MEXICO - Toronto's AGNICO-EAGLE MINES has made a positive development decision for its 100%-owned Pinos Altos gold project 280 km west of Chihuahua.
The announcement follows completion of a feasibility study for an open pit and underground mine, 4,000 t/d mill and 2,500 t/d heap leach. Annual production is expected to be 150,000 oz of gold at a cash cost of US$230/oz. Silver production is to be 2.0 million oz/year. Construction capital costs are budgeted at US$190 million to create a mine with at least an 11-year life.
The numbers in the feasibility study did not include the 21% increase in contained ounces identified since February 2007. The current gold reserves at Pinos Altos total 2.2 million oz from 20.0 million tonnes of ore in probable reserves grading 3.5 g/t Au, an increase of 13% in gold grade over the previous reserve estimate. The deposit also includes approximately 65.7 million oz of silver in the reserve category, an increase of approximately 10 million oz over the previous estimate.
More information about Pinos Altos and Agnico-Eagles other growth projects is posted at www.Agnico-Eagle.com.
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