Form 20-F for the year ended December 31,
2006, filed with the Canadian Securities Administrators and the
SEC. DATASOURCE: Agnico-Eagle Mines Limited CONTACT: David Smith,
VP, Investor Relations, (416) 947-1212
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