FINLAND - As if Canadian winters weren't enough of a challenge, Toronto's AGNICO-EAGLE MINES is going 1,000 km north of Helsinki to develop a gold mine in Finnish Lapland. The Kittila mine will require spending US$135 million for development, with production to begin in 2008 and last at least 13 years. Output is expected to be 150,000 oz/year at an average cash cost of US$250/oz.
Construction will begin immediately. The mine, named after the nearby community of Kittila, will begin as an open pit in the Suurikuusikko deposit to be followed by underground development via ramp access. The mining operation will feed a 3,000-tonne/day mineral processing plant.
Current probable reserves are 14.2 million tonnes grading 5.16 g/t Au or 2.4 million oz of gold. The property also contains a measured resource of 100,000 tonnes at 4.07 g/t Au, an indicated resource of 1.5 million tonnes containing 4.39 g/t Au, and an inferred resource of 6.7 million tonnes containing 4.35 g/t Au. Eight drills are currently operating at the Kittila mine project and are focused on converting the large gold resource to reserves and on drilling the extensive land position along-strike of the known gold reserve.
Agnico-Eagle has also set a 2008 date for production from the Lapa gold mine in the Abitibi Gold Belt near its LaRonde mine. Only last month the company promised US$210 million for construction of the LaRonde II project. It has also embarked on a US$23-million exploration project and feasibility study at its Pinos Altos gold project in the Sierra Madre Gold belt, 280 km west of Chihuahua, Mexico.
Readers wishing to learn more about a growing gold producer should visit www.Agnico-Eagle.com.