Amaruq drilling exceeds expectations

Agnico Eagle Mines Ltd. June 10 reported that results from the 2015 phase 1 exploration program at the Amaruq gold project in Nunavut exceeded expectations.

Drilling during this program filled a gap under Whale Lake with significant gold grades and good widths, including 19.8 grams per metric ton gold (capped) over 5.0 meters in hole AMQ15-187; and 15.9 g/t gold (capped) over 14.6 meters in hole AMQ15-181.

The drilling also confirmed a new gold structure about 100 meters north of the Whale Tail deposit, including 6.1 g/t gold (capped) over 4 meters and 9.7 grams g/t gold (capped) over 3.8 meters in hole AMQ15-177.

In February, Agnico Eagle announced an initial inferred mineral resource for Amaruq of 6.6 million metric tons at 7.07 g/t (1.5 million ounces) gold.

The company said the Whale Tail infill drilling suggests a larger resource is to come.

More than 102 holes (27,750 meters) of the first phase 2015 Amaruq drill program were completed as of May 31, when seven drill rigs were in operation on the project.

Most of this drilling has been to fill the former gap under Whale Lake, which is now successfully completed to a depth of 200 meters.

To date the Whale Tail deposit has been defined over about 1,200 meters of strike and extends from surface to a depth of more than 370 meters depth.

It remains open at depth and to the southwest.

The phase-1 program also included reconnaissance drilling at Mammoth Lake and the area between the R zone and Whale Tail.

Agnico says it expects three drills to be added to the program by the end of June.

Agnico Eagle has a 100 percent interest in the Amaruq project, which consists of 114,761 hectares (283,580 acres) of Inuit-owned and federal crown land, about 50 kilometers (30 miles) northwest of the Meadowbank mine.