lapa
 
 
At Lapa, we are in the first phase of development for another new gold mine in Quebec. The property holds 1.2 million ounces of gold reserves with upside potential. Like Goldex, the Lapa project is located in LaRonde's backyard. This enables us to utilize some of the same infrastructure – including the LaRonde mill – and benefit from the technical expertise of the LaRonde mining team. Within a few years, we aim to have several mining camps like the one in the Abitibi region operating on long-life gold deposits in mining-friendly regions around the world.
 
 
  Construction of the Lapa headframe,
now completed.		  
     
 

The high-grade Lapa deposit was discovered by Agnico-Eagle in 2002, as part of an aggressive exploration program. The Lapa project is located just 10 kilometres east of LaRonde near Cadillac, Quebec, and is accessible by provincial highway.

The Lapa deposit contains 4.1 million tonnes of probable gold reserves, grading 8.9 grams per tonne, or 1.2 million ounces. In addition, it contains indicated mineral resources of 754,000 tonnes grading 5.5 grams per tonne, or 133,000 ounces of gold and inferred mineral resources of 1.7 million tonnes grading 7.7 grams per tonne, or 423,000 ounces of gold. Lapa has further ore potential at depth and to the east.

In 2004, the surface infrastructure – including the former LaRonde #1 shaft headframe – was installed at Lapa. We are currently conducting a $30-million underground development, definition drilling and metallurgical program which includes sinking the new mine shaft to a depth of 825 metres. Ongoing results from this critical assessment will be incorporated into a 2006 study contemplating the second phase of development.

Agnico-Eagle is considering accelerating the development program which could bring Lapa into production by mid-2008, at a further capital cost of $80 million, approximately six months earlier than previously scheduled. This second phase would extend the shaft to its ultimate depth of 1,370 metres.

The mine plan is based on processing 1,350 tonnes of ore per day. Annual gold production is expected to average 125,000 ounces at an estimated total cash cost of approximately $200 per ounce over a 10-year mine life.