QUEBEC Hot on the heels of a positive second quarter, AGNICO-EAGLE MINES has decided to go ahead with the development of the Goldex mine just west of Val d’Or and 50 km east of its very-successful LaRonde gold mine. Mobilization will begin immediately at the 100%-owned Goldex project, with first gold production expected in 2008.
The feasibility study projects an estimated capital cost of US$135 million, most of which will come from internal cash flows and cash resources. Goldex should produce an average of 170,000 oz/year over 10 years at a total cash costs of about US$200/oz. A description of the property is posted at www.Agnico-Eagle.com.
The Goldex property had an estimated 1.6 million oz of gold in 22.15 million tonnes of probable reserves at the end of 2004. Another 924,000 tonnes of indicated reserves and 3.55 million tonnes have been identified.