Agnico Eagle Announces 35% Increase in Inferred Resource at Amaruq Project to 2.0 Million Ounces of Gold; Extension of Whale Tail Deposit Along Strike and at Depth; and New Targets on Amaruq Property
Mineral resources expanded by 35% in the Whale tail deposit - Drilling in the first half of 2015 has resulted in an updated inferred
resource estimate of 2.0 million ounces of gold (9.7 million tonnes
grading 6.47 grams per tonne (g/t) gold) as of
June 30, 2015, representing a 35% increase in gold content compared to the December 31, 2014estimate
- Thick, high-grade ore shoot defined in Whale Tail deposit - An open-ended east-plunging high-grade ore shoot in the Whale Tail deposit has yielded intersections of 6.7 g/t gold (capped) over 32.3 metres at 284 metres depth (AMQ15-310), and 10.4 g/t gold (capped) over 21.9 metres at 311 metres depth (hole AMQ15-330)
Gold mineralization encountered in gap between
Mammoth Lakeand Whale Tail deposit - Gold mineralization has been found in the gap between the Whale Tail deposit and the eastern part of Mammoth Lake, including 10.8 g/t gold (capped) over 6.9 metres at 132 metres depth (hole AMQ15-351) and 9.3 g/t gold (capped) over 4.2 metres, also at 132 metres depth (hole AMQ15-302)
- Infill drilling yields multiple intercepts at open pit and underground depths - Successful infill and deep exploration drilling in the western part of the Whale Tail deposit confirms multiple high-grade lenses, such as in hole AMQ15-289 with 4.4 g/t gold (capped) over 7.7 metres at 107 metres depth, 10.6 g/t gold (capped) over 5.6 metres at 189 metres depth and 5.9 g/t gold (capped) over 45.0 metres at 253 metres depth including 9.0 g/t gold (capped) over 13.0 metres at 273 metres depth
- New prospecting results - An intensive till sampling program is currently underway to cover approximately 2,000 hectares in the area surrounding the known discoveries. The program is confirming previously identified boulder trends and identifying new target areas. Regional reconnaissance prospecting on the entire property has led to the discovery of several new gold-anomalous areas along the belt, outside of the Whale Tail - Mammoth area.
- Engineering studies and permitting progressing - Engineering and environmental baseline studies are underway to support the permitting process for Amaruq as a potential satellite open pit to the Meadowbank mine; The application to construct an all-weather access road between Meadowbank and the Amaruq site was filed in the first quarter of 2015
"While it is still at an early stages of exploration, in less than two years, the Amaruq property has advanced from a grassroots discovery to a project that now hosts a significant and growing inferred gold resource. We also see good potential to expand the known deposits and discover new areas of mineralization on the property," said
Sean Boyd, Agnico Eagle's Chief Executive Officer. "The updated resource estimate demonstrates that the Whale Tail deposit appears amenable to open pit mining, and there is potential for a higher grade underground operation," added Mr. Boyd.
Amaruq Project Resources Expanded
Agnico Eagle has a 100% interest in the Amaruq project. The large property consists of 114,761 hectares of Inuit-owned and federal crown land, approximately 50 kilometres northwest of the Meadowbank mine.
It is expected that the Whale Tail mineral resource estimate will be
updated as of year-end 2015, which will be reported in
Whale Tail Zone Shows Significant Resource Growth
The I, V and R mineralized zones were discovered in 2013 shortly after
the Company acquired the Amaruq property, and the Whale Tail deposit
was discovered in 2014, to the south of the R zone. The initial
resource estimate at Amaruq was 1.5 million ounces of gold (6.6 million
tonnes grading 7.07 g/t gold) in inferred resources as of
The updated resource estimate as of
The infill drilling on the Whale Tail deposit was done to a depth of
approximately 200 metres at 40-metre spacing, while the exploration
drilling probed as deep as 400 metres locally in the Whale Tail
deposit. The number of drill holes completed in the
The table below summarizes the updated resources for the Whale Tail
deposit and the I, V and R zones. This estimate uses the same metal
price and exchange rate assumptions as the
Mineral resources at the Whale Tail deposit and the I, V and R zones of the Amaruq project
|Category/Zone||December 31, 2014||June 30, 2015|
Total Whale Tail
|I, V and R zones|
Total I, V and R
Total open pit
The cut-off grade for the Whale Tail deposit and I, V, R zones is 2.4 g/t gold for open pit resources and 4.5 g/t gold for underground resources. Amounts presented in this table may not add up due to rounding.
The following table shows the sensitivity of the resources estimate to changes in the gold cut-off grades, which are related to mining costs. The table shows that the Amaruq resources are not very sensitive to variations in the cut-off grades.
Sensitivity of resources estimate to cut-off gold grade
Amounts presented in this table may not add up due to rounding.
A composite of the updated Whale Tail deposit resources outline is shown on the Whale Tail longitudinal section.
Phase Two Drill Results Continue to Expand Mineralized Zones
To date the Whale Tail deposit has been defined over at least 1.2 kilometres of strike length and extends from surface to 450 metres depth. It remains open at depth and along strike.
The 2015 phase two drilling program at the Amaruq project began in July
with several purposes, including step-out drilling to try to link Whale
The 2015 phase two drilling and exploration program is expected to be
completed by the end of the third quarter of 2015, with additional
drilling potentially extending into
Recent intercepts from the project are set out in the table below, and
the drill hole collars are located on the Amaruq project local geology
map. The Whale Tail deposit pierce points are shown on the Whale Tail
composite longitudinal section, while the coordinates from
Recent exploration drill results from the Whale Tail (WT) deposit and
Gap WT -
Gap WT -
*Holes not included in the
** Holes at Amaruq use a capping factor of 60 g/t gold
Amaruq project exploration drill collar coordinates of selected holes
|Drill collar coordinates*|
|Drill hole ID||UTM North||UTM East||
* Coordinate System UTM Nad 83 zone 14
Highlights of the recent drilling include the interpretation of a high-grade shoot plunging to the east from the eastern part of the Whale Tail deposit, detected as deep as 311 metres; hole AMQ15-330 yielded 10.4 g/t gold over 21.9 metres at this depth. Hole AMQ15-310 yielded 6.7 g/t gold over 32.3 metres at 284 metres depth, while holes AMQ15-251 and AMQ15-321 also intersected the shoot, which is open to the east and at depth.
Recent drilling in the gap area between the Whale Tail deposit and in
the east part of
Recent drilling at
The ongoing infill drill program has located a number of wide intercepts in the west part of the Whale Tail deposit between surface and more than 300 metres depth. Hole AMQ15-289 intersected three lenses between 107 and 273 metres depth including 4.4 g/t gold over 7.7 metres at 107 metres depth, 10.6 g/t gold over 5.6 metres at 189 metres depth, and 9.0 g/t gold over 13.0 metres at 273 metres depth. Hole AMQ15-296 intersected three lenses between 104 and 259 metres depth including 7.4 g/t gold over 6.0 metres at 104 metres depth, 9.4 g/t gold over 16.9 metres at 154 metres depth and 7.2 g/t gold over 6.0 metres at 259 metres depth.
At shallower depths, hole AMQ15-328 intersected 2.8 g/t gold over 38.9 metres at 22 metres depth including 6.2 g/t gold over 7.6 metres. Hole AMQ15-319 intersected 23.9 g/t gold over 4.2 metres at 37 metres depth, and hole AMQ15-343 intersected 10.8 g/t gold over 9.7 metres at 57 metres depth.
Drilling on the I, V, R area resumed
The surface exploration program is improving the understanding of the
geology and mineralization on the property. So far, 1,850 samples have
been collected as part of an intensive, 100-metre spaced till sampling
program that is currently underway to cover 2,000 hectares in the area
surrounding the Whale Tail deposit and I, V and R zones as well as the
The preliminary arsenic anomalies are determined on-site by analyzing till samples using a hand-held X-ray fluorescence spectrometer. The device detects a wide range of elements, but at the moment, only the arsenic results are being compiled. The same till samples are re-assayed using conventional laboratory techniques. Arsenic is considered to be the most efficient gold pathfinder at Amaruq, based on the significant correlation of arsenic and gold in core samples.
Regional reconnaissance prospecting on the entire property is underway with a total of more than 4,000 rock samples collected so far. Several gold-anomalous areas (in particular Shrek, T-Rex and Grizzly) have been identified along the belt, outside the central Whale Tail - Mammoth area, that warrant follow-up drilling. The regional targets map below shows results from the rock and till sampling.
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has produced
precious metals since 1957. Its eight mines are located in
The information in this news release has been prepared as at
Such statements include without limitation: estimates of mineral grades,
the estimated extent and timing of anticipated future exploration
activity; the results of future interpretation of geological
information; whether results thereof will lead to estimated reserves or
resources and the timing of such estimates; and the nature and timing
of permitting work and construction of a camp or road access to the
Amaruq project and whether the project will ever be developed into a
mine. Such forward-looking statements reflect the Company's views as at the
date of this document and are subject to certain risks, uncertainties
and assumptions, and undue reliance should not be placed on such
statements and information. 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 volatility of prices of gold and other metals;
uncertainty of mineral grades; cost of exploration and development
programs; governmental and environmental regulation; and the volatility
of the Company's stock price. The material factors and assumptions used
in the preparation of the forward-looking statements contained herein,
which may prove to be incorrect, include, but are not limited to, the
assumptions set forth herein and in management's discussion and
analysis ("MD&A") and the Company's Annual Information Form ("AIF") for
the year ended
For a more detailed discussion of such risks and other factors that may
affect the Company's ability to achieve the expectations set forth in
the forward-looking statements contained in this document, see the
Company's AIF, MD&A and Form 40-F, as well as the Company's other
filings with the Canadian securities regulators and the
Notes to Investors Regarding the Use of Resources
Cautionary Note to Investors Concerning Estimates of Measured and Indicated Resources
This document uses the terms "measured resources" and "indicated
resources". Investors are advised that while those terms are recognized
and required by Canadian regulations, the
Cautionary Note to Investors Concerning Estimates of Inferred Resources
This document also uses the term "inferred resources". Investors are
advised that while this term is recognized and required by Canadian
Scientific and Technical Disclosure
Prior to 2013, mineral reserves and mineral resources for all properties
were typically estimated using historic three-year average metals
prices and foreign exchange rates in accordance with the
NI 43-101 requires mining companies to disclose reserves and resources using the subcategories of "proven" reserves, "probable" reserves, "measured" resources, "indicated" resources and "inferred" resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
A mineral reserve is the economically mineable part of a measured and/or indicated mineral resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at pre-feasibility or feasibility level as appropriate that include application of modifying factors. Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified.
Modifying factors are considerations used to convert mineral resources to mineral reserves. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.
A proven mineral reserve is the economically mineable part of a measured mineral resource. A proven mineral reserve implies a high degree of confidence in the modifying factors. A probable mineral reserve is the economically mineable part of an indicated and, in some circumstances, a measured mineral resource. The confidence in the modifying factors applying to a probable mineral reserve is lower than that applying to a proven mineral reserve.
A mineral resource is a concentration or occurrence of solid material of economic interest in or on the Earth's crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling.
A measured mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with confidence sufficient to allow the application of modifying factors to support detailed mine planning and final evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of observation. An indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation. An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity.
Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
A feasibility study is a comprehensive technical and economic study of the selected development option for a mineral project that includes appropriately detailed assessments of applicable modifying factors together with any other relevant operational factors and detailed financial analysis that are necessary to demonstrate, at the time of reporting, that extraction is reasonably justified (economically mineable). The results of the study may reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. The confidence level of the study will be higher than that of a pre-feasibility study.
Guy Gosselin, Vice-President Exploration for
The scientific and technical information related to Agnico Eagle's mineral resources contained herein has been approved by
Senior Corporate Director,