The Goldex property is located in the Abitibi region of northwestern Quebec, about 60 km east of the LaRonde mine. This underground mine began production in April 2008. Goldex has approximately 23.1 million tonnes of proven and probable reserves grading 2.2 g/t and holding more than 1.6 million ounces of gold.
In July 2005, the decision was made to begin construction of the Goldex mine. Gold production began in April 2008 and is expected to average 175,000 ounces per year at total cash costs of $230 per ounce. It is anticipated that Goldex will have a nine-year mine life. The mineralization remains open to the east and at depth.
Goldex will be a low-cost, high-tonnage operation, processing nearly 7,000 tonnes of ore per day. Because it is in the same gold camp as LaRonde, the company is able to use some of the same infrastructure and benefit from operating synergies to improve project economies. Goldex also benefits from the experience and skills Agnico-Eagle has developed in mining the deep and complex ore at LaRonde.
Construction was completed in spring 2008, at a cost of approximately $183 million.
Previous drilling and underground exploration established a gold deposit, the Goldex Extension Zone (or GEZ) of 1.0 million ounces of indicated mineral resource (12.4 million tonnes grading 2.5 grams per tonne gold) and 400,000 ounces of inferred mineral resource (5.1 million tonnes grading 2.6 grams per tonne gold). In 1997, a 103,000 tonne-sized underground bulk sample attempted to confirm the accuracy of the gold grade estimated from exploration drilling and established the LaRonde mill’s capability to process the ore. At the time, based on a 4,500-tonne-per-day mine and a stand-alone operation, the property was considered to be marginally economic.
In 2004, a new reserve and resource estimate was completed for the Goldex Extension Zone which, coupled with a new preliminary feasibility study, led to the 2005 probable reserve estimate of 1.6 million ounces of gold contained in 21 million tonnes grading 2.4 grams per tonne.
Based on a review of the project conducted by independent engineers, the company decided to undertake a $4.7 million underground bulk sampling program in 2004 to provide additional geological and sampling information to increase the level of confidence in the gold grade. A 16,500 tonne bulk sample returned a grade of 2.8 grams per tonne, approximately 10% higher than the grade returned in the 1997 sample.
In addition, project economics had improved because Goldex could now benefit from Agnico-Eagle’s experience at LaRonde, where confidence has been gained in mining at high production rates.
The volcanic rocks and granitic intrusion that are known to underlie the Goldex property form part of the southern Abibiti Greenstone Belt. The geology of the Goldex property is made up of a steeply northeast dipping sequence of intermediate to mafic and ultramafic volcanic rocks. The volcanics are intruded into a large quartz-diorite (“granodiorite”) sill-like body (up to 450 metres thick that also dips steeply to the northeast) and minor cross-cutting feldspar porphyry, lamprophyre and diabase dykes. In addition, the Goldex property is located just north of the Cadillac-Larder Lake Fault Zone. Although gold is found in both volcanic and intrusive rocks, the main concentration of mineralization (GEZ) is hosted by the granodiorite sill.
There are several zones of gold mineralization with isolated ore grade intercepts over mineable widths on the property. All except the South Zone are hosted by the Goldex granodiorite. In the GEZ, gold mineralization is related to a stockwork of pyrite-bearing quartz-tourmaline veins that constitute 10 to 50 percent of the rock volume in well mineralized areas. Albite alteration and disseminated pyrite associated with these veins overprint early sericite and chlorite alteration. Two principal vein orientations have been recognized – subhorizontal sets of narrow veins (less than 0.6 metres thick) form stocked vein zones up to 8 metres thick, and less common subvertical veins (up to 3 metres thick) oriented east west.
Goldex 2007 Mineral Reserves and Resource*
|
Gold
(g/tonne) |
Silver
(g/tonne) |
Copper
(%) |
Zinc
(%) |
Tonnes
(000's) |
Gold Ounces
(000's) |
|
Proven Reserve |
2.23 |
|
|
|
250 |
18 |
|
Probable Reserve |
2.20 |
|
|
|
22,849 |
1,616 |
| Indicated Resource |
2.75 |
|
|
|
303 |
27 |
|
Inferred Resource |
2.35 |
|
|
|
11,889 |
897 |
*Mineral reserves are not a subset of mineral resources.
Agnico-Eagle reports mineral resource and reserve estimates in accordance with the CIM Guidelines for the estimation, classification and reporting of mineral reserves and resources. The assumptions used for these estimates were $583 per ounce gold, $10.77 per ounce silver, $1.19 per pound zinc, $2.65 per pound copper, and a C$/US$ exchange rate of 1.14. Agnico-Eagle advises investors that while the terms Measured Resources, Indicated Resources, and Inferred Resources are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them.
A Qualified Person, Dyane Duquette P.Geo., Assistant Superintendent of Technical Services for the Goldex project, was responsible for the mineral reserve and mineral resource estimate at the Goldex project. Descriptions of the key assumptions, parameters and methods used to estimate the mineral resources and reserves and of any issues which might materially affect the latter may be found in the Technical Report on the Estimation of Mineral Resources and Reserves for the Goldex Extension that was posted on SEDAR on October 27, 2005. The effective date of the estimate is December 31, 2007.