Agnico-Eagle to present today at the Denver Gold Forum; Provides updates on operations and projects
September 27 2005 - 11:04AM
PR Newswire (US)
Stock Symbols: AEM (NYSE) AGE (TSX) TORONTO, Sept. 27
/PRNewswire-FirstCall/ -- Agnico-Eagle Mines Limited will be
presenting today to analysts and investors at the Denver Gold
Forum. The presentation is scheduled to begin at 11:15 am (EDT) and
a copy of the presentation is available on the Company's website,
http://www.agnico-eagle.com/. A simultaneous webcast will be
available, which can also be accessed on the Company's website.
Sean Boyd, President and CEO, will discuss the Company's growth
opportunities including Goldex, Lapa, and LaRonde II in Quebec.
Also discussed will be the international growth opportunities at
Pinos Altos in Mexico, and Suurikuusikko in Finland. In addition,
Mr. Boyd will provide an update on operations at LaRonde,
Agnico-Eagle's mine in Quebec. Update On The LaRonde Mine The
LaRonde mine has operated at an average rate of over 8,000 tons per
day in 2005, with operating costs on target at approximately C$50
per ton. Production and cost guidance for the full year 2005 is on
track and remains at approximately 250,000 ounces of gold at a
total cash cost below $100 per ounce. LaRonde continues to have
production flexibility due to the advanced stage of development of
the lower mine. Last week, two secondary mining blocks near the 194
Level sill pillar fell into an empty open stope. Due to the mine's
ability to adapt to changing ground conditions, this resulted in
only minor adjustments to the 2005 mine plan, and production
continued without interruption. This type of event is consistent
with the normal challenges associated with mining near sill
pillars. The ore in the secondary mining blocks is expected to be
recovered in the fourth quarter of this year. LaRonde II Project
Update Drilling and mine planning work continues on the LaRonde II
project. Drilling is focused on transferring deeper resources to
reserves, and on exploring the limits of the deeper mineralization
at LaRonde, and along the main mineralized trend. To date, higher
grade gold and base metal values continue to be encountered. It is
anticipated that the LaRonde resource will continue to be converted
to reserves, with an update on the results expected by February,
2006. Mine planning work has concluded that the best approach to
developing the LaRonde II reserves is via an internal mine shaft,
or "winze". This approach is superior to other options due to its
shorter lead time, lower capital cost, and higher rate of return.
The winze approach also benefits from the use of proven, existing
infrastructure, such as the ventilation and cooling systems, ramp
system, and processing facilities. The mine plan currently being
studied contemplates a production rate of 5,000 tons to 6,000 tons
per day at an average gold grade of approximately 0.17 ounces per
ton, resulting in annual production of approximately 300,000
ounces. It is expected that this production would extend the mine
life of LaRonde through 2020. The entire LaRonde II study and mine
plan are expected to be completed by the end of 2005. Goldex Is
Under Construction Following the July, 2005 decision to put the
Goldex mine into production, work has begun on the shaft collar.
The shaft is scheduled for a final depth of 3,000 feet, with
sinking beginning in third quarter of 2006. Underground development
and construction has begun, with access provided by existing
underground workings. Plant construction is expected to commence in
the second quarter of 2006. Gold production at Goldex is
anticipated to begin in the second half of 2008, averaging 170,000
ounces per year, over a ten year mine life, with total cash costs
averaging less than $200 per ounce. Goldex capital costs are
estimated at $135 million. The Goldex deposit remains open at depth
and to the east, with the ultimate size of the orebody to be
determined. Due to its proximity to LaRonde (35 miles east), the
Goldex mine will benefit from operating synergies as well as the
technical expertise of the LaRonde personnel. Shaft Sinking Is Well
Advanced At The Lapa Project Located seven miles east of LaRonde,
the Lapa project is also expected to benefit from significant
operating synergies and Agnico-Eagle's technical expertise. The
Phase One project includes the sinking of a new mine shaft, which
is currently at more than 1,400 feet deep, or 50% of its ultimate
depth of 2,850 feet. The shaft is expected to be completed by the
second quarter of 2006. Phase One also includes an underground
drilling program to validate the continuity and grade of the
present reserve estimate. This program is scheduled to begin this
December. A bulk sample and metallurgical test are scheduled to
begin in the third quarter of 2006, and be incorporated into the
feasibility study, to be completed by the end of that year.
Positive results from the Phase One project would result in a
production decision which would bring the Lapa Project into
production in the second half of 2008 at a capital cost of $80
million. Gold production of approximately 125,000 ounces per year,
at a total cash cost of approximately $200 per ounce, has been
projected over a 10 year mine life. Drilling Continues At Pinos
Altos Agnico-Eagle continues to drill at Pinos Altos under its
option agreement with Industrias Penoles S.A de C.V. Agnico Eagle's
program had three objectives, firstly to validate the present
resource estimate, secondly to test for near surface projections
and open pit potential and thirdly, to test the deposit at depth
for extensions. The most recent drill results, as presented with
the second quarter financial results on July 27, 2005, were very
encouraging with several high grade intersections over significant
widths. The present program has confirmed open pit potential and
the previous resource estimate. Exploration is currently focused at
depth and on adjacent structures along strike to the east and west
of the Santo Nino structure. Currently, a scoping study is underway
to evaluate the potential of an open pit and underground operation.
Agnico-Eagle expects to make its decision on whether to acquire the
project by late 2005, or early 2006. Corporate Development In
addition to its outstanding bid for the shares of Riddarhyttan
Resources AB (see press release dated May 12, 2005), Agnico-Eagle
continues to actively review corporate development opportunities.
The medium term goal of the Company continues to be to operate gold
mines in several long-term mining camps, located in areas of low
political risk. In this regard, Agnico-Eagle actively invests in
smaller, emerging, companies with the current approximate value of
its marketable securities being $18 million. Credit Facility To Be
Expanded And Extended The Company is in advanced stage negotiations
with its bank syndicate to increase the size of its $100 million
credit facility to $150 million and extend the term by two years to
December, 2009. Definitive documentation is expected to be
completed in the fourth quarter. The current facility is
substantially undrawn. Forward-Looking Statements The information
in this press release has been prepared as at September 27, 2005.
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. When used
in this document, the words "anticipate", "expect", "estimate",
"forecast", "planned" and similar expressions are intended to
identify forward-looking statements. Such statements include,
without limitation: estimates of future mineral production and
sales; estimates of future production costs and other expenses;
estimates of future capital expenditures and other cash needs;
statements as to the projected development of certain ore deposits,
including estimates of exploration, development and other capital
costs, and estimates of the timing of such development or decisions
with respect to such development; estimates of reserves and
resources, and statements regarding future exploration results; the
anticipated timing of events with respect to the Company's mine
sites, including Goldex and Lapa; the anticipated timing of events
with respect to the Company's exploration and decision in
connection with its Pinos Altos option; the Company's bid for
Riddarhyttan; the ability of the Company to achieve its objective
of building a multi-mine production base; and other statements
regarding anticipated trends with respect to the Company's capital
resources and results of operations. Such statements reflect the
Company's views at the time with respect to future events and are
subject to certain risks, uncertainties and assumptions. 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 Company's dependence upon its LaRonde mine for all of its
current gold production; uncertainty of mineral reserve, mineral
resource, mineral grade and mineral recovery estimates; uncertainty
of future production, capital expenditures, and other costs; gold
and other metals price volatility; currency fluctuations; mining
risks; and governmental and environmental regulation. 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, 2004, as well as the Company's other filings
with the Ontario Securities Commission 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.
About Agnico-Eagle Agnico-Eagle is a long-established Canadian gold
producer with operations located in northwestern Quebec and
exploration and development activities in Canada, the United States
and Mexico. Agnico-Eagle's LaRonde Mine in Quebec is Canada's
largest gold deposit. The Company has full exposure to higher gold
prices consistent with its policy of no forward gold sales. It has
paid a cash dividend for 25 consecutive years. DATASOURCE:
Agnico-Eagle Mines Limited CONTACT: David Smith, Director, Investor
Relations, (416) 947-1212
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