TORONTO – Agnico-Eagle Mines is wrapping up a very successful 2010 and looking forward with anticipation to 2011 and beyond. The company expects gold production to increase 18% next year to between 1.13 million and 1.23 million oz of gold. Total cash costs will be in the range of US$420-US$470.
For the five years 2012-15, gold production is expected to rise to 1.36 million oz at total cash costs averaging US$432 per oz.
By 2014, gold production is projected to reach 1.5 million oz, and after that date the startup of the Meliadine mine and several expansion projects will boost the total even higher.
To support this ambitious growth, Agnico has set aside US$145 million (a record amount) for global exploration activities in 2011. In 2010, the company spent US$110 million and logged several successful outcomes. At the Meliadine gold property in Nunavut a new zone was discovered at Wesmeg and the Tiriganiaq high grade zone was extended. At the Kittila mine in Finland gold mineralization was extended in several directions including at a depth of 1,400 metres below the surface; underground exploration drilling is planned for next year. Exploration below the current workings of the Goldex mine in Quebec has confirmed the continuity of the large D zone that may extend the life of the mine. At the Ellison property, deep drilling has confirmed that the mineralization is an extension of IamGold’s Westwood deposit now under development adjacent to the Doyon gold mine in Quebec.
Additional details of Agnico-Eagle’s 2010 exploration program are available in the news release dated Dec. 15, 2010, at www.Agnico-Eagle.com.