Form 6-K AGNICO EAGLE MINES LTD For: Jul 27
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16 UNDER THE
SECURITIES EXCHANGE ACT OF 1934
For the month of July, 2016
Commission File Number 001-13422
AGNICO EAGLE MINES LIMITED
(Translation of registrants name into English)
145 King Street East, Suite 400, Toronto, Ontario M5C 2Y7
(Address of principal executive office)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F ¨ Form 40-F x
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b)( 1):
Note: Regulation S-T Rule 101 (b)( 1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101 (b)(7):
Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrants home country), or under the rules of the home country exchange on which the registrants securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrants security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934. Yes o No x
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- .
EXHIBITS
Exhibit No. |
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Exhibit Description |
99.1 |
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Press Release dated July 27, 2016 announcing the Corporations Second Quarter 2016 Operating and Financial Results. |
99.2 |
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Press Release dated July 27, 2016 providing update on the Corporations exploration activities. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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AGNICO EAGLE MINES LIMITED | |
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(Registrant) | |
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Date: July 29, 2016 |
By: |
/s/ R. Gregory Laing |
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R. Gregory Laing |
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General Counsel, Sr. Vice-President, Legal |
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and Corporate Secretary |
Exhibit 99.1
Stock Symbol: |
AEM (NYSE and TSX) |
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For further information: |
Investor Relations |
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(416) 947-1212 |
(All amounts expressed in U.S. dollars unless otherwise noted)
AGNICO EAGLE REPORTS SECOND QUARTER 2016 OPERATING AND FINANICAL RESULTS; OPERATIONS CONTINUE TO DELIVER STRONG PERFORMANCE; POSITIVE GUIDANCE REVISION; FURTHER REDUCTION IN NET DEBT; AND DIVIDEND INCREASED BY 25%
Toronto (July 27, 2016) Agnico Eagle Mines Limited (NYSE:AEM, TSX: AEM) (Agnico Eagle or the Company) today reported quarterly net income of $19.0 million, or net income of $0.09 per share for the second quarter of 2016 (on an undiluted basis). This result includes a non-cash foreign currency translation loss on deferred tax liabilities of $7.0 million ($0.03 per share), various mark-to-market and other adjustment losses of $5.8 million ($0.03 per share), non-cash foreign currency translation losses of $5.5 million ($0.02 per share), non-cash stock option expense of $3.1 million ($0.01 per share), non-recurring gains of $4.4 million ($0.02 per share) and unrealized gains on financial instruments of $1.0 million (nil per share). Excluding these items would result in adjusted net income1 of $35.0 million or $0.16 per share for the second quarter of 2016. In the second quarter of 2015, the Company reported net income of $10.1 million or net income of $0.05 per share.
For the first six months of 2016, the Company reported net income of $46.8 million, or $0.21 per share. This compares with the first six months of 2015 when net income was $38.8 million, or $0.18 per share. Financial results in the 2016 period were positively affected by higher gold production and realized prices (approximately 2% and 3% higher, respectively) and higher by-product metals revenues.
Second quarter 2016 cash provided by operating activities was $229.5 million ($192.7 million before changes in non-cash components of working capital). This compares to cash provided by operating activities of $188.3 million in the second quarter of 2015 ($152.8 million before changes in non-cash components of working capital).
1 Adjusted net income is a Non-GAAP measure. For a discussion regarding the Companys use of non-GAAP measures, please see Note Regarding Certain Measures of Performance.
For the first six months of 2016, cash provided by operating activities was $375.2 million ($360.2 million before changes in non-cash components of working capital), as compared with the first half of 2015 when cash provided by operating activities was $331.8 million ($329.6 million before changes in non-cash components of working capital).
The increase in cash provided by operating activities before changes in working capital during the second quarter 2016 and first six months of 2016 was mainly due to a combination of higher gold and by-product metals production, as described above.
The second quarter saw continued strong operating results from all of our mines coupled with record safety performance, said Sean Boyd, Agnico Eagles Chief Executive Officer. Given these strong results and a more robust gold price environment, we have significantly improved our financial position, while continuing to make important investments in several of our growth projects. In addition, we have raised our dividend signaling our confidence in our business and growth plan, added Mr. Boyd.
Second Quarter 2016 highlights include:
· Quarterly gold production Payable gold production2 in the second quarter of 2016 was 408,932 ounces of gold at total cash costs3 per ounce on a by-product basis of $592 and all-in sustaining costs4 (AISC) on a by-product basis of $848 per ounce
2 Payable production of a mineral means the quantity of mineral produced during a period contained in products that are sold by the Company whether such products are shipped during the period or held as inventory at the end of the period.
3 Total cash costs per ounce is a Non-GAAP measure. For a reconciliation to production costs, see Reconciliation of Non-GAAP Financial Performance Measures below. Total cash costs per ounce of gold produced is presented on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues). Total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the consolidated statements of income (loss) for by-product revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. See also Note Regarding Certain Measures of Performance. For information about the Companys total cash costs per ounce on a co-product basis please see Reconciliation of Non-GAAP Performance Measures.
4 All-in-sustaining costs per ounce is a Non-GAAP measure and is used to show the full cost of gold production from current operations. For a reconciliation to production costs, see Reconciliation of Non-GAAP Financial Performance Measures below. The Company calculates all-in sustaining costs per ounce of gold produced as the aggregate of total cash costs per ounce on a by-product basis, sustaining capital expenditures (including capitalized exploration), general and administrative expenses (including stock option expense) and reclamation expenses divided by the number of ounces of gold produced. All-in sustaining costs per ounce of gold produced on a co-product basis is calculated in the same manner as all-in sustaining costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. For information about the Companys AISC on a co-product basis please see Reconciliation of Non-GAAP Performance Measures. The Companys methodology for calculating all-in sustaining costs per ounce may not be similar to the methodology used by other producers that disclose all-in sustaining costs per ounce. See also Note Regarding Certain Measures of Performance. The Company may change the methodology it uses to calculate all-in sustaining costs per ounce in the future, including in response to the adoption of formal industry guidance regarding this measure by the World Gold Council.
· 2016 production guidance increased and cost forecasts reduced Expected gold production for 2016 is now forecast to be approximately 1.58 to 1.6 million ounces (previously 1.565 million ounces) with total cash costs per ounce on a by-product basis of $580 to $620 (previously $590 to $630) and AISC of approximately $840 to $880 per ounce (previously $850 to $890)
· Investment grade balance sheet further enhanced In the second quarter of 2016, the outstanding balance of $210 million was repaid under the Companys credit facility, and C$20 million (reflecting the Companys 50% interest) was repaid under the Canadian Malartic General Partnerships (the Partnership) secured loan facility. Net debt was reduced by approximately $181 million, to $742 million, at June 30, 2016. For the seventh consecutive quarter, the Company has reduced net debt. The Companys investment grade credit was re-confirmed by Dominion Bond Rating Service Ltd. (DBRS) with a stable trend
· Quarterly dividend increased by 25% - The Company has declared a $0.10 quarterly dividend. The previous quarterly dividend was $0.08
· Final permit received at the Meliadine Gold project - In May 2016, the Company received the Type A Water License, which is the final license necessary to commence construction activities
Second Quarter Financial and Production Highlights Higher Gold Production, Lower Unit Costs
In the second quarter of 2016, strong operational performance continued at the Companys mines.
Payable gold production in the second quarter of 2016 was 408,932 ounces compared to 403,678 ounces in the second quarter of 2015. The higher level of production in the 2016 period was primarily due to higher grades at LaRonde, increased throughput levels and higher grades at Goldex and increased throughput levels at Canadian Malartic. A detailed description of the production and cost performance of each mine is set out below.
Total cash costs per ounce on a by-product basis for the second quarter of 2016 were lower at $592, as compared to $601 for the second quarter 2015. The reduction in total cash costs per ounce on a by-product basis in the second quarter of 2016 was a result of higher silver production, higher gold production at most of the Companys mines and
weaker local currencies in Canada and Mexico against the U.S. dollar compared to the second quarter of 2015.
Payable gold production for the first half of 2016 was 820,268 ounces, compared to payable gold production of 807,888 ounces in the comparable 2015 period.
For the first half of 2016, total cash costs per ounce on a by-product basis were $582, as compared to $595 for the first half of 2015. The lower costs in the 2016 period are due to the same reasons set out above.
AISC on a by-product basis for the second quarter of 2016 were lower at $848 as compared to $864 per ounce for the second quarter 2015. The lower AISC on a by-product basis is primarily due to higher production, lower total cash costs per ounce on a by-product basis and timing of capital expenditures.
For the first half of 2016, AISC on a by-product basis were $822 as compared to $835 per ounce for the 2015 period. The lower AISC on a by-product basis in the 2016 period are due to lower total cash costs per ounce on a by-product basis.
Cash Position Remains Strong; Net Debt Reduced for Seventh Consecutive Quarter
Cash and cash equivalents and short term investments increased to $473.7 million at June 30, 2016, from the March 31, 2016 balance of $168.0 million.
The outstanding balance on the Companys $1.2 billion credit facility was reduced from $210 million at March 31, 2016 to nil at June 30, 2016. This results in available credit lines of approximately $1.2 billion, not including the uncommitted $300 million accordion feature.
In order to take advantage of historically low interest rates and improve term and liquidity, on June 30, 2016, the Company issued on a private placement basis an aggregate of $350 million of guaranteed senior unsecured notes due 2023, 2026 and 2028 (the Notes) with a weighted average maturity of 9.43 years and weighted average yield of 4.77%. Net proceeds from the sale of the Notes were used to reduce amounts outstanding under the Companys credit facility and for general corporate purposes. During the quarter the Companys investment grade credit was re-confirmed by DBRS with a stable trend.
Total capital expenditures (including sustaining capital) made by the Company in the second quarter of 2016 were $131.6 million, including $28.2 million at Meliadine, $20.7 million at Goldex, $19.3 million at Canadian Malartic (50% basis), $18.8 million at Kittila, $15.4 million at LaRonde, $12.2 million at Pinos Altos, $10.6 million at Meadowbank, $3.3 million at La India and $2.2 million at Creston Mascota.
Total capital expenditures (including sustaining capital) for the first six months of 2016 were $232.1 million, including $43.4 million at Meliadine, $35.9 million at Goldex, $33.0
million at Kittila, $29.8 million at Canadian Malartic (50% basis), $29.7 million at LaRonde, $28.2 million at Pinos Altos, $22.1 million at Meadowbank, $5.0 million at La India and $3.5 million at Creston Mascota.
Total sustaining capital expenditures made by the Company in the second quarter of 2016 were $78.7 million, including $18.3 million at Canadian Malartic (50% basis), $15.8 million at Kittila, $15.4 million at LaRonde, $10.6 million at Meadowbank, $9.0 million at Pinos Altos, $4.1 million at Goldex, $3.3 million at La India and $2.2 million at Creston Mascota.
Total sustaining capital expenditures for the first six months of 2016 were $145.1 million, including $29.7 million at LaRonde, $28.3 million at Canadian Malartic (50% basis), $27.5 million at Kittila, $22.1 million at Meadowbank, $19.8 million at Pinos Altos, $9.1 million at Goldex, $5.0 million at La India and $3.6 million at Creston Mascota.
Total capital expenditures (including sustaining capital) in 2016 remain forecast at $491 million.
Revised 2016 Guidance Production Increased, Costs Lowered, Depreciation Decreased
Production for 2016 is now forecast to be approximately 1.58 to 1.6 million ounces of gold (previously 1.565 million ounces) with total cash costs per ounce on a by-product basis of $580 to $620 (previously $590 to $630) and AISC of approximately $840 to $880 per ounce (previously $850 to $890).
The Company expects depreciation and amortization expense to be in the range of $610 to $630 million. Previous guidance was $630 to $660 million.
Second Quarter 2016 Results Conference Call and Webcast Tomorrow
The Companys senior management will host a conference call on Thursday, July 28, 2016 at 10:00 AM (E.D.T.) to discuss financial results and provide an update of the Companys operating activities.
Via Webcast:
A live audio webcast of the conference call will be available on the Companys website www.agnicoeagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial 1-647-427-7450 or toll-free 1-888-231-8191. To ensure your participation, please call approximately ten minutes prior to the scheduled start of the call.
Replay Archive:
Please dial 1-416-849-0833 or toll-free 1-855-859-2056, access code 38813014. The conference call replay will expire on August 25, 2016.
The webcast, along with presentation slides, will be archived for 180 days on www.agnicoeagle.com.
NORTHERN BUSINESS OPERATING REVIEW
ABITIBI REGION, QUEBEC
Agnico Eagle is currently Quebecs largest gold producer with a 100% interest in three mines (LaRonde, Goldex and Lapa) and a 50% interest in the Canadian Malartic mine. These mines are located within 50 kilometres of each other, which provides operating synergies and allows for the sharing of technical expertise.
LaRonde Mine Higher Tonnage, Grades and Better Recoveries Drive Strong Production in the Second Quarter of 2016
The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in 1988.
The LaRonde mill processed an average of 6,241 tonnes per day (tpd) in the second quarter of 2016, compared with an average of 6,242 tpd in the corresponding period of 2015. Minesite costs per tonne5 were approximately C$106 in the second quarter of 2016, higher than the C$99 per tonne experienced in the second quarter of 2015. The increased costs in the 2016 period were primarily due to higher underground and mill maintenance costs compared to the prior-year period. In addition, costs in the 2015 period were lower than expected.
For the first six months of 2016, the LaRonde mill processed an average of 6,295 tpd, compared to 6,223 tpd in the first six months of 2015. Minesite costs per tonne were approximately C$104, compared to C$101 per tonne in the first six months of 2015. Costs were higher in the 2016 period due to the reasons described above.
LaRondes total cash costs per ounce on a by-product basis were $543 in the second quarter of 2016 on payable production of 75,159 ounces of gold. This compares with the second quarter of 2015 when total cash costs per ounce on a by-product basis were $613 on payable production of 64,007 ounces of gold. Costs in the 2016 period were positively impacted by higher production driven by higher ore grades and favourable foreign exchange rates.
In the first six months of 2016, LaRonde produced 150,496 ounces of gold at total cash costs per ounce on a by-product basis of $536. This is in contrast with the first six months of 2015 when the mine produced 122,900 ounces of gold at total cash costs per ounce on a by-product basis of $656. Costs were lower in the 2016 period due to the reasons outlined above.
5 Minesite costs per tonne is a non-GAAP measure. For a reconciliation of this measure to production costs as reported in the financial statements, see Reconciliation of Non-GAAP Financial Performance Measures below. See also Note Regarding Certain Measures of Performance.
Studies are continuing to assess the potential to extend the mineral reserve base and carry out mining activities between the 311 and 371 levels at LaRonde. At present, the mineral reserve base extends to the 311 level, which is 3.1 kilometres below the surface. An infill drill program is continuing from the 311 to the 371 levels with a focus on the western portion of the deposit. Infill drilling will also be carried out on the eastern portion of the deposit as underground development extends into that area.
In the second quarter of 2016, site preparation activities continued at Bousquet Zone 5 on the Companys adjoining Bousquet property. Previous property owners had partly exploited Bousquet Zone 5 using open pit and underground operations. The Company is evaluating the potential to mine Bousquet Zone 5 using underground ramp access. The mining method is likely to be similar to that employed at Goldex and processing could utilize excess capacity from the Lapa circuit at LaRonde.
During the quarter, dewatering of the old pit was completed along with rehabilitation of the ramp portal and 92 metres of underground development was completed. A certificate of authorization was issued by the Quebec government to permit collection of a bulk sample. An internal technical study is expected to be completed by the end of 2016. Following the completion of technical studies and permitting, Bousquet Zone 5 could potentially be in production in the second half of 2018.
Canadian Malartic Mine Record Processing Rate Achieved in Second Quarter of 2016
In June 2014, Agnico Eagle and Yamana Gold Inc. (Yamana) acquired all of the issued and outstanding common shares of Osisko Mining Corporation (Osisko) and created the Partnership that owns and operates the Canadian Malartic mine in northwestern Quebec through a joint management committee. Each of Agnico Eagle and Yamana has an indirect 50% ownership interest in the Partnership.
During the second quarter of 2016, the Canadian Malartic mill (on a 100% basis) processed an average of 55,481 tpd, compared with an average of 50,705 tpd in the corresponding period of 2015. The record daily throughput in the 2016 period was primarily due to higher crusher availability, better crushing performance from the secondary crusher and better plant availability.
Minesite costs per tonne in the second quarter of 2016 were approximately C$24 (C$20.50 excluding royalties) compared to the C$23 (C$19.71 excluding royalties) per tonne experienced in the second quarter of 2015. In the 2016 period costs were slightly higher primarily due to increased contractor use at both the mine and the mill and additional stripping costs which were not capitalized. The average stripping ratio in the second quarter of 2016 was 2.17 to 1.0 as compared to 2.64 to 1.0 in the prior period.
For the first six months of 2016, the Canadian Malartic mill processed an average of 53,897 tpd, compared with an average of 51,343 tpd in the corresponding period of 2015. Minesite costs per tonne were approximately C$24 (C$20.87 excluding royalties)
compared to the C$23 (C$19.94 excluding royalties) per tonne in the first six months of 2016. Costs were higher due to the reasons outlined above.
For the second quarter of 2016, Agnico Eagles 50% share of production at the Canadian Malartic mine was 72,502 ounces of gold at total cash costs per ounce on a by-product basis of $621. This compares with the second quarter of 2015 when total cash costs per ounce on a by-product basis were $609 on production of 68,441 ounces of gold. Costs in the 2016 period were higher due to a lower amount of stripping costs being capitalized compared to the 2015 period.
In the first six months of 2016, Agnico Eagles 50% share of production at the Canadian Malartic mine was 146,115 ounces of gold at total cash costs per ounce on a by-product basis of $589. This compares with the first six months of 2015 when the mine produced 136,334 ounces of gold at total cash costs per ounce on a by-product basis of $621. Costs were lower in first six months of 2016 due to stronger cash cost performance in the first quarter 2016.
Permitting activities for the Canadian Malartic pit extension and deviation of Highway 117 are continuing. As part of the Quebec environmental impact evaluation process, public hearings on the Canadian Malartic pit extension project took place on June 14 to 16 and July 12 and 13, 2016 in Malartic, Quebec.
The Quebec Bureau des Audiences Publiques sur lEnvironnement (BAPE) will now be reviewing the studies and documents submitted by the Partnership, information that was presented at the hearings and the written submissions received from intervenors. The BAPE is expected to issue its conclusions and recommendations on the acceptability of the project to the Quebec Minister of the Environment, Sustainable Development and Climate Change in October 2016. A decision from the Minister will then follow within the next several months.
The Odyssey prospect lies on the east side of the Canadian Malartic property, approximately 1.5 kilometres east of the current limit of the Canadian Malartic open pit. In the second quarter of 2016, drilling was ongoing at Odyssey and a total of 57 holes (53,417 metres) were completed through June 30, 2016 by the Partnership.
The Odyssey prospect is composed of multiple mineralized bodies spatially associated with a porphyritic intrusion close to the contact of the Pontiac Group sediments and the Piché Group of volcanic rocks. They are grouped into two elongated zones the Odyssey North and Odyssey South zones that strike east-southeast and dip steeply south. Odyssey North has been traced from a depth of 600 to 1,300 metres below surface along a strike length of approximately 1.5 kilometres. Odyssey South currently has a strike length of 0.5 kilometres, and has been located between approximately 200 and 550 metres below surface.
Recent drilling has yielded significant intercepts such as 2.63 grams per tonne (g/t) gold (capped) over 33.5 metres estimated true width at 1,171 metres depth in drill hole ODY16-5039, showing similarities to the Goldex mine deposit. Additional details on the
2016 Odyssey drill program are reported in the Companys exploration news release of July 27, 2016.
Lapa Potential for Increased Production through Year End 2016
The 100% owned Lapa mine in northwestern Quebec achieved commercial production in May 2009.
The Lapa circuit, located at the LaRonde mill, processed an average of 1,771 tpd in the second quarter of 2016. This compares with an average of 1,387 tpd in the second quarter of 2015. Throughput in the 2015 period was lower because of downtime related to the discovery of fatigue cracks in the feed head of the Lapa ball mill.
Minesite costs per tonne were C$116 in the second quarter of 2016, compared to C$126 in the second quarter of 2015. Costs in the 2016 period were lower due to higher throughput compared to the same period in 2015.
For the first six months of 2016, the Lapa mill processed an average of 1,767 tpd, compared to 1,538 tpd in the first six months of 2015. Minesite costs per tonne were approximately C$118, below the C$122 per tonne in the first six months of 2015 due to reasons explained above.
Payable production in the second quarter of 2016 was 21,914 ounces of gold at total cash costs per ounce on a by-product basis of $658. This compares with the second quarter of 2015, when payable production was 19,450 ounces of gold at total cash costs per ounce on a by-product basis of $678. In the 2016 period, production was higher and costs were lower due to higher throughput levels and favourable foreign exchange rates.
In the first six months of 2016, Lapa produced 43,623 ounces of gold at total cash costs per ounce on a by-product basis of $663. This compares to the first six months of 2015 when the mine produced 45,370 ounces of gold at total cash costs per ounce on a by-product basis of $615. The six month period in 2015 was positively affected by higher production and lower cash costs in the first quarter of 2015.
At Lapa, 2016 is the last full year of production based on the current life of mine plan. Production was expected to show a gradual decline moving into the fourth quarter of this year with the full year expected to total 60,000 ounces of gold, as per February 2016 guidance. The Company is now evaluating a number of opportunities that could see production potentially extend through year end and exceed previous guidance.
Goldex Strong Underground Performance and Higher Grades Drive Increased Production and Lower Costs
The 100% owned Goldex mine in northwestern Quebec began operation in 2008 but mining operations in the original orebody, the Goldex Extension Zone (GEZ), were suspended in October 2011 (see October 19, 2011 news release). In July 2012, the M and E satellite zones were approved for development. Mining operations resumed on the
M and E satellite zones in September 2013. Mining operations at GEZ remain suspended.
The Goldex mill processed an average of 7,233 tpd in the second quarter of 2016. This compares with an average of 6,640 tpd in the second quarter of 2015. The higher throughput in the 2016 period was due to better underground hoisting performance and acceleration of the mining sequence compared to the 2015 period.
Minesite costs per tonne were approximately C$32 in the second quarter of 2016, which was lower than the C$34 per tonne experienced in the second quarter of 2015. Costs in the 2016 period were lower primarily due to higher mill throughput levels and a higher proportion of rockfill to paste backfill during the period.
For the first six months of 2016, the Goldex mill processed an average of 7,112 tpd, compared to 6,468 tpd in the first six months of 2015. Minesite costs per tonne were approximately C$33, slightly lower than the C$34 per tonne in the first six months of 2015. The lower costs in the 2016 period are due to the reasons set out above.
Payable gold production in the second quarter of 2016 was 31,452 ounces of gold at total cash costs per ounce on a by-product basis of $513. This compares with the second quarter of 2015, when payable production was 26,462 ounces of gold at total cash costs per ounce on a by-product basis of $633. The decrease in total cash costs in the 2016 period was largely a result of increased production due to higher throughput, higher gold grades and favourable foreign exchange rates compared to the 2015 period.
In the first six months of 2016, Goldex produced 63,792 ounces of gold at total cash costs per ounce on a by-product basis of $509. This compares to the first six months of 2015 when the mine produced 55,712 ounces of gold at total cash costs per ounce on a by-product basis of $585. The higher production and lower costs in the 2016 period are due to the same reasons as outlined above.
Development of the Deep 1 Zone remains on time and on budget for startup in the first quarter of 2018. In the second quarter of 2016, the excavation of the second leg of the Rail-Veyor (conveyor system) ramp was completed and the initial components of the Rail-Veyor are now being installed.
In January 2014, Agnico Eagle acquired the Akasaba West gold-copper deposit from Alexandria Minerals Corporation. Located less than 30 kilometres from Goldex, the Akasaba West deposit could potentially create flexibility and synergies for the Companys operations in the Abitibi region by using extra milling capacity at both Goldex and LaRonde, while reducing overall costs. The Akasaba West deposit currently hosts a mineral reserve of approximately 141,000 ounces of gold (4.8 million tonnes of ore grading 0.92 g/t gold and 0.52% copper).
Permitting of the Akasaba project is progressing at both the provincial and federal levels. At the provincial level, following submission of the Environmental Impact Assessment (EIA) in August 2015, the Company responded to two series of questions
from the Quebec government agencies and ministries. Public consultation will also be scheduled.
At the federal level, following submission of the EIA in September 2015, the Company received two sets of questions from federal agencies and ministries. Responses to the most recent set of questions will be submitted in August 2016. The federal environmental assessment agency will then proceed with a series of consultations with the public and the First Nations and is expected to potentially present its recommendations on the acceptability of the project to the Federal Minister of the Environment in the first half of 2017.
In June 2016 the company purchased a property package of mining claims (approximately 840 hectares) adjacent to the Goldex mine from Wesdome Gold Mines Ltd for C$7.0 million. The acquisition was for exploration purposes.
These claims, which are collectively referred to as Joubi, consist of three properties including the Joubi and Dubuisson Ouest properties and a portion of the Mine Ecole property. These properties cover the lateral and downdip extensions of the Goldex orebody. There are no mineral resources outlined on those properties.
The transaction includes surface rights, infrastructure and certain equipment from the historical Joubi Mine. As part of the transaction, Agnico Eagle has granted to Wesdome a 2% net smelter royalty on the Mine Ecole property and a 3% net smelter royalty on the Joubi property.
FINLAND AND SWEDEN
Agnico Eagles Kittila mine in Finland is the largest primary gold producer in Europe, and hosts the Companys largest mineral reserve base. Exploration activities continue to expand the mineral resource base and studies are underway to evaluate the potential to cost-effectively increase production.
Kittila Strong Mine and Mill Performance Continues; Optimization Studies Ongoing
The 100% owned Kittila mine in northern Finland achieved commercial production in 2009.
The Kittila mill processed an average of 4,274 tpd in the second quarter of 2016 compared to 4,170 tpd in the second quarter of 2015. The higher throughput in the 2016 period is a result of increased development leading to improved ore access and strong mining productivity.
Minesite costs per tonne at Kittila were approximately 81 in the second quarter of 2016, compared to 75 in the second quarter of 2015. Costs increased in the second quarter of 2016 due to higher than expected maintenance costs associated with the scheduled
mill shutdown and increased contractor costs compared with the 2015 period. These costs more than offset the benefit of the increased throughput.
For the first six months of 2016, the Kittila mill processed an average of 4,512 tpd, compared to 4,004 tpd in the first six months of 2015. Minesite costs per tonne were approximately 76 in the first six months of 2016, the same as in the comparable 2015 period as higher throughput was offset by higher operating costs, as described above.
Second quarter 2016 payable gold production at Kittila was 46,209 ounces with total cash costs per ounce on a by-product basis of $756. In the second quarter of 2015, the mine produced 41,986 ounces at total cash costs per ounce on a by-product basis of $776. The higher production in the 2016 period is a result of higher throughput levels, gold grades and recoveries. Total cash costs per ounce decreased in the second quarter of 2016 primarily due to increased production.
In the first six months of 2016, Kittila produced 94,336 ounces of gold at total cash costs per ounce on a by-product basis of $741. This compares with the first six months of 2015, when the mine produced 86,640 ounces of gold at total cash costs per ounce on a by-product basis of $727. Production was higher in the 2016 period primarily due to increased throughput. Costs were higher in the 2016 period primarily due to higher contractor costs compared to the 2015 period.
The Kittila mine and mill have shown the ability to operate in excess of 4,000 tpd and efforts are ongoing to assess the optimal throughput rate. Studies are also underway to optimize underground mining rates and fully integrate the upper and lower Rimpi zones and the newly discovered Sisar Zone in a new Kittila mine plan. Unit costs are expected to improve once steady state operations are achieved.
Drilling is ongoing to infill and extend the mineralization in the Sisar Zone. In addition, underground ramp construction began in March to access the upper portion of the Sisar Zone, which is located approximately 150 to 200 metres from existing underground infrastructure. During the second quarter of 2016, assay results were received from a number of drill holes. Significant results include: drill hole ROD16-700D that intersected 7.4 g/t gold (uncapped) over 9.6 metres estimated true width at 1,161 metres depth, and hole ROD16-700B that intersected 6.4 g/t gold (uncapped) over 6.5 metres estimated true width at 1,261 metres depth. Additional details on these holes are set out in the Companys exploration news release of July 27, 2016.
Barsele Project Drilling Extends the Skirasen Zone
In June 2015, Agnico Eagle acquired a 55% interest in the Barsele project in Vasterbotten County, northern Sweden, from Orex Minerals (Orex Minerals subsequently transferred its interest in the project to Barsele Minerals Corp.). The Company can earn an additional 15% interest in the project through the completion of a pre-feasibility study.
Recent drilling at the Skiråsen Zone has extended the mineralization at depth and to the southeast. Highlights include hole SKI16-006 grading 1.31 g/t gold (capped) over an
estimated true width of 69.8 metres at 445 metres depth. This drill intercept is located roughly 850 metres southeast of the core of the Central Zone indicating that the current known mineralization could be part of a larger mineralized system. Additional details on these holes are set out in the Companys exploration news release of July 27, 2016.
NUNAVUT REGION
Agnico Eagle has identified Nunavut as a politically attractive and stable jurisdiction with enormous geological potential. With the Companys largest producing mine (Meadowbank), two significant development assets (Meliadine and Amaruq) and other exploration projects, Nunavut has the potential to be a strategic operating platform with the ability to generate strong production and cash flows over several decades.
Meadowbank Good Cost Performance Despite Lower Production Volumes in the Second Quarter of 2016
The 100% owned Meadowbank mine in Nunavut, northern Canada, achieved commercial production in March 2010.
The Meadowbank mill processed an average of 10,918 tpd in the second quarter of 2016, compared to the 11,199 tpd achieved in the second quarter of 2015. Year-over-year, mill throughput levels were lower primarily due to harder ore being processed from the Vault pit.
Minesite costs per tonne were approximately C$73 in the second quarter of 2016. These costs were lower than the C$74 per tonne in the second quarter of 2015. The lower costs per tonne in the 2016 period were primarily due to lower production costs (for drilling, blasting and fuel consumption) and an increase in deferred stripping compared to the 2015 period.
For the first six months of 2016, the Meadowbank mill processed an average of 10,654 tpd, compared to 11,103 tpd in the first six months of 2015. Minesite costs per tonne were approximately C$75 in the first six months of 2016, which were higher than the C$73 per tonne in the comparable 2015 period. The higher costs per tonne were primarily due to lower throughput compared to the respective 2015 period.
Payable production in the second quarter of 2016 was 72,402 ounces of gold at total cash costs per ounce on a by-product basis of $789. This compares with the second quarter of 2015 when 91,276 ounces were produced at total cash costs per ounce on a by-product basis of $688. The lower production and higher costs in the 2016 period compared to the 2015 period are primarily due to processing less tonnage at lower grades (down 18%) and lower recoveries.
In the first six months of 2016, Meadowbank produced 144,713 ounces of gold at total cash costs per ounce on a by-product basis of $789. In the first six months of 2015 the mine produced 179,799 ounces of gold at total cash costs per ounce on a by-product
basis of $672. The lower production and higher costs in the 2016 period compared to the previous period are due to the reasons outlined above.
Studies are ongoing to investigate additional opportunities to extend production at Meadowbank through year-end 2018. Potential opportunities include the development of the Phaser pit, which is located to the southwest of the Vault pit, and an additional pushback to access additional ore in the E3 pit at the Portage deposit.
Amaruq Project Exploration and Permitting Activities Progressing as Planned
Agnico Eagle has a 100% interest in the Amaruq project in Nunavut, northern Canada. The large property consists of 116,717 hectares of Inuit-owned and federal Crown land, located approximately 50 kilometres northwest of the Meadowbank mine. The Company is actively exploring the Amaruq deposit with the goal of potentially developing the deposit as a satellite operation to Meadowbank.
During the quarter, exploration drilling continued at Amaruq. The goals of the 2016 exploration program were to infill and expand the known mineral resource areas and to test other favourable targets with a focus on identifying a second source of open pit ore.
Drilling began at the end of January and continued through May based mainly on lake ice; the drilling since June has been land-based supported by helicopters. Exploration and conversion drilling to the end of June has totalled 77,517 metres (338 holes), using up to nine rigs, completing the initial 75,000-metre drill program. Almost half of this drilling was in the IVR deposit (36,545 metres, 152 holes), with 30% at Whale Tail (24,820 metres, 103 holes) and the rest at Mammoth (16,153 metres, 83 holes). In addition, there was 2,186 metres (nine holes) related to engineering studies (rock mechanics / geotechnical drilling and metallurgical testing) in this period.
Exploration drilling has encountered a new vein structure in the V Zones, with results up to 15.5 g/t gold (capped) over 9.4 metres estimated true width at 18 metres depth in drill hole AMQ16-706. The V Zones have been shown to include multiple parallel structures. A recent lower intercept was 15.5 g/t gold (capped) over 5.4 metres estimated true width at 349 metres depth in drill hole AMQ16-833. The V Zones are being evaluated as a potential second source of open pit ore for Amaruq. Additional details from the 2016 Amaruq program are set out in the Companys exploration news release of July 27, 2016.
Construction of the Amaruq Exploration Access Road commenced in the first quarter of 2016. At the end of the second quarter of 2016, approximately 13.3 km of road had been completed. Construction is expected to resume this August with a focus on bridge installation. Completion of the 62 kilometre long road is expected by the end of 2017.
An application for an amendment to the Amaruq Exploration Type B Water License was submitted on March 31, 2016 to allow for the development of an exploration ramp and the potential collection of a bulk sample. The permit approval process for the exploration ramp is expected to take approximately nine months.
In order to mine the Whale Tail deposit, a Project Certificate for this satellite pit must be obtained from the Nunavut Impact Review Board (the NIRB) along with an amendment of the existing Meadowbank Type A water license. A positive land use conformity determination was received from the Nunavut Planning Commission on June 17, 2016 for the Amaruq Whale Tail pit project confirming that the planned activity meets conformity with the existing land use plan. On June 30, 2016, the Company submitted an application and environmental impact statement for the Whale Tail satellite pit with both the NIRB and Nunavut Water Board. This application is currently undergoing screening by the NIRB which initiates the permitting process, a process that is expected to take place over a period of approximately two years.
Meliadine Project Final Permit Received May 2016; Optimization Studies Continuing
The Meliadine gold project was acquired in July 2010 and is the Companys largest development project based on mineral reserves and mineral resources. The Company has a 100% interest in the 111,757 hectare property, which is linked to the town of Rankin Inlet in Nunavut by a 25 kilometre all-weather access road.
In March 2015, the Company completed an updated technical report on the Meliadine gold project. The updated technical report was based on extracting only the 3.3 million ounces of gold in proven and probable mineral reserves (13.9 million tonnes of ore at 7.44 g/t gold), which is all contained in the Tiriganiaq and Wesmeg deposits.
The Meliadine property also hosts 3.3 million ounces of measured and indicated mineral resources (20.2 million tonnes at 5.06 g/t gold), and 3.5 million ounces of inferred mineral resources (14.1 million tonnes at 7.65 g/t gold). In addition, there are many other known gold occurrences in the 80 km long greenstone belt that require further evaluation.
Internal studies are continuing to evaluate the potential to extract additional gold from the Tiriganiaq and Wesmeg/Normeg deposits, which could extend the potential mine life, increase annual production and improve project economics and the after-tax internal rate of return. These studies are expected to be completed by the end of 2016.
In the second quarter of 2016, approximately 1,098 metres of underground development were completed. A total of approximately 4,302 metres of underground development is planned in 2016.
On May 19, 2016, the Company received the Type A Water Licence, which is the final permit needed to commence construction activities. The timing of future capital expenditures at the Meliadine project beyond 2016 and the determination of whether to build a mine at Meliadine are subject to approval by Agnico Eagles Board of Directors, which will be based on, among other things, prevailing market conditions and outcomes of the various plans being evaluated.
SOUTHERN BUSINESS OPERATING REVIEW
Agnico Eagles Southern Business operations are focused in Mexico. These operations have been the source of growing precious metals production (gold and silver), stable operating costs and strong free cash flow since 2009. In the second quarter of 2016, the Mexican operations had new record quarterly silver production of approximately 788,000 ounces.
Pinos Altos Shaft Commissioning Continues, Ramp Up to Design Capacity Expected in Q3 2016
The 100% owned Pinos Altos mine in northern Mexico achieved commercial production in November 2009.
The Pinos Altos mill processed 5,660 tpd in the second quarter of 2016, compared to 5,854 tpd in the second quarter of 2015. During the second quarter of 2016, approximately 90,000 tonnes of ore were stacked on the leach pad at Pinos Altos, compared to 114,800 tonnes in the comparable 2015 period. Minesite costs per tonne at Pinos Altos were $47 in the second quarter of 2016, which were higher than the $43 in the second quarter of 2015. The difference in minesite costs per tonne was largely attributable to variations in the proportion of heap leach ore to milled ore and open pit ore to underground ore, currency variations and routine fluctuations in the waste to ore stripping ratio in the open pit mines.
For the first six months of 2016, the Pinos Altos mill processed an average of 5,297 tpd, compared to 5,758 tpd in the first six months of 2015. Approximately 143,200 tonnes of ore were stacked on the Pinos Altos leach pad during the first six months of 2016, compared to 189,200 tonnes in the prior year period. Minesite costs per tonne were approximately $48 compared to $45 per tonne in the first six months of 2015, with variance due to the proportion of heap leach to milled ore and the proportion of underground ore to open pit, variations in the proportion of waste to ore mined and variations in the currency exchange rate.
Payable production in the second quarter of 2016 was 49,458 ounces of gold at total cash costs per ounce on a by-product basis of $348. This compares with payable production of 50,647 ounces at total cash costs per ounce on a by-product basis of $384 in the second quarter of 2015. Lower production in 2016 is largely due to lower throughput compared to the prior year period. The decrease in the year over year total cash costs per ounce is largely due to higher silver production and favourable foreign exchange rates compared to the prior year period.
In the first six months of 2016, Pinos Altos produced 97,575 ounces of gold at total cash costs per ounce on a by-product basis of $346. This compares with the first six months of 2015 when the mine produced 100,753 ounces of gold at total cash costs per ounce on a by-product basis of $371. The decrease in cash costs for the first six months of 2016 is due to the reasons outlined above.
The Pinos Altos shaft project was completed and commissioned for hoisting in mid-June. Adjustments to ore-waste hoisting parameters and settings progressed through the second half of June. Ramp up to the design capacity will continue in July. The shaft completion will allow better matching of the mill capacity with the future mining capacity at Pinos Altos once the open pit mining operation begins to wind down as planned over the next several years.
The Company continues to evaluate a number of regional opportunities. During the quarter, exploration drilling commenced at the Madrono prospect. Additional details from the Madrono drilling program are set out in the Companys news release of July 27, 2016.
Creston Mascota Deposit at Pinos Altos Initial Madrono drilling Yields Positive Results
The Creston Mascota deposit at Pinos Altos has been operating as a satellite operation to the Pinos Altos mine since late 2010.
Approximately 573,000 tonnes of ore were stacked on the Creston Mascota leach pad during the second quarter of 2016, compared to approximately 608,500 tonnes stacked in the second quarter of 2015. In the 2016 period lower grades were stacked compared to the 2015 period. Minesite costs per tonne at Creston Mascota were $12 in the second quarter of 2016, compared to $11 in the second quarter of 2015. Costs in the 2016 period were slightly higher due to an increased stripping ratio and wet weather conditions related to the rainy season compared to the 2015 period.
For the first six months of 2016, approximately 1,089,200 tonnes of ore were stacked on the Creston Mascota leach pad, compared to 1,135,500 tonnes in the prior year period. For the first six months of 2016, mine site costs per tonne at Creston Mascota were $12, compared to $11 per tonne in the first six months of 2015. Costs were higher in the 2016 period due to the reasons outlined above.
Payable gold production at Creston Mascota in the second quarter of 2016 was 12,398 ounces at total cash costs per ounce on a by-product basis of $469. This compares to 15,606 ounces at total cash costs per ounce on a by-product basis of $402 during the second quarter of 2015. Production in the 2016 period was lower due to fewer tonnes stacked and lower grades compared to the 2015 period. Cash costs were higher in the 2016 period primarily due to higher minesite costs per tonne, and lower production partially offset by a favourable foreign exchange rate compared to the 2015 period.
Payable gold production for the first six months of 2016 was 23,949 ounces at total cash costs per ounce on a by-product basis of $465. This compares to 28,054 ounces at total cash costs per ounce on a by-product basis of $421 in the first six months of 2015. The lower production and higher costs in the 2016 period are due to the reasons outlined above.
Infill drilling continues at Creston Mascota with several high grade intercepts encountered during the period suggesting potential for modest extension of the current mine life.
During the first quarter of 2016, an agreement was signed that allows access to the 51-hectare Madrono property for exploration and mining. The Madrono property is located in an area with good access and infrastructure between the Companys Pinos Altos and Creston Mascota operations and includes at least three gold-silver veins: Madrono, Santa Martha and La Curva. Previous mining in this area included small-scale bonanza production from underground mine development on three levels in the 1930s.
In the second quarter of 2016, 12 drill holes totaling 2,978 metres were completed on preliminary target areas. Three of the first six holes drilled at Madrono encountered gold and silver mineralization with encouraging grades and widths. Highlights include: 4.1 g/t gold and 64.5 g/t silver (both grades uncapped) over 6.2 metres estimated true width at 45 metres depth in hole MAD16-005. Additional details are presented in the Companys exploration news release of July 27, 2016.
Permits were obtained in June 2016 to allow for the construction of an additional 75 exploration drill pads on the Madrono property. Further drilling is planned for Madrono through the balance of 2016.
La India Increased Gold and Silver Production Drive Lower costs
The La India mine in Sonora, Mexico, located approximately 70 kilometres from the Companys Pinos Altos mine, was acquired in November 2011 through the purchase of Grayd Resources, which held a 56,000 hectare land position in the Mulatos Gold belt. Commissioning of the mine commenced ahead of schedule in the third quarter of 2013 and commercial production was declared as of February 1, 2014.
Approximately 1,534,500 tonnes of ore were stacked on the La India leach pad during the second quarter of 2016, compared to approximately 1,359,500 tonnes stacked in the second quarter of 2015. Minesite costs per tonne at La India were $8 in the second quarter of 2016, compared to the $9 in the second quarter of 2015. The higher tonnage stacked in the 2016 period is a reflection of additional low-grade ore being encountered in areas previously thought to contain waste. The lower minesite costs reflect normal variations in the waste/ore stripping ratio.
In the first six months of 2016, approximately 2,930,800 tonnes of ore were stacked on the La India leach pad, compared to approximately 2,738,000 stacked in the first six months of 2015. Minesite costs per tonne at La India were $8 in the first six months of 2016, compared to the $9 in the first six months of 2015. The increased tonnage stacked and lower costs in the 2016 period are due to the reasons outlined above.
Payable gold production at La India in the second quarter of 2016 was 27,438 ounces at total cash costs per ounce on a by-product basis of $381. Payable production in the second quarter of 2015 was 25,803 ounces at total cash costs per ounce on a by-product basis of $410. Production was higher in the 2016 period due to higher tonnage stacked
and faster percolation rates from the new lifts on the phase 2 heap leach pad. Total cash costs in the 2016 period were positively impacted by slightly lower minesite costs per tonne, higher gold and silver production and favourable foreign exchange rates.
For the first six months of 2016, La India produced 55,669 ounces of gold at total cash costs per ounce on a by-product basis of $371. This compares to 52,326 ounces at total cash costs per ounce on a by-product basis of $414 in the first six months of 2015. The increased production and lower costs are due to the reasons outlined above.
Construction of the haul road to the Main Zone was completed during the second quarter of 2016. Mining activities on the Main Zone began in May 2016.
During the quarter, several areas on the La India property were drill tested including the infill drilling at the Main Zone and exploration drilling at India East and El Cochi. Encouraging results were obtained from the Main Zone, which could have a positive impact on the year end mineral reserves and mineral resources at La India. At El Cochi, drilling on an outcropping area identified shallow oxidized mineralization and drilling will continue once the change of land use permit is obtained, which is expected in the second half of 2016. In late June 2016, the environmental permit for exploration at the El Realito area was obtained (permission for 40 drill pads), and drilling will be carried out later this year.
On July 19, 2016, La India experienced an armed robbery. Employees at La India are safe and normal operations resumed later that same day. The Company is cooperating with federal, state and local authorities who are actively investigating the incident. The Company understands that all losses and damages will be covered by insurance.
El Barqueno Drilling Expands Known Deposits and Outlines New Mineralized Zones
Agnico Eagle acquired its 100% interest in the El Barqueno project in November 2014 with the acquisition of Cayden Resources Inc. The 32,840-hectare property is in the Guachinango gold-silver mining district of Jalisco State in west-central, Mexico, approximately 150 kilometres west of the state capital of Guadalajara. The El Barqueno project contains a number of known mineralized zones and several prospects. As of December 31, 2015, the El Barqueno project had an inferred mineral resource of 19.7 million tonnes grading 0.96 g/t gold and 5.78 g/t silver (containing 608,000 ounces of gold and 3.7 million ounces of silver) at the Azteca-Zapoteca, Angostura and Peña de Oro zones.
Year-to-date, 44,985 metres of drilling has been completed at El Barqueno in 2016. Drilling focused on expanding the known areas of mineralization (Angostura and Azteca-Zapoteca) and testing new target areas (Olmeca and Pena Blanca). Significant high-grade intercepts are reported at the new Olmeca prospect, which has been traced over 700 metres of strike length. Results from Olmeca include up to 4.5 g/t gold (capped) and 4.7 g/t silver (uncapped) over 11.0 metres estimated true width at 85 metres depth in drill
hole OLM16-010, and 9.4 g/t gold (capped) and 14.1 g/t silver (uncapped) over 5.1 metres estimated true width at 67 metres depth in drill hole in OLM16-003.
Additional details on the El Barqueno drilling are set out in the Companys exploration news release of July 27, 2016.
In addition to the drilling activities, studies are underway to evaluate possible development scenarios for the project. It is currently envisioned that the projects gold-silver deposits could potentially be developed into a series of open pits utilizing heap leach processing, similar to the Creston Mascota deposit at Pinos Altos and the La India mines.
Dividend Record and Payment Dates for the Third Quarter of 2016
Agnico Eagles Board of Directors has declared a quarterly cash dividend of $0.10 per common share, payable on September 15, 2016 to shareholders of record as of September 1, 2016. Agnico Eagle has declared a cash dividend every year since 1983.
Other Expected Dividend and Record Dates for 2016
Record Date |
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Payment Date |
December 1 |
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December 15 |
Dividend Reinvestment Plan
Please follow the link below for information on the Companys dividend reinvestment program. Dividend Reinvestment Plan
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since 1957. Its eight mines are located in Canada, Finland and Mexico, with exploration and development activities in each of these countries as well as in the United States and Sweden. The Company and its shareholders have full exposure to gold prices due to its long-standing policy of no forward gold sales. Agnico Eagle has declared a cash dividend every year since 1983.
Further Information
For further information regarding Agnico Eagle, contact Investor Relations at [email protected] or call (416) 947-1212.
Note Regarding Certain Measures of Performance
This news release discloses certain measures, including total cash costs per ounce, all-in sustaining costs per ounce, minesite costs per tonne and adjusted net income that are not standardized measures under IFRS. These data may not be comparable to
data reported by other issuers. For a reconciliation of these measures to the most directly comparable financial information reported in the consolidated financial statements prepared in accordance with IFRS, other than adjusted net income, see Reconciliation of Non-GAAP Financial Performance Measures below. The total cash costs per ounce of gold produced is reported on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues). The total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the consolidated statements of income for by-product revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. The total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as the total cash costs per ounce of gold produced on a by-product basis except that no adjustment is made for by-product metal revenues. Accordingly, the calculation of total cash costs per ounce of gold produced on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges associated with the production and sale of by-product metals. The total cash costs per ounce of gold produced is intended to provide information about the cash-generating capabilities of the Companys mining operations. Management also uses these measures to monitor the performance of the Companys mining operations. As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce of gold produced on a by-product basis measure allows management to assess a mines cash-generating capabilities at various gold prices. All-in sustaining costs per ounce is used to show the full cost of gold production from current operations. The Company calculates all-in sustaining costs per ounce of gold produced on a by-product basis as the aggregate of total cash costs per ounce on a by-product basis, sustaining capital expenditures (including capitalized exploration), general and administrative expenses (including stock options) and reclamation expenses divided by the number of ounces of gold produced. The all-in sustaining costs per ounce of gold produced on a co-product basis is calculated in the same manner as the all-in sustaining costs per ounce of gold produced on a by-product basis, except that the total cash costs per ounce on a co-product basis is used, meaning no adjustment is made for by-product metal revenues. The Companys methodology for calculating all-in sustaining costs per ounce may differ from to the methodology used by other producers that disclose all-in sustaining costs per ounce. The Company may change the methodology it uses to calculate all-in sustaining costs per ounce in the future, including in response to the adoption of formal industry guidance regarding this measure by the World Gold Council. Management is aware that these per ounce measures of performance can be affected by fluctuations in exchange rates and, in the case of total cash costs per ounce of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne (discussed below) as well as other data prepared in accordance with IFRS. Management uses adjusted net income to evaluate the underlying operating performance of the Company and to assist with the planning and forecasting of future operating results. Management believes that adjusted net income is a useful measure of performance because foreign currency translation gains and losses, mark-to-market adjustments, non-recurring gains and losses, stock option expense and unrealized gains
and losses on financial instruments do not reflect the underlying operating performance of the Company and may not be indicative of future operating results.
Management also performs sensitivity analyses in order to quantify the effects of fluctuating exchange rates and metal prices. This news release also contains information as to estimated future total cash costs per ounce, all-in sustaining costs per ounce and minesite costs per tonne. The estimates are based upon the total cash costs per ounce, all-in sustaining costs per ounce and minesite costs per tonne that the Company expects to incur to mine gold at its mines and projects and, consistent with the reconciliation of these actual costs referred to above, do not include production costs attributable to accretion expense and other asset retirement costs, which will vary over time as each project is developed and mined. It is therefore not practicable to reconcile these forward-looking non-GAAP financial measures to the most comparable IFRS measure.
Forward-Looking Statements
The information in this news release has been prepared as at July 27, 2016. Certain statements contained in this news release constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information under the provisions of Canadian provincial securities laws and are referred to herein as forward-looking statements. When used in this news release, the words anticipate, could, estimate, expect, forecast, plan, potential, will and similar expressions are intended to identify forward-looking statements. Such statements include, without limitation: the Companys forward-looking production guidance, including estimated ore grades, project timelines, drilling results, metal production, life of mine estimates, production, total cash costs per ounce, all-in sustaining costs per ounce, minesite costs per tonne, other expenses and cash flows; the estimated timing and conclusions of technical reports and other studies; the methods by which ore will be extracted or processed; statements concerning expansion projects, recovery rates, mill throughput, optimization and projected exploration expenditures, including costs and other estimates upon which such projections are based; statements regarding timing and amounts of capital expenditures and other assumptions; estimates of future mineral reserves, mineral resources, mineral production, optimization efforts and sales; estimates of mine life; estimates of future capital expenditures and other cash needs, and expectations as to the funding thereof; statements as to the projected development of certain ore deposits, including estimates of exploration, development and production and other capital costs and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development and production; estimates of mineral reserves and mineral resources, and statements regarding anticipated future exploration; the anticipated timing of events with respect to the Companys mine sites and statements regarding the sufficiency of the Companys cash resources and other statements regarding anticipated trends with respect to the Companys operations, exploration and the funding thereof. Such statements reflect the Companys views as at the date of this news release and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements. Forward-looking statements are necessarily based upon a number of factors
and assumptions that, while considered reasonable by Agnico Eagle as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The material factors and assumptions used in the preparation of the forward looking statements contained herein, which may prove to be incorrect, include, but are not limited to, the assumptions set forth herein and in managements discussion and analysis (MD&A) and the Companys Annual Information Form (AIF) for the year ended December 31, 2015 filed with Canadian securities regulators and that are included in its Annual Report on Form 40-F for the year ended December 31, 2015 (Form 40-F) filed with the U.S. Securities and Exchange Commission (the SEC) as well as: that there are no significant disruptions affecting operations; that production, permitting, development and expansion at each of Agnico Eagles properties proceeds on a basis consistent with current expectations and plans; that the relevant metal prices, exchange rates and prices for key mining and construction supplies will be consistent with Agnico Eagles expectations; that Agnico Eagles current estimates of mineral reserves, mineral resources, mineral grades and metal recovery are accurate; that there are no material delays in the timing for completion of ongoing growth projects; that the Companys current plans to optimize production are successful; and that there are no material variations in the current tax and regulatory environment. Many factors, known and unknown, could cause the actual results to be materially different from those expressed or implied by such forward looking statements. Such risks include, but are not limited to: the volatility of prices of gold and other metals; uncertainty of mineral reserves, mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, project development, capital expenditures and other costs; exchange rate fluctuations; financing of additional capital requirements; cost of exploration and development programs; mining risks; community protests; risks associated with foreign operations; governmental and environmental regulation; the volatility of the Companys stock price; and risks associated with the Companys currency, fuel and by-product metal derivative strategies. For a more detailed discussion of such risks and other factors that may affect the Companys ability to achieve the expectations set forth in the forward-looking statements contained in this news release, see the AIF and MD&A filed on SEDAR at www.sedar.com and included in the Form 40-F filed on EDGAR at www.sec.gov, as well as the Companys other filings with the Canadian securities regulators and the SEC. Other than as required by law, the Company does not intend, and does not assume any obligation, to update these forward-looking statements.
Notes to Investors Regarding the Use of Mineral Resources
Cautionary Note to Investors Concerning Estimates of Measured and Indicated Mineral Resources
This news release uses the terms measured mineral resources and indicated mineral resources. Investors are advised that while those terms are recognized and required by Canadian regulations, the SEC does not recognize them. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into mineral reserves.
Cautionary Note to Investors Concerning Estimates of Inferred Mineral Resources
This news release also uses the term inferred mineral resources. Investors are advised that while this term is recognized and required by Canadian regulations, the SEC does not recognize it. Inferred mineral resources have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that any part or all of an inferred mineral resource exists, or is economically or legally mineable.
Scientific and Technical Data
The scientific and technical information contained in this news release relating to Quebec operations has been approved by Christian Provencher, Eng., Vice-President, Canada; relating to Nunavut operations has been approved by Dominique Girard, Eng., Vice-President Nunavut Operations; relating to the Finland operations has been approved by Francis Brunet, Eng., Corporate Director Mining; relating to Southern Business operations has been approved by Tim Haldane, P.Eng., Senior Vice-President, Operations USA and Latin America; and relating to exploration has been approved by Alain Blackburn, Eng., Senior Vice-President, Exploration and Guy Gosselin, Eng. and P.Geo., Vice-President, Exploration. Each of them is a Qualified Person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101).
The scientific and technical information relating to Agnico Eagles mineral reserves and mineral resources contained herein (other than the Canadian Malartic mine) has been approved by Daniel Doucet, Eng., Senior Corporate Director, Reserve Development; and relating to mineral reserves and mineral resources at the Canadian Malartic mine contained herein has been approved by Donald Gervais, P.Geo., Director of Technical Services at Canadian Malartic Corporation (CMC) a corporation 50% owned indirectly by each of Agnico and Yamana. Each of them is a Qualified Person for the purposes of NI 43-101.
Cautionary Note To U.S. Investors - The SEC permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. Agnico Eagle reports mineral reserve and mineral resource estimates in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum Best Practice Guidelines for Exploration and for Estimation of Mineral Resources and Mineral Reserves, in accordance with NI 43-101. These standards are similar to those used by the SECs Industry Guide No. 7, as interpreted by Staff at the SEC (Guide 7). However, the definitions in NI 43-101 differ in certain respects from those under Guide 7. Accordingly, mineral reserve information contained herein may not be comparable to similar information disclosed by U.S. companies. Under the requirements of the SEC, mineralization may not be classified as a reserve unless the determination has been made that the mineralization could be economically
and legally produced or extracted at the time the reserve determination is made. A final or bankable feasibility study is required to meet the requirements to designate mineral reserves under Industry Guide 7. Agnico Eagle uses certain terms in this news release, such as measured, indicated, inferred, and resources that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC.
In prior periods, mineral reserves and mineral resources for all properties were typically estimated using historic three-year average metals prices and foreign exchange rates in accordance with the SEC guidelines. These guidelines require the use of prices that reflect current economic conditions at the time of mineral reserve determination, which the Staff of the SEC has interpreted to mean historic three-year average prices. Given the current lower commodity price environment, Agnico Eagle has decided to use price assumptions that are below the three-year averages. The assumptions used for the mineral reserve and mineral resource estimates at all mines and advanced projects as of December 31, 2015 (other than the Canadian Malartic mine), reported by the Company on February 10, 2016, were $1,100 per ounce gold, $16.00 per ounce silver, $0.90 per pound zinc, $2.50 per pound copper, and US$/C$, Euro/US$ and US$/MXP exchange rates for all mines and projects other than the Lapa, Meadowbank and Creston Mascota mines and Santo Niño open pit at Pinos Altos of 1.16, 1.20 and 14.00, respectively. Due to shorter mine life, the assumptions used for the mineral reserve and mineral resource estimates at the shorter-life mines (the Lapa, Meadowbank and Creston Mascota mines and Santo Niño open pit) as of December 31, 2015, reported by the Company on February 10, 2016, included the same metal price assumptions, and US$/C$ and US$/MXP exchange rates of 1.30 and 16.00, respectively.
The assumptions used for the mineral reserve and mineral resource estimates at the Canadian Malartic mine as of December 31, 2015, reported by the Company on February 10, 2016, were $1,150 per ounce gold, a cut-off grade between 0.30 g/t and 0.33 g/t gold (depending on the deposit) and a US$/C$ exchange rate of 1.24.
NI 43-101 requires mining companies to disclose mineral reserves and mineral resources using the subcategories of proven mineral reserves, probable mineral reserves, measured mineral resources, indicated mineral resources and inferred mineral resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
A mineral reserve is the economically mineable part of a measured and/or indicated mineral resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted and is defined by studies at pre-feasibility or feasibility level as appropriate that include application of modifying factors. Such studies demonstrate that, at the time of reporting, extraction could reasonably be justified.
Modifying factors are considerations used to convert mineral resources to mineral reserves. These include, but are not restricted to, mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors.
A proven mineral reserve is the economically mineable part of a measured mineral resource. A proven mineral reserve implies a high degree of confidence in the modifying factors. A probable mineral reserve is the economically mineable part of an indicated and, in some circumstances, a measured mineral resource. The confidence in the modifying factors applying to a probable mineral reserve is lower than that applying to a proven mineral reserve.
A mineral resource is a concentration or occurrence of solid material of economic interest in or on the Earths crust in such form, grade or quality and quantity that there are reasonable prospects for eventual economic extraction. The location, quantity, grade or quality, continuity and other geological characteristics of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge, including sampling.
A measured mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with confidence sufficient to allow the application of modifying factors to support detailed mine planning and final evaluation of the economic viability of the deposit. Geological evidence is derived from detailed and reliable exploration, sampling and testing and is sufficient to confirm geological and grade or quality continuity between points of observation. An indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are estimated with sufficient confidence to allow the application of modifying factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. Geological evidence is derived from adequately detailed and reliable exploration, sampling and testing and is sufficient to assume geological and grade or quality continuity between points of observation. An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade or quality continuity.
Investors are cautioned not to assume that part or all of an inferred mineral resource exists, or is economically or legally mineable.
A feasibility study is a comprehensive technical and economic study of the selected development option for a mineral project that includes appropriately detailed assessments of applicable modifying factors together with any other relevant operational factors and detailed financial analysis that are necessary to demonstrate, at the time of reporting, that extraction is reasonably justified (economically mineable). The results of the study may reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. The confidence level of the study will be higher than that of a pre-feasibility study.
Additional Information
Additional information about each of the mineral projects that is required by NI 43-101, sections 3.2 and 3.3 and paragraphs 3.4 (a), (c) and (d) can be found in Technical
Reports, which may be found at www.sedar.com. Other important operating information can be found in the Companys AIF and Form 40-F.
Property/Project name |
|
Date of most recent |
LaRonde, Bousquet & Ellison, Quebec, Canada |
|
March 23, 2005 |
Canadian Malartic, Quebec, Canada |
|
June 16, 2014 |
Kittila, Kuotko and Kylmakangas, Finland |
|
March 4, 2010 |
Swanson, Quebec, Canada |
|
|
Meadowbank, Nunavut, Canada |
|
February 15, 2012 |
Goldex, Quebec, Canada |
|
October 14, 2012 |
Lapa, Quebec, Canada |
|
June 8, 2006 |
Meliadine, Nunavut, Canada |
|
February 11, 2015 |
Akasaba, Quebec, Canada |
|
|
Amaruq, Nunavut, Canada |
|
|
Hammond Reef, Ontario, Canada |
|
July 2, 2013 |
Upper Beaver (Kirkland Lake project), Ontario, Canada |
|
November 5, 2012 |
Pinos Altos and Creston Mascota, Mexico |
|
March 25, 2009 |
La India, Mexico |
|
August 31, 2012 |
AGNICO EAGLE MINES LIMITED
SUMMARY OF OPERATIONS KEY PERFORMANCE INDICATORS
(thousands of United States dollars, except where noted)
(Unaudited)
|
|
Three Months Ended |
|
Six Months Ended |
| ||||||||
|
|
June 30, |
|
June 30, |
| ||||||||
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
| ||||
Operating margin(i) by mine: |
|
|
|
|
|
|
|
|
| ||||
Northern Business |
|
|
|
|
|
|
|
|
| ||||
LaRonde mine |
|
$ |
54,985 |
|
$ |
32,799 |
|
$ |
103,039 |
|
$ |
62,813 |
|
Lapa mine |
|
14,437 |
|
11,351 |
|
25,243 |
|
26,038 |
| ||||
Goldex mine |
|
22,896 |
|
15,525 |
|
45,080 |
|
34,778 |
| ||||
Meadowbank mine |
|
34,733 |
|
49,600 |
|
68,062 |
|
96,177 |
| ||||
Canadian Malartic mine(ii) |
|
50,133 |
|
44,737 |
|
91,874 |
|
79,456 |
| ||||
Kittila mine |
|
22,079 |
|
16,145 |
|
46,165 |
|
43,560 |
| ||||
Southern Business |
|
|
|
|
|
|
|
|
| ||||
Pinos Altos mine |
|
48,392 |
|
44,538 |
|
84,212 |
|
79,190 |
| ||||
Creston Mascota deposit at Pinos Altos |
|
9,719 |
|
12,968 |
|
18,708 |
|
21,377 |
| ||||
La India mine |
|
24,818 |
|
18,834 |
|
46,367 |
|
39,424 |
| ||||
Total operating margin(i) |
|
282,192 |
|
246,497 |
|
528,750 |
|
482,813 |
| ||||
Amortization of property, plant and mine development |
|
154,658 |
|
157,615 |
|
300,289 |
|
293,512 |
| ||||
Exploration, corporate and other |
|
89,624 |
|
67,973 |
|
163,354 |
|
111,679 |
| ||||
Income before income and mining taxes |
|
37,910 |
|
20,909 |
|
65,107 |
|
77,622 |
| ||||
Income and mining taxes expense |
|
18,920 |
|
10,826 |
|
18,329 |
|
38,796 |
| ||||
Net income for the period |
|
$ |
18,990 |
|
$ |
10,083 |
|
$ |
46,778 |
|
$ |
38,826 |
|
Net income per share basic (US$) |
|
$ |
0.09 |
|
$ |
0.05 |
|
$ |
0.21 |
|
$ |
0.18 |
|
Net income per share diluted (US$) |
|
$ |
0.08 |
|
$ |
0.05 |
|
$ |
0.21 |
|
$ |
0.18 |
|
Cash flows: |
|
|
|
|
|
|
|
|
| ||||
Cash provided by operating activities |
|
$ |
229,456 |
|
$ |
188,349 |
|
$ |
375,160 |
|
$ |
331,804 |
|
Cash used in investing activities |
|
$ |
(122,651 |
) |
$ |
(104,476 |
) |
$ |
(230,246 |
) |
$ |
(158,368 |
) |
Cash provided by (used in) financing activities |
|
$ |
199,494 |
|
$ |
(64,514 |
) |
$ |
197,906 |
|
$ |
(187,696 |
) |
Realized prices (US$): |
|
|
|
|
|
|
|
|
| ||||
Gold (per ounce) |
|
$ |
1,268 |
|
$ |
1,196 |
|
$ |
1,230 |
|
$ |
1,199 |
|
Silver (per ounce) |
|
$ |
17.21 |
|
$ |
16.41 |
|
$ |
16.25 |
|
$ |
16.68 |
|
Zinc (per tonne) |
|
$ |
1,852 |
|
$ |
2,231 |
|
$ |
1,704 |
|
$ |
2,130 |
|
Copper (per tonne) |
|
$ |
4,714 |
|
$ |
6,274 |
|
$ |
4,506 |
|
$ |
5,656 |
|
Payable production(iii): |
|
|
|
|
|
|
|
|
| ||||
Gold (ounces): |
|
|
|
|
|
|
|
|
| ||||
Northern Business |
|
|
|
|
|
|
|
|
| ||||
LaRonde mine |
|
75,159 |
|
64,007 |
|
150,496 |
|
122,900 |
| ||||
Lapa mine |
|
21,914 |
|
19,450 |
|
43,623 |
|
45,370 |
| ||||
Goldex mine |
|
31,452 |
|
26,462 |
|
63,792 |
|
55,712 |
| ||||
Meadowbank mine |
|
72,402 |
|
91,276 |
|
144,713 |
|
179,799 |
| ||||
Canadian Malartic mine(ii) |
|
72,502 |
|
68,441 |
|
146,115 |
|
136,334 |
| ||||
Kittila mine |
|
46,209 |
|
41,986 |
|
94,336 |
|
86,640 |
| ||||
Southern Business |
|
|
|
|
|
|
|
|
| ||||
Pinos Altos mine |
|
49,458 |
|
50,647 |
|
97,575 |
|
100,753 |
| ||||
Creston Mascota deposit at Pinos Altos |
|
12,398 |
|
15,606 |
|
23,949 |
|
28,054 |
| ||||
La India mine |
|
27,438 |
|
25,803 |
|
55,669 |
|
52,326 |
| ||||
Total gold (ounces) |
|
408,932 |
|
403,678 |
|
820,268 |
|
807,888 |
| ||||
Silver (thousands of ounces): |
|
|
|
|
|
|
|
|
| ||||
Northern Business |
|
|
|
|
|
|
|
|
| ||||
LaRonde mine |
|
266 |
|
201 |
|
512 |
|
398 |
| ||||
Lapa mine |
|
1 |
|
1 |
|
4 |
|
1 |
| ||||
Goldex mine |
|
1 |
|
|
|
1 |
|
|
| ||||
Meadowbank mine |
|
66 |
|
57 |
|
109 |
|
153 |
| ||||
Canadian Malartic mine(ii) |
|
86 |
|
69 |
|
164 |
|
141 |
| ||||
Kittila mine |
|
2 |
|
2 |
|
5 |
|
5 |
| ||||
Southern Business |
|
|
|
|
|
|
|
|
| ||||
Pinos Altos mine |
|
633 |
|
576 |
|
1,220 |
|
1,139 |
| ||||
Creston Mascota deposit at Pinos Altos |
|
50 |
|
37 |
|
98 |
|
69 |
| ||||
La India mine |
|
105 |
|
72 |
|
222 |
|
141 |
| ||||
Total silver (thousands of ounces) |
|
1,210 |
|
1,015 |
|
2,335 |
|
2,047 |
| ||||
Zinc (tonnes) |
|
1,318 |
|
827 |
|
1,932 |
|
1,763 |
| ||||
Copper (tonnes) |
|
1,141 |
|
1,133 |
|
2,295 |
|
2,300 |
|
Payable metal sold: |
|
|
|
|
|
|
|
|
| ||||
Gold (ounces): |
|
|
|
|
|
|
|
|
| ||||
Northern Business |
|
|
|
|
|
|
|
|
| ||||
LaRonde mine |
|
72,005 |
|
59,376 |
|
147,262 |
|
120,319 |
| ||||
Lapa mine |
|
22,911 |
|
20,771 |
|
42,747 |
|
44,268 |
| ||||
Goldex mine |
|
30,605 |
|
27,306 |
|
62,560 |
|
55,213 |
| ||||
Meadowbank mine |
|
70,021 |
|
96,870 |
|
141,610 |
|
181,649 |
| ||||
Canadian Malartic mine(ii)(iv) |
|
72,259 |
|
67,522 |
|
137,344 |
|
126,783 |
| ||||
Kittila mine |
|
44,580 |
|
39,385 |
|
95,305 |
|
88,386 |
| ||||
Southern Business |
|
|
|
|
|
|
|
|
| ||||
Pinos Altos mine |
|
52,287 |
|
54,402 |
|
95,511 |
|
95,835 |
| ||||
Creston Mascota deposit at Pinos Altos |
|
12,117 |
|
16,537 |
|
23,962 |
|
27,936 |
| ||||
La India mine |
|
27,748 |
|
23,803 |
|
53,913 |
|
50,701 |
| ||||
Total gold (ounces) |
|
404,533 |
|
405,972 |
|
800,214 |
|
791,090 |
| ||||
Silver (thousands of ounces): |
|
|
|
|
|
|
|
|
| ||||
Northern Business |
|
|
|
|
|
|
|
|
| ||||
LaRonde mine |
|
267 |
|
225 |
|
499 |
|
429 |
| ||||
Lapa mine |
|
|
|
|
|
1 |
|
|
| ||||
Goldex mine |
|
1 |
|
|
|
1 |
|
|
| ||||
Meadowbank mine |
|
66 |
|
59 |
|
109 |
|
157 |
| ||||
Canadian Malartic mine(ii)(iv) |
|
76 |
|
80 |
|
149 |
|
134 |
| ||||
Kittila mine |
|
2 |
|
2 |
|
5 |
|
5 |
| ||||
Southern Business |
|
|
|
|
|
|
|
|
| ||||
Pinos Altos mine |
|
647 |
|
616 |
|
1,177 |
|
1,062 |
| ||||
Creston Mascota deposit at Pinos Altos |
|
49 |
|
48 |
|
96 |
|
68 |
| ||||
La India mine |
|
123 |
|
76 |
|
210 |
|
139 |
| ||||
Total silver (thousands of ounces): |
|
1,231 |
|
1,106 |
|
2,247 |
|
1,994 |
| ||||
Zinc (tonnes) |
|
673 |
|
733 |
|
1,278 |
|
1,997 |
| ||||
Copper (tonnes) |
|
1,164 |
|
1,131 |
|
2,320 |
|
2,291 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Total cash costs per ounce of gold produced co-product basis (US$)(v): |
|
|
|
|
|
|
|
|
| ||||
Northern Business |
|
|
|
|
|
|
|
|
| ||||
LaRonde mine |
|
$ |
707 |
|
$ |
811 |
|
$ |
689 |
|
$ |
850 |
|
Lapa mine |
|
658 |
|
679 |
|
663 |
|
616 |
| ||||
Goldex mine |
|
513 |
|
633 |
|
510 |
|
585 |
| ||||
Meadowbank mine |
|
804 |
|
699 |
|
801 |
|
686 |
| ||||
Canadian Malartic mine(ii) |
|
641 |
|
626 |
|
606 |
|
638 |
| ||||
Kittila mine |
|
757 |
|
777 |
|
742 |
|
728 |
| ||||
Southern Business |
|
|
|
|
|
|
|
|
| ||||
Pinos Altos mine |
|
583 |
|
570 |
|
557 |
|
559 |
| ||||
Creston Mascota deposit at Pinos Altos |
|
542 |
|
441 |
|
535 |
|
462 |
| ||||
La India mine |
|
451 |
|
456 |
|
437 |
|
458 |
| ||||
Weighted average total cash costs per ounce of gold produced |
|
$ |
663 |
|
$ |
666 |
|
$ |
647 |
|
$ |
658 |
|
|
|
|
|
|
|
|
|
|
| ||||
Total cash costs per ounce of gold produced by-product basis (US$)(v): |
|
|
|
|
|
|
|
|
| ||||
Northern Business |
|
|
|
|
|
|
|
|
| ||||
LaRonde mine |
|
$ |
543 |
|
$ |
613 |
|
$ |
536 |
|
$ |
656 |
|
Lapa mine |
|
658 |
|
678 |
|
663 |
|
615 |
| ||||
Goldex mine |
|
513 |
|
633 |
|
509 |
|
585 |
| ||||
Meadowbank mine |
|
789 |
|
688 |
|
789 |
|
672 |
| ||||
Canadian Malartic mine(ii) |
|
621 |
|
609 |
|
589 |
|
621 |
| ||||
Kittila mine |
|
756 |
|
776 |
|
741 |
|
727 |
| ||||
Southern Business |
|
|
|
|
|
|
|
|
| ||||
Pinos Altos mine |
|
348 |
|
384 |
|
346 |
|
371 |
| ||||
Creston Mascota deposit at Pinos Altos |
|
469 |
|
402 |
|
465 |
|
421 |
| ||||
La India mine |
|
381 |
|
410 |
|
371 |
|
414 |
| ||||
Weighted average total cash costs per ounce of gold produced |
|
$ |
592 |
|
$ |
601 |
|
$ |
582 |
|
$ |
595 |
|
Notes:
(i) Operating margin is calculated as revenues from mining operations less production costs.
(ii) On June 16, 2014, Agnico Eagle and Yamana jointly acquired 100.0% of Osisko by way of a statutory plan of arrangement (the Arrangement). As a result of the Arrangement, Agnico Eagle and Yamana each indirectly own 50.0% of CMC and the Partnership, which now holds the Canadian Malartic mine. The information set out in this table reflects the Companys 50.0% interest in the Canadian Malartic mine.
(iii) Payable production (a non-GAAP non-financial performance measure) is the quantity of mineral produced during a period contained in products that are or will be sold by the Company, whether such products are sold during the period or held as inventories at the end of the period.
(iv) The Canadian Malartic mines payable metal sold excludes the 5.0% net smelter royalty transferred to Osisko Gold Royalties Ltd., pursuant to the Arrangement.
(v) Total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. Total cash costs per ounce of gold produced is reported on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues). Total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the interim condensed consolidated statements of income for by-product metal revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. The calculation of total cash costs per ounce of gold produced on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges associated with the production and sale of by-product metals. The Company believes that these generally accepted industry measures provide a realistic indication of operating performance and provide useful comparison points between periods. Total cash costs per ounce of gold produced is intended to provide information about the cash generating capabilities of the Companys mining operations. Management also uses these measures to monitor the performance of the Companys mining operations. As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce of gold produced on a by-product basis measure allows management to assess a mines cash generating capabilities at various gold prices. Management is aware that these per ounce measures of performance can be affected by fluctuations in exchange rates and, in the case of total cash costs of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne as well as other data prepared in accordance with IFRS. Management also performs sensitivity analyses in order to quantify the effects of fluctuating metal prices and exchange rates.
AGNICO EAGLE MINES LIMITED
CONSOLIDATED BALANCE SHEETS
(thousands of United States dollars, except share amounts, IFRS basis)
(Unaudited)
|
|
As at |
|
As at |
| ||
|
|
2016 |
|
2015 |
| ||
|
|
|
|
|
| ||
ASSETS |
|
|
|
|
| ||
Current assets: |
|
|
|
|
| ||
Cash and cash equivalents |
|
$ |
467,902 |
|
$ |
124,150 |
|
Short-term investments |
|
5,749 |
|
7,444 |
| ||
Restricted cash |
|
676 |
|
685 |
| ||
Trade receivables |
|
5,443 |
|
7,714 |
| ||
Inventories |
|
438,726 |
|
461,976 |
| ||
Income taxes recoverable |
|
8,887 |
|
817 |
| ||
Available-for-sale securities |
|
85,581 |
|
31,863 |
| ||
Fair value of derivative financial instruments |
|
2,454 |
|
87 |
| ||
Other current assets |
|
181,342 |
|
194,689 |
| ||
Total current assets |
|
1,196,760 |
|
829,425 |
| ||
Non-current assets: |
|
|
|
|
| ||
Restricted cash |
|
789 |
|
741 |
| ||
Goodwill |
|
696,809 |
|
696,809 |
| ||
Property, plant and mine development |
|
5,063,100 |
|
5,088,967 |
| ||
Other assets |
|
66,737 |
|
67,238 |
| ||
Total assets |
|
$ |
7,024,195 |
|
$ |
6,683,180 |
|
LIABILITIES AND EQUITY |
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
| ||
Accounts payable and accrued liabilities |
|
$ |
239,778 |
|
$ |
243,786 |
|
Reclamation provision |
|
10,347 |
|
6,245 |
| ||
Interest payable |
|
13,898 |
|
14,526 |
| ||
Income taxes payable |
|
13,113 |
|
14,852 |
| ||
Finance lease obligations |
|
7,174 |
|
9,589 |
| ||
Current portion of long-term debt |
|
130,374 |
|
14,451 |
| ||
Fair value of derivative financial instruments |
|
719 |
|
8,073 |
| ||
Total current liabilities |
|
415,403 |
|
311,522 |
| ||
Non-current liabilities: |
|
|
|
|
| ||
Long-term debt |
|
1,072,754 |
|
1,118,187 |
| ||
Reclamation provision |
|
326,628 |
|
276,299 |
| ||
Deferred income and mining tax liabilities |
|
797,319 |
|
802,114 |
| ||
Other liabilities |
|
32,844 |
|
34,038 |
| ||
Total liabilities |
|
2,644,948 |
|
2,542,160 |
| ||
EQUITY |
|
|
|
|
| ||
Common shares: |
|
|
|
|
| ||
Outstanding - 224,188,926 common shares issued, less 713,429 shares held in trust |
|
4,926,048 |
|
4,707,940 |
| ||
Stock options |
|
181,766 |
|
216,232 |
| ||
Contributed surplus |
|
37,254 |
|
37,254 |
| ||
Deficit |
|
(812,421 |
) |
(823,734 |
) | ||
Accumulated other comprehensive income |
|
46,600 |
|
3,328 |
| ||
Total equity |
|
4,379,247 |
|
4,141,020 |
| ||
Total liabilities and equity |
|
$ |
7,024,195 |
|
$ |
6,683,180 |
|
AGNICO EAGLE MINES LIMITED
CONSOLIDATED STATEMENTS OF INCOME
(thousands of United States dollars, except per share amounts, IFRS basis)
(Unaudited)
|
|
Three Months Ended |
|
Six Months Ended |
| ||||||||
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
REVENUES |
|
|
|
|
|
|
|
|
| ||||
Revenues from mining operations |
|
$ |
537,628 |
|
$ |
510,109 |
|
$ |
1,028,159 |
|
$ |
993,705 |
|
|
|
|
|
|
|
|
|
|
| ||||
COSTS, EXPENSES AND OTHER INCOME |
|
|
|
|
|
|
|
|
| ||||
Production (i) |
|
255,436 |
|
263,612 |
|
499,409 |
|
510,892 |
| ||||
Exploration and corporate development |
|
38,100 |
|
30,616 |
|
66,485 |
|
47,267 |
| ||||
Amortization of property, plant and mine development |
|
154,658 |
|
157,615 |
|
300,289 |
|
293,512 |
| ||||
General and administrative |
|
24,337 |
|
23,572 |
|
49,160 |
|
48,793 |
| ||||
Impairment loss on available-for-sale securities |
|
|
|
345 |
|
|
|
1,030 |
| ||||
Finance costs |
|
17,391 |
|
17,955 |
|
35,192 |
|
37,667 |
| ||||
Gain on derivative financial instruments |
|
(670 |
) |
(8,836 |
) |
(10,291 |
) |
(260 |
) | ||||
Gain on sale of available-for-sale securities |
|
(1,799 |
) |
(2,675 |
) |
(1,918 |
) |
(23,724 |
) | ||||
Environmental remediation |
|
840 |
|
(141 |
) |
5,933 |
|
288 |
| ||||
Foreign currency translation loss (gain) |
|
5,517 |
|
4,779 |
|
12,287 |
|
(6,911 |
) | ||||
Other expenses |
|
5,908 |
|
2,358 |
|
6,506 |
|
7,529 |
| ||||
Income before income and mining taxes |
|
37,910 |
|
20,909 |
|
65,107 |
|
77,622 |
| ||||
Income and mining taxes expense |
|
18,920 |
|
10,826 |
|
18,329 |
|
38,796 |
| ||||
Net income for the period |
|
$ |
18,990 |
|
$ |
10,083 |
|
$ |
46,778 |
|
$ |
38,826 |
|
|
|
|
|
|
|
|
|
|
| ||||
Net income per share - basic |
|
$ |
0.09 |
|
$ |
0.05 |
|
$ |
0.21 |
|
$ |
0.18 |
|
Net income per share - diluted |
|
$ |
0.08 |
|
$ |
0.05 |
|
$ |
0.21 |
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
| ||||
Weighted average number of common shares outstanding (in thousands): |
|
|
|
|
|
|
|
|
| ||||
Basic |
|
222,165 |
|
215,426 |
|
220,925 |
|
214,996 |
| ||||
Diluted |
|
225,169 |
|
216,722 |
|
223,568 |
|
216,186 |
|
Note:
(i) Exclusive of amortization, which is shown separately.
AGNICO EAGLE MINES LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(thousands of United States dollars, IFRS basis)
(Unaudited)
|
|
Three Months Ended |
|
Six Months Ended |
| ||||||||
|
|
2016 |
|
2015 |
|
2016 |
|
2015 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
| ||||
Net income for the period |
|
$ |
18,990 |
|
$ |
10,083 |
|
$ |
46,778 |
|
$ |
38,826 |
|
Add (deduct) items not affecting cash: |
|
|
|
|
|
|
|
|
| ||||
Amortization of property, plant and mine development |
|
154,658 |
|
157,615 |
|
300,289 |
|
293,512 |
| ||||
Deferred income and mining taxes |
|
3,665 |
|
(13,680 |
) |
(13,321 |
) |
5,620 |
| ||||
Gain on sale of available-for-sale securities |
|
(1,799 |
) |
(2,675 |
) |
(1,918 |
) |
(23,724 |
) | ||||
Stock-based compensation |
|
7,860 |
|
8,131 |
|
17,646 |
|
19,849 |
| ||||
Impairment loss on available-for-sale securities |
|
|
|
345 |
|
|
|
1,030 |
| ||||
Foreign currency translation loss (gain) |
|
5,517 |
|
4,779 |
|
12,287 |
|
(6,911 |
) | ||||
Other |
|
4,227 |
|
(11,403 |
) |
68 |
|
2,133 |
| ||||
Adjustment for settlement of reclamation provision |
|
(402 |
) |
(407 |
) |
(1,634 |
) |
(709 |
) | ||||
Changes in non-cash working capital balances: |
|
|
|
|
|
|
|
|
| ||||
Trade receivables |
|
198 |
|
22 |
|
2,271 |
|
(1,462 |
) | ||||
Income taxes |
|
3,915 |
|
13,043 |
|
(9,809 |
) |
(11,020 |
) | ||||
Inventories |
|
6,894 |
|
11,623 |
|
31,505 |
|
22,035 |
| ||||
Other current assets |
|
6,124 |
|
(18,186 |
) |
10,144 |
|
(23,023 |
) | ||||
Accounts payable and accrued liabilities |
|
28,539 |
|
36,435 |
|
(17,797 |
) |
15,853 |
| ||||
Interest payable |
|
(8,930 |
) |
(7,376 |
) |
(1,349 |
) |
(205 |
) | ||||
Cash provided by operating activities |
|
229,456 |
|
188,349 |
|
375,160 |
|
331,804 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
INVESTING ACTIVITIES |
|
|
|
|
|
|
|
|
| ||||
Additions to property, plant and mine development |
|
(123,263 |
) |
(111,511 |
) |
(223,957 |
) |
(194,398 |
) | ||||
Acquisitions, net of cash and cash equivalents acquired |
|
(5,499 |
) |
(5,983 |
) |
(5,499 |
) |
(12,983 |
) | ||||
Net (purchases) sales of short-term investments |
|
(540 |
) |
(947 |
) |
1,695 |
|
(1,048 |
) | ||||
Net proceeds from sale of available-for-sale securities and other investments |
|
6,979 |
|
18,643 |
|
7,278 |
|
56,311 |
| ||||
Purchase of available-for-sale securities and other investments |
|
(327 |
) |
(14,158 |
) |
(9,772 |
) |
(19,433 |
) | ||||
(Increase) decrease in restricted cash |
|
(1 |
) |
9,480 |
|
9 |
|
13,183 |
| ||||
Cash used in investing activities |
|
(122,651 |
) |
(104,476 |
) |
(230,246 |
) |
(158,368 |
) | ||||
|
|
|
|
|
|
|
|
|
| ||||
FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
| ||||
Dividends paid |
|
(15,352 |
) |
(14,423 |
) |
(30,198 |
) |
(29,198 |
) | ||||
Repayment of finance lease obligations |
|
(2,570 |
) |
(5,039 |
) |
(5,084 |
) |
(13,444 |
) | ||||
Proceeds from long-term debt |
|
50,000 |
|
75,000 |
|
125,000 |
|
75,000 |
| ||||
Repayment of long-term debt |
|
(275,374 |
) |
(126,086 |
) |
(405,374 |
) |
(226,086 |
) | ||||
Notes issuance |
|
350,000 |
|
|
|
350,000 |
|
|
| ||||
Long-term debt financing |
|
(2,169 |
) |
|
|
(2,169 |
) |
|
| ||||
Repurchase of common shares for stock-based compensation plans |
|
(632 |
) |
(1,257 |
) |
(15,527 |
) |
(11,899 |
) | ||||
Proceeds on exercise of stock options |
|
93,003 |
|
4,735 |
|
157,427 |
|
12,958 |
| ||||
Common shares issued |
|
2,588 |
|
2,556 |
|
23,831 |
|
4,973 |
| ||||
Cash provided by (used in) financing activities |
|
199,494 |
|
(64,514 |
) |
197,906 |
|
(187,696 |
) | ||||
Effect of exchange rate changes on cash and cash equivalents |
|
(1,143 |
) |
966 |
|
932 |
|
(4,946 |
) | ||||
Net increase (decrease) in cash and cash equivalents during the period |
|
305,156 |
|
20,325 |
|
343,752 |
|
(19,206 |
) | ||||
Cash and cash equivalents, beginning of period |
|
162,746 |
|
138,006 |
|
124,150 |
|
177,537 |
| ||||
Cash and cash equivalents, end of period |
|
$ |
467,902 |
|
$ |
158,331 |
|
$ |
467,902 |
|
$ |
158,331 |
|
|
|
|
|
|
|
|
|
|
| ||||
SUPPLEMENTAL CASH FLOW INFORMATION |
|
|
|
|
|
|
|
|
| ||||
Interest paid |
|
$ |
24,540 |
|
$ |
24,817 |
|
$ |
33,420 |
|
$ |
35,898 |
|
|
|
|
|
|
|
|
|
|
| ||||
Income and mining taxes paid |
|
$ |
13,448 |
|
$ |
151 |
|
$ |
66,765 |
|
$ |
38,098 |
|
AGNICO EAGLE MINES LIMITED
RECONCILIATION OF NON-GAAP FINANCIAL PERFORMANCE MEASURES
(thousands of United States dollars, except where noted)
(Unaudited)
Total Production Costs by Mine
|
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
| ||||||||
(thousands of United States dollars) |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| ||||||||
LaRonde mine |
|
$ |
40,500 |
|
$ |
45,133 |
|
$ |
86,354 |
|
$ |
90,999 |
| ||||
Lapa mine |
|
14,791 |
|
13,656 |
|
27,575 |
|
27,641 |
| ||||||||
Goldex mine |
|
15,937 |
|
16,913 |
|
31,669 |
|
31,780 |
| ||||||||
Meadowbank mine |
|
54,761 |
|
66,888 |
|
106,971 |
|
123,983 |
| ||||||||
Canadian Malartic mine(i) |
|
47,974 |
|
42,185 |
|
88,788 |
|
83,371 |
| ||||||||
Kittila mine |
|
34,055 |
|
30,777 |
|
70,082 |
|
62,776 |
| ||||||||
Pinos Altos mine |
|
28,794 |
|
29,768 |
|
52,650 |
|
53,979 |
| ||||||||
Creston Mascota deposit at Pinos Altos |
|
6,623 |
|
7,501 |
|
12,404 |
|
13,107 |
| ||||||||
La India mine |
|
12,001 |
|
10,791 |
|
22,916 |
|
23,256 |
| ||||||||
Production costs per the interim condensed consolidated statements of income |
|
$ |
255,436 |
|
$ |
263,612 |
|
$ |
499,409 |
|
$ |
510,892 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||||||
Reconciliation of Production Costs to Total Cash Costs per Ounce of Gold Produced(ii) by Mine and Reconciliation of Production Costs to Minesite Costs per Tonne(iii) by Mine
LaRonde Mine - Total Cash Costs per Ounce of Gold Produced(ii) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
| ||||||||
(thousands of United States dollars, except as noted) |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| ||||||||
Production costs |
|
$ |
40,500 |
|
$ |
45,133 |
|
$ |
86,354 |
|
$ |
90,999 |
| ||||
Adjustments: |
|
|
|
|
|
|
|
|
| ||||||||
Inventory and other adjustments(iv) |
|
12,658 |
|
6,786 |
|
17,277 |
|
13,464 |
| ||||||||
Cash operating costs (co-product basis) |
|
$ |
53,158 |
|
$ |
51,919 |
|
$ |
103,631 |
|
$ |
104,463 |
| ||||
By-product metal revenues |
|
(12,369 |
) |
(12,701 |
) |
(23,015 |
) |
(23,835 |
) | ||||||||
Cash operating costs (by-product basis) |
|
$ |
40,789 |
|
$ |
39,218 |
|
$ |
80,616 |
|
$ |
80,628 |
| ||||
Gold production (ounces) |
|
75,159 |
|
64,007 |
|
150,496 |
|
122,900 |
| ||||||||
Total cash costs per ounce of gold produced ($ per ounce)(ii): |
|
|
|
|
|
|
|
|
| ||||||||
Co-product basis |
|
$ |
707 |
|
$ |
811 |
|
$ |
689 |
|
$ |
850 |
| ||||
By-product basis |
|
$ |
543 |
|
$ |
613 |
|
$ |
536 |
|
$ |
656 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||||||
LaRonde Mine - Minesite Costs per Tonne(iii) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
| ||||||||
(thousands of United States dollars, except as noted) |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| ||||||||
Production costs |
|
$ |
40,500 |
|
$ |
45,133 |
|
$ |
86,354 |
|
$ |
90,999 |
| ||||
Inventory and other adjustments(v) |
|
6,136 |
|
854 |
|
3,779 |
|
1,719 |
| ||||||||
Minesite operating costs |
|
$ |
46,636 |
|
$ |
45,987 |
|
$ |
90,133 |
|
$ |
92,718 |
| ||||
Minesite operating costs (thousands of C$) |
|
C$ |
60,288 |
|
C$ |
56,474 |
|
C$ |
119,516 |
|
C$ |
114,263 |
| ||||
Tonnes of ore milled (thousands of tonnes) |
|
569 |
|
568 |
|
1,146 |
|
1,126 |
| ||||||||
Minesite costs per tonne (C$)(iii) |
|
C$ |
106 |
|
C$ |
99 |
|
C$ |
104 |
|
C$ |
101 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||||||
Lapa Mine - Total Cash Costs per Ounce of Gold Produced(ii) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
| ||||||||
(thousands of United States dollars, except as noted) |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| ||||||||
Production costs |
|
$ |
14,791 |
|
$ |
13,656 |
|
$ |
27,575 |
|
$ |
27,641 |
| ||||
Adjustments: |
|
|
|
|
|
|
|
|
| ||||||||
Inventory and other adjustments(iv) |
|
(375 |
) |
(459 |
) |
1,352 |
|
290 |
| ||||||||
Cash operating costs (co-product basis) |
|
$ |
14,416 |
|
$ |
13,197 |
|
$ |
28,927 |
|
$ |
27,931 |
| ||||
By-product metal revenues |
|
(4 |
) |
(1 |
) |
(17 |
) |
(18 |
) | ||||||||
Cash operating costs (by-product basis) |
|
$ |
14,412 |
|
$ |
13,196 |
|
$ |
28,910 |
|
$ |
27,913 |
| ||||
Gold production (ounces) |
|
21,914 |
|
19,450 |
|
43,623 |
|
45,370 |
| ||||||||
Total cash costs per ounce of gold produced ($ per ounce)(ii): |
|
|
|
|
|
|
|
|
| ||||||||
Co-product basis |
|
$ |
658 |
|
$ |
679 |
|
$ |
663 |
|
$ |
616 |
| ||||
By-product basis |
|
$ |
658 |
|
$ |
678 |
|
$ |
663 |
|
$ |
615 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||||||
Lapa Mine - Minesite Costs per Tonne(iii) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
| ||||||||
(thousands of United States dollars, except as noted) |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| ||||||||
Production costs |
|
$ |
14,791 |
|
$ |
13,656 |
|
$ |
27,575 |
|
$ |
27,641 |
| ||||
Inventory and other adjustments(v) |
|
(385 |
) |
(658 |
) |
1,174 |
|
(109 |
) | ||||||||
Minesite operating costs |
|
$ |
14,406 |
|
$ |
12,998 |
|
$ |
28,749 |
|
$ |
27,532 |
| ||||
Minesite operating costs (thousands of C$) |
|
C$ |
18,627 |
|
C$ |
15,919 |
|
C$ |
38,108 |
|
C$ |
33,996 |
| ||||
Tonnes of ore milled (thousands of tonnes) |
|
161 |
|
126 |
|
322 |
|
278 |
| ||||||||
Minesite costs per tonne (C$)(iii) |
|
C$ |
116 |
|
C$ |
126 |
|
C$ |
118 |
|
C$ |
122 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||||||
Goldex Mine - Total Cash Costs per Ounce of Gold Produced(ii) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
| ||||||||
(thousands of United States dollars, except as noted) |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| ||||||||
Production costs |
|
$ |
15,937 |
|
$ |
16,913 |
|
$ |
31,669 |
|
$ |
31,780 |
| ||||
Adjustments: |
|
|
|
|
|
|
|
|
| ||||||||
Inventory and other adjustments(iv) |
|
211 |
|
(163 |
) |
835 |
|
810 |
| ||||||||
Cash operating costs (co-product basis) |
|
$ |
16,148 |
|
$ |
16,750 |
|
$ |
32,504 |
|
$ |
32,590 |
| ||||
By-product metal revenues |
|
(2 |
) |
(5 |
) |
(8 |
) |
(13 |
) | ||||||||
Cash operating costs (by-product basis) |
|
$ |
16,146 |
|
$ |
16,745 |
|
$ |
32,496 |
|
$ |
32,577 |
| ||||
Gold production (ounces) |
|
31,452 |
|
26,462 |
|
63,792 |
|
55,712 |
| ||||||||
Total cash costs per ounce of gold produced ($ per ounce)(ii): |
|
|
|
|
|
|
|
|
| ||||||||
Co-product basis |
|
$ |
513 |
|
$ |
633 |
|
$ |
510 |
|
$ |
585 |
| ||||
By-product basis |
|
$ |
513 |
|
$ |
633 |
|
$ |
509 |
|
$ |
585 |
| ||||
Goldex Mine - Minesite Costs per Tonne(iii) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
| |||||||||
(thousands of United States dollars, except as noted) |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| |||||||||
Production costs |
|
$ |
15,937 |
|
$ |
16,913 |
|
$ |
31,669 |
|
$ |
31,780 |
| |||||
Inventory and other adjustments(v) |
|
281 |
|
(328 |
) |
632 |
|
432 |
| |||||||||
Minesite operating costs |
|
$ |
16,218 |
|
$ |
16,585 |
|
$ |
32,301 |
|
$ |
32,212 |
| |||||
Minesite operating costs (thousands of C$) |
|
C$ |
21,108 |
|
C$ |
20,318 |
|
C$ |
42,814 |
|
C$ |
39,635 |
| |||||
Tonnes of ore milled (thousands of tonnes) |
|
658 |
|
604 |
|
1,294 |
|
1,171 |
| |||||||||
Minesite costs per tonne (C$)(iii) |
|
C$ |
32 |
|
C$ |
34 |
|
C$ |
33 |
|
C$ |
34 |
| |||||
|
|
|
|
|
|
|
|
|
| |||||||||
Meadowbank Mine - Total Cash Costs per Ounce of Gold Produced(ii) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
| |||||||||
(thousands of United States dollars, except as noted) |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| |||||||||
Production costs |
|
$ |
54,761 |
|
$ |
66,888 |
|
$ |
106,971 |
|
$ |
123,983 |
| |||||
Adjustments: |
|
|
|
|
|
|
|
|
| |||||||||
Inventory and other adjustments(iv) |
|
3,474 |
|
(3,094 |
) |
8,920 |
|
(554 |
) | |||||||||
Cash operating costs (co-product basis) |
|
$ |
58,235 |
|
$ |
63,794 |
|
$ |
115,891 |
|
$ |
123,429 |
| |||||
By-product metal revenues |
|
(1,115 |
) |
(978 |
) |
(1,774 |
) |
(2,667 |
) | |||||||||
Cash operating costs (by-product basis) |
|
$ |
57,120 |
|
$ |
62,816 |
|
$ |
114,117 |
|
$ |
120,762 |
| |||||
Gold production (ounces) |
|
72,402 |
|
91,276 |
|
144,713 |
|
179,799 |
| |||||||||
Total cash costs per ounce of gold produced ($ per ounce)(ii): |
|
|
|
|
|
|
|
|
| |||||||||
Co-product basis |
|
$ |
804 |
|
$ |
699 |
|
$ |
801 |
|
$ |
686 |
| |||||
By-product basis |
|
$ |
789 |
|
$ |
688 |
|
$ |
789 |
|
$ |
672 |
| |||||
|
|
|
|
|
|
|
|
|
| |||||||||
Meadowbank Mine - Minesite Costs per Tonne(iii) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
| |||||||||
(thousands of United States dollars, except as noted) |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| |||||||||
Production costs |
|
$ |
54,761 |
|
$ |
66,888 |
|
$ |
106,971 |
|
$ |
123,983 |
| |||||
Inventory and other adjustments(v) |
|
1,837 |
|
(3,768 |
) |
4,595 |
|
(2,074 |
) | |||||||||
Minesite operating costs |
|
$ |
56,598 |
|
$ |
63,120 |
|
$ |
111,566 |
|
$ |
121,909 |
| |||||
Minesite operating costs (thousands of C$) |
|
C$ |
72,454 |
|
C$ |
75,290 |
|
C$ |
145,512 |
|
C$ |
145,917 |
| |||||
Tonnes of ore milled (thousands of tonnes) |
|
993 |
|
1,019 |
|
1,939 |
|
2,010 |
| |||||||||
Minesite costs per tonne (C$)(iii) |
|
C$ |
73 |
|
C$ |
74 |
|
C$ |
75 |
|
C$ |
73 |
| |||||
|
|
|
|
|
|
|
|
|
| |||||||||
Canadian Malartic Mine - Total Cash Costs per Ounce of Gold Produced(i)(ii) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
| |||||||||
(thousands of United States dollars, except as noted) |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| |||||||||
Production costs |
|
$ |
47,974 |
|
$ |
42,185 |
|
$ |
88,788 |
|
$ |
83,371 |
| |||||
Adjustments: |
|
|
|
|
|
|
|
|
| |||||||||
Inventory and other adjustments(iv) |
|
(1,502 |
) |
688 |
|
(193 |
) |
3,554 |
| |||||||||
Cash operating costs (co-product basis) |
|
$ |
46,472 |
|
$ |
42,873 |
|
$ |
88,595 |
|
$ |
86,925 |
| |||||
By-product metal revenues |
|
(1,442 |
) |
(1,177 |
) |
(2,537 |
) |
(2,319 |
) | |||||||||
Cash operating costs (by-product basis) |
|
$ |
45,030 |
|
$ |
41,696 |
|
$ |
86,058 |
|
$ |
84,606 |
| |||||
Gold production (ounces) |
|
72,502 |
|
68,441 |
|
146,115 |
|
136,334 |
| |||||||||
Total cash costs per ounce of gold produced ($ perounce)(ii): |
|
|
|
|
|
|
|
|
| |||||||||
Co-product basis |
|
$ |
641 |
|
$ |
626 |
|
$ |
606 |
|
$ |
638 |
| |||||
By-product basis |
|
$ |
621 |
|
$ |
609 |
|
$ |
589 |
|
$ |
621 |
| |||||
|
|
|
|
|
|
|
|
|
| |||||||||
Canadian Malartic Mine - Minesite Costs per Tonne(i)(i ii) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
| |||||||||
(thousands of United States dollars, except as noted) |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| |||||||||
Production costs |
|
$ |
47,974 |
|
$ |
42,185 |
|
$ |
88,788 |
|
$ |
83,371 |
| |||||
Inventory and other adjustments(v) |
|
(1,763 |
) |
48 |
|
(687 |
) |
1,733 |
| |||||||||
Minesite operating costs |
|
$ |
46,211 |
|
$ |
42,233 |
|
$ |
88,101 |
|
$ |
85,104 |
| |||||
Minesite operating costs (thousands of C$) |
|
C$ |
59,541 |
|
C$ |
51,937 |
|
C$ |
117,086 |
|
C$ |
105,126 |
| |||||
Tonnes of ore milled (thousands of tonnes) |
|
2,525 |
|
2,307 |
|
4,905 |
|
4,647 |
| |||||||||
Minesite costs per tonne (C$)(iii) |
|
C$ |
24 |
|
C$ |
23 |
|
C$ |
24 |
|
C$ |
23 |
| |||||
|
|
|
|
|
|
|
|
|
| |||||||||
Kittila Mine - Total Cash Costs per Ounce of Gold Produced(ii) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
| |||||||||
(thousands of United States dollars, except as noted) |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| |||||||||
Production costs |
|
$ |
34,055 |
|
$ |
30,777 |
|
$ |
70,082 |
|
$ |
62,776 |
| |||||
Adjustments: |
|
|
|
|
|
|
|
|
| |||||||||
Inventory and other adjustments(iv) |
|
922 |
|
1,855 |
|
(102 |
) |
312 |
| |||||||||
Cash operating costs (co-product basis) |
|
$ |
34,977 |
|
$ |
32,632 |
|
$ |
69,980 |
|
$ |
63,088 |
| |||||
By-product metal revenues |
|
(32 |
) |
(38 |
) |
(79 |
) |
(73 |
) | |||||||||
Cash operating costs (by-product basis) |
|
$ |
34,945 |
|
$ |
32,594 |
|
$ |
69,901 |
|
$ |
63,015 |
| |||||
Gold production (ounces) |
|
46,209 |
|
41,986 |
|
94,336 |
|
86,640 |
| |||||||||
Total cash costs per ounce of gold produced ($ per ounce)(ii): |
|
|
|
|
|
|
|
|
| |||||||||
Co-product basis |
|
$ |
757 |
|
$ |
777 |
|
$ |
742 |
|
$ |
728 |
| |||||
By-product basis |
|
$ |
756 |
|
$ |
776 |
|
$ |
741 |
|
$ |
727 |
| |||||
|
|
|
|
|
|
|
|
|
| |||||||||
Kittila Mine - Minesite Costs per Tonne(iii) | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
| |||||||||
(thousands of United States dollars, except as noted) |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| |||||||||
Production costs |
|
$ |
34,055 |
|
$ |
30,777 |
|
$ |
70,082 |
|
$ |
62,776 |
| |||||
Inventory and other adjustments(v) |
|
816 |
|
1,858 |
|
(381 |
) |
199 |
| |||||||||
Minesite operating costs |
|
$ |
34,871 |
|
$ |
32,635 |
|
$ |
69,701 |
|
$ |
62,975 |
| |||||
Minesite operating costs (thousands of ) |
|
|
31,381 |
|
|
28,296 |
|
|
62,490 |
|
|
55,010 |
| |||||
Tonnes of ore milled (thousands of tonnes) |
|
389 |
|
379 |
|
821 |
|
725 |
| |||||||||
Minesite costs per tonne ()(iii) |
|
|
81 |
|
|
75 |
|
|
76 |
|
|
76 |
| |||||
Pinos Altos Mine - Total Cash Costs per Ounce of Gold Produced(ii) | |||||||||||||
|
|
|
|
|
|
|
|
|
| ||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
| ||||
(thousands of United States dollars, except as noted) |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| ||||
Production costs |
|
$ |
28,794 |
|
$ |
29,768 |
|
$ |
52,650 |
|
$ |
53,979 |
|
Adjustments: |
|
|
|
|
|
|
|
|
| ||||
Inventory and other adjustments(iv) |
|
16 |
|
(892 |
) |
1,651 |
|
2,353 |
| ||||
Cash operating costs (co-product basis) |
|
$ |
28,810 |
|
$ |
28,876 |
|
$ |
54,301 |
|
$ |
56,332 |
|
By-product metal revenues |
|
(11,577 |
) |
(9,404 |
) |
(20,549 |
) |
(18,978 |
) | ||||
Cash operating costs (by-product basis) |
|
$ |
17,233 |
|
$ |
19,472 |
|
$ |
33,752 |
|
$ |
37,354 |
|
Gold production (ounces) |
|
49,458 |
|
50,647 |
|
97,575 |
|
100,753 |
| ||||
Total cash costs per ounce of gold produced ($ per ounce)(ii): |
|
|
|
|
|
|
|
|
| ||||
Co-product basis |
|
$ |
583 |
|
$ |
570 |
|
$ |
557 |
|
$ |
559 |
|
By-product basis |
|
$ |
348 |
|
$ |
384 |
|
$ |
346 |
|
$ |
371 |
|
|
|
|
|
|
|
|
|
|
| ||||
Pinos Altos Mine - Minesite Costs per Tonne(iii) | |||||||||||||
|
|
|
|
|
|
|
|
|
| ||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
| ||||
(thousands of United States dollars, except as noted) |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| ||||
Production costs |
|
$ |
28,794 |
|
$ |
29,768 |
|
$ |
52,650 |
|
$ |
53,979 |
|
Inventory and other adjustments(v) |
|
(416 |
) |
(1,732 |
) |
880 |
|
948 |
| ||||
Minesite operating costs |
|
$ |
28,378 |
|
$ |
28,036 |
|
$ |
53,530 |
|
$ |
54,927 |
|
Tonnes of ore processed (thousands of tonnes) |
|
605 |
|
648 |
|
1,107 |
|
1,231 |
| ||||
Minesite costs per tonne (US$)(iii) |
|
$ |
47 |
|
$ |
43 |
|
$ |
48 |
|
$ |
45 |
|
|
|
|
|
|
|
|
|
|
| ||||
Creston Mascota deposit at Pinos Altos - Total Cash Costs per Ounce of Gold Produced(ii) | |||||||||||||
|
|
|
|
|
|
|
|
|
| ||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
| ||||
(thousands of United States dollars, except as noted) |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| ||||
Production costs |
|
$ |
6,623 |
|
$ |
7,501 |
|
$ |
12,404 |
|
$ |
13,107 |
|
Adjustments: |
|
|
|
|
|
|
|
|
| ||||
Inventory and other adjustments(iv) |
|
92 |
|
(611 |
) |
402 |
|
(143 |
) | ||||
Cash operating costs (co-product basis) |
|
$ |
6,715 |
|
$ |
6,890 |
|
$ |
12,806 |
|
$ |
12,964 |
|
By-product metal revenues |
|
(898 |
) |
(611 |
) |
(1,680 |
) |
(1,158 |
) | ||||
Cash operating costs (by-product basis) |
|
$ |
5,817 |
|
$ |
6,279 |
|
$ |
11,126 |
|
$ |
11,806 |
|
Gold production (ounces) |
|
12,398 |
|
15,606 |
|
23,949 |
|
28,054 |
| ||||
Total cash costs per ounce of gold produced ($ per ounce)(ii): |
|
|
|
|
|
|
|
|
| ||||
Co-product basis |
|
$ |
542 |
|
$ |
441 |
|
$ |
535 |
|
$ |
462 |
|
By-product basis |
|
$ |
469 |
|
$ |
402 |
|
$ |
465 |
|
$ |
421 |
|
|
|
|
|
|
|
|
|
|
| ||||
Creston Mascota deposit at Pinos Altos - Minesite Costs per Tonne(iii) | |||||||||||||
|
|
|
|
|
|
|
|
|
| ||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
| ||||
(thousands of United States dollars, except as noted) |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| ||||
Production costs |
|
$ |
6,623 |
|
$ |
7,501 |
|
$ |
12,404 |
|
$ |
13,107 |
|
Inventory and other adjustments(v) |
|
31 |
|
(691 |
) |
226 |
|
(292 |
) | ||||
Minesite operating costs |
|
$ |
6,654 |
|
$ |
6,810 |
|
$ |
12,630 |
|
$ |
12,815 |
|
Tonnes of ore processed (thousands of tonnes) |
|
573 |
|
609 |
|
1,089 |
|
1,135 |
| ||||
Minesite costs per tonne (US$)(iii) |
|
$ |
12 |
|
$ |
11 |
|
$ |
12 |
|
$ |
11 |
|
|
|
|
|
|
|
|
|
|
| ||||
La India Mine - Total Cash Costs per Ounce of Gold Produced(ii) | |||||||||||||
|
|
|
|
|
|
|
|
|
| ||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
| ||||
(thousands of United States dollars, except as noted) |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| ||||
Production costs |
|
$ |
12,001 |
|
$ |
10,791 |
|
$ |
22,916 |
|
$ |
23,256 |
|
Adjustments: |
|
|
|
|
|
|
|
|
| ||||
Inventory and other adjustments(iv) |
|
361 |
|
963 |
|
1,415 |
|
718 |
| ||||
Cash operating costs (co-product basis) |
|
$ |
12,362 |
|
$ |
11,754 |
|
$ |
24,331 |
|
$ |
23,974 |
|
By-product metal revenues |
|
(1,907 |
) |
(1,179 |
) |
(3,703 |
) |
(2,311 |
) | ||||
Cash operating costs (by-product basis) |
|
$ |
10,455 |
|
$ |
10,575 |
|
$ |
20,628 |
|
$ |
21,663 |
|
Gold production (ounces) |
|
27,438 |
|
25,803 |
|
55,669 |
|
52,326 |
| ||||
Total cash costs per ounce of gold produced ($ per ounce)(ii): |
|
|
|
|
|
|
|
|
| ||||
Co-product basis |
|
$ |
451 |
|
$ |
456 |
|
$ |
437 |
|
$ |
458 |
|
By-product basis |
|
$ |
381 |
|
$ |
410 |
|
$ |
371 |
|
$ |
414 |
|
|
|
|
|
|
|
|
|
|
| ||||
La India Mine - Minesite Costs per Tonne(iii) | |||||||||||||
|
|
|
|
|
|
|
|
|
| ||||
|
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
| ||||
(thousands of United States dollars, except as noted) |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| ||||
Production costs |
|
$ |
12,001 |
|
$ |
10,791 |
|
$ |
22,916 |
|
$ |
23,256 |
|
Inventory and other adjustments(v) |
|
(1 |
) |
771 |
|
818 |
|
362 |
| ||||
Minesite operating costs |
|
$ |
12,000 |
|
$ |
11,562 |
|
$ |
23,734 |
|
$ |
23,618 |
|
Tonnes of ore processed (thousands of tonnes) |
|
1,535 |
|
1,360 |
|
2,931 |
|
2,738 |
| ||||
Minesite costs per tonne (US$)(iii) |
|
$ |
8 |
|
$ |
9 |
|
$ |
8 |
|
$ |
9 |
|
Notes:
(i) On June 16, 2014, Agnico Eagle and Yamana jointly acquired 100.0% of Osisko by way of the Arrangement. As a result of the Arrangement, Agnico Eagle and Yamana each indirectly own 50.0% of CMC and the Partnership, which now holds the Canadian Malartic mine. The information set out in this table reflects the Companys 50.0% interest in the Canadian Malartic mine.
(ii) Total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. Total cash costs per ounce of gold produced is reported on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues). Total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the interim condensed consolidated statements of income for by-product metal revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. The calculation of total cash costs per ounce of gold produced on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges associated with the production and sale of by-product metals. The Company believes that these generally accepted industry measures provide a realistic indication of
operating performance and provide useful comparison points between periods. Total cash costs per ounce of gold produced is intended to provide information about the cash generating capabilities of the Companys mining operations. Management also uses these measures to monitor the performance of the Companys mining operations. As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce of gold produced on a by-product basis measure allows management to assess a mines cash generating capabilities at various gold prices. Management is aware that these per ounce measures of performance can be affected by fluctuations in exchange rates and, in the case of total cash costs of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne (discussed below) as well as other data prepared in accordance with IFRS. Management also performs sensitivity analyses in order to quantify the effects of fluctuating metal prices and exchange rates.
(iii) Minesite costs per tonne is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. This measure is calculated by adjusting production costs as shown in the interim condensed consolidated statements of income for unsold concentrate inventory production costs, and then dividing by tonnes of ore milled. As the total cash costs per ounce of gold produced measure can be affected by fluctuations in by-product metal prices and exchange rates, management believes that the minesite costs per tonne measure provides additional information regarding the performance of mining operations, eliminating the impact of varying production levels. Management also uses this measure to determine the economic viability of mining blocks. As each mining block is evaluated based on the net realizable value of each tonne mined, in order to be economically viable the estimated revenue on a per tonne basis must be in excess of the minesite costs per tonne. Management is aware that this per tonne measure of performance can be impacted by fluctuations in processing levels and compensates for this inherent limitation by using this measure in conjunction with production costs prepared in accordance with IFRS.
(iv) Under the Companys revenue recognition policy, revenue is recognized on concentrates when legal title and risk is transferred. As total cash costs per ounce of gold produced are calculated on a production basis, an inventory adjustment is made to reflect the sales margin on the portion of concentrate production not yet recognized as revenue. Other adjustments include the addition of smelting, refining and marketing charges to production costs.
(v) This inventory and other adjustment reflects production costs associated with unsold concentrates.
Reconciliation of Production Costs to All-in Sustaining Costs per Ounce of Gold Produced
|
|
Three Months Ended |
|
Three Months Ended |
|
Six Months Ended |
|
Six Months Ended |
| ||||
(United States dollars per ounce of gold produced, except where noted) |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
| ||||
Production costs per the interim condensed consolidated statements of income |
|
|
|
|
|
|
|
|
| ||||
(thousands of United States dollars) |
|
$ |
255,436 |
|
$ |
263,612 |
|
$ |
499,409 |
|
$ |
510,892 |
|
Gold production (ounces) |
|
408,932 |
|
403,678 |
|
820,268 |
|
807,888 |
| ||||
Production costs per ounce of gold production |
|
$ |
625 |
|
$ |
653 |
|
$ |
609 |
|
$ |
632 |
|
Adjustments: |
|
|
|
|
|
|
|
|
| ||||
Inventory and other adjustments(i) |
|
38 |
|
13 |
|
38 |
|
26 |
| ||||
Total cash costs per ounce of gold produced (co-product basis)(ii) |
|
$ |
663 |
|
$ |
666 |
|
$ |
647 |
|
$ |
658 |
|
By-product metal revenues |
|
(71 |
) |
(65 |
) |
(65 |
) |
(63 |
) | ||||
Total cash costs per ounce of gold produced (by-product basis)(ii) |
|
$ |
592 |
|
$ |
601 |
|
$ |
582 |
|
$ |
595 |
|
Adjustments: |
|
|
|
|
|
|
|
|
| ||||
Sustaining capital expenditures (including capitalized exploration) |
|
193 |
|
203 |
|
177 |
|
177 |
| ||||
General and administrative expenses (including stock options) |
|
60 |
|
58 |
|
60 |
|
60 |
| ||||
Non-cash reclamation provision and other |
|
3 |
|
2 |
|
3 |
|
3 |
| ||||
All-in sustaining costs per ounce of gold produced (by-product basis) |
|
$ |
848 |
|
$ |
864 |
|
$ |
822 |
|
$ |
835 |
|
By-product metal revenues |
|
71 |
|
65 |
|
65 |
|
63 |
| ||||
All-in sustaining costs per ounce of gold produced (co-product basis) |
|
$ |
919 |
|
$ |
929 |
|
$ |
887 |
|
$ |
898 |
|
Notes:
(i) Under the Companys revenue recognition policy, revenue is recognized on concentrates when legal title and risk is transferred. As total cash costs per ounce of gold produced are calculated on a production basis, this inventory adjustment reflects the sales margin on the portion of concentrate production not yet recognized as revenue.
(ii) Total cash costs per ounce of gold produced is not a recognized measure under IFRS and this data may not be comparable to data reported by other gold producers. Total cash costs per ounce of gold produced is reported on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues). Total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the interim condensed consolidated statements of income for by-product metal revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. Accordingly, the calculation of total cash costs per ounce of gold produced on a co-product basis does not reflect a reduction in production costs or smelting, refining and marketing charges associated with the production and sale of by-product metals. The Company believes that these generally accepted industry measures provide a realistic indication of operating performance and provide useful comparison points between periods. Total cash costs per ounce of gold produced is intended to provide information about the cash generating capabilities of the Companys mining operations. Management also uses these measures to monitor the performance of the Companys mining operations. As market prices for gold are quoted on a per ounce basis, using the total cash costs per ounce of gold produced on a by-product basis measure allows management to assess a mines cash generating capabilities at various gold prices. Management is aware that these per ounce measures of performance can be affected by fluctuations in exchange rates and, in the case of total cash costs of gold produced on a by-product basis, by-product metal prices. Management compensates for these inherent limitations by using these measures in conjunction with minesite costs per tonne as well as other data prepared in accordance with IFRS. Management also performs sensitivity analyses in order to quantify the effects of fluctuating metal prices and exchange rates.
Exhibit 99.2
Stock Symbol: |
AEM (NYSE and TSX) |
|
|
For further information: |
Investor Relations |
|
(416) 947-1212 |
MID-YEAR 2016 EXPLORATION UPDATE: EXPANSION OF WHALE TAIL AND V ZONES AT AMARUQ; INITIAL RESULTS REPORTED FROM THE ODYSSEY ZONE; NEW ZONES OF MINERALIZATION OUTLINED AT MADRONO AND EL BARQUENO IN MEXICO; SISAR ZONE CONTINUES TO EXPAND AT KITTILA
Toronto (July 27, 2016) Agnico Eagle Mines Limited (NYSE:AEM, TSX: AEM) (Agnico Eagle or the Company) is pleased to provide an update on its 2016 exploration activities at the Amaruq project in Nunavut, the Sisar Zone at Kittila, the Barsele project in Sweden, the 50% owned Odyssey prospect adjoining the Canadian Malartic mine, the Madrono prospect adjoining the Pinos Altos and Creston Mascota operations and the El Barqueno project in Mexico. Highlights include:
· Drilling at Amaruq discovers an additional vein structure in V Zones and further infills the Whale Tail deposit Exploration drilling has encountered a new vein structure in the V Zones, with results up to 15.5 grams per tonne (g/t) gold (capped) over 9.4 metres estimated true width at 18 metres depth in drill hole AMQ16-706. The V Zones have been shown to include multiple parallel structures. A recent lower intercept was 15.5 g/t gold (capped) over 5.4 metres estimated true width at 349 metres depth in drill hole AMQ16-833. The V Zones are being evaluated as a potential second source of open pit ore at Amaruq.
· Kittila drilling continues to extend Sisar Zone to the north and south Recent exploration drilling continues to return good intercepts such as in drill hole ROD16-700D that intersected 7.4 g/t gold (uncapped) over 9.6 metres estimated true width at 1,161 metres depth, and hole ROD16-700B that intersected 6.4 g/t gold (uncapped) over 6.5 metres estimated true width at 1,261 metres depth. Optimization studies are ongoing to evaluate the potential to bring Sisar into the Kittla mine plan.
· At the Barsele Project in Sweden, drilling extends the Skirasen Zone Recent drilling at the Skirasen Zone has extended the mineralization at depth by approximately 100 metres, and 80 metres to the southeast. Highlights include hole SKI16-006 grading 1.31 g/t gold (capped) over an estimated true width of 69.8 metres at 445 metres depth. This drill intercept is located roughly 850 metres southeast of the core of the Central Zone, indicating that the current known mineralization could be part of a larger mineralized system. The Skirasen and
Central zones are intrusive-hosted deposits that appear similar to the Goldex mine deposit.
· Odyssey prospect at 50%-owned Canadian Malartic mine Drilling outlines significant areas of mineralization in the North and South Odyssey zones In the first half of 2016, 57 drill holes were completed, continuing the investigation of the Odyssey prospect. Recent drilling continues to return significant intercepts such as 2.63 g/t gold (capped) over 33.5 metres estimated true width at 1,138 metres depth in drill hole ODY16-5039, showing similarities to the Goldex mine deposit. Additional drilling totalling C$5.5 million (35,000 metres) has been added to the original budget of C$8.0 million (60,000 metres) (on a 100% basis).
· New zones of mineralization outlined at the Madrono prospect Agnico Eagle has undertaken a first campaign of drilling on this recently acquired property surrounded by its Pinos Altos mine property, just 0.5 kilometres from the Creston Mascota pit. Mapping and sampling of historical mine workings have quickly identified high-potential targets. The initial drilling has returned up to 4.1 g/t gold and 64.5 g/t silver (both grades uncapped) over 6.2 metres estimated true width at 45 metres depth in hole MAD16-005, confirming the potential to outline additional high-grade satellite zones close to the existing mines.
· El Barqueno Project Drilling outlines new, 700-metre-long Olmeca structure and extends existing deposits Drilling is currently moving beyond the deposits that host the mineral resources. Significant high-grade intercepts are reported at the new Olmeca prospect, which has been traced over 700 metres of strike length. Results from Olmeca include up to 4.5 g/t gold (capped) and 4.7 g/t silver (uncapped) over 11.0 metres estimated true width at 85 metres depth in drill hole OLM16-010, and 9.4 g/t gold (capped) and 14.1 g/t silver (uncapped) over 5.1 metres estimated true width at 67 metres depth in drill hole in OLM16-003.
Despite a significant downturn in the gold price over the past few years, we continued to invest in our operations and advance our development projects, and we significantly increased exploration spending. As a result, we have made several new discoveries and we are now seeing the potential for many of these projects to have a positive impact on our production profile in the coming years said Sean Boyd, Chief Executive Officer of Agnico Eagle. Based on current exploration results, we believe that there is good potential to expand and upgrade the mineral resources at most of our key projects by year-end 2016, added Mr. Boyd.
Amaruq Project Focus on Infilling Whale Tail Mineral Resources and Defining Multiple Lenses of V Zones
Agnico Eagle has a 100% interest in the Amaruq project. The large property consists of 116,717 hectares, located approximately 50 kilometres northwest of the Meadowbank mine. The most recent drill results from the Amaruq project were reported in the Company news release dated April 28, 2016. The inferred mineral resource estimate as of December 31, 2015 is 3.3 million ounces gold (16.9 million tonnes grading 6.05 g/t gold).
The goals of the first phase of the 2016 exploration program were to infill and expand the known mineral resource areas and to test other favourable targets with a focus on identifying a second source of open pit ore. Drilling began at the end of January and continued through May based mainly on lake ice; the drilling since June has been land-based supported by helicopters. Exploration and infill drilling to the end of June has totalled 77,517 metres (338 holes), using up to nine rigs, completing the initial 75,000-metre 2016 drill program. Almost half of this drilling was in the IVR deposit (36,545 metres, 152 holes), with 30% at Whale Tail (24,820 metres, 103 holes) and the rest at Mammoth (16,153 metres, 83 holes). In addition, there was 2,186 metres (nine holes) related to engineering studies (rock mechanics / geotechnical drilling and metallurgical testing) in this period.
Selected recent drill results are set out in the table below; drill hole collar coordinates are set out in a table in the Appendix of this news release. Drill hole collars are also shown on the Amaruq Project Local Geology Map. All intercepts reported for the Amaruq project show capped grades over estimated true widths, based on a preliminary geological interpretation that is being updated as new information becomes available with further drilling.
Recent exploration drill results from the Whale Tail (WT) deposit and the V Zones, Amaruq project
Drill hole |
|
Location |
|
From |
|
To |
|
Depth of |
|
Estimated |
|
Gold grade |
|
Gold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AMQ16-600 |
|
WT |
|
168.0 |
|
174.2 |
|
141 |
|
3.1 |
|
268.8 |
|
31.8 |
|
and |
|
WT |
|
300.0 |
|
322.2 |
|
257 |
|
19.2 |
|
5.2 |
|
5.2 |
|
AMQ16-611 |
|
WT |
|
148.0 |
|
170.0 |
|
135 |
|
15.6 |
|
3.5 |
|
3.5 |
|
and |
|
WT |
|
241.6 |
|
252.3 |
|
211 |
|
10.1 |
|
8.8 |
|
8.8 |
|
and |
|
WT |
|
274.4 |
|
305.8 |
|
248 |
|
28.5 |
|
7.7 |
|
7.7 |
|
AMQ16-613 |
|
WT |
|
310.4 |
|
318.7 |
|
261 |
|
6.8 |
|
10.3 |
|
10.3 |
|
and |
|
WT |
|
328.4 |
|
337.1 |
|
277 |
|
7.1 |
|
5.8 |
|
5.8 |
|
AMQ16-629A |
|
WT |
|
300.0 |
|
304.5 |
|
244 |
|
4.1 |
|
16.8 |
|
16.8 |
|
AMQ16-637 |
|
WT |
|
140.0 |
|
156.8 |
|
121 |
|
15.8 |
|
11.9 |
|
11.9 |
|
AMQ16-653A |
|
WT |
|
92.1 |
|
105.0 |
|
84 |
|
6.5 |
|
4.1 |
|
4.1 |
|
and |
|
WT |
|
295.0 |
|
326.4 |
|
271 |
|
28.5 |
|
9.6 |
|
9.6 |
|
including |
|
|
|
308.8 |
|
315.7 |
|
272 |
|
6.3 |
|
16.3 |
|
16.3 |
|
AMQ16-673 |
|
WT |
|
290.7 |
|
337.0 |
|
262 |
|
40.1 |
|
7.3 |
|
7.3 |
|
including |
|
|
|
327.2 |
|
337.0 |
|
277 |
|
8.5 |
|
12.1 |
|
12.1 |
|
AMQ16-683 |
|
V Zones |
|
27.0 |
|
33.5 |
|
25 |
|
6.1 |
|
16.8 |
|
15.1 |
|
AMQ16-688 |
|
WT |
|
153.6 |
|
197.7 |
|
143 |
|
31.2 |
|
5.0 |
|
5.0 |
|
and |
|
WT |
|
249.7 |
|
263.7 |
|
209 |
|
12.1 |
|
10.7 |
|
10.7 |
|
and |
|
WT |
|
291.2 |
|
312.1 |
|
246 |
|
18.1 |
|
13.5 |
|
13.5 |
|
AMQ16-690 |
|
WT |
|
34.3 |
|
57.8 |
|
34 |
|
15.1 |
|
3.1 |
|
3.1 |
|
AMQ16-694 |
|
V Zones |
|
72.0 |
|
83.7 |
|
68 |
|
10.6 |
|
17.7 |
|
12.7 |
|
including |
|
|
|
78.5 |
|
83.7 |
|
70 |
|
4.7 |
|
18.7 |
|
15.2 |
|
AMQ16-701 |
|
WT |
|
234.0 |
|
245.5 |
|
198 |
|
10.4 |
|
9.1 |
|
9.1 |
|
and |
|
WT |
|
295.2 |
|
308.2 |
|
249 |
|
11.3 |
|
6.2 |
|
6.2 |
|
AMQ16-703 |
|
WT |
|
296.7 |
|
339.0 |
|
262 |
|
36.6 |
|
6.1 |
|
6.1 |
|
including |
|
|
|
296.7 |
|
305.0 |
|
248 |
|
7.2 |
|
17.1 |
|
17.1 |
|
AMQ16-706 |
|
V Zones |
|
16.0 |
|
26.4 |
|
18 |
|
9.4 |
|
18.1 |
|
15.5 |
|
including |
|
|
|
16.0 |
|
22.2 |
|
16 |
|
5.6 |
|
29.3 |
|
25.0 |
|
AMQ16-709 |
|
WT |
|
141.8 |
|
150.5 |
|
119 |
|
6.2 |
|
5.8 |
|
5.8 |
|
and |
|
WT |
|
206.6 |
|
225.2 |
|
177 |
|
16.1 |
|
7.5 |
|
7.5 |
|
and |
|
WT |
|
272.8 |
|
292.5 |
|
232 |
|
17.9 |
|
4.7 |
|
4.7 |
|
including |
|
|
|
280.0 |
|
285.5 |
|
232 |
|
5.0 |
|
12.4 |
|
12.4 |
|
AMQ16-720 |
|
V Zones |
|
72.0 |
|
80.0 |
|
62 |
|
7.3 |
|
7.2 |
|
7.2 |
|
and |
|
V Zones |
|
249.4 |
|
263.1 |
|
212 |
|
12.9 |
|
13.4 |
|
6.6 |
|
including |
|
|
|
249.4 |
|
253.2 |
|
208 |
|
3.6 |
|
41.7 |
|
17.2 |
|
AMQ16-722 |
|
WT |
|
20.3 |
|
36.0 |
|
21 |
|
13.6 |
|
5.7 |
|
5.7 |
|
AMQ16-731 |
|
V Zones |
|
63.7 |
|
71.8 |
|
56 |
|
7.0 |
|
11.2 |
|
9.3 |
|
AMQ16-736 |
|
WT |
|
22.5 |
|
26.8 |
|
20 |
|
4.3 |
|
17.2 |
|
17.2 |
|
AMQ16-741 |
|
V Zones |
|
69.0 |
|
72.9 |
|
58 |
|
2.8 |
|
65.9 |
|
25.4 |
|
AMQ16-748 |
|
V Zones |
|
73.8 |
|
83.7 |
|
65 |
|
7.0 |
|
14.0 |
|
10.6 |
|
AMQ16-755 |
|
V Zones |
|
97.0 |
|
106.2 |
|
81 |
|
8.0 |
|
18.8 |
|
7.6 |
|
and |
|
V Zones |
|
130.4 |
|
146.8 |
|
112 |
|
14.9 |
|
3.5 |
|
3.5 |
|
AMQ16-758 |
|
V Zones |
|
79.6 |
|
86.0 |
|
77 |
|
4.5 |
|
6.8 |
|
6.8 |
|
AMQ16-765 |
|
V Zones |
|
76.5 |
|
83.8 |
|
75 |
|
7.2 |
|
65.5 |
|
14.2 |
|
including |
|
|
|
76.5 |
|
79.5 |
|
73 |
|
3.0 |
|
156.5 |
|
31.6 |
|
AMQ16-776 |
|
V Zones |
|
261.1 |
|
273.3 |
|
221 |
|
11.1 |
|
28.7 |
|
14.0 |
|
AMQ16-793 |
|
WT |
|
63.4 |
|
73.9 |
|
62 |
|
5.3 |
|
14.6 |
|
14.0 |
|
and |
|
WT |
|
205.7 |
|
214.0 |
|
190 |
|
7.8 |
|
8.5 |
|
8.5 |
|
AMQ16-810 |
|
V Zones |
|
186.0 |
|
196.3 |
|
156 |
|
8.9 |
|
6.1 |
|
6.1 |
|
AMQ16-812 |
|
V Zones |
|
306.9 |
|
310.9 |
|
268 |
|
3.1 |
|
6.8 |
|
6.8 |
|
and |
|
V Zones |
|
407.0 |
|
410.4 |
|
353 |
|
3.3 |
|
25.6 |
|
21.2 |
|
AMQ16-819 |
|
V Zones |
|
293.0 |
|
297.4 |
|
241 |
|
3.8 |
|
16.4 |
|
14.7 |
|
AMQ16-830 |
|
V Zones |
|
112.0 |
|
128.0 |
|
112 |
|
13.1 |
|
5.8 |
|
5.2 |
|
AMQ16-833 |
|
V Zones |
|
362.5 |
|
368.7 |
|
349 |
|
5.4 |
|
15.7 |
|
15.5 |
|
and |
|
V Zones |
|
399.0 |
|
413.0 |
|
387 |
|
12.7 |
|
5.5 |
|
4.3 |
|
*Holes at Whale Tail deposit use a capping factor of 80 g/t gold. Holes at IVR Zone use a capping factor of 60 g/t gold.
[Amaruq Project - Local Geology Map]
[Amaruq Project Schematic Cross Section 15650E]
Approximately half of the exploration drilling so far this year has been in the V Zones, which form a series of parallel quartz vein structures within a 1.3-kilometre-long by 400-metre-wide area immediately north of the Whale Tail deposit. The mineralized structures in the V Zones strike northeast and dip shallowly to the southeast, as shown on the Amaruq Project Schematic Cross Section.
Within the V Zones, the largest structure found to date has a high-grade core traced over more than 1,000 metres along strike from near surface to 387 metres depth. Among the better recent intercepts in this structure is hole AMQ16-776 that intersected 14.0 g/t gold over 11.1 metres at
221 metres depth, and hole AMQ16-833 that intersected 15.5 g/t gold over 5.4 metres at 349 metres depth.
Recent drilling has discovered an additional significant structure approximately 125 metres above and to the southeast of previously known V Zones structures, with a strike length of 300 metres from near surface to approximately 270 metres below surface. Hole AMQ16-706 yielded 15.5 g/t gold over 9.4 metres at 18 metres depth, including 25.0 g/t gold over 5.6 metres in the new structure. Hole AMQ16-720 yielded 7.2 g/t gold over 7.3 metres at 62 metres depth (in the new structure), as well as 6.6 g/t gold over 12.9 metres at 212 metres depth (in a deeper parallel structure of the V Zones).
Drilling in the Whale Tail deposit continues to encounter multiple mineralized horizons. Infill drilling is helping to increase confidence in the geometry and grade of the Whale Tail ore shoot, which plunges about 30 degrees to the east from surface to at least 430 metres depth. The thickening of the ore shoot appears to be due to folding of the mineralized horizons.
Most of the recent drilling has therefore been directed from north into the ore shoot, to help ascertain the geometry and true thickness in this important area. For example, hole AMQ16-688 returned an intercept 5.0 g/t gold over 31.2 metres at 143 metres depth above the ore shoot, as well as two intercepts within the ore shoot: 10.7 g/t gold over 12.1 metres at 209 metres depth, and 13.5 g/t gold over 18.1 metres at 246 metres depth. Slightly to the east of this, hole AMQ16-703 intersected 6.1 g/t gold over 36.6 metres at 262 metres depth, including 17.1 g/t over 7.2 metres. Approximately 300 metres to the southwest of these two holes, hole AMQ16-613 intersected 10.3 g/t gold over 6.8 metres at 261 metres depth, as well as 5.8 g/t gold over 7.1 metres at 277 metres depth.
Shallow drilling east of Mammoth Lake, in the region where the Whale Tail and Mammoth mineralized lenses interfinger has infilled the westernmost Whale Tail deposit. Hole AMQ16-722 is of particular interest as a near-surface intercept in the westernmost part of the Whale Tail deposit, intersecting 5.7 g/t gold over 13.6 metres at 21 metres depth. Approximately 200 metres to the east is another near-surface intercept: hole AMQ16-690 intersected 3.1 g/t gold over 15.1 metres at 34 metres depth.
Drilling is ongoing with six rigs on the property. The goal of the current Whale Tail program is to expand the deposit, while the V Zones program is aiming to gain a better understanding of the geometry and to determine if the V Zones could become a potential second source of open pit ore for Amaruq. Regional exploration is also testing targets outside the currently known deposits. The Company is actively exploring the Amaruq deposit with the goal of potentially developing the deposit as a satellite operation to Meadowbank. An updated Amaruq mineral resource is expected late in the third quarter of 2016, incorporating the results of the phase 1 drill program in the V Zones and Whale Tail deposit.
A budget of $14 million has been approved for a second phase of exploration this year, including 50,000 metres of drilling as well as the purchase of equipment and supplies for the 2017 exploration program. Phase 2 is already underway.
Construction of the Amaruq Exploration Access Road began in the first quarter of 2016, with 13 kilometres of the expected total length of 62 kilometres completed to the end of June.
Permitting is ongoing to allow for the development of an exploration ramp and the potential collection of a bulk sample. The permit is anticipated in late 2016 or early 2017.
In order to mine the Whale Tail deposit, a Project Certificate for this satellite pit must be obtained from the Nunavut Impact Review Board (the NIRB) along with an amendment of the existing Meadowbank Type A water license. A positive land use conformity determination was received from the Nunavut Planning Commission on June 17, 2016 for the Amaruq Whale Tail pit project confirming that the planned activity meets conformity with the existing land use plan. On June 30, 2016 the Company submitted an application and environmental impact statement for the Whale Tail satellite pit with both the NIRB and Nunavut Water Board. This application is currently undergoing screening by the NIRB which initiates the permitting process, a process that is expected to take place over a period of approximately two years.
Kittila Drilling Continues to Extend Sisar Zone to the North and South
The goal of the current drill campaign at Kittila is to infill and extend the mineralization in the Sisar Zone, which is subparallel to and slightly to the east of the Main ore zones. The current drilling is from the exploration ramp which accesses the Sisar Zone at about 800 metres below surface. The ramp is being driven northward into the Rimpi Deep Zone. In the second quarter of 2016, 14 holes (5,843 metres) were drilled in the Sisar Top, Central and Deep zones. The total drilling in Sisar for the first half of 2016 was 24 holes (12,773 metres). Assays are pending for many holes.
Selected recent drill results are set out in the table below; drill hole collar coordinates are set out in a table in the Appendix of this news release. Pierce points for all these holes are shown on the Kittila Composite Longitudinal Section. All intercepts reported for the Kittila mine show uncapped grades over estimated true widths, based on a current geological interpretation that is being updated as new information becomes available with further drilling.
Recent exploration drill results from the Sisar Zone at the Kittila mine
Drill hole |
|
Zone |
|
From |
|
To (metres) |
|
Depth of |
|
Estimated |
|
Gold grade |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RIE16-600 |
|
Sisar Top |
|
316.0 |
|
321.1 |
|
997 |
|
3.6 |
|
4.8 |
|
RIE16-601 |
|
Sisar Top |
|
194.8 |
|
202.0 |
|
847 |
|
6.8 |
|
7.6 |
|
RIE16-603 |
|
Sisar Top |
|
247.8 |
|
256.6 |
|
902 |
|
7.7 |
|
3.0 |
|
RIE16-604 |
|
Sisar Top |
|
302.0 |
|
308.3 |
|
977 |
|
4.5 |
|
4.3 |
|
RIE16-606 |
|
Sisar Top |
|
263.0 |
|
271.0 |
|
903 |
|
6.1 |
|
4.1 |
|
RIE16-607 |
|
Sisar Top |
|
185.0 |
|
190.4 |
|
771 |
|
5.4 |
|
4.1 |
|
ROD16-700B |
|
Sisar Central |
|
691.0 |
|
706.1 |
|
1,261 |
|
6.5 |
|
6.4 |
|
including |
|
|
|
694.7 |
|
702.0 |
|
1,261 |
|
3.1 |
|
9.7 |
|
ROD16-700C |
|
Sisar Central |
|
620.5 |
|
631.0 |
|
1,176 |
|
6.9 |
|
6.3 |
|
ROD16-700D |
|
Sisar Central |
|
441.6 |
|
450.2 |
|
1,069 |
|
6.9 |
|
4.7 |
|
and |
|
Sisar Central |
|
587.3 |
|
592.8 |
|
1,153 |
|
3.3 |
|
4.4 |
|
and |
|
Sisar Central |
|
597.0 |
|
613.0 |
|
1,161 |
|
9.6 |
|
7.4 |
|
including |
|
|
|
604.6 |
|
613.0 |
|
1,163 |
|
5.1 |
|
11.2 |
|
ROD16-700E |
|
Sisar Central |
|
642.4 |
|
655.6 |
|
1,203 |
|
6.9 |
|
7.0 |
|
[Kittila composite longitudinal section]
Recent holes drilled from the exploration ramp continue to extend the Sisar Zone upward and to the north and south. For the purposes of description, the zone has been divided into two depths, referred to as Sisar Top (approximately 775 to 1,000 metres below surface), and Sisar Central (between 1,100 and 1,300 metres below the surface). Some of the Sisar mineralized lenses extend from one depth to another.
A campaign of conversion drilling in Sisar Top has returned several good intercepts suggesting the potential of this area to become a new production source in the near term. The best recent result in this area was hole RIE16-601 that intersected 7.6 g/t gold over 6.8 metres at 847 metres depth. Hole RIE16-604 intersected 4.3 g/t gold over 4.5 metres at 977 metres depth; this intercept extends the Sisar Zone 53 metres to the north at this depth. Hole RIE16-607 intersected 4.1 g/t gold over 5.4 metres at 771 metres depth, extending the Sisar Zone 40 metres shallower than previous intercepts. Assays are pending on several other recent holes even farther north in this area. Sisar Top is approximately 100 metres east of the Rimpi Zone.
Follow-up exploration drilling in Sisar Central, close to the discovery hole (hole ROU10-037, reported in a Company news release dated April 28, 2011), has yielded good results confirming the continuation of the Sisar Zone at this depth. Hole ROD16-700 and its wedged branches are investigating the area. The best two recent intercepts are hole ROD16-700D that intersected 7.4 g/t gold over 9.6 metres at 1,161 metres depth including 11.2 g/t gold over 5.1 metres, and hole ROD16-700B that intersected 6.4 g/t gold over 6.5 metres at 1,261 metres depth including 9.7 g/t gold over 3.1 metres. Sisar Central is approximately 150 metres east of the Roura Zone. Directional drilling in the area continues with two high-capacity drilling units.
Underground exploration drilling will continue to the north as the exploration ramp is extended, allowing the small gap between the Sisar and Rimpi zones to be investigated at approximately 1,000 metres depth. The continued extension of the Sisar Zone could prove to be significant for the future of the Kittila mine, given its close proximity to the existing mine instrastructure
(approximately 150 to 200 metres away). The results of the Sisar Zone infill drilling campaign will be reflected in the year-end 2016 mineral resources estimate for Kittila.
Barsele Project Drilling Extends Skirasen Zone
In June 2015, Agnico Eagle acquired a 55% interest in the Barsele project in Västerbotten County, northern Sweden. The Company can earn an additional 15% interest in the project through the completion of a pre-feasibility study. The most recent results from the 28,600-hectare property were released in a Company news release dated April 28, 2016.
The Barsele property is known to contain intrusive-hosted gold mineralization (the Central, Avan and Skirasen zones), which appears to be similar to the Goldex deposit. The property also hosts gold-rich polymetallic volcanogenic massive sulphide mineralization (the Norra Zone).
The Avan, Central and Skirasen zones extend over a strike length of 2.6 kilometres within a granodiorite that ranges in width from 200 to 500 metres over a strike length of more than eight kilometres. Gold is generally associated with arsenopyrite and low base metal content, but also occurs as native metal locally.
A second phase of drilling commenced the end of April with one drill rig, and a second rig was added in early June. During the second quarter, drilling was done on the Skirasen and Avan zones testing induced polarization and magnetotelluric geophysical anomalies (similar to anomalies in the Central Zone) that were identified in a Titan-24 geophysical survey conducted in the second quarter.
Drilling at Barsele during the second quarter totalled 3,972 metres (6 holes). The total drilling in the first half of 2016 is 8,807 metres, while a cumulative total of 17,192 metres has been drilled since the start of the Companys program in October 2015.
Recent intercepts from this program are set out in the table below; drill hole collar coordinates are set out in a table in the Appendix of this news release. The drill hole pierce points are also shown on the Barsele Project Composite Schematic Longitudinal Section. All intercepts reported for the Barsele project show capped grades over estimated true widths, based on a preliminary geological interpretation that is being updated as new information becomes available with further drilling.
Recent exploration drill results from the Barsele project
Drill hole |
|
Location |
|
From |
|
To |
|
Depth |
|
Estimated |
|
Gold grade |
|
Gold |
|
SKI16-006 |
|
Skirasen |
|
279.0 |
|
303.5 |
|
210 |
|
18.4 |
|
1.08 |
|
1.08 |
|
and |
|
|
|
461.0 |
|
471.0 |
|
345 |
|
7.5 |
|
2.51 |
|
2.51 |
|
and |
|
|
|
551.0 |
|
644.0 |
|
445 |
|
69.8 |
|
1.31 |
|
1.31 |
|
including |
|
|
|
556.3 |
|
582.0 |
|
420 |
|
19.3 |
|
2.17 |
|
2.17 |
|
SKI16-007 |
|
Skirasen |
|
364.0 |
|
408.0 |
|
310 |
|
33.0 |
|
4.08 |
|
1.87 |
|
and |
|
|
|
496.0 |
|
518.4 |
|
410 |
|
16.8 |
|
2.24 |
|
2.24 |
|
and |
|
|
|
560.0 |
|
570.0 |
|
455 |
|
7.5 |
|
6.11 |
|
1.59 |
|
and |
|
|
|
670.0 |
|
690.0 |
|
550 |
|
15.0 |
|
0.70 |
|
0.70 |
|
and |
|
|
|
714.0 |
|
729.0 |
|
580 |
|
11.3 |
|
0.74 |
|
0.74 |
|
*Holes at Barsele use a capping factor of 20 g/t gold.
Multiple lenses of mineralization are intersected in the Skirasen Zone. Recent exploration drill results include hole SKI16-006 that had three intersections: 1.08 /t gold over 18.4 metres at 210 metres depth; 2.51 g/t gold over 7.5 metres at 345 metres depth; and 1.31 g/t gold over 69.8 metres at 445 metres depth, including 2.17 g/t gold over 19.3 metres. This hole extends the known Skirasen mineralization by approximately 200 metres down-plunge towards the southeast.
Drill hole SKI16-007 was designed to probe for mineralization below SKI16-006. Assay results have returned several mineralized lenses, including 1.87 g/t gold over 33.0 metres at 310 metres depth, 2.24 g/t gold over 16.8 metres at 410 metres depth and 1.59 g/t gold over 7.5 metres at 455 metres depth. The lowest intersection in this hole is at 580 metres depth, which extends the currently known depth of the Skirasen Zone by 95 metres.
These drill intercepts are located roughly 850 metres southeast of the core of the Central Zone.
[Barsele Project Composite Schematic Longitudinal Section]
In 2016, the Company plans to spend approximately $4.9 million on exploration to further evaluate the mineral potential of the property. This includes 19,000 metres of diamond drilling, a Titan-24 induced polarization geophysical survey, till sampling and hyperspectral core scanning. A basic environmental assessment will be done, as well as ongoing community relations programs to engage with the various stakeholders in the region.
Odyssey Prospect at Canadian Malartic Mine Drilling Outlines Significant Areas of Mineralization in the North and South Odyssey Zones
The Odyssey prospect lies on the east side of the Canadian Malartic property in northwestern Quebec, approximately 1.5 kilometres east of the current limit of the Canadian Malartic open pit. The Canadian Malartic property is owned by the Canadian Malartic General Partnership (the
Partnership) in which Agnico Eagle and Yamana Gold Inc. each have an indirect 50% ownership interest. This news release discloses some of the first drill results from Odyssey since it was first acquired in June 2014.
The Odyssey Zone is composed of multiple mineralized bodies spatially associated with a porphyritic intrusion, Porphyry 12, close to the contact of the Pontiac Group sediments and the Piché Group of volcanic rocks. They are grouped into two elongated zones the Odyssey North and Odyssey South zones which strike east-southeast and dip south. Odyssey North has been traced from a depth of 600 to 1,300 metres below surface along a strike length of approximately 1.5 kilometres. Odyssey South has a strike length of 0.5 kilometres, and has been located between approximately 200 and 550 metres depth.
Gold occurs preferentially along lithological contacts but also within the porphyry. The Odyssey mineralization appears to be controlled by structures associated with the Sladen Fault or its splays. The gold mineralization is associated with an alteration halo of feldspar-hematite-sericite and local silica with 1-3% disseminated pyrite. Grades are in the range of 1.5 to 3.0 g/t gold, but higher grades are observed locally within stockwork and silicified breccia zones.
The Partnerships initial budget in 2016 was C$8.0 million for approximately 60,000 metres of drilling to infill and expand the known mineralized zones on the Odyssey prospect. To the end of June, 57 holes (53,417 metres) have been completed.
Selected drill results are set out in the table below; drill hole collar coordinates are set out in a table in the Appendix of this news release. Drill hole collars are also shown on the Odyssey Prospect Local Geology Map. All intercepts reported for the Odyssey prospect show capped grades over estimated true widths, based on a preliminary geological interpretation that is being updated as new information becomes available with further drilling.
Recent exploration drill results from the Odyssey North and Odyssey South zones
Drill hole |
|
Location |
|
From |
|
To |
|
Depth of |
|
Estimated |
|
Gold grade |
|
Gold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ODY11-2404*** |
|
North |
|
1,223.0 |
|
1,333.2 |
|
1,136 |
|
78.1 |
|
3.66 |
|
3.06 |
|
ODY14-2480 |
|
South |
|
546.0 |
|
587.7 |
|
480 |
|
41.1 |
|
2.55 |
|
2.55 |
|
ODY14-2480*** |
|
North |
|
1,111.0 |
|
1,124.5 |
|
936 |
|
10.6 |
|
4.64 |
|
4.64 |
|
ODY14-2480A |
|
North |
|
1,056.0 |
|
1,065.9 |
|
838 |
|
8.6 |
|
2.46 |
|
2.46 |
|
ODY14-2482*** |
|
North |
|
1,163.4 |
|
1,169.3 |
|
996 |
|
4.7 |
|
9.61 |
|
9.61 |
|
ODY14-2483*** |
|
North |
|
1,170.0 |
|
1,212.5 |
|
988 |
|
33.0 |
|
2.37 |
|
2.37 |
|
ODY14-2486*** |
|
North |
|
1,205.5 |
|
1,224.1 |
|
959 |
|
16.8 |
|
2.29 |
|
2.29 |
|
ODY14-2491BExt |
|
South |
|
518.9 |
|
533.8 |
|
471 |
|
14.6 |
|
5.44 |
|
5.44 |
|
And |
|
North |
|
1,165.7 |
|
1,185.0 |
|
1,034 |
|
13.6 |
|
1.60 |
|
1.60 |
|
ODY14-2492Ext |
|
North |
|
1,188.2 |
|
1,211.0 |
|
988 |
|
18.3 |
|
5.22 |
|
5.04 |
|
including |
|
|
|
1,196.6 |
|
1,204.7 |
|
|
|
6.5 |
|
10.22 |
|
9.73 |
|
ODY14-2493Ext |
|
North |
|
1,261.5 |
|
1,281.2 |
|
1,151 |
|
13.4 |
|
3.81 |
|
3.81 |
|
ODY15- 2494Ext |
|
North |
|
1,298.9 |
|
1,324.0 |
|
1,213 |
|
15.6 |
|
3.31 |
|
3.31 |
|
including |
|
|
|
1,308.4 |
|
1,315.8 |
|
|
|
4.6 |
|
6.92 |
|
6.92 |
|
ODY15-2495 |
|
South |
|
520.6 |
|
537.8 |
|
449 |
|
17.3 |
|
2.73 |
|
2.73 |
|
ODY15-2498 |
|
South Contact |
|
367.9 |
|
384.0 |
|
272 |
|
12.3 |
|
2.50 |
|
2.50 |
|
ODY15-2500 |
|
North |
|
1,148.5 |
|
1,157.8 |
|
998 |
|
7.3 |
|
2.16 |
|
2.16 |
|
ODY15-5003 |
|
South Contact |
|
344.8 |
|
360.4 |
|
292 |
|
13.4 |
|
2.28 |
|
2.28 |
|
ODY15-5004 |
|
North |
|
1,309.0 |
|
1,334.0 |
|
1,139 |
|
18.4 |
|
2.13 |
|
2.13 |
|
including |
|
|
|
1,319.5 |
|
1,328.2 |
|
|
|
6.4 |
|
3.73 |
|
3.73 |
|
ODY15-5007 |
|
North |
|
1,359.0 |
|
1,377.0 |
|
1,104 |
|
14.8 |
|
2.22 |
|
2.22 |
|
including |
|
|
|
1,368.9 |
|
1,375.5 |
|
|
|
5.4 |
|
4.62 |
|
4.62 |
|
ODY15-5008 |
|
South |
|
436.9 |
|
452.9 |
|
340 |
|
15.8 |
|
3.36 |
|
3.36 |
|
including |
|
|
|
436.9 |
|
445.4 |
|
|
|
8.4 |
|
4.62 |
|
4.62 |
|
ODY15-5010 |
|
North |
|
1,222.9 |
|
1,232.8 |
|
1,000 |
|
7.8 |
|
2.55 |
|
2.55 |
|
ODY15-5023 |
|
South |
|
529.0 |
|
547.5 |
|
410 |
|
17.5 |
|
1.63 |
|
1.63 |
|
ODY15-5024 |
|
North |
|
1,153.0 |
|
1,166.2 |
|
899 |
|
11.2 |
|
5.12 |
|
5.12 |
|
ODY15-5025 |
|
North |
|
1,129.3 |
|
1,144.5 |
|
936 |
|
12.2 |
|
2.25 |
|
2.25 |
|
ODY15-5026 |
|
South |
|
463.5 |
|
474.8 |
|
316 |
|
11.3 |
** |
3.52 |
|
3.52 |
|
including |
|
|
|
466.0 |
|
474.8 |
|
|
|
8.8 |
** |
4.13 |
|
4.13 |
|
ODY15-5029 |
|
North |
|
1,036.2 |
|
1,042.6 |
|
781 |
|
5.6 |
|
2.83 |
|
2.83 |
|
ODY16-5033 |
|
South |
|
473.9 |
|
491.5 |
|
427 |
|
17.6 |
|
1.50 |
|
1.50 |
|
ODY16-5039 |
|
North |
|
1,355.5 |
|
1,398.3 |
|
1,171 |
|
33.5 |
|
2.63 |
|
2.63 |
|
including |
|
|
|
1,380.8 |
|
1,393.6 |
|
|
|
10.0 |
|
4.63 |
|
4.63 |
|
ODY16-5040A |
|
North |
|
1,236.8 |
|
1,268.0 |
|
1,018 |
|
27.7 |
|
1.93 |
|
1.93 |
|
Including |
|
|
|
1,258.4 |
|
1,268.0 |
|
|
|
8.5 |
|
3.50 |
|
3.50 |
|
ODY16-5042 |
|
North |
|
995.5 |
|
1019.5 |
|
822 |
|
18.4 |
|
1.11 |
|
1.11 |
|
ODY16-5043 |
|
North |
|
1,380.0 |
|
1,388.0 |
|
1,236 |
|
5.4 |
|
3.40 |
|
3.40 |
|
ODY16-5044 |
|
North |
|
1,404.2 |
|
1,417.8 |
|
1,299 |
|
8.6 |
|
1.95 |
|
1.95 |
|
ODY16-5051 |
|
North |
|
1,260.2 |
|
1,285.5 |
|
1,135 |
|
17.8 |
|
1.76 |
|
1.76 |
|
ODY16-5054 |
|
North |
|
1,312.5 |
|
1,366.8 |
|
1,234 |
|
33.2 |
|
1.54 |
|
1.54 |
|
* Holes at the Odyssey prospect use a capping factor of 20 g/t gold.
** True thickness not determined; these values are core length.
*** Drill-hole results previously reported by former owners. Some were previously reported with different grades and thicknesses.
[Odyssey Prospect Local Geology Map]
Odyssey North
The estimated true thickness of the mineralized bodies in the Odyssey North Zone varies from 5 to 35 metres with local wider intercepts, with grades generally ranging from 1.5 to 3.0 g/t gold.
Additional drilling is currently underway to better understand areas where mineralization appears to be more consistent with better continuity. Three main mineralized areas have been outlined.
Intercepts in the western, shallower part of the zone include hole ODY14-2482 that intersected 9.61 g/t gold over 4.7 metres at 996 metres depth, and approximately 200 metres to the west, hole ODY14-2483 that intersected 2.37 g/t gold over 33.0 metres at 988 metres depth. Other intercepts in this region were in holes ODY14-2480, ODY15-5024 and ODY16-5040A.
The central part of the zone is somewhat deeper. Intercepts in this area include hole extension ODY14-2492Ext that intersected 5.04 g/t gold over 18.3 metres at 988 metres depth, including 9.73 g/t gold over 6.5 metres; approximately 200 metres below this, hole extension ODY14-2493Ext intersected 3.81 g/t gold over 13.4 metres at 1,151 metres depth.
Intercepts in the deepest, eastern part of the zone include hole ODY16-5039 that intersected 2.63 g/t gold over 33.5 metres at 1,171 metres depth, including 4.63 g/t gold over 10.0 metres; approximately 100 metres west of this, hole ODY16-5054 intersected 1.54 g/t gold over 33.2 metres at 1,234 metres depth. Other intercepts in this region are in holes ODY14-2494Ext and ODY15-5004.
Odyssey South
The Odyssey South Zone is located at the southern contact of the upper portion of Porphyry 12, at depths varying from 200 to 550 metres. It ranges from 5 to 15 metres thick with grades from 1.5 to 5 g/t gold. It remains open to the east along the south contact near the apex of the porphyry.
The Odyssey South Zone has yielded strong, wide intercepts as shown by hole ODY14-2491BExt that intersected 5.44 g/t gold over 14.6 metres at a depth of 471 metres. Approximately 300 metres east of this hole, ODY15-5008 returned 3.36 g/t gold over an estimated thickness of 15.8 metres at 340 metres depth.
Drilling is ongoing with nine drill rigs on the property. A supplemental budget of C$5.5 million was recently approved by the Partnership, which will add 35,000 metres of drilling in 2016. An initial inferred mineral resource estimate for the Odyssey zones is expected as of year-end 2016.
The Odyssey prospect appears to have similarities to Agnico Eagles Goldex deposit in terms of grade and potential amenability to underground bulk mining. Additional drilling and economic studies are needed to better assess these opportunities.
Creston Mascota deposit at Pinos Altos- New Zones of Mineralization Outlined at the Madrono Prospect
A recent agreement allows access to the 51-hectare Madrono property for exploration and mining. Madrono is within the Pinos Altos property area, approximately 0.5 kilometres east of the Creston Mascota pit, and includes at least three gold-silver veins: Madrono, Santa Martha and El Salto. Previous mining in this area included small-scale bonanza production from underground mine development on three levels in the 1930s. Mapping, surface sampling, drilling and exploration planning for Madrono are underway.
The first phase of exploration, with a $1.25-million budget, began at the end of May and will include 5,500 metres of diamond drilling to determine the extent of mineralized structures found by surface exploration. Three rigs are currently working at Madrono; 12 holes (2,978 metres) were completed to the end of June.
Permits have recently been obtained for this phase of exploration drilling. The initial drilling was limited to the prior permitted locations, but drilling will now move to the higher priority targets that have become accessible through the permits obtained in June.
Gold and silver grades of recent intercepts from the Madrono prospect are set out in the table below; drill hole collar coordinates are set out in a table in the Appendix of this news release. The drill hole collar locations are shown on the Madrono Prospect Local Geology Map. All intercepts reported for the Madrono prospect show uncapped gold and silver grades over estimated true widths, based on a preliminary geological interpretation that will be updated as new information becomes available with further drilling.
Selected recent exploration drill results from the Madrono prospect on the Pinos Altos property
Drill Hole |
|
Location |
|
From |
|
To |
|
Depth of |
|
Estimated |
|
Gold grade |
|
Silver grade |
|
MAD16-003 |
|
Madrono vein |
|
60.0 |
|
66.3 |
|
54 |
|
4.4 |
|
2.3 |
|
28.4 |
|
and |
|
Madrono vein |
|
75.9 |
|
88.0 |
|
79 |
|
8.5 |
|
2.4 |
|
26.3 |
|
and |
|
Madrono vein |
|
314.8 |
|
317.8 |
|
200 |
|
2.1 |
|
2.3 |
|
5.0 |
|
MAD16-004 |
|
Madrono vein |
|
72.7 |
|
80.0 |
|
86 |
|
5.1 |
|
1.3 |
|
23.1 |
|
and |
|
Madrono vein |
|
173.4 |
|
176.4 |
|
229 |
|
2.1 |
|
1.6 |
|
8.0 |
|
MAD16-005 |
|
Madrono vein |
|
60.3 |
|
69.1 |
|
45 |
|
6.2 |
|
4.1 |
|
64.5 |
|
including |
|
|
|
63.0 |
|
66.8 |
|
45 |
|
2.7 |
|
7.7 |
|
103.0 |
|
[Madrono Prospect -Local Geology Map]
The Madrono vein structure has been followed over a strike length of 350 metres in an east-west direction, and appears to comprise multiple separate veins. The best intersections to date are from two holes in the eastern portion of the Madrono structure. Hole MAD16-003 intersected five veins; the three widest intercepts were 2.3 g/t gold and 28.4 g/t silver over 4.4 metres at 54 metres depth, 2.4 g/t gold and 26.3 g/t silver over 8.5 metres at 79 metres depth, and 2.3 g/t gold and 5.0 g/t silver over 2.1 metres at 200 metres depth. Hole MAD16-005 intersected two veins at shallow depths; the widest intercept was 4.1 g/t gold and 64.5 g/t silver over 6.2 metres at 45 metres depth.
In all the cases the highest gold values are associated with green to white quartz as well as iron/manganese oxide structures, which is similar to both the Pinos Altos and Creston Mascota mineralization. Quartz veinlets that are centimetres wide generally occur up to 2 metres from the margins of the major veins.
The Santa Martha and El Salto structures will be investigated through drilling before the end of the year. The exploration program should indicate the grade and size of the mineralization, and if the structure continues at depth.
El Barqueno Project - Drilling Outlines New Zones and Extends Existing Deposits
Agnico Eagle has a 100% interest in the El Barqueno project. The 32,840-hectare property is in the Guachinango gold-silver mining district, Jalisco State, Mexico, approximately 150 kilometres west of the state capital of Guadalajara. As of December 31, 2015, the El Barqueno project has an inferred mineral resource of 19.7 million tonnes grading 0.96 g/t gold and 5.78 g/t silver (containing 608,000 ounces of gold and 3.7 million ounces of silver) at the Azteca-Zapoteca, Angostura and Pena de Oro zones. The Company last reported on this project in a news release dated April 28, 2016. This news release summarizes the results of exploration programs completed on the project to the end of June 2016.
From April through June 2016, 58 holes (17,462 metres) were drilled using six drill rigs in order to test several mineralized structures and prospects (Angostura, Zapote-Mixteca, San Diego, Olmeca, Huichol, Tarasca and Pena Blanca areas). This brings the year-to-date total drilling to 214 holes (44,985 metres) on this project.
Gold and silver grades of recent intercepts from the Azteca-Zapoteca and Angostura zones and the recently discovered Olmeca prospect are set out in the table below; drill hole collar coordinates are set out in a table in the Appendix of this news release. The drill hole collars are located on the El Barqueno Project Local Geology Map. All intercepts reported for the El Barqueno project show uncapped gold and silver grades (except for capped gold grades for the Olmeca prospect) over estimated true widths, based on a preliminary geological interpretation that will be updated as new information becomes available with further drilling.
Selected recent exploration drill results from the El Barqueno project
Drill Hole |
|
Zone |
|
From |
|
To |
|
Depth of |
|
Estimated |
|
Gold grade |
|
Gold grade |
|
Silver grade |
|
AZP16-308 |
|
Azteca-Zapoteca |
|
25.0 |
|
39.0 |
|
12 |
|
11.2 |
|
1.5 |
|
|
|
6.3 |
|
AZP16-312 |
|
Azteca-Zapoteca |
|
137.0 |
|
142.0 |
|
122 |
|
4.0 |
|
1.6 |
|
|
|
11.4 |
|
AZP16-315 |
|
Azteca-Zapoteca |
|
54.0 |
|
62.0 |
|
42 |
|
8.0 |
|
3.9 |
|
|
|
42.0 |
|
including |
|
|
|
56.0 |
|
60.0 |
|
42 |
|
4.0 |
|
7.3 |
|
|
|
82.1 |
|
AZP16-317 |
|
Azteca-Zapoteca |
|
14.0 |
|
18.0 |
|
11 |
|
4.0 |
|
6.3 |
|
|
|
167.8 |
|
AZP16-319 |
|
Azteca-Zapoteca |
|
29.0 |
|
34.0 |
|
18 |
|
5.0 |
|
1.9 |
|
|
|
3.3 |
|
AZP16-322 |
|
Azteca-Zapoteca |
|
106.0 |
|
118 |
|
113 |
|
9.6 |
|
0.5 |
|
|
|
12.3 |
|
and |
|
Azteca-Zapoteca |
|
130.0 |
|
145 |
|
132 |
|
12.0 |
|
7.3 |
|
|
|
53.1 |
|
AZP16-323 |
|
Azteca-Zapoteca |
|
36.0 |
|
39.0 |
|
38 |
|
3.0 |
|
1.1 |
|
|
|
2.9 |
|
AZP16-329 |
|
Azteca-Zapoteca |
|
47.0 |
|
52.0 |
|
37 |
|
5.0 |
|
1.5 |
|
|
|
10.5 |
|
AZP16-330 |
|
Azteca-Zapoteca |
|
149.0 |
|
174.0 |
|
154 |
|
12.5 |
|
1.2 |
|
|
|
24.9 |
|
BRQ15-304 |
|
Olmeca |
|
118.0 |
|
125.0 |
|
72 |
|
5.5 |
|
20.6 |
|
11.1 |
|
8.8 |
|
BRQ15-309 |
|
Olmeca |
|
148.0 |
|
153.0 |
|
110 |
|
4.0 |
|
2.2 |
|
2.2 |
|
5.9 |
|
BRQ16-325 |
|
Angostura |
|
451.0 |
|
456.0 |
|
335 |
|
4.0 |
|
5.2 |
|
|
|
19.8 |
|
OLM16-003 |
|
Olmeca |
|
123.0 |
|
129.0 |
|
67 |
|
5.1 |
|
19.1 |
|
9.4 |
|
14.1 |
|
OLM16-008 |
|
Olmeca |
|
160.0 |
|
165.0 |
|
100 |
|
4.0 |
|
2.8 |
|
2.8 |
|
4.8 |
|
OLM16-010 |
|
Olmeca |
|
131.0 |
|
145.0 |
|
85 |
|
11.0 |
|
7.0 |
|
4.5 |
|
4.7 |
|
* Cut-off grade of 0.4 g/t gold; only intervals longer than 2.8 metres estimated true width were included.
** Holes at the Olmeca prospect use a capping factor of 20 g/t gold.
[El Barqueno Project Local Geology Map]
Newly Discovered Olmeca Structure
A total of six drill holes (2,211 metres) have been completed in the new Olmeca prospect, which is a 700-metre-long east-northeast-striking, steeply north-dipping gold-bearing structure that includes high-grade gold. Olmeca is located approximately 5 kilometres east of the Azteca-Zapoteca Zone. The new Olmeca prospect is open to the east and west and at depth. Hole OLM16-003 yielded 9.4 g/t gold and 14.1 g/t silver over 5.1 metres at 67 metres depth. Approximately 700 metres to the east, hole BRQ15-304 intersected 11.1 g/t gold and 8.8 g/t silver over 5.5 metres at 72 metres depth; hole OLM16-008 intersected 2.8 g/t gold and 4.8 g/t silver over 4.0 metres at 100 metres depth; and hole OLM16-010 intersected 4.5 g/t gold and 4.7 g/t silver over 11.0 metres at 85 metres depth. The mineralization is found in a high-strain zone including hematite- and specularite-rich gouge material at the contact of diorite intrusive with andesitic tuff. Additional subparallel structures have been denoted within the Olmeca prospect through geological mapping and sampling and soil geochemical surveys. Additional drilling is planned later this year along strike in both directions and at depth to properly define the limits of this high-grade auriferous structure.
Azteca-Zapoteca Zone
To date, the Azteca-Zapoteca Zone has been defined over more than 1.4 kilometres of strike length along a northeasterly direction and has been intersected as deep as 300 metres. The steeply north-dipping Azteca structure and moderately south-dipping Zapoteca structure appear
to coalesce at a depth of 100-150 metres below surface into a near-vertical structure with generally higher grades. The zone remains open at depth and along strike to the southwest.
Areas of higher grade were intersected during the quarter by holes that were testing the continuity and extensions of the mineralization. Examples include hole AZP16-315 that yielded 3.9 g/t gold and 42.0 g/t silver over 8.0 metres at 42 metres depth; hole AZP16-317 that yielded 6.3 g/t gold and 167.8 g/t silver over 4.0 metres at 11 metres depth; and hole AZP16-322 that yielded 7.3 g/t gold and 53.1 g/t silver over 12.0 metres at 132 metres depth.
Additional drilling is planned along strike to the southwest as well as in the footwall to the Zapoteca structure. The Company believes there is potential for parallel mineralized structures between the Azteca-Zapoteca and Angostura mineral resource areas. Drilling will continue to test this area in conjunction with the drilling in the Angostura area.
Angostura Zone
The Angostura Zone lies approximately 800 metres northwest of the Azteca-Zapoteca Zone. Angostura is defined over a strike length of more than 1,000 metres, and appears to plunge shallowly to the southwest. The structure is open along strike to the southwest and at depth.
Recent results include hole BRQ16-325 that intersected 5.2 g/t gold and 19.8 g/t silver over 4.0 metres at 335 metres depth. This is the deepest Angostura intercept to date.
Drilling to date suggests Angostura could become part of a multi-pit operation along with a larger deposit at Azteca-Zapoteca. Additional drilling is planned along strike to the northeast and southwest searching for other potential shallowly-plunging shoots as well as testing the potential for parallel mineralized structures. Further drilling is required in this area to confirm the geometry of the mineralized vein structure.
Additional Target Areas
Approximately 10,000 metres of additional drilling is expected to be completed by the end of 2016 at the El Barqueno project, principally at the Azteca-Zapoteca, Angostura, Pena de Oro deposits as well as on high potential targets such as: Pena Blanca, Olmeca, San Diego, El Camino, Tierra Blanca ,Tecolote and Tortuga . Exploration expenditures in 2016 are expected to total approximately $16 million.
In addition to the drilling activities, studies are underway to evaluate potential development scenarios for the project. It is currently envisioned that the projects gold-silver deposits could potentially be developed into a series of open pits utilizing heap leach processing, similar to the Creston Mascota deposit at Pinos Altos and the La India mines.
About Agnico Eagle
Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since 1957. Its eight mines are located in Canada, Finland and Mexico, with exploration and development activities in each of these countries as well as in the United States and Sweden. The Company and its shareholders have full exposure to gold prices due to its long-standing policy of no forward gold sales. Agnico Eagle has declared a cash dividend every year since 1983.
Further Information
For further information regarding Agnico Eagle, contact Investor Relations at [email protected] or call (416) 947-1212.
Forward-Looking Statements
The information in this news release has been prepared as at July 27, 2016. Certain statements contained in this news release constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information under the provisions of Canadian provincial securities laws and are referred to herein as forward-looking statements. When used in this news release, the words anticipate, could, estimate, expect, forecast, plan, potential, will and similar expressions are intended to identify forward-looking statements. Such statements include, without limitation: the Companys forward-looking project timelines; the estimated timing and conclusions of technical reports and other studies; the methods by which ore might be extracted or processed; statements concerning projected exploration expenditures, including costs and other estimates upon which such projections are based; statements regarding timing and amounts of capital expenditures and other assumptions; estimates of future expenditures; statements as to the projected development of certain ore deposits, including estimates of exploration, development and production and other capital costs and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development and production; estimates of mineral reserves and mineral resources, and statements regarding anticipated future exploration; the anticipated timing of events with respect to the Companys projects and statements. Such statements and information reflect the Companys views as at the date of this news release and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements and information. Forward-looking statements are necessarily based upon a number of factors and assumptions that, while considered reasonable by Agnico Eagle as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The material factors and assumptions used in the preparation of the forward looking statements contained herein, which may prove to be incorrect, include, but are not limited to, the assumptions set forth herein and in managements discussion and analysis (MD&A) and the Companys Annual Information Form (AIF) for the year ended December 31, 2015 filed with Canadian securities regulators and that are included in its Annual Report on Form 40-F for the year ended December 31, 2015
(Form 40-F) filed with the U.S. Securities and Exchange Commission (the SEC) as well as: that there are no significant disruptions affecting operations; that production, permitting, development and expansion at each of Agnico Eagles properties proceeds on a basis consistent with current expectations and plans; that the relevant metal prices, exchange rates and prices for key mining and construction supplies will be consistent with Agnico Eagles expectations; that Agnico Eagles current estimates of mineral reserves, mineral resources, mineral grades and metal recovery are accurate; that there are no material delays in the timing for completion of ongoing growth projects; that the Companys current plans to optimize production are successful; and that there are no material variations in the current tax and regulatory environment. Many factors, known and unknown, could cause the actual results to be materially different from those expressed or implied by such forward looking statements. Such risks include, but are not limited to: the volatility of prices of gold and other metals; uncertainty of mineral reserves, mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, project development, capital expenditures and other costs; exchange rate fluctuations; financing of additional capital requirements; cost of exploration and development programs; mining risks; community protests; risks associated with foreign operations; governmental and environmental regulation; the volatility of the Companys stock price; and risks associated with the Companys currency, fuel and by-product metal derivative strategies. For a more detailed discussion of such risks and other factors that may affect the Companys ability to achieve the expectations set forth in the forward-looking statements contained in this news release, see the AIF and MD&A filed on SEDAR at www.sedar.com and included in the Form 40-F filed on EDGAR at www.sec.gov, as well as the Companys other filings with the Canadian securities regulators and the SEC. Other than as required by law, the Company does not intend, and does not assume any obligation, to update these forward-looking statements.
Scientific and Technical Data
The scientific and technical information contained in this news release relating to Quebec operations has been approved by Christian Provencher, Eng., Vice-President, Canada; relating to Nunavut operations has been approved by Dominique Girard, Eng., Vice-President Nunavut Operations; relating to the Kittila operations has been approved by Francis Brunet, Eng., Corporate Director Mining; relating to Southern Business operations has been approved by Tim Haldane, P.Eng., Senior Vice-President, Operations USA and Latin America; and relating to exploration has been approved by Alain Blackburn, Eng., Senior Vice-President, Exploration and Guy Gosselin, Eng. and P.Geo., Vice-President, Exploration. Each of them is a Qualified Person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101).
The scientific and technical information relating to Agnico Eagles mineral reserves and mineral resources contained herein (other than the Canadian Malartic mine) has been approved by Daniel Doucet, Eng., Senior Corporate Director, Reserve Development; and relating to mineral reserves and mineral resources at the Canadian Malartic mine
contained herein has been approved by Donald Gervais, P.Geo., Director of Technical Services at CMC. Each of them is a Qualified Person for the purposes of NI 43-101.
Additional Information
Additional information about each of the mineral projects that is required by NI 43-101, sections 3.2 and 3.3 and paragraphs 3.4 (a), (c) and (d) can be found in Technical Reports, which may be found at www.sedar.com. Other important operating information can be found in the Companys AIF and Form 40-F.
Property/Project name |
|
Date of most recent |
LaRonde, Bousquet & Ellison, Quebec, Canada |
|
March 23, 2005 |
Canadian Malartic, Quebec, Canada |
|
June 16, 2014 |
Kittila, Kuotko and Kylmakangas, Finland |
|
March 4, 2010 |
Swanson, Quebec, Canada |
|
|
Meadowbank, Nunavut, Canada |
|
February 15, 2012 |
Goldex, Quebec, Canada |
|
October 14, 2012 |
Lapa, Quebec, Canada |
|
June 8, 2006 |
Meliadine, Nunavut, Canada |
|
February 11, 2015 |
Akasaba, Quebec, Canada |
|
|
Amaruq, Nunavut, Canada |
|
|
Hammond Reef, Ontario, Canada |
|
July 2, 2013 |
Upper Beaver (Kirkland Lake project), Ontario, Canada |
|
November 5, 2012 |
Pinos Altos and Creston Mascota, Mexico |
|
March 25, 2009 |
La India, Mexico |
|
August 31, 2012 |
Appendix: Selected drill collar coordinates
Amaruq project exploration drill collar coordinates of selected holes
|
|
Drill collar coordinates* |
| ||||||||||
Drill hole ID |
|
UTM North |
|
UTM East |
|
Elevation |
|
Azimuth |
|
Dip |
|
Length |
|
AMQ16-600 |
|
7255594 |
|
606682 |
|
153 |
|
143 |
|
-54 |
|
363 |
|
AMQ16-611 |
|
7255592 |
|
606751 |
|
153 |
|
142 |
|
-57 |
|
345 |
|
AMQ16-613 |
|
7255520 |
|
606513 |
|
153 |
|
142 |
|
-55 |
|
426 |
|
AMQ16-629A |
|
7255478 |
|
606413 |
|
153 |
|
143 |
|
-55 |
|
381 |
|
AMQ16-637 |
|
7255561 |
|
607029 |
|
153 |
|
323 |
|
-56 |
|
222 |
|
AMQ16-653A |
|
7255632 |
|
606799 |
|
153 |
|
146 |
|
-57 |
|
354 |
|
AMQ16-673 |
|
7255637 |
|
606750 |
|
153 |
|
142 |
|
-54 |
|
375 |
|
AMQ16-683 |
|
7256236 |
|
607173 |
|
153 |
|
323 |
|
-54 |
|
279 |
|
AMQ16-688 |
|
7255614 |
|
606775 |
|
153 |
|
146 |
|
-54 |
|
351 |
|
AMQ16-690 |
|
7255107 |
|
606051 |
|
153 |
|
323 |
|
-48 |
|
144 |
|
AMQ16-694 |
|
7256272 |
|
607236 |
|
153 |
|
319 |
|
-58 |
|
245 |
|
AMQ16-701 |
|
7255592 |
|
606716 |
|
153 |
|
144 |
|
-54 |
|
350 |
|
AMQ16-703 |
|
7255671 |
|
606817 |
|
153 |
|
143 |
|
-56 |
|
366 |
|
AMQ16-706 |
|
7256276 |
|
607188 |
|
153 |
|
321 |
|
-55 |
|
222 |
|
AMQ16-709 |
|
7255564 |
|
606696 |
|
153 |
|
143 |
|
-55 |
|
303 |
|
AMQ16-720 |
|
7256229 |
|
607229 |
|
153 |
|
321 |
|
-55 |
|
318 |
|
AMQ16-722 |
|
7255061 |
|
605868 |
|
153 |
|
323 |
|
-48 |
|
120 |
|
AMQ16-731 |
|
7256331 |
|
607282 |
|
153 |
|
322 |
|
-54 |
|
273 |
|
AMQ16-736 |
|
7255966 |
|
607099 |
|
153 |
|
321 |
|
-55 |
|
201 |
|
AMQ16-741 |
|
7256409 |
|
607240 |
|
153 |
|
323 |
|
-55 |
|
291 |
|
AMQ16-748 |
|
7256355 |
|
607042 |
|
153 |
|
323 |
|
-57 |
|
147 |
|
AMQ16-755 |
|
7256370 |
|
607343 |
|
153 |
|
319 |
|
-53 |
|
200 |
|
AMQ16-758 |
|
7256234 |
|
606762 |
|
153 |
|
329 |
|
-70 |
|
180 |
|
AMQ16-765 |
|
7256294 |
|
607258 |
|
153 |
|
321 |
|
-71 |
|
352 |
|
AMQ16-776 |
|
7256339 |
|
607489 |
|
153 |
|
322 |
|
-54 |
|
396 |
|
AMQ16-793 |
|
7255401 |
|
606541 |
|
153 |
|
145 |
|
-65 |
|
270 |
|
AMQ16-810 |
|
7256004 |
|
606861 |
|
153 |
|
323 |
|
-54 |
|
243 |
|
AMQ16-812 |
|
7256188 |
|
607510 |
|
153 |
|
321 |
|
-65 |
|
474 |
|
AMQ16-819 |
|
7256349 |
|
607555 |
|
153 |
|
324 |
|
-58 |
|
378 |
|
AMQ16-830 |
|
7256258 |
|
606925 |
|
153 |
|
321 |
|
-70 |
|
159 |
|
AMQ16-833 |
|
7256124 |
|
607407 |
|
153 |
|
319 |
|
-75 |
|
1021 |
|
* Coordinate System UTM Nad 83 zone 14
Sisar Zone exploration drill collar coordinates of selected holes
|
|
Drill collar coordinates* |
| ||||||||||
Drill hole ID |
|
UTM North |
|
UTM East |
|
Elevation |
|
Azimuth |
|
Dip |
|
Length |
|
RIE16-600 |
|
7538900 |
|
2558637 |
|
-615 |
|
090 |
|
-30 |
|
402 |
|
RIE16-601 |
|
7538900 |
|
2558637 |
|
-614 |
|
090 |
|
-2 |
|
315 |
|
RIE16-603 |
|
7538900 |
|
2558637 |
|
-614 |
|
079 |
|
-17 |
|
348 |
|
RIE16-604 |
|
7538900 |
|
2558637 |
|
-615 |
|
080 |
|
-30 |
|
381 |
|
RIE16-606 |
|
7538899 |
|
2558637 |
|
-614 |
|
101 |
|
-16 |
|
350 |
|
RIE16-607 |
|
7538900 |
|
2558637 |
|
-613 |
|
085 |
|
20 |
|
280 |
|
ROD16-700B |
|
7537848 |
|
2558625 |
|
-464 |
|
090 |
|
-67 |
|
859 |
|
ROD16-700C |
|
7537848 |
|
2558625 |
|
-464 |
|
090 |
|
-67 |
|
684 |
|
ROD16-700D |
|
7537848 |
|
2558625 |
|
-464 |
|
090 |
|
-67 |
|
785 |
|
ROD16-700E |
|
7537848 |
|
2558625 |
|
-464 |
|
090 |
|
-67 |
|
723 |
|
* Finnish Coordinate System KKJ Zone 2
Barsele project exploration drill collar coordinates of selected holes
|
|
Drill collar coordinates* |
| ||||||||||
Drill hole ID |
|
UTM North |
|
UTM East |
|
Elevation |
|
Azimuth |
|
Dip |
|
Length |
|
SKI16-006 |
|
7214505 |
|
619155 |
|
305 |
|
40 |
|
-51 |
|
788 |
|
SKI16-007 |
|
7214505 |
|
619155 |
|
305 |
|
40 |
|
-59 |
|
882 |
|
* Coordinate System Sweref 99
Odyssey prospect exploration drill collar coordinates of selected holes
|
|
Drill collar coordinates* |
| ||||||||||
Drill hole ID |
|
UTM |
|
UTM East |
|
Elevation |
|
Azimuth |
|
Dip |
|
Length |
|
ODY11-2404 |
|
5333934 |
|
717976 |
|
311 |
|
020 |
|
-63 |
|
1,455 |
|
ODY14-2480 |
|
5333964 |
|
718070 |
|
312 |
|
012 |
|
-63 |
|
1,180 |
|
ODY14-2480A |
|
5333964 |
|
718070 |
|
312 |
|
012 |
|
-63 |
|
1,116 |
|
ODY14-2482 |
|
5333964 |
|
718070 |
|
312 |
|
000 |
|
-64 |
|
1,209 |
|
ODY14-2483 |
|
5333934 |
|
717976 |
|
310 |
|
008 |
|
-66 |
|
1,272 |
|
ODY14-2486 |
|
5333852 |
|
717700 |
|
316 |
|
012 |
|
-59 |
|
1,298 |
|
ODY14-2491B |
|
5333984 |
|
718160 |
|
312 |
|
008 |
|
-65 |
|
1,254 |
|
ODY14-2492 |
|
5333880 |
|
718295 |
|
312 |
|
012 |
|
-61 |
|
1,323 |
|
ODY14-2493 |
|
5333962 |
|
718400 |
|
311 |
|
005 |
|
-68 |
|
1,341 |
|
ODY15- 2494 |
|
5333970 |
|
718546 |
|
311 |
|
006 |
|
-72 |
|
1,508 |
|
ODY15-2495 |
|
5333987 |
|
718157 |
|
312 |
|
012 |
|
-60 |
|
635 |
|
ODY15-2498 |
|
5333853 |
|
719049 |
|
309 |
|
008 |
|
-54 |
|
791 |
|
ODY15-2500 |
|
5333964 |
|
718065 |
|
311 |
|
007 |
|
-67 |
|
1,299 |
|
ODY15-5003 |
|
5333937 |
|
718850 |
|
310 |
|
009 |
|
-58 |
|
789 |
|
ODY15-5004 |
|
5333807 |
|
718849 |
|
312 |
|
011 |
|
-65 |
|
1,407 |
|
ODY15-5007 |
|
5333696 |
|
718650 |
|
312 |
|
007 |
|
-62 |
|
1,440 |
|
ODY15-5008 |
|
5333957 |
|
718500 |
|
311 |
|
004 |
|
-53 |
|
855 |
|
ODY15-5010 |
|
5333840 |
|
718495 |
|
315 |
|
009 |
|
-61 |
|
1,275 |
|
ODY15-5023 |
|
5333965 |
|
718065 |
|
311 |
|
004 |
|
-51 |
|
633 |
|
ODY15-5024 |
|
5333864 |
|
717904 |
|
314 |
|
006 |
|
-61 |
|
1,212 |
|
ODY15-5025 |
|
5333929 |
|
718000 |
|
312 |
|
009 |
|
-59 |
|
1,167 |
|
ODY15-5026 |
|
5333984 |
|
718160 |
|
312 |
|
000 |
|
-52 |
|
684 |
|
ODY15-5029 |
|
5333929 |
|
718000 |
|
312 |
|
001 |
|
-56 |
|
1,107 |
|
ODY16-5033 |
|
5333962 |
|
718400 |
|
311 |
|
010 |
|
-65 |
|
1,256 |
|
ODY16-5039 |
|
5333728 |
|
718819 |
|
312 |
|
014 |
|
-66 |
|
1,497 |
|
ODY16-5040A |
|
5333862 |
|
717904 |
|
314 |
|
007 |
|
-65 |
|
1,329 |
|
ODY16-5042 |
|
5334058 |
|
717544 |
|
311 |
|
012 |
|
-61 |
|
1,101 |
|
ODY16-5043 |
|
5333874 |
|
718294 |
|
314 |
|
010 |
|
-68 |
|
1,545 |
|
ODY16-5044 |
|
5333914 |
|
718513 |
|
314 |
|
008 |
|
-711 |
|
1,537 |
|
ODY16-5051 |
|
5333931 |
|
718709 |
|
316 |
|
009 |
|
-68 |
|
1,335 |
|
ODY16-5054 |
|
5333931 |
|
718709 |
|
316 |
|
009 |
|
-69 |
|
1,400 |
|
* Coordinate System UTM Nad 83 zone 17
Madrono prospect exploration drill hole collar coordinates
|
|
Drill Hole Collar Coordinates* |
| ||||||||||
Drill Hole ID |
|
UTM North |
|
UTM East |
|
Elevation |
|
Azimuth |
|
Dip |
|
Length |
|
|
|
|
|
|
|
|
|
(degrees) |
|
|
|
|
|
MAD16-003 |
|
3134418 |
|
761977 |
|
2,146 |
|
000 |
|
-45 |
|
348 |
|
MAD16-004 |
|
3134991 |
|
761465 |
|
2,014 |
|
065 |
|
-45 |
|
350 |
|
MAD16-005 |
|
3134957 |
|
761712 |
|
2,157 |
|
000 |
|
-45 |
|
279 |
|
* Coordinate System UTM NAD 27
El Barqueno project exploration drill hole collar coordinates
|
|
Drill Hole Collar Coordinates* |
| ||||||||||
Drill Hole ID |
|
UTM North |
|
UTM East |
|
Elevation |
|
Azimuth |
|
Dip (degrees) |
|
Length |
|
|
|
|
|
|
|
|
|
(degrees) |
|
|
|
|
|
AZP16-308 |
|
2279872 |
|
555113 |
|
1,267 |
|
155 |
|
-50 |
|
85 |
|
AZP16-312 |
|
2279710 |
|
554046 |
|
1,274 |
|
155 |
|
-50 |
|
168 |
|
AZP16-315 |
|
2279774 |
|
554153 |
|
1,262 |
|
335 |
|
-50 |
|
116 |
|
AZP16-317 |
|
2279812 |
|
554083 |
|
1,255 |
|
335 |
|
-50 |
|
52 |
|
AZP16-319 |
|
2279790 |
|
554063 |
|
1,255 |
|
335 |
|
-50 |
|
70 |
|
AZP16-322 |
|
2279765 |
|
554239 |
|
1,234 |
|
155 |
|
-55 |
|
171 |
|
AZP16-323 |
|
2279788 |
|
554064 |
|
1,255 |
|
0 |
|
-90 |
|
76 |
|
AZP16-329 |
|
2279828 |
|
554432 |
|
1,255 |
|
350 |
|
-45 |
|
256 |
|
AZP16-330 |
|
2279799 |
|
554224 |
|
1,239 |
|
155 |
|
-60 |
|
267 |
|
BRQ15-304 |
|
2280615 |
|
561300 |
|
1,387 |
|
155 |
|
-50 |
|
316 |
|
BRQ15-309 |
|
2280531 |
|
561113 |
|
1,381 |
|
155 |
|
-55 |
|
406 |
|
BRQ16-325 |
|
2279956 |
|
554684 |
|
1,280 |
|
335 |
|
-50 |
|
689 |
|
OLM16-003 |
|
2280468 |
|
560672 |
|
1,384 |
|
155 |
|
-50 |
|
488 |
|
OLM16-008 |
|
2280598 |
|
561191 |
|
1,393 |
|
155 |
|
-50 |
|
323 |
|
OLM16-010 |
|
2280658 |
|
561386 |
|
1,402 |
|
155 |
|
-50 |
|
287 |
|
* Coordinate System UTM WGS84 13N Zone
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