GOLD DEVELOPMENT: Agnico-Eagle to mine satellite zones at Goldex

QUEBEC – Toronto-based Agnico-Eagle Mines is going ahead with the development of the M and E satellite zones at the Goldex gold mine in Val d’Or. The company suspended mining at Goldex in October 2011 because of a groundwater inflow due to a suspected failure of a volcanic rock unit in the hanging wall.

While mining in the Goldex Extension zone (GEZ) remains suspended indefinitely, work at the site has continued, including monitoring, assessment and remediation, as well as exploration of several nearby zones. After a thorough review and economic assessment, the Agnico board has given the okay to development M and E zones by longhole open stoping methods and paste backfill.

Capital costs of developing the two zones will be $95 million. Gold production is expected to being in early 2014. Production through 2017 will be 300,000 oz at total cash costs of $900/oz.

More information is available at Agnico-Eagle.com.