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Pinos altos – our treasure of the Sierra Madre |
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Located in the prolific Sierra Madre gold and silver region of northern Mexico, Pinos Altos boasts a growing gold and silver resource in what is considered to be a highly prospective precious metals camp. Pinos Altos could be brought into production by 2009. |
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Agnico-Eagle purchased the Pinos Altos property in March 2006 under an option agreement signed the year before. Under this agreement, we conducted a drilling campaign that doubled the contained gold and silver resources, prompting us to exercise our option to acquire the property.
Drilling has confirmed a probable mineral reserve of 1.8 million ounces of gold and 55.5 million ounces of silver.
In 2007, we will conduct a $26-million exploration and work program focused on converting further resources to reserves, expanding the resource by drilling in under-explored regions along strike and at depth, and developing an underground ramp to provide a deeper drilling platform. Our work has already led to new gold discoveries on the property.
As we proceed at Pinos Altos, we are engaging local communities to ensure that the project provides real, long-term benefits to residents living and working in the region.
Our feasibility study contemplates a 4,000-tonne-per-day operation with the open-pit and underground mines each supplying 2,000 tonnes per day. However, optimization studies are under way and the company is considering higher production rates. Preliminary production rates are estimated to be approximately 150,000 ounces of gold per year. |
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