The mining newspaper for Alaska and Canada's North
The mining newspaper for Alaska and Canada's North
AEM: TSX / NYSE
President and CEO: Sean Boyd
Senior Vice President, Operations: Yvon Sylvestre
Senior Vice President, Exploration: Alain Blackburn
Mid-tier gold producer Agnico-Eagle Mines Ltd. is focused on its advanced-stage Meliadine project and its Meadowbank Gold Mine located in central Nunavut.
The Meliadine project, acquired by Agnico-Eagle in 2010, covers more than 80 kilometers (50 miles) of a greenstone belt, and is one of the company's primary exploration focuses.
As of Dec. 31, 2012, Meliadine had reserves of 3 million ounces gold (13.3 million metric tons grading 7 grams per metric ton gold), as well as indicated resources of 2.2 million oz gold (17 million metric tons grading 3.9 g/t gold) and inferred resources of 2.9 million oz gold (15 million metric tons grading 6.2 g/t gold).
At Meadowbank, reserves totaled 2.3 million oz gold (25 million metric tons grading 2.8 g/t gold as of Dec. 31, 2012).
Current exploration is focused around the known deposits of Goose, Portage and Vault in order to extend life of mine.
In July, Agnico-Eagle said it has undertaken a review of its future capital requirements, which previously were estimated at about US$600 million per year for the next five or six years.
The current estimate for 2014 is expected to be about US$200 million lower than the previously announced figure, or about US$400 million, and will be refined later this year during the regular budget process.
About US$80 million of the reduction relates to lower spending at Meliadine, however, the project will continue to advance with about US$45 million allocated to driving an exploration ramp and exploration drilling.
The project also is currently the subject of an updated technical study with results expected mid-2014.
The timing of capital expenditures on the project beyond 2014 will be subject to board approval and prevailing market conditions.
A final feasibility study for the project is expected in 2014, with potential production in 2018.
In June, Homestake Resource Corp. reported that Agnico-Eagle had commence work on C$3.5 million exploration program at the Homestake Ridge gold-silver project in northwestern British Columbia, reflecting the producer's spending commitment for 2013 under an option agreement that involves funding exploration and development costs of C$25.3 million over a five-year period in order to earn a 65 percent interest in the property.
Recently completed geological and geochemical studies, commissioned by Agnico Eagle, have identified several target areas for detailed mapping, rock and soil sampling, geophysics, and drilling.
Initial surface exploration will focus on the Eskay Horizon in the upper Hazelton stratigraphy, which is exposed for several kilometers of strike-length on the property.
Limited drilling of this horizon by Homestake intersected thick intervals of altered felsic rocks with strong silver enrichment in two holes.
In addition, several areas of known mineralization, such as the South Reef resource, will be drilled along strike and down dip where not yet tested.
Agnico Eagle was expected to complete roughly 6,000 meters of drilling during the 2013 season.
Some additional ground geophysics was also contemplated.
Agnico-Eagle also purchased 9.6 million units of ATAC Resources Ltd. in March. The units were comprised of 9.6 million common shares and 4.8 million warrants, and represent8.48 percent of Atac's issued and outstanding common shares on a non-diluted basis and 12.21 percent of the junior's common shares on a partially diluted basis.
Cash and short-term deposits: US$136.4 million (June 30, 2013)
Working capital: US$481.6 million (June 30, 2013)
Market capitalization: US$4.8 billion (Sept. 13, 2013)
145 King St. East, Suite 400 Toronto, Ont. Canada M5C 2Y7
Tel: 416-947-1212 Fax: 416-367-4681
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