NORTHERN QUEBEC – AGNICO-EAGLE MINES of Toronto has decided to spend Cdn$262.1 million to build the LaRonde II gold mine, the deep extension of the company’s low-cost LaRonde gold mine near Val d’Or.
The feasibility study recommends development a 6,000-tonne/day mine. The project will be funded from existing cash and cash flows. Total cash costs are expected to average US$230/oz. Annual gold production will average 320,000 oz with initial gold production occurring in 2011, extending the life of the LaRonde complex to at least 2020.
Reserves at LaRonde II total 18.8 million tonnes grading 6.0 g/t Au or 3.6 million oz of gold. The deposit also contains an estimated 13.0 million oz of silver, 62,000 tonnes of copper and 155,000 tonnes of zinc.
Annual byproduct production is expected to average 670,000 oz of silver, 4,000 tonnes of copper and 8,600 tonnes of zinc. Conversion of the existing gold resource to reserves could extend the life of the mine significantly, according to Agnico-Eagle.
Updates on the company’s other development projectsGoldex, Lapa and Suurikuusikkoare available at www.Agnico-Eagle.com.