Agnico-Eagle Provides Exploration Update

Mineralization extended at depth at Kittila, new zone found at Pinos Altos

09.09.2010 | Deskman: Marion Henig

A view of the open pit at Pinos Altos (Picture: Agnico-Eagle Mines Limited)

Agnico-Eagle Mines Limited provides an update on its 2010 exploration program. During the course of 2010, the Company’s programs have resulted in expansions of several mineralized zones at the Company’s operations, most significantly at Kittila and Pinos Altos.

Toronto/USA – Additionally, due to the acquisition of the Meliadine property on July 6, 2010 and the acceleration of exploration at other properties, and the positive results overall, the company’s exploration budget for 2010 has been increased by more than 45% to $110 million. This is double of what was spent in 2009, with $25 million having been spent to the end of July.

Highlights of the 2010 exploration program to date

At Kittila:

  • Deep mineralization at the Suuri and Roura zones has been extended northward, increasing the strike length by approximately 30% at 900 metres below surface. Deposit remains open on strike and at depth
  • Hole ROU-09-002, containing one of the thickest drill intersections to date on the property, indicates the potential for underground mining in a previously untested area
  • Rimpi zone mineralization deepened by 100 metres to almost 700 metres below surface as gold continues to be encountered along strike to the north

At Pinos Altos:

  • Cubiro vein continues to yield quality gold intercepts. Mineralization now extends to 230 metres below surface. May result in a stand-alone mining operation.
  • Step-out drilling discovered the new Cubiro West vein zone approximately 200 metres away

At Meliadine:

  • $130-million budget approved, including 200-kilometre drill program, bulk sample, permitting and proposed all-season road construction over next 2.5 years
  • High grade drill results continue to suggest growth and conversion potential of the five million ounce resource over the next several years
  • Early drilling results suggest possible combination of open pit and underground scenarios at F zone
  • Feasibility study expected to be completed in 2013.

“With six operating mines driving record operating and financial results, the focus for Agnico-Eagle turns to continued production growth through optimization and expansion of these mines. At the same time, we have begun an aggressive exploration program at all of our new mines and our newly acquired Meliadine project, as we feel the exploration potential is excellent and these deposits are still relatively under-explored” said Sean Boyd, Vice-Chairman and CEO. “Recent exploration results, particularly at Kittila, Pinos Altos, Goldex and Meliadine, have confirmed our understanding of the potential to continue to grow our reserve and resource base through exploration. With the largest drilling program in our history now underway, we look forward to getting a better understanding of the ultimate size of our deposits and incorporating these results into our ongoing expansion studies” added Mr. Boyd.

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