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Goldex |
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Construction of Agnico-Eagle's next gold mine is well under way. The Goldex mine, located 50 kilometres east of the LaRonde mine, represents an important first step in our strategy of building value by expanding our low-cost production base. Gold production at Goldex is expected to begin in 2008. Thanks to the technical simplicity of the operation and its proximity to LaRonde, minesite costs per tonne are projected to be approximately one-third those of the LaRonde mine. |
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Our 100%-owned Goldex property is one in a long chain of properties that Agnico-Eagle owns in the gold-rich Abitibi Greenstone Belt of Quebec.
Proven and probable reserves at Goldex currently total 21.4 million tonnes with a grade of 2.4 grams per tonne, or 1.6 million ounces of gold. The deposit is open for potential future exploration and development at depth.
While Agnico-Eagle has explored this property for some 30 years, our decision to begin construction of the Goldex mine was based on our success in bulk mining at LaRonde, and encouraging results from a recent drilling and bulk sampling program. The program returned grades nearly 10% higher than the reserve grade, increasing confidence in the mine's potential to deliver value.
In addition, project economics have improved significantly over the past several years. As a result of synergies with the LaRonde mine and in-house technical expertise honed over our many years in the region, Goldex enjoys numerous advantages that did not previously exist including a high processing rate, a new mining method and final processing at LaRonde. The base case projects an after-tax internal rate of return of 15%, based on a conservative $400 per ounce gold price. Capital costs are estimated at $135 million.
Underground development and construction are well advanced, with access from existing infrastructure. Plant construction and production shaft sinking are scheduled to begin in 2006. |
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