Stock Symbols: AEM (NYSE and TSX) TORONTO, Feb. 15
/PRNewswire-FirstCall/ -- Agnico-Eagle Mines Limited
("Agnico-Eagle" or the "Company") is pleased to provide an update
on its recent exploration activities including its updated year end
2007 gold reserves and resources. At December 31, 2007
Agnico-Eagle's proven and probable gold reserves hit a record of
16.7 million ounces, an increase of 33% over the year end 2006
level. The growth in gold reserves of 4.5 million ounces (prior to
considering 2007 gold production) was a result of successful
definition drilling at our development projects, which converted
1.6 million ounces to reserves, and the acquisition of the
Meadowbank project. Gold resources also continued to grow to record
levels. The Company's indicated mineral resource now stands at 2.8
million ounces while the inferred mineral resource stands at 4.7
million ounces (see the following Detailed Reserve and Resource
Data table for more information). Historically, Agnico-Eagle has
had great success in converting its gold resources to reserves.
With its largest ever exploration program now underway, combined
with better drilling access, the Company is well positioned to
achieve its gold reserve target of 18 million to 20 million ounces
within the next twelve months. With the growth in gold reserves and
resources at several of the key development projects, it is
anticipated that the upper end of this target range may be exceeded
within the next two years as promising results continue to be
encountered outside of the current gold reserve and resource
envelopes. Highlights of the exploration activity include: - Gold
reserves increased 33% in 2007 to a record of 16.7 million ounces -
Gold resources increased to a record level, even after the
conversion of 1.6 million ounces to reserves in 2007 - In the
northwest quadrant of the Pinos Altos property in Mexico, the
initial inferred resource estimate on the Creston Colorado zone is
7.7 million tonnes, grading 1.4 grams per tonne gold, or 0.4
million ounces. A scoping study for a stand-alone operation is
underway - Deep drilling at Kittila in Finland has confirmed the
depth extension of the main Suuri deposit to approximately 1,000
metres (approximately 350 metres below the current reserves and
resources). These results have not been incorporated into the
current resource estimates "The steady growth in gold reserves, and
more importantly, gold reserves per share continues to add value
for our shareholders. With gold reserves and resources at record
levels, and with several of our large deposits open for further
expansion, we anticipate further resource to reserve conversion in
2008" said Sean Boyd, Vice-Chairman and Chief Executive Officer.
"Additionally, the recent deep exploration success at Kittila
provides optimism that this property is one of several in our
portfolio that could ultimately grow to contain over five million
ounces of gold reserves" added Mr. Boyd. The Company's budgeted
exploration expenditure in 2008 exceeds $65 million and is expected
to result in drilling of approximately 270 kilometres utilizing 25
drill rigs. The total expenditure is the highest level in the
Company's history. Currently, each of Agnico-Eagle's 16.7 million
gold reserve ounces are at sites under construction, or in
production, and are located in mining-friendly regions with low
political risk. Q4 2007 Earnings Announcement Wednesday February 20
After Market Close The Company's senior management will host a
conference call on Thursday, February 21, 2008 at 11:00AM (E.S.T.)
to discuss financial results and provide an update of the Company's
exploration and development activities. Via Webcast: A live audio
webcast of the meeting will be available on the Company's website
homepage at http://www.agnico-eagle.com/. Via Telephone: For those
preferring to listen by telephone, please dial 416 644 3415 or
Toll-free 800 732 9307. To ensure your participation, please call
approximately five minutes prior to the scheduled start of the
call. Replay archive: Please dial the 416-640-1917, passcode
21259713 followed by the number sign or Toll-free access number
877-289-8525, passcode 21259713 followed by the number sign. The
conference call will be replayed from Thursday, February 21, 2008
at 1:30 PM (E.S.T.) to Thursday, February 28, 2008 11:59 PM
(E.S.T.). The webcast along with presentation slides will be
archived for 180 days on the website. Gold Reserves at Record Level
At year end 2007, the Company's gold reserves totaled 16.7 million
ounces, an increase of 33% over 2006 levels. The largest increase
came from the acquisition of Cumberland Resources Ltd. in April
2007 and the 2.9 million ounces of reserves at its Meadowbank
project in Nunavut, at the time of the acquisition. Agnico-Eagle's
subsequent exploration at Meadowbank added a further 0.6 million
ounces of reserves converted from resources. In 2008, it is
expected that the overall reserve figure for Agnico-Eagle will
continue to grow as the Company continues to convert its resource
to reserves and continues the exploration of its properties outside
of the current resource envelope. Agnico-Eagle's goal is to
increase gold reserves, from the existing portfolio of mines and
projects, reaching 18 million to 20 million ounces by year-end
2008. The Company anticipates that the main contributors to the
targeted increase in gold reserves and further gold resource
increases are likely to be: - Conversion of Agnico-Eagle's current
gold resources to reserves - Depth extension of the main Suuri
zones at Kittila - New gold zones to the north of the Kittila
reserves - Depth and strike extension at Meadowbank - Extensions of
the Santo Nino and Cerro Colorado zones at Pinos Altos - New gold
zones in the Creston/Mascota area to the northwest of the Pinos
Altos gold and silver reserve A summary of the Company's year end
2007 and 2006 gold reserves follows:
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Proven & Probable Gold Reserve Summary Reserve (000's ounces)
-------------------------------------------------------------------------
2007 2006
-------------------------------------------------------------------------
LaRonde 4,958 5,151 Goldex 1,634 1,689 Lapa 1,071 1,152 Kittila
2,996 2,616 Pinos Altos 2,547 1,837 Meadowbank 3,453 - Other - 17
-------------------------------------------------------------------------
Total 16,659 12,461
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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. See
the following section titled "Detailed Mineral Reserve and Resource
Data" for the break out of each reserve and resource category,
including Proven and Probable. The assumptions used in calculating
the 2007 reserves and resources were $583 per ounce gold, $10.77
per ounce silver, $1.19 per pound zinc, $2.65 per pound copper, a
C$/US$ exchange rate of 1.19, a US$/Euro exchange rate of 2.65, and
a Mexican Peso/US$ exchange rate of 10.91. For every 10% change in
the gold price (leaving all other assumptions unchanged), there
would be an estimated 1% change in proven and probable reserves.
The metals prices and exchange rates used in the reserve and
resource calculation are the trailing three year averages for such
prices or rates in each case, as mandated by the U.S. Securities
and Exchange Commission. The significant byproduct reserves and
resources for silver, zinc and copper, contained in the LaRonde ore
body, and the silver reserves contained at Pinos Altos, are
presented in the Detailed Mineral Reserve and Resource Data section
set out below, and are not included in Agnico-Eagle's gold reserve
and resource totals. Please see this section for more detailed
reserve and resource estimates for all the Company's properties.
Agnico-Eagle's proven and probable byproduct reserves total
approximately 118 million ounces of silver, 683,000 tonnes of zinc
and 105,000 tonnes of copper. Creston Colorado Zone in the
Creston/Mascota Area Continues to Grow, May Support Stand-Alone
Operation At the 100% owned Pinos Altos project in Chihuahua state,
northern Mexico, results continue to confirm the continuity of the
Creston Colorado zone. This gold and silver-bearing zone is located
in the Creston/Mascota area in the northwest quadrant of the
property, approximately seven kilometres from the main Santo Nino
deposit. In the fall of 2006, surface mapping, sampling and
trenching identified gold associated with at least two,
shallowly-dipping, zones of brecciated quartz vein and quartz
stockwork mineralization near surface. The mineralization is
similar to that of Santo Nino, except in its orientation. Drilling
began in December 2006 and two drills are currently operating on
the Creston Colorado zone. The gold mineralization in this zone is
now known to extend at least a further 200 metres along strike. The
current strike length is approximately 900 metres with widths
ranging between 50 metres and 200 metres and thicknesses ranging
between 10 metres and 60 metres. The gold grades tend to range
between one and three grams per tonne. The initial inferred
resource estimate on this area is 0.4 million ounces of gold and
4.0 million ounces of silver from 7.7 million tonnes of ore grading
1.4 grams per tonne gold and 16.2 grams per tonne silver,
respectively. The 2008 exploration program will include further
follow up and definition on the known mineral indications
immediately to the north over a further strike length of
approximately one kilometre. The program will test the theory that
the current Creston Colorado mineralization extends all the way to
the historic El Cebollin workings. Additionally, the nature of the
West Fault, which appears to separate the Creston Colorado and the
Mascota zones will be the focus of near term exploration efforts. A
scoping study is now underway which is contemplating the extraction
of the mineralization in the Creston/Mascota area as a stand-alone
operation, possibly with processing via heap leach methods. The
study is expected to be completed by the end of 2008. Recent
Drilling Results The recent results include drill hole CM-07-051
which has returned a true thickness of 42.6 metres grading 2.27 g
Au/t and 21.50 g Ag/t and hole CM-07-057 which has returned a true
thickness of 9.4 metres grading 9.07 g Au/t and 63.0 g Ag/t. These
two holes are approximately 200 metres north of the previously
known northerly extent of the mineralization. The mineralization is
now known to extend from approximately section C3135400 to section
C3136300, or 900 metres. http://www.agnico-eagle.com/files/Creston
MascotaPlanMap15Feb08.pdf
http://www.agnico-eagle.com/files/CrestonMascottaAerialView15Feb08.pdf
http://www.agnico-eagle.com/files/CrestonMascotaSec5980N15Feb08.pdf
http://www.agnico-eagle.com/files/CrestonMascotaSec6300N15Feb08.pdf
Additionally, drill hole CM-07-049 reported a true thickness of
53.8 metres grading 1.39 g/t gold and 19.91 g/t silver. Drill hole
CM-07-048, located on section C3136100N, has returned a true width
of 14.52 metres grading 1.34 g/t gold and 17.87 g/t silver. These
holes appear to be near the western edge of fault controlled, but
strongly developed, mineralization as found in CM-07-033 on section
C3136000N. Drill hole CM-07-058 has returned a true thickness of
27.1 metres grading 1.12 g/t gold and 31.22 g/t silver. This hole
was drilled vertically in the central portion of the deposit and
verified the grade continuity. Drill hole CM-07-054 was part of a
program designed to look for a deeper feeder zone for the known
mineralization. While it intersected relatively high grades,
further investigation is required to fully define this zone. Drill
hole CM-07-059 was a vertical infill hole which confirmed grade and
continuity.
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Gold Silver True (g/t) (g/t) Width(1) From To Cut to Cut to Drill
Hole Zone (metres) (metres) (metres) 41 g 1.5 kg
-------------------------------------------------------------------------
Creston CM-07-054 Colorado 11.2 35.5 52.0 5.07 65.5
-------------------------------------------------------------------------
Creston CM-07-058 Colorado 27.1 30.0 66.0 1.12 31.2
-------------------------------------------------------------------------
Creston and Colorado 13.2 83.0 100.5 1.11 32.6
-------------------------------------------------------------------------
Creston CM-07-048 Colorado 14.5 38.5 53.5 1.34 17.9
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Creston CM-07-049 Colorado 53.4 65.9 119.7 1.22 19.9
-------------------------------------------------------------------------
Creston CM-07-051 Colorado 42.3 97.0 139.6 2.27 21.5
-------------------------------------------------------------------------
Creston and Colorado 3.7 135.9 139.6 4.7 14.6
-------------------------------------------------------------------------
Creston CM-07-057(2) Colorado 9.4 100.0 109.4 9.1 63.1
-------------------------------------------------------------------------
Creston CM-07-059(2) Colorado 18.4 42.0 60.4 2.5 14.0
-------------------------------------------------------------------------
1. The true widths for these drill holes is preliminary and may be
subject to change. 2. Assays are preliminary and although quality
is assured, the complete quality assurance procedure is not
completed as routine check assays have not yet been returned. A new
nine kilometre road has been completed to provide better access to
this area. Currently twelve drill pads are accessible from the
road. With further success in this region, it is likely that other
drill rigs will be moved in to attempt to further extend and
delineate the mineralization. The current gold reserves on the
entire Pinos Altos property total 2.5 million ounces from 24.7
million tonnes of ore in probable reserves grading 3.2 grams per
tonne. The Pinos Altos deposit also includes approximately 73.0
million ounces of silver in the reserve category. A table detailing
the entire resource is included at the end of the press release.
Seven drill rigs are currently operational on the Pinos Altos
property: two drills are located on Creston Colorado, two drills
located underground are converting mineral resource to reserve and
expanding the resource at depth in the mine project area, and three
others are testing the western edge and the deep extension on Cerro
Colorado. The budgeted exploration expenditure for 2008 in Mexico
exceeds $7.6 million for a total of 30,500 metres of diamond
drilling. All the necessary land agreements with the four local
ejidos have been established. 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. Early site construction work has commenced. Finland -
Confirmation of the Deep Extension of the Main Zone at Kittila At
the 100% owned Kittila mine project in northern Finland, six
diamond drills continue to operate. Four drill rigs are located on
the property covered by the Kittila mining lease, including an
underground drill. These drills are dedicated to further definition
of the current reserves and resources and are attempting to extend
the resources at depth and along strike. The remaining two drills
continue to be focused on exploration outside of the Kittila mining
lease along the 15 kilometre long Suurikuusikko Trend. Since May
2007, when two deep intercepts on the main Suuri zone were
reported, exploration drilling to potentially extend the resource
envelope at depth has been a priority. Four additional deep drill
holes were recently completed on the main Suuri zone and a second
drill has recently been added to accelerate this exploration. The
current resources and reserves do not include any results from the
drilling at depth. However, this recent drilling, and the currently
planned first-half 2008 drilling, is expected to enable a mid-year
resource update. This update is anticipated to extend the
calculated resource to the depth of these recent holes. The Suuri
zone is considered to be divided into three distinct lenses, East,
Central and West. These three lenses currently host the majority of
the reserves of the Kittila mine. Holes SUU07015, 07016 and 07018
intercepted potentially economic East lens values varying between
4.7 g/t to 6.7 g/t over 3.0 metres to 5.9 metres over a 500 metre
strike length on this down plunge extension of the Suuri zone. Due
to the steep angle of drilling, these holes were unable to test for
extensions of the Central and West lenses. However, the Central and
West lenses make up a significant portion of reserves in the upper
portions of the Main deposit but are untested below depths of 500
metres. All three lenses will be tested at depth by further surface
drilling in 2008 and by underground drilling in 2009 when the
decline reaches its planned depth. This recent drilling suggests
that potential economic mineralization occurs along most of the,
currently defined, 500 metre strike length of the main Suuri zone
to depths of at least 1000 metres.
http://www.agnico-eagle.com/files/KittilaLongsection15Feb08.pdf
----------------------------------------------------------------
True Width From To Gold Drill Hole Zone (metres) (metres) (metres)
(g/t)
----------------------------------------------------------------
SUU07015 EAST 3.0 956.65 936.2 2.7
----------------------------------------------------------------
And EAST 5.9 970.15 978.60 4.7
----------------------------------------------------------------
SUU07016 EAST 3.0 1081.0 1086.4 6.7
----------------------------------------------------------------
SUU07018 EAST 5.1 858.35 865.70 5.3
---------------------------------------------------------------- At
December 31, 2007, the Kittila deposit contained 3.0 million ounces
of probable gold reserves (18.2 million tonnes grading 5.1 grams
per tonne). In the indicated mineral resource category there is a
further 5.4 million tonnes grading 3.0 grams per tonne, or 0.5
million ounces. In the inferred mineral resource category there is
10.8 million tonnes grading 3.4 grams per tonne, or 1.2 million
ounces. 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 changes in gold prices consistent with its policy of no
forward gold sales. It has paid a cash dividend for 26 consecutive
years. Creston Colorado/Mascota Drill Hole Locations and
Orientations(1)
-------------------------------------------------------------------------
HOLE-ID NORTH EAST ELEV. AZIMUTH DIP LENGTH (deg) (deg) (m)
-------------------------------------------------------------------------
CM-07-054 3136156.4 760736.5 1951.1 162 -45 407.7
-------------------------------------------------------------------------
CM-07-058 3135897.8 760821.5 1988.2 0 -90 179.7
-------------------------------------------------------------------------
CM-07-048 3136082.5 760674.4 1975.6 094 -65 284.5
-------------------------------------------------------------------------
CM-07-049 3135988.8 760718.8 1989.4 90 -55 239.5
-------------------------------------------------------------------------
CM-07-051 3136303.4 760656.1 1923.2 095 -45 224.5
-------------------------------------------------------------------------
CM-07-057 3136300 760665 1923.0 0 -90 396.5
-------------------------------------------------------------------------
CM-07-059 3135961 760825 2003 0 -90 162.0
-------------------------------------------------------------------------
1. Coordinate System UTM Nad27 Zone14 Detailed Mineral Reserve and
Resource Data - December 31, 2007
-------------------------------------------------------------------------
Au Ag Cu Zn Au Tonnes Category and Zone (g/t) (g/t) (%) (%) (000's
oz.) (000's)
-------------------------------------------------------------------------
Proven Mineral Reserve
-------------------------------------------------------------------------
Goldex 2.23 18 250
-------------------------------------------------------------------------
Lapa 10.65 1 2.8
-------------------------------------------------------------------------
LaRonde 2.77 73.80 0.33 3.81 416 4,672
-------------------------------------------------------------------------
Subtotal Proven Mineral Reserve 2.75 435 4,924
-------------------------------------------------------------------------
Probable Mineral Reserve
-------------------------------------------------------------------------
Goldex 2.20 1,616 22,849
-------------------------------------------------------------------------
Kittila 5.12 2,996 18,205
-------------------------------------------------------------------------
Lapa 8.86 1,070 3,756
-------------------------------------------------------------------------
LaRonde 4.67 34.61 0.30 1.67 4,542 30,225
-------------------------------------------------------------------------
Meadowbank 3.67 3,453 29,261
-------------------------------------------------------------------------
Pinos Altos 3.21 92.21 2,547 24,657
-------------------------------------------------------------------------
Subtotal Probable Mineral Reserve 3.91 16,224 128,952
-------------------------------------------------------------------------
Total Proven and Probable Mineral Reserves 3.87 16,659 133,877
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Au Ag Cu Zn Au Tonnes Category and Zone (g/t) (g/t) (%) (%) (000's
oz.) (000's)
-------------------------------------------------------------------------
Indicated Mineral Resource
-------------------------------------------------------------------------
Bousquet 5.63 309 1,704
-------------------------------------------------------------------------
Ellison 5.68 76 415
-------------------------------------------------------------------------
Goldex 2.75 27 303
-------------------------------------------------------------------------
Kittila 3.03 527 5,416
-------------------------------------------------------------------------
Lapa 4.48 124 865
-------------------------------------------------------------------------
LaRonde 2.14 25.33 0.14 1.70 388 5,643
-------------------------------------------------------------------------
Meadowbank 2.30 1,078 14,582
-------------------------------------------------------------------------
Pinos Altos 1.36 49.88 270 6,182
-------------------------------------------------------------------------
Total Indicated Resource 2.48 2,799 35,111
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Au Ag Cu Zn Au Tonnes Category and Zone (g/t) (g/t) (%) (%) (000's
oz.) (000's)
-------------------------------------------------------------------------
Inferred Mineral Resource
-------------------------------------------------------------------------
Bousquet 7.45 399 1,667
-------------------------------------------------------------------------
Ellison 5.81 147 786
-------------------------------------------------------------------------
Goldex 2.35 897 11,889
-------------------------------------------------------------------------
Lapa 8.96 219 759
-------------------------------------------------------------------------
LaRonde 6.26 22.65 0.47 1.07 950 4,723
-------------------------------------------------------------------------
Meadowbank 3.49 385 3,434
-------------------------------------------------------------------------
Pinos Altos 1.44 24.08 568 12,237
-------------------------------------------------------------------------
Kittila 3.39 1,181 10,832
-------------------------------------------------------------------------
Total Inferred Resource 3.19 4,747 46,326
-------------------------------------------------------------------------
Tonnage amounts and contained metal amounts presented in the tables
in this news release have been rounded to the nearest thousand.
Reserves are not a sub-set of resources. Forward-Looking Statements
The information in this press release has been prepared as at
February 15, 2008. 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, and projected exploration and capital expenditures,
including costs and other estimates upon which such projections are
based; the Company's goal to increase its mineral reserves and
resources, 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
"SEC"). 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. 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 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. 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 mineral reserves and
resources estimate reported by the Company on February 15, 2008
were based on three-year average prices for the period ending
December 31st, 2007 of $583 per ounce gold, $10.77 per ounce
silver, $1.19 per pound zinc, $2.65 per pound copper and C$/US$,
US$/Euro, and MXP/US$ exchange rates of 1.14, 1.29 and 10.91,
respectively. 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. The mineral reserves presented in this disclosure are
exclusive of mineral resources. A Qualified Person, Dyane Duquette
P.Geo., Assistant Superintendent of Technical Services for the
Goldex project, was responsible for the mineral reserve and mineral
resource estimate at the Goldex project. Descriptions of the key
assumptions, parameters and methods used to estimate the mineral
resources and reserves and of any issues which might materially
affect the latter may be found in the Technical Report on the
Estimation of Mineral Resources and Reserves for the Goldex
Extension that was posted on SEDAR on October 27, 2005. The
effective date of the estimate is December 31, 2007. The Kittila
mine project mineral resource and mineral reserve estimate was
prepared by Jyrki Korteniemi, the Superintendent of Geology for the
Kittila Project under the supervision of a Qualified Person, Marc
Legault P.Eng., the Company's Vice-President, Project Development.
The effective date of the estimate is December 31, 2007. The gold
grade cut-off used to determine the mineral resources varied
between 1.5 and 2.4 g/t for open pit and underground, respectively.
A mineral reserve cut-off based on gold grade that varied between
2.0 and 3.2 g/t was used for open pit and underground,
respectively. The other key parameters, assumptions and methods
that were used to estimate the mineral resources and reserves are
not significantly different as that found in the Technical Report
on the Suurikuusikko project (now the Kittila mine project) that
was posted on SEDAR on March 14, 2006. There are no known
environmental, permitting, legal, title, taxation, socio-political,
marketing, or other relevant issues that materially affect the
Kittila mineral resources or mineral reserves. The Qualified Person
responsible for the Lapa mineral reserve and mineral resource
estimate is Normand Bedard P.Geo., the Superintendent of Geology
for the Lapa mine project. A cut-off that varied between 3.7 and
4.9 gram of gold per tonne, depending on the category, was used to
determine the mineral resource while a cut-off of 4.8 gram of gold
per tonne was used to determine the mining reserves. A description
of the other key assumptions, parameters and methods used to
estimate the mineral resources and reserves and any issues which
might materially affect the latter may be found in the Technical
Report on the Lapa Gold Project that was posted on SEDAR on June 8,
2006. The effective date of the estimate is December 31, 2007. The
Qualified Person responsible for the LaRonde mineral reserve and
resource estimate is Francois Blanchet Ing., Superintendent of
Geology for the LaRonde Division. The effective date of the
estimate is December 31, 2007. A cut-off that varied between C$51
and C$55 per tonne, depending on the category and area was used to
determine the mineral resource while a cut-off that varied between
C$61 and C$73 per tonne, depending on the mining area, was used to
determine the mining reserves. The other key assumptions,
parameters and methods that were used to estimate the mineral
resources and reserves are not significantly different as that
found in the Technical Report by Guy Gosselin, P.Geo., that was
posted on SEDAR on March 23, 2005. Issues that might materially
affect the LaRonde mineral resources and reserves are set out in
the same Technical Report. The Qualified Person responsible for the
Meadowbank mineral resource estimate is Daniel Doucet Ing.,
Principal Engineer Geology for the Company's Technical Services
Group, Abitibi Regional Office. The effective date of the estimate
is December 31, 2007. A gold grade cut-off that varied between 0.8
and 1.1 g/t, depending on the area, was used to determine the
mineral resource while a cut-off of 1.5 g/t was used to determine
the mining reserve. Except for these differences in the resource
and reserve cut-offs, the other key assumptions, 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. Issues that
might materially affect the Meadowbank mineral resources and
reserves are set out in the same Technical Report. The Qualified
Person responsible for the Pinos Altos mineral resource and reserve
estimate is Daniel Doucet, Ing., Principal Engineer Geology for the
Company's Technical Services Group, Abitibi Regional Office. The
effective date of the estimate is December 31, 2007. A cut-off that
varied between $4.56 and $28.50 per tonne, was used to determine
the mineral resource for open pit and underground, respectively. A
cut-off that varied between $6.08 and $18.69 per tonne was used to
determine heap-leach and milled reserves, respectively while a
cut-off of $38 per tonne was used to determine the underground
mining reserve. Except for these differences in the resource and
reserve cut-offs, the other key assumptions, parameters and methods
used to estimate the mineral resources are essentially identical to
those reported in the Technical Report disclosed on SEDAR on
September 24, 2007. Issues that might materially affect the Pinos
Altos mineral resources and reserves are set out in the same
Technical Report. Roger Doucet, P.Geo., the Company's Exploration
Manager for Mexico, who is a Qualified Person, has prepared and
reviewed the exploration results for Pinos Altos that are disclosed
in this press release. Required information for Pinos Altos
exploration information that is set out in Canadian Securities
Administrators' National Instrument 43-101 Sections 3.2 and 3.3 can
be found in the Company's Technical Report disclosed on SEDAR on
September 24, 2007. The preparation of the exploration results for
Kittila was supervised by a Qualified Person, Marc Legault, P.Eng.,
the Company's Vice-President, Project Development. Required
information for Kittila exploration information that is set out in
Canadian Securities Administrators' National Instrument 43-101
Sections 3.2 and 3.3 can be found in the Company's Technical Report
disclosed on SEDAR on March 14, 2006. 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,
Vice-President, Investor Relations, (416) 947-1212
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