Stock Symbols: AEM (NYSE)
AGE (TSE, ME)
TORONTO, Oct. 14 /CNW-PRN/ - Agnico-Eagle Mines Limited
diagrams below
(''Agnico-Eagle'') is pleased to report that recent drilling at its LaRonde Mine in northwestern Quebec has encountered higher gold grades, thicker mineralization and has extended Zone 20 North 2,700 feet below the previously known deepest occurrence.
Exploration and definition drilling over the summer has been focused on three primary targets; (1) Zone 20 South and the extension onto the recently acquired El Coco Property (2) Zone 20 North - both gold and zinc sections and (3) deep drilling below the bottom of Shaft No.3.
''The most recent drilling results have highlighted the potential to increase the overall size of the ore reserve and resource at LaRonde'', said Sean Boyd, Agnico-Eagle's President and Chief Executive Officer. ''The Company is continuing its aggressive underground drilling program to not only prove up additional gold reserves but to follow up on recent drill results that indicate our Shaft No.3 mineralized zones are larger than previously estimated.''
Exploration - Deep Drilling
The deep drilling program from Level 170 at Shaft No.3 has successfully encountered Zone 20 North at a depth of 9,717 feet below surface. The zone at this depth is strongly mineralized with 100 feet (true thickness) of stringer to massive pyrite mineralization with gold values returned over the entire length of the intersection. The first 50 feet of the drill intersection was the footwall section containing lower gold values from 0.01 to 0.12 ounces per ton. The next 50 feet, or the hangingwall section, encountered the following values:
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True Gold(oz/ton) Silver
Drill Hole Thickness(ft) Cut(1.5 oz) (oz/ton) Copper(%) Zinc(%)
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3170-11B 51.8 0.19 0.18 0.18 0.01
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The higher grade hanging wall zone was uniformly mineralized with gold
and also contained copper values that varied from 0.01 to 0.67%.
This deep drill result has now extended Zone 20 North over a vertical
linear distance of greater than 8,700 feet. The drill result has several important implications for the LaRonde property and future exploration on the Cadillac Belt.
1. The intersection of Zone 20 North at 9,700 feet below surface is
believed to be the deepest massive sulfide result in the Rouyn-Val
D'Or mining camp. The previous deepest result had been obtained from
LaRonde's Zone 7 at a depth of 8,800 feet below surface. Geologically,
this result is significant as it demonstrates the depth potential of
not only the LaRonde Property, but the entire Cadillac Belt.
Agnico-Eagle controls over 3-1/2 miles of this Belt, with most of this
large property position yet to be explored.
2. The closest Zone 20 North intersection occurred at 7,400 feet below
surface with drill hole 3146-16 which encountered 46 feet of gold
mineralization grading 0.18 ounces of gold per ton and 10 feet of zinc
mineralization grading over 11% zinc. The linear distance between this
hole and the deep drill result is over 2,700 feet due to the westerly
plunge of the zone. The combination of the thickness of the Zone 20
North mineralization at depth, the distance between the two deepest
Zone 20 North drill results, and the continuity exhibited in previous
Zone 20 North drilling indicates the excellent potential to increase
the overall size of Zone 20 North. Zone 20 North is open for expansion
in all directions at depth.
A follow up drill hole will begin before the end of October to test Zone
20 North at a depth of 8,800 feet below surface. The hole will be drilled from
Level 194 (6,300 feet below surface) and is targeted at the midpoint of deep
drill hole 3170-11B and drill hole 3146-16.
Zone 20 North - Definition Drilling
In addition to successfully identifying Zone 20 North at depth, recent
definition drilling has extended the previously known reserve and resource outline of Zone 20 North, encountered higher gold grades and thicker mineralization and confirmed the transition to gold/copper mineralization at depth. The drill results also confirm the westerly plunge of both the gold/copper mineralization and Zone 20 North.
Two drills have been focused on definition drilling Zone 20 North. One drill has been defining the western limit of Zone 20 North from Level 134 (4,400 feet below surface) returning the following results:
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True Gold(oz/ton) Silver
Drill Hole Thickness(ft) Cut(1.5 oz) (oz/ton) Copper(%) Zinc(%)
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3134-72-Au 22.6 0.07 0.39 0.01 0.04
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-Zn 32.8 0.25 5.00 0.37 6.91
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3134-73-Zn 29.5 0.08 4.27 1.42 2.50
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3134-74-Zn 50.9 0.04 2.20 0.06 7.82
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3134-75-Au 24.6 0.19 1.63 0.04 0.01
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-Zn 59.1 0.04 5.13 0.06 9.48
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These results were noteworthy due to the larger than expected thickness
and the higher gold grades in both the zinc and gold sections of the deposit. The results suggest gold enrichment along the western edge of Zone 20 North where previously only zinc/silver mineralization had been thought to exist. Of particular note is hole 3134-72 which returned approximately 33 feet grading 0.25 ounces per ton gold, 5 ounces per ton silver, close to 0.4% copper and almost 7% zinc in the zinc portion of Zone 20 North.
The second drill was located on Level 194 and it was focused on transferring resource to ore reserve. The following results were returned:
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True Gold(oz/ton) Silver
Drill Hole Thickness(ft) Cut(1.5 oz) (oz/ton) Copper(%) Zinc(%)
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3194-01-Zn 24.6 0.01 11.85 0.06 8.45
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3194-02-Zn 9.2 LV 1.01 0.01 6.80
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3194-03-Zn 24.6 0.02 3.84 0.36 6.28
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3194-04-Au 42.0 0.36 5.55 0.35 1.50
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Uncut 42.0 0.44 5.55 0.35 1.50
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Of significance in these results was drill hole 3194-01 which extended
the known eastern limit of Zone 20 North in this area by over 250 feet. In addition, this hole encountered high silver grades averaging almost 12 ounces per ton with over 8% zinc.
Also significant was drill hole 3194-04 which returned the highest Zone 20 North gold grade to date averaging 0.36 ounces per ton over 42 feet. By comparison this result has more than twice the gold grade over double the thickness of previous widely spaced exploration drilling in the general area. This is expected to have a positive impact on the conversion of Zone 20 North resource to ore reserve at year end.
The Level 194 definition drilling continues to confirm the transition of Zone 20 North from mostly zinc/silver mineralization in the upper levels of the mine to gold/copper mineralization at depth. In fact four drill holes (3170-11B, 3146-16, 20-131H and 3194-04), over a linear distance of approximately 4,000 feet, span a large part of the vertical extent of the Zone 20 North gold/copper mineralization.
In addition to the planned deep hole to test Zone 20 North at 8,800 feet
below surface, drilling will begin next week from Level 206 (6,800 feet below
surface) at Shaft No. 3 to follow up on the above noted definition drilling results. This drilling will specifically test the downward extension of the thicker high grade gold mineralization returned in hole 3194-04 and continue the transfer of resource to ore reserve.
Zone 20 South - El Coco
The first phase of definition drilling has been completed on the recently acquired El Coco property and Zone 20 South. Previously, a resource of 2.4 million tons grading 0.23 ounces of gold per ton or 552,000 contained ounces of gold was calculated. Of this total, 869,000 tons grading 0.37 ounces of gold per ton or 322,000 contained ounces of possible reserve was calculated in the immediate vicinity of the Shaft No. 3 workings (Levels 102 to 131, 3,000 feet - 4,000 feet below surface).
The definition drilling program began in July and has encountered high grade gold values with high grade zinc values on the El Coco property. In addition, exploration drilling has encountered Zone 20 South outside of previously known areas. As a result, further drilling is required to determine if the three known separate occurrences of Zone 20 South join up to form one larger mineralized zone.
The following results were obtained within or immediately adjacent to the original Zone 20 South - El Coco reserve/resource outline:
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True Gold(oz/ton) Silver
Drill Hole Thickness(ft) Cut(1.5 oz) (oz/ton) Copper(%) Zinc(%)
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20-172 14.8 0.36 4.68 0.38 6.55
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20-173 9.8 0.66 7.04 0.32 7.16
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Uncut 9.8 0.74 7.04 0.32 7.16
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(x)20-187 21.3 0.10 1.41 0.10 3.64
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+(x)20-188 14.8 0.54 2.90 0.18 6.94
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Uncut 14.8 0.95 2.90 0.18 6.94
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+(x)20-202 9.2 0.18 3.79 0.25 9.34
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+20-203 11.5 0.32 5.52 0.18 11.19
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+20-290 9.5 0.36 4.07 0.26 7.46
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3122-54 22.0 0.15 0.71 0.45 1.11
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3122-55 26.9 0.28 3.12 0.55 3.24
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Uncut 26.9 0.30 4.74 0.55 3.24
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+3122-56 9.2 0.09 1.03 0.12 0.94
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3122-57 14.4 0.24 2.17 0.57 6.05
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+3122-58 13.1 0.15 0.86 0.23 0.81
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+3122-59 24.9 0.62 2.98 0.83 3.23
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Uncut 24.9 0.72 2.98 0.83 3.23
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+3122-60 17.4 0.10 0.88 0.12 2.14
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+3122-61 9.2 0.13 0.86 0.09 1.92
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+3122-62 11.5 0.15 0.37 0.02 1.83
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+3134-67 37.7 0.32 2.09 0.31 5.13
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Including 18.0 0.57 2.89 0.55 6.91
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3134-70 9.2 0.11 0.69 0.20 2.15
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(x) Previously released results
+ Indicate El Coco result
The following drill holes were completed outside of the previously known
resource envelope:
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True Gold(oz/ton) Silver
Drill Hole Thickness(ft) Cut(1.5 oz) (oz/ton) Copper(%) Zinc(%)
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3134-69 10.5 0.12 0.59 0.45 0.44
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3134-71 12.5 0.22 1.57 1.35 0.70
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3134-72 9.2 0.39 3.09 0.09 3.98
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(x)14620701 9.2 0.23 0.41 0.02 0.55
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14620702 9.2 0.12 1.03 0.64 0.09
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3194-03 11.2 0.13 0.43 0.62 0.23
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(x) Previously released results
The significance of the Zone 20 South - El Coco drilling results can be
summarized as follows:
1. The Zone 20 South - El Coco zone is characterized by higher-grade gold
mineralization, frequently accompanied by coarse visible gold. This is
unlike the typical LaRonde massive sulfide where higher gold grades
are generally associated with high copper grades.
2. Mineralization appears to be continuous down to at least Level 146
(4,800 feet below surface. Economic mineralization reoccurs at the
Level 170 horizon (5,600 feet below surface). The vertical area
between Levels 146 and 170 remains to be tested.
3. Gold mineralization was encountered in drill hole 3194-03 below the
presently known area of mineralization. Mineralization in this area
has previously been traced to be tested to a depth of 6,700 feet below
surface.
4. The drilling results continue to confirm the potential of the Zone 20
South horizon. With the El Coco acquisition, and the Sphinx Property,
this horizon remains to be tested over an additional two miles to the
east.
5. Additional higher-grade ore on the upper levels of Shaft No. 3 will
provide the mine with more flexibility during the early operating
years.
The Zone 20 South - El Coco drilling program has been extended through
the remainder of the year. Further definition drilling aimed at defining the ore limits for production purposes will be continued. Drilling will be continued with respect to defining the ore limits to the east, up plunge and at depth.
With the proximity of the Shaft No. 3 infrastructure, the first mining blocks are currently being prepared and are scheduled for extraction during the fourth quarter of this year.
Future Exploration at LaRonde
The Zone 20 North and 20 South drilling results continue to confirm the potential of the LaRonde Property to increase its overall gold reserve and resource. Underground drilling continues on the property utilizing five drill machines. This drill program will continue to focus on transferring resource to reserve and to further confirm extensions of the various mineralized zones at depth. This program is facilitated by improved drill access which opens up new areas of the deposit for drilling, as Shaft No. 3 moves towards its target depth of 7,350 feet by February 2000.
A larger scale underground exploration program will begin on two fronts
once Shaft No. 3 is completed. The first priority is to establish an
exploration drift on Level 215 (7,050 feet below surface) to the west of Shaft
No. 3. This exploration drift will open up the entire western part of the
LaRonde property for exploration including a follow-up program to the recent deep drill result on Zone 20 North at 9,700 feet below surface. Deep drill hole 3170-11B actually intersected Zone 20 North closer to Shaft No. 1 then Shaft No. 3. Therefore this exploration drift will also allow for detailed exploration of the large area beneath Shaft No. 1 which remains largely unexplored.
The second priority is to extend the 20th Level exploration drift (2,800 feet below surface) eastward into the El Coco property and eventually into the adjoining Sphinx property also owned 100% by Agnico-Eagle. The exploration program will test the same geological structure that hosts all of the mines along the Cadillac Belt. This geological structure is known to extend across the El Coco and Sphinx properties a distance of approximately 2 miles.
The Longitudinal illustrations that detail the drill results presented in this news release can be viewed and/or downloaded from the Company's website:
www.agnico-eagle.com (Press Release) or
www.newswire.ca (New Releases Today)
Agnico-Eagle Mines Limited is an established Canadian gold producer with
operations located principally in northwestern Quebec and exploration and development activities in Quebec, Ontario and Nevada. Consistently one of the industry's lowest-cost producers, Agnico's operating history includes 24 years of continuous gold production primarily from underground mining operations. Current proven and probable gold reserves stand at 1.5 million contained ounces, with an additional 3.5 million ounces in the mineral resource category at its LaRonde Mine. Agnico-Eagle is currently focused on the expansion and large scale exploration program of its LaRonde Mine which is expected to result in increased gold production and expanded gold reserves.
SOURCE Agnico-Eagle Mines Limited
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