MEXICO - Toronto-based AGNICO-EAGLE MINES has optioned the Pinos Altos advanced exploration project in Chihuahua state. The option was granted by Industrias Penoles and requires Agnico-Eagle to invest US$2.8 million over the next five months on a 55,000-foot diamond drilling program. Then Agnico-Eagle will have a two-month period to exercise its option to purchase Penoles' 100% interest in the project for US$65 million, payable in cash and Agnico-Eagle shares.
Penoles acquired the property in 1995 and drilling to date has outlined an indicated mineral resource of 4.4 million tons with a grade of 0.18 opt Au and 3.82 opt Ag, containing 800,000 oz of gold and 16.9 million oz of silver. In addition, the property has an inferred mineral resource of 2.5 million tons grading 0.18 opt Au and 3.41 opt Ag, containing 400,000 oz of gold and 8.4 million ounces of silver. Penoles' work to date has also included metallurgical testing and initial work on the permitting for a potential mining operation.
"Pinos Altos represents Agnico-Eagle's first entry into the highly prospective gold camps of northern Mexico, an area we have actively scouted for three years," said Sean Boyd, president and CEO. "With its vast land package and open pit potential, Pinos Altos could provide a near-term step towards our objective of multi-mine production," he added.
A location map and diagram of the Pinos Altos geology are available at www.Agnico-Eagle.com/url/050223_PinosAltos_Location.pdf.
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