Agnico-Eagle reports more high grade gold intercepts on Lapa - 2004 drilling program underway
January 09 2004 - 8:00AM
PR Newswire (US)
Agnico-Eagle reports more high grade gold intercepts on Lapa - 2004
drilling program underway Stock Symbols: AEM (NYSE) AGE (TSX)
TORONTO, Jan. 9 /PRNewswire-FirstCall/ -- Agnico-Eagle Mines
Limited today announced that recent drilling results on its 100%
owned Lapa Property continued to encounter high grade gold. The
property is located seven miles to the east of the Company's
LaRonde Mine in northwestern Quebec. The last phase of the 2003
drilling program consisted of 18 new drill holes, focusing on three
priority areas: confirmation of the higher gold grades and
thicknesses of the Contact Zone at depth; definition of the upper
block on the Contact Zone; and further testing of the recently
discovered high grade Contact South Zone. Contact Zone (Lower
Block)
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Drill Hole True Gold(oz/ton) Gold(oz/ton) Thickness(ft) From To
Cut(1.5 oz) Uncut
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118-03-04C 9.5 2996.0 3007.8 0.18 0.18
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118-03-16E (x) 11.5 3582.6 3595.8 0.21 0.21
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118-03-25F (x) 11.2 3944.5 3957.3 0.33 0.33
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118-03-28G 13.1 3523.3 3537.4 0.09 0.09
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118-03-35B 11.8 4184.7 4199.8 0.34 0.34
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118-03-35D 37.1 3942.2 3990.4 0.41 0.42
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Including 22.3 3960.9 3990.4 0.60 0.61
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118-03-35E 13.1 4108.7 4125.6 0.41 0.49
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118-03-40 9.8 3516.9 3530.8 0.12 0.12
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118-03-40A (x) 11.2 3559.0 3573.8 0.14 0.14
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(x) Preliminary Results The most significant results from the
current program were returned at depth. Three additional wedge cuts
were completed to follow up on the previously disclosed drill hole
118-03-35A, which returned 0.49 ounces of gold per ton over 25.3
feet (1.71 ounces per ton uncut) at a depth of 3,870 feet below
surface. Drill holes 118-35-35B, 118-03-35D and 118-03-35E all
continued to confirm the higher grade gold mineralization
encountered at depth to date. This was especially evident in drill
hole 118-03-35D which included an interval of 0.60 ounces per ton
over a true thickness of 22.3 feet. Drill hole 118-03-25F was
drilled in the eastern part of the zone at depth and encountered a
grade improvement in a sector in which the gold grade previously
encountered was relatively low. Drill holes 118-03-28G, 118-03-40
and 118-03- 40A intercepted the Contact Zone outside of the most
recently estimated mineral resource envelope. To date, the
mineralization at depth has been characterized by: - Greater
thicknesses in excess of 15 feet, reaching 25 to 37 feet at depth
and to the west. - Decreasing total sulfides (arsenopyrite,
stibnite, pyrrhotite) from an average of 5% in the upper block to
trace to 1% amounts at depth. - Increasing silicification at depth,
overprinting the characteristic biotite alteration encountered in
the upper block. Better rock quality has also been observed in
drill core at depth (greater than 80% RQD) although the core rock
quality from the upper block is good to excellent. - Increasing
frequency of coarse visible gold occurrences. Gold had been
observed as fine to coarse specks as well as thin foils parallel to
quartz veinlets and the foliation. These four factors could play
major roles in determining the economic viability of the Lapa
deposit as larger thicknesses with good rock quality could entail
lower cost bulk mining methods, while declining sulphide and
increasing coarse visible gold could result in improved recoveries.
Recently, the initial phase of metallurgical tests, completed on
the upper block (relatively higher sulphide content), has
consistently returned recoveries in the 82% to 85% range. With
declining sulfides and increasing visible gold at depth, recoveries
in excess of 85% are anticipated. Contact Zone (Upper Block)
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True Gold(oz/ton) Gold(oz/ton) Drill Hole Thickness(ft) From To
Cut(1.5 oz) Uncut
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118-03-07B 40.4 2821.5 2874.8 0.19 0.24
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including 14.8 2821.5 2841.2 0.41 0.54
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118-03-37 7.2 2015.7 2024.3 0.06 0.06
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118-03-38 13.1 1471.4 1488.8 0.03 0.03
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118-03-39A 18.0 1955.7 1985.2 0.19 0.19
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118-03-39B 10.8 1774.3 1791.3 0.22 0.22
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118-03-42 10.5 1824.1 1837.1 0.18 0.18
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118-03-43 9.2 1526.7 1542.0 0.15 0.15
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118-03-44B (x) 9.5 1839.0 1845.5 0.09 0.09
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118-03-45 (x) 10.8 2123.0 2139.1 0.02 0.02
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(x) Preliminary Results Nine in-fill drill holes tested the upper
block in order to convert the inferred resource to indicated
resource category. Both drill holes 118-03-42 and 118-03-43
intersected potentially economic grade intercepts outside of the
most recently estimated mineral resource envelope. Drill holes
118-03-38 and 188-03-45 were drilled outside of the resource
envelope and confirmed respectively, the upper-western and
upper-eastern limits of the deposit. While drilling is ongoing to
fully define the upper limits of the deposit, drill holes
118-03-39A, -39B, -42 and -43 indicate that the mineral resource
could extend further up-dip. Drill hole 118-03-07B was drilled in
the eastern- central part of the deposit and encountered a grade
improvement in a sector which had previously encountered lower gold
grades. Contact South Zone
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True Gold(oz/ton) Gold(oz/ton) Drill Hole Thickness(ft) From To
Cut(1.5 oz) Uncut
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118-03-28G 11.8 3372.7 3385.1 0.57 1.32
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The most recent result in the Contact South Zone continued to
confirm the high grade character of this satellite structure.
Including previously disclosed results, a total of five drill holes
have intersected the zone to date encountering an average cut gold
grade of 0.32 ounces of gold per ton (0.74 ounces per ton uncut)
over an average true width of 14.6 feet. The zone is still open at
depth and to the west. New Resource Estimate Expected in February
Previous drilling on the Lapa Deposit outlined an indicated mineral
resource of 722,000 ounces of gold in 2.5 million tons grading 0.29
ounces per ton and an inferred mineral resource of 462,000 ounces
of gold in 1.9 million tons grading 0.25 ounces per ton. An updated
mineral resource estimate is expected when the Company releases its
fourth quarter 2003 results on February 25, 2004. Extensive
Exploration Program to Continue in 2004 Exploration expenditures on
the Lapa Property in 2004 are budgeted at $2.3 million.
Approximately 115,000 feet of drilling is planned with five drills
currently working on the property. As the deposit is still open in
all directions at depth, the 2004 drilling program will continue to
target potential extensions of the two zones at depth where the
best gold grade intersections have been encountered to date.
Exploration drilling will also test the favourable geological
horizon which extends one kilometer east across the Lapa Property.
Download Illustrations from Company's Website The longitudinal
illustrations that detail the drill results and a map of the
properties discussed in this news release can be viewed and
downloaded from the Company's website http://www.agnico-eagle.com/
or: http://files.newswire.ca/3/Lapa.pdf
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http://files.newswire.ca/3/PropertyPlan.pdf
------------------------------------------- Scientific and
Technical Data All Lapa drill core has been logged and the results
have been verified by Dino Lombardi, P.Geo., Senior Geologist for
the Company's Exploration Division and who is fully qualified per
the standards outlined in National Instrument 43-101. The drill
core selected for analysis is sawed in half with one half sent to a
commercial laboratory and the other half retained for future
reference. Upon reception of the assay results, the pulps and
rejects are recovered and submitted to a second laboratory for
check-assay purposes. The gold assaying method uses a 30-gram
sample by Fire Assays or Metallic Sieve finish as requested by the
project geologist. The laboratories used are Bourlamaque Assay
Laboratories Ltd., Val d'Or, Quebec, and Expert Laboratories Inc.,
Rouyn-Noranda, Quebec. Results that have been reported as
'preliminary' do not have complete check-assay data available; the
final results, that will include check-assays, are not expected to
vary significantly from the preliminary results. Forward Looking
Statements This news release contains certain "forward-looking
statements" (within the meaning of the United States Private
Securities Litigation Reform Act of 1995) that involve a number of
risks and uncertainties. There can be no assurance that such
statements will prove to be accurate; actual results and future
events could differ materially from those anticipated in such
statements. Risks and uncertainties are disclosed under the heading
"Risk Factors" in the Company's Annual Information Form (AIF) filed
with certain Canadian securities regulators (including the Ontario
and Quebec Securities Commissions) and with the United States
Securities and Exchange Commission (as Form 20-F). About
Agnico-Eagle Agnico-Eagle is a long established Canadian gold
producer with operations located in northwestern Quebec and
exploration and development activities in eastern Canada and the
southwestern United States. 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 24 consecutive years.
DATASOURCE: Agnico-Eagle Mines Limited CONTACT: Barry Landen, V.P.
Corporate Affairs, Agnico-Eagle Mines Limited, (416) 947-1212
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