LAPa – proximity and potential
 
The Lapa mine is targeted for initial production in late 2008, shortly after Goldex. It will be our third mine in the Cadillac-Bousquet belt, increasing Agnico-Eagle’s expected gold production in the region to more than 500,000 ounces per year before the close of the decade.
 
     
  Lapa is located a mere 11 kilometres east of LaRonde. After signing an option agreement in 2002, we conducted an aggressive drilling program that led to the discovery of the Lapa deposit almost 300 metres below the surface. Agnico-Eagle acquired 100% ownership in 2003.

Lapa has 3.9 million tonnes of probable gold reserves, grading 9.1 grams per tonne, or 1.2 million ounces. The deposit remains open at depth and to the east.

We started construction of the Lapa mine in 2004, but chose to accelerate the development program in 2006, with total capital costs of $110 million. Significant shaft station work and lateral development have been completed. Shaft sinking is well advanced and nearing its final 1,370-metre depth. Once the shaft is completed, there will be approximately 15 months of lateral development work before ore production can begin. The mine plan is based on processing up to 1,500 tonnes of ore per day.

The Lapa mine is projected to average 125,000 ounces of gold production annually at total cash costs averaging $210 per ounce over a seven-year mine life.
 
 
 
Agnico-Eagle’s corporate culture is based on the principle that every person has the right to be treated with dignity and respect. We operate as a partnership, based on mutual respect, commitment, and dedication to excellence.

The company’s growth is giving employees opportunities to take on new challenges, enhance their skill sets, and gain valuable experience. Thanks to the ideas and efforts of our people, Agnico-Eagle’s efficiency has improved, gold production has progressively increased, and safety is one of our proudest records.