Stock Symbols: AGE (TSE, ME)
AEM (NYSE)
TORONTO, Jan. 11 /CNW-PRN/ - Agnico-Eagle Mines Limited (''Agnico'') is pleased to report that the ongoing underground drilling program at its LaRonde Mine in northwestern Quebec continues to expand the size of the known mineralized zones. Recent drilling has encountered both Zone 20 North and 20 South outside of the previously known resource outline. In addition, the deep drilling program encountered wider Zone 20 North mineralization with better gold and copper grades.
''The Company's ongoing exploration program confirms 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. ''Of particular importance is the latest deep drill result which confirms that a large zone of gold and copper mineralization occurs at depth. The Company's plan is to continue its aggressive underground drilling program to expand the total gold reserve and gold resource at LaRonde,'' added Mr. Boyd.
The drilling program over the last three months has been focused on three areas (1) Zone 20 North at depth following up on the recent discovery of Zone 20 North at approximately 9,700 feet below surface, (2) Zone 20 South looking for extensions of the previously outlined three separate occurrences of this zone and (3) Zone 7.
Exploration - Deep Drilling
The initial indication that Zone 20 North was much larger than initially believed occurred last October with the previously announced drill hole 3170-11B which intersected Zone 20 North at 9,717 feet below surface returning 0.19 ounces of gold per ton over 51 feet. To determine the significance of this deep discovery, our deep drilling program was focused on identifying Zone 20 North between 8,600 and 9,000 feet below surface. Our latest result, drill hole 3194-08, successfully encountered Zone 20 North at a depth of 8,893 feet below surface or 878 linear feet above drill hole 3170-11B.
Over 150 feet (true thickness) of stringer and massive pyrite mineralization was returned in this latest drill hole. Like the deepest result at 9,717 below surface, gold values were distributed across the entire mineralized thickness of drill hole 3194-08 and were divided into two sections, a 75 foot thick footwall section containing gold values ranging from 0.01 to 0.10 ounces of gold per ton and a 76 foot higher grade hanging wall section. The hanging wall section contained the following higher grade gold and copper values:
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True Gold (oz/ton) Silver
Drill Hole Thickness(ft) Cut (1 oz) (oz/ton) Copper(%) Zinc(%)
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3194-08 75.5 0.18 0.58 0.97 0.04
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Or 44.9 0.24 0.84 1.34 0.06
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Or 26.2 0.30 1.16 1.94 0.07
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Three distinct parts characterized the hanging wall section: a massive pyrite core (26.2 feet) enveloped by two gold bearing stringer zones. Gold values within the massive pyrite core ranged from 0.21 oz/ton to 0.64 oz/ton. In addition, copper values ranged from 1.0% to 4.1%. Specific gravities were high ranging from 4.2 to 4.7 within the massive pyrite zone and 3.1 to 3.8 within the stringer zones. This drill intersection was the thickest occurrence of mineralization and massive pyrite obtained to date from the deep drilling program.
To date, a total of three drill holes (3146-16, 3170-11B, and 3194-08) have been completed below the designed shaft bottom of 7,350 feet. Recent definition drilling from shaft level 206, in conjunction with the deep drilling results, has increasingly confirmed that Zone 20 North is continuous down to a depth of at least 9,717 feet, or an additional 2,700 feet below the current planned lowest production level of Shaft No.3. Zone 20 North is open for expansion in all directions.
Zone 20 North - Definition Drilling
Since the last definition drilling update on Zone 20 North, four drill holes were completed from level 206 (6,760 feet below surface). The results continued to extend and confirm the results previously obtained from level 194. The true thickness of the mineralization encountered continued to average over 50 feet. The results are summarized below:
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True Gold (oz/ton) Silver
Drill Hole Thickness(ft) Cut (1 oz) (oz/ton) Copper(%) Zinc(%)
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3206-01 64.0 0.18 0.78 0.72 0.38
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3206-02-Au 23.0 0.20 4.74 1.69 3.82
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-Zn 37.7 0.02 1.88 0.09 8.84
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3206-03-Au 23.0 0.06 2.73 0.47 2.23
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-Zn 32.8 0.14 1.25 0.04 6.49
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3206-04 Assays Pending
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The level 206 drilling has confirmed a minimum strike length of 1,500 feet and a true thicknesses of Zone 20 North ranging from 33 feet to 64 feet.
The most recent deep drilling and definition drilling on Zone 20 North has reconfirmed the following:
- The drilling continued to confirm the transition to gold - copper
mineralization at depth. Furthermore, the three deep drill holes
indicate that the higher-grade gold and copper mineralization is
located in the upper or hangingwall portion of the overall
mineralized zone. These geological relationships are both
characteristic of LaRonde's Shaft No.1 Main Zone and the adjoining
Bousquet 2 Mine.
- Copper mineralization continued to confirm its historical role as
an indicator of higher-grade gold values as was indicated by the
high grade core of drill hole 3194-08. Gold values in the massive
pyrite core of 0.30 ounces of gold per ton were associated with
copper values in the range of 3%.
- As suggested by previously announced level 194 definition results,
the recent drill results indicate gold enrichment along the central
to western sections of Zone 20 North correlating with increased
thicknesses and more massive pyrite mineralization. The eastern
portion of Zone 20 North is characterized by stringer gold and zinc
mineralization.
- The latest drilling results continued to confirm the potential of
Zone 20 North to become one of the largest massive sulphide deposits
ever discovered in the Rouyn-Noranda - Val d'Or mining camp.
Zone 20 South and Zone 7
Recent drilling of Zone 20 South was focused on extending the zone below level 134. The program has successfully extended Zone 20 South an additional 500 feet down to level 149 (4,890 feet below surface). The most recent drilling results are summarized below:
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True Gold (oz/ton) Silver
Drill Hole Thickness(ft) Cut (1 oz) (oz/ton) Copper(%) Zinc(%)
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3134-77 11.5 0.15 1.42 1.10 2.04
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3134-78 9.2 0.33 1.05 0.46 2.09
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3134-80 9.2 0.16 0.93 1.01 0.85
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14620632 13.1 0.40 2.42 0.36 2.26
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14620633 13.8 0.25 0.76 0.97 0.43
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As part of the level 206 Zone 20 North definition drilling program, the four drill holes were extended to intersect the Zone 20 South horizon. All of the drill holes intersected mineralization. Two of the drill holes intersected values outside of known areas of Zone 20 South mineralization. The results have been tabulated below:
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True Gold (oz/ton) Silver
Drill Hole Thickness(ft) Cut (1 oz) (oz/ton) Copper(%) Zinc(%)
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3206-02 13.1 0.26 0.75 0.35 0.36
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3206-03 9.8 0.35 1.12 0.59 0.99
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Two of the four drill holes drilled on Level 206 also intersected Zone 7
the results have been tabulated below:
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True Gold (oz/ton) Silver
Drill Hole Thickness(ft) Cut (1 oz) (oz/ton) Copper(%) Zinc(%)
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3206-03 9.8 0.12 0.68 0.90 0.80
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3206-04 9.8 0.29 0.98 0.61 1.56
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The Zone 20 South and Zone 7 values continue to enhance the overall potential for increasing reserves and resources on the LaRonde Property. The level 206 definition drilling program has confirmed the presence of both Zone 20 South and Zone 7 at this depth and both of these zones are open for further expansion.
Future Exploration at LaRonde
Definition drilling has started on level 215 (7,054 feet below surface). By the end of January 2000 drilling down to the level 220 horizon (7,220 feet below surface) is expected to be complete. These results will be incorporated into a new ore reserve and resource estimate which will be released at the end of February.
Additional drilling at depth will be conducted from the lower levels of Shaft No.3 once the definition drilling is complete along level 215. The shaft has attained a depth of 7,218 feet with 132 feet remaining to be completed. During the latter half of 2000, the level 215 exploration drift will be started. This drift will provide additional drill stations from which to explore Zone 20 North, Zone 20 South and Zone 7 at depth. Due to the success of our deep drilling program, several additional options for obtaining access directly into the zones at depth and to provide deep drill platforms are presently being evaluated.
The Longitudinal illustrations that detail the drill results presented in this report can be viewed and/or downloaded from the Company's website:
www.agnico-eagle.com (Press Release) or
http://files.newswire.ca/3/long20N.gif
http://files.newswire.ca/3/long20S.gif
This report contains certain ''forward-looking statements'' (within the meaning of the United States Private Securities Litigation Reform Act of 1995) that involve a number of risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements. Other risks and uncertainties are disclosed under the heading ''Risk Factors'' in the Company's Annual Information Form (AIF) filed with certain Canadian securities regulators (including the Ontario and Quebec Securities Commissions) and with the United States Securities and Exchange Commission (as Form 20-F).
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. 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
CONTACT: Sean Boyd, President and CEO, Agnico-Eagle Mines Limited, 416-947-1212/
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