GOLDEX – finding opportunity close to home
 
 
Goldex is the most advanced project in our growth pipeline, with production scheduled to commence in mid-2008. Goldex will be a low-cost, high-tonnage gold mine that benefits from its proximity to LaRonde in terms of operating synergies, technical expertise, and our experience in the region.
 
     
  Located in the gold-rich Abitibi region of northwestern Quebec, about 50 kilometres east of the LaRonde mine, our Goldex property is one in a long chain of properties that Agnico-Eagle owns in the region. We acquired full ownership of the property in 1993, with the purchase of the remaining interest in Goldex Mines Limited that we did not already own. The deposit is open for potential future exploration and development to the east and at depth.

Probable reserves of 1.7 million ounces of gold, contained in 22.9 million tonnes of ore grading 2.3 grams per tonne, are estimated to be sufficient for a 10-year mine life. Once completed, Goldex is expected to contribute an average of 170,000 ounces of annual gold production, with total cash cost averaging $225 per ounce.

We began construction of the $135-million Goldex mine in 2005. The sinking of the high-tonnage-capacity shaft is under way, having begun in late 2006. The shaft is expected to reach its ultimate depth of 860 metres in late 2007. Because the geology at Goldex is metallurgically simple, the 7,000-tonne-per-day processing plant will be relatively simple as well. Approximately two-thirds of the gold will be recovered via a gravity circuit on site. The remainder of the gold will be recovered through processing at LaRonde. Underground development is under way, with access from existing underground workings. Surface facilities are well advanced.