Stock Symbols: AEM (NYSE and TSX) TORONTO, Nov. 21
/PRNewswire-FirstCall/ -- Agnico-Eagle Mines Limited is pleased to
provide an update on its 2006 exploration activities. Encouraging
results have been received from several of the development
properties in Finland, Mexico and Quebec, including results from
outside of the currently contemplated mining areas. It is
anticipated that drilling at the current projects will enable
Agnico-Eagle to reach its 2008 target of 14 million to 15 million
ounces of gold reserves. However, several of the recent discoveries
are outside of the currently contemplated mining areas, supporting
the thesis that gold reserves could continue to grow beyond this
range in the next several years through further exploration. The
entirety of Agnico-Eagle's gold reserves are located in mining
friendly regions of low political risk and are close to major
infrastructure. With four new gold projects under development, and
another exploration project in the feasibility study stage,
Agnico-Eagle is aiming to triple its gold production in the next
three years. Highlights of the recent exploration include: - Infill
drill holes at the Kittila project, Finland, encounter some of the
thickest and richest drill intersections to date, including 20.4
metres grading 6.1 grams per tonne ("gpt") of gold. - Discovery of
two new gold bearing zones north of the Kittila project site,
including an intersection of 9.3 metres grading 8.1 gpt of gold. -
Joint venture at Oijarvi (350 kilometres south of the Kittila
project) extends gold mineralization at depth, including 7.1 metres
grading 8.4 gpt gold and 70.2 gpt silver. - Strong infill drilling
results at the main Santo Nino zone at the Pinos Altos project,
Mexico, including 39.0 metres grading 6.3 gpt gold and 105.0 gpt
silver. - Encouraging early results at the Carola zone, northwest
of the Santo Nino zone, including a 45 metre long trench sample
grading 3.5 gpt gold. - Discovery of the favourable Santo Nino gold
structure two kilometres west of the current deposit outline
suggests the potential for further discoveries in this direction. -
High grade gold extension zone discovered to the west at Lapa,
including an intersection of 9.7 metres grading 14.0 gpt. -
Discovery of gold bearing massive sulphide mineralization at depth,
below the Bousquet 2 shaft, adjacent to the LaRonde mine in
northwestern Quebec. "We believe these strong exploration results
demonstrate the potential of our properties to add to our gold
reserves and resources over the next two years." said Sean Boyd,
Vice-Chairman and Chief Executive Officer. "Increasing our gold
reserves and resources through focused drill programs is an
important part of our strategy to strengthen our business and build
value at Agnico-Eagle" added Mr. Boyd. New Gold Zone Discovered at
Kittila While construction of the new Kittila gold project has been
underway since the second quarter of 2006, Agnico-Eagle has
continued exploration and diamond drilling activities along the 15
kilometre long Suurikuusikko Gold Trend. The company has also
continued with infill drilling and minesite exploration, both at
depth and immediately on strike of the Kittila deposit. Currently,
six drill rigs are in operation on the property. Three drill rigs
are dedicated to further definition of the current reserves, while
the remaining three are focused on exploration. Targets for the
infill-drilling program in 2007 are in the Main zone and the
Central Rouravaara zone. To date, the infill drill holes have
confirmed the previous results. Some of the most interesting
results were obtained in drill holes 06039 and 06018 which tested,
respectively, the open pit sector of the Main zone, and the
underground sector between the Main zone and the Central Rouravaara
zone. Hole 06039 returned 8.9 grams of gold per tonne over 14.3
metres (true width) at a depth of 150 metres. Hole 06018 cut 16.2
grams of gold per tonne over 4.1 metres at a depth of approximately
150 metres. Another significant gold result was from hole 06040
that tested to the north, and at depth, of the Central Rouravaara
zone. This drill hole intersected a new zone of mineralization that
returned 5.2 grams per tonne over 5.0 metres (true width) at
approximately 250 metres below surface, suggesting that this zone
is still open at depth, and to the north.
http://www.agnico-eagle.com/files/KittilaLongSectionFig1.pdf
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True From To Gold Drill Hole Zone Thickness (metres) (metres) (g/t)
(metres)
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SUBH05101 MAIN 20.4 429.6 458.8 6.1
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SUBH05104 CENTRAL ROURAVAARA 19.0 344.6 371.7 6.3
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SUBH06009 MAIN 12.1 500.5 518.5 5.5
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SUBH06018 CENTRAL ROURAVAARA -EXTENSION 4.1 272.0 277.5 16.2
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SUBH06039 MAIN 14.3 256.4 276.8 8.9
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SUBH06027 SOUTH RIMMINVUOMA 7.0 204.7 214.0 5.0
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SUBH06040 NEW - NORTH ROURAVAARA 5.0 553.0 561.0 5.2
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SUBH06052 SOUTH RIMMINVUOMA 9.3 386.8 400.0 8.1
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SUBH06073 SOUTH RIMMINVUOMA 3.0 373.7 378.3 10.4
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A new gold zone, called the Rimminvuoma, has been discovered along
the trend, only 700 metres north of the Kittila deposit. The
location of this deposit is also shown in the previous graphic,
viewable via the link provided. To date, 12 holes have tested this
zone of mineralization to a depth of 250 metres and the zone is
open in all directions at depth. The most significant values were
in hole 06052 that returned 8.1 grams of gold per tonne over 9.0
metres true width, at a depth of 100 metres. Also significant is
that the Rimminvuoma zone is a blind discovery; significant gold
mineralization was not discovered by the initial pass of
exploration drilling at relatively shallow depths and it is
believed that there is excellent exploration potential at
relatively moderate depths. Diamond drilling will continue to
further test the zone. Another new gold zone, Hakokodanmaa, has
been discovered about three kilometres further to the north of the
Kittila deposit. The zone was discovered by follow-up exploration
of a geochemical anomaly identified by previous work along the
Suurikuusikko Trend. Most of the diamond drill holes that have
tested the zone so far have intersected zones of gold
mineralization associated with arsenopyrite and pyrite (which is
also characteristic of the Kittila deposit). Although assay results
have been sporadic, significant gold values such as 8.4 grams gold
per tonne over 1.1 metres and 2.6 grams gold per tonne over 7.7
metres, in hole HAK06010, have been observed at relatively shallow
depths. Based on the Kittila deposit, gold grades have tended to
improve at depth when this type of mineralization has been
observed. Exploration will continue to test the Hakokodanmaa zone
both at depth and along strike. Some assays are still pending.
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Drill Hole True Thickness From To Gold (metres) (metres) (metres)
(g/t)
-------------------------------------------------------------------------
HAK06001 0.5 29.5 30.2 5.3
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HAK06002 3.1 172.1 176.5 1.1
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HAK06003 5.5 41.0 48.9 2.4
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HAK06004 0.7 127.0 128.0 0.3
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HAK06008 4.9 169.0 176.0 0.3
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and 2.1 186.0 189.0 0.2
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HAK06009 3.3 23.8 28.5 1.4
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and 0.4 82.4 83.0 5.6
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HAK06010(x) 1.1 72.7 73.4 8.4
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and 7.7 135.0 146.0 2.6
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(x) preliminary results, no check assay to date The Oijarvi
Property Since 2002, Agnico-Eagle, through Riddarhyttan Resources
AB, has been exploring the Oijarvi Property via its 50/50 joint
venture with Troy Resources NL. The property is located
approximately 350 kilometres south of the Kittila mine project and
85 kilometres east of the town of Kemi, Finland. Agnico-Eagle is
the exploration project operator. The Oijarvi property covers a
small late Archean-age greenstone belt, very similar to those found
in the Canadian Shield, and which hosts several gold-bearing zones
within the project area. A diamond drilling program (seven holes
for 3,140 metres) has recently been completed to test the depth and
lateral continuity of the Kylmakangas gold zone, the most important
of the currently known gold zones at Oijarvi. Previous exploration,
including 20 diamond drill holes (for approximately 3,240 metres)
completed by the joint venture and others, has traced a very
steeply dipping gold zone. This zone consists of two to three,
closely-spaced and subparallel, white to gray coloured,
quartz-sericite breccias up to 10 meters thick with minor
chalcopyrite and galena (which appear to correlate with gold
values) and other sulphides that follow the sheared and strongly
altered southern contact of a quartz porphyry dyke within the
greenstones. Several of the most recent holes have intersected
significant gold values over large thicknesses, including hole
06001 which returned 8.1 grams of gold per tonne and 70.2 grams of
silver per tonne over 7.1 metres true width. The Kylmakangas gold
zone has been traced for over 250 metres in strike length and it is
open at depth below 250 metres, and to the east. Agnico-Eagle is
reviewing the information in order to define the scope for future
work by the Oijarvi joint venture. A longitudinal section may be
viewed via the following link.
http://www.agnico-eagle.com/files/KylmakangasGradeThicknessFig2.pdf
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True From To Gold Silver Drill Hole Thickness (metres) (metres)
(g/t) (g/t) (metres)
--------------------------------------------------------------------
06007 3.2 265.0 270.1 5.8 34.4
--------------------------------------------------------------------
06006 6.7 224.5 236.0 4.9 34.9
--------------------------------------------------------------------
06001 7.1 236.0 247.8 8.4 70.2
--------------------------------------------------------------------
06002 0.7 232.6 233.9 5.6 65.3
--------------------------------------------------------------------
and 6.5 237.2 249.0 4.3 84.1
--------------------------------------------------------------------
06003 1.2 130.1 132.0 3.8 24.4
--------------------------------------------------------------------
06005 8.6 207.8 222.7 4.0 55.0
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R658(x) 17.2 100.2 123.8 10.8 60.8
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(x) previously released by Troy Resources NL Strong Drilling
Results at Pinos Altos At the 100% owned Pinos Altos project in
northern Mexico, a $23 million exploration program is well
underway. As previously announced, objectives of the exploration
program include: - converting resources to reserves; - expanding
the resource by drilling in under-explored regions along strike and
at depth; - completion of a feasibility study; - development of an
underground ramp to provide a deeper drilling platform, and to
expose the mineralization for sampling and examination. Currently,
five drills are operating on the property, focused largely on
resource conversion at relatively shallow depths (less than 300
metres generally). To date, almost 18,000 metres have been drilled
in 2006. The resources in the measured and indicated category will
form the basis of the feasibility study. A summary of the best
results from the recent drilling on the main Santo Nino zone is
found in the following table. These results have increased
confidence that the overall gold and silver resource around Cerro
Colorado and Santo Nino is likely to grow. One of the most
significant results was in hole PA-05-81 that returned 5.8 grams
gold per tonne and 42.0 grams silver per tonne over 2.5 metres at a
depth of approximately 625 metres. This hole is approximately
midway between the Santo Nino and Cerro Colorado zones. This
intersection suggests that these two zones may join at depth. Also
significant are the intersections returned in hole PA-06-83 (16.2
grams gold per tonne and 116.0 grams silver per tonne over 3.2
metres) that confirms the depth potential along the steep east
plunge of Santo Nino, and also in hole PA-06-111 (6.3 grams gold
per tonne and 105.0 grams silver per tonne over 39.0 metres) that
supports the open pit potential of Santo Nino.
http://www.agnico-eagle.com/files/PinosGradeThicknessFig3.pdf
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True From To Gold Silver Drill Hole Zone Thickness (metres)
(metres) (g/t) (g/t) (metres)
-------------------------------------------------------------------------
PA-05-57A Santo Nino 2.6 755.6 760.0 2.3 23
-------------------------------------------------------------------------
PA-05-81 Santo Nino 2.5 642.0 646.0 5.8 42
-------------------------------------------------------------------------
PA-06-83 Santo Nino 3.2 720.7 724.2 16.2 116
-------------------------------------------------------------------------
PA-06-85 Santo Nino 10.1 222.5 233.5 11.6 192
-------------------------------------------------------------------------
PA-06-90 Santo Nino 28.0 243.0 275.2 4.0 59
-------------------------------------------------------------------------
including Santo Nino 3.2 251.9 255.5 26.0 93
-------------------------------------------------------------------------
PA-06-105 Santo Nino 29.0 245.0 292.0 2.6 82
-------------------------------------------------------------------------
including Santo Nino 4.3 245.0 252.0 10.0 363
-------------------------------------------------------------------------
PA-06-111 Santo Nino 39.0 78.4 139.0 6.3 105
-------------------------------------------------------------------------
including Santo Nino 14.6 78.4 101.0 9.1 184
-------------------------------------------------------------------------
and Santo Nino 7.0 116.0 126.9 14.2 105
-------------------------------------------------------------------------
Exploration and resource conversion diamond drilling will now be
focused at depths below 300 metres along the Santo Nino and Cerro
Colorado zones and also along the San Eligio gold structure. San
Eligio is located approximately 250 metres north of Santo Nino,
where surface mapping and prospecting has suggested good potential
for additional mineralization on strike and at depths below 150
metres. Assays from the initial round of drilling are expected to
be completed shortly. Visual inspection of the drill core resulted
in sightings of visible gold. The core is very similar to that of
Santo Nino, geologically. The following link leads to a geological
plan showing the location of the new zones of interest.
http://www.agnico-eagle.com/files/PinosGeologyPlanFig4.pdf A recent
discovery is in the Carola area, located in the northwestern
quadrant of the Pinos Altos property, where initial exploration
results have been encouraging. Although mineralization was
previously detected in this area, grab samples and channel samples
have confirmed the previous results. Prospecting and geological
mapping have also resulted in the discovery of new showings that
have returned gold values as high as 33.3 gpt. These results are
spread over a large area, in excess of one square kilometre. Also
of interest is the Creston Colorado occurrence where trenching has
exposed a shallowly dipping zone of quartz vein mineralization
grading 3.5 gpt gold over a 45.4 metre length at surface. While
this is an apparent thickness on a shallowly dipping structure, the
true thickness will be confirmed by the upcoming drill program. A
drill is currently being mobilized to investigate the grade,
thickness, orientation and extent of gold and silver mineralization
in this sector.
http://www.agnico-eagle.com/files/PinosMascotaAndCrestonColoradoVeinsFig5.pdf
Prospecting and reconnaissance mapping has also traced what appears
to be the Santo Nino structure almost two kilometres west of the
zones of the mineral resource at Santo Nino, Cerro Colorado and
Oberon de Weber. Additional exploration is planned in this sector.
The feasibility study at Pinos Altos is expected to consider a base
case of approximately 3,000 tonnes of ore processed per day.
However, there is increasing confidence that higher production
rates may be possible. Assuming a positive production decision is
made in 2007, gold and silver production at Pinos Altos could begin
in 2009. New Gold Zone at Lapa Recent exploration drilling has
revealed a new extension to the gold bearing zone, named Contact
Centre, on the 100% owned Lapa property, which is 11 kilometres
east of LaRonde. The new Contact Centre zone is approximately
parallel to, and immediately to the west of, the existing probable
reserve at Lapa. This zone has been traced over a strike length of
50 metres and a vertical height of at least 200 metres. Initial
assay results, tabulated below, are encouraging as the average
grades returned, to date, are approaching double the average grade
of the current Lapa probable reserve. One of the most significant
gold results was in hole LA06-77-3 that assayed 14.0 grams per
tonne over 9.7 metres true width. The drill results are
preliminary, as check assays have not yet been completed.
-------------------------------------------------------------------------
True From To Gold Drill Hole Zone Thickness (metres) (metres) (g/t)
(metres)
-------------------------------------------------------------------------
LA06-69-48 CONTACT CENTER 4.1 206.1 211.2 12.5
-------------------------------------------------------------------------
LA06-69-49 CONTACT CENTER 3.8 208.0 213.0 25.1
-------------------------------------------------------------------------
LA06-77-1 CONTACT CENTER 2.8 244.5 248.1 13.9
-------------------------------------------------------------------------
LA06-77-2 CONTACT CENTER 2.8 243.0 246.6 6.0
-------------------------------------------------------------------------
LA06-77-3 CONTACT CENTER 9.7 204.5 215.9 14.0
-------------------------------------------------------------------------
LA06-77-5 CONTACT CENTER 10.5 197.0 209.3 8.9
-------------------------------------------------------------------------
Currently, deep exploration drilling is being planned from the
shaft station on level 89 in order to test the inferred gold
resource that extends down over 400 metres immediately below the
currently planned Lapa shaft bottom at 1350 metres depth. Further
reserve and resource conversion is expected with the year end 2006
results. http://www.agnico-eagle.com/files/LapaLongSectionFig6.pdf
Massive Sulphides Intersected West of LaRonde Exploration along the
favorable horizon to the west of LaRonde along the level 215
exploration drift has intersected a new gold bearing polymetallic
massive sulphide zone. The new discovery is located within a
disseminated sulphide-rich, alteration zone (possibly the Zone 20
North Gold horizon) that extends down plunge westward from the
adjacent former LaRonde # 1 and Bousquet II massive sulphide gold
mines (which combined, produced from 1988 to 1999 over three
million ounces of gold in approximately 15 million tonnes of ore).
To date, two diamond drill holes, that were completed from the
westernmost extension of the level 215 exploration drift, have
intersected significant alteration with gold in semi-massive and
massive sulphides (at 2,500 metres below surface and 1,900 metres
west of the Penna shaft). The first indications were returned in
hole 3215-133 that intersected strong alteration and anomalous gold
values associated with semi-massive sulphide mineralization. The
best intercept was in hole 3215-141, located approximately 100
metres west and 50 metres below 3215-133, and returned 3.9 gram of
gold per tonne over 3.5 metres true width. The massive sulphide
mineralization and alteration appears to increase to the west, and
is also open at depth. Follow-up drilling is currently in progress
and the 215 exploration drift is planned to be extended for 240
metres in order to investigate the continuity, strike and depth
extension of this new zone.
http://www.agnico-eagle.com/files/LaRondeLongSectionFig7.pdf
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Gold Drill True (g/t) Silver Copper Zinc Hole Thickness From To Cut
(oz/ton) (%) (%) (metres) (1.5 oz)
-------------------------------------------------------------------------
3215-133 2.8 544.2 548.6 0.9 2.4 0.10 0.02
-------------------------------------------------------------------------
3215-141 3.5 526.2 530.9 3.9 8.1 0.05 0.22
-------------------------------------------------------------------------
Acquisition of Shares of Stornoway Diamond Corporation In
accordance with regulatory requirements, Agnico-Eagle announces
that it has acquired 17,629,084 common shares of Stornoway Diamond
Corporation upon the conversion of subscription receipts issued to
it by Stornoway on July 21, 2006 in consideration of release of
$22.5 million, plus accrued interest, that was being held in escrow
pursuant to the terms of the subscription agreement entered into by
Agnico-Eagle and accepted by Stornoway. The first closing of
15,670,297 common shares of Stornoway took place on September 18,
2006 and the second for 1,958,787 common shares of Stornoway on
September 20, 2006. These securities represent approximately 11.68%
of the issued and outstanding common shares in the capital of the
Company. In addition to the 17,629,084 common shares of Stornoway,
Agnico-Eagle has received 4,968,747 common shares in the capital of
Stornoway on the conversion of Agnico-Eagle's common shares in the
capital of Contact Diamond Corporation on September 18, 2006
pursuant to the take over bid of Stornoway for Contact Diamond.
Agnico-Eagle now holds an aggregate of 22,597,831 common shares of
Stornoway which represents a 16.87% interest, on an undiluted
basis. The securities of Stornoway, held by Agnico-Eagle, are held
for investment purposes. It is the intention of Agnico-Eagle to
evaluate the investment in the Company on a continuing basis and
such holdings may be increased or decreased in the future. For a
copy of the report filed by Agnico-Eagle, please contact Gregory
Laing, General Counsel, VP and Legal and Corporate Secretary at
(416) 847-3708. Forward-Looking Statements The information in this
press release has been prepared as at November 21, 2006. Certain
statements contained in this press release constitute
"forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and forward
looking information under the provisions of Canadian provincial
securities laws. When used in this document, words such as
"anticipate", "expect", "estimate," "forecast," "planned" and
similar expressions are intended to identify forward-looking
statements or information. Such statements and information include
without limitation: estimates of future mineral production;
statements and information as to the projected development of
certain ore deposits, including estimates of the timing of such
exploration, development and production or decisions with respect
to such exploration, development and production; estimates of
reserves and resources, and statements and information regarding
anticipated future exploration and feasibility study results; the
anticipated timing of events with respect to the Company's
minesites and exploration properties; and other statements and
information regarding anticipated trends with respect to the
Company's operations and exploration. Such statements and
information reflect the Company's views as at the date of this
press release and are subject to certain risks, uncertainties and
assumptions, and undue reliance should not be placed on such
statements and information. Many factors, known and unknown, could
cause the actual results to be materially different from those
expressed or implied by such forward looking statements and
information. Such risks include, but are not limited to: the
volatility of prices of gold and other metals; uncertainty of
mineral reserves, mineral resources, mineral grades and mineral
recovery estimates; uncertainty of future production, capital
expenditures, and other costs; currency fluctuations; financing of
additional capital requirements; cost of exploration and
development programs; mining risks; risks associated with foreign
operations; risks related to title issues at the Pinos Altos
project; governmental and environmental regulation; the volatility
of the Company's stock price; and risks associated with the
Company's byproduct metal derivative strategies. For a more
detailed discussion of such risks and other factors, see Company's
Annual Information Form and Annual Report on Form 20-F, as amended,
for the year ended December 31, 2005, as well as the Company's
other filings with the Canadian Securities Administrators and the
U.S. Securities and Exchange Commission. The Company does not
intend, and does not assume any obligation, to update these
forward-looking statements and information, except as required by
law. Accordingly, readers are advised not to place undue reliance
on forward-looking statements. Certain of the foregoing statements,
primarily related to projects, are based on preliminary views of
the Company with respect to, among other things, grade, tonnage,
processing, mining methods, capital costs, and location of surface
infrastructure and actual results and final decisions may be
materially different from those currently anticipated. About
Agnico-Eagle Agnico-Eagle is a long established Canadian gold
producer with operations located in Quebec and exploration and
development activities in Canada, Finland, Mexico and the United
States. Agnico-Eagle's LaRonde Mine is Canada's largest gold
deposit in terms of reserves. The Company has full exposure to
higher gold prices consistent with its policy of no forward gold
sales. It has paid a cash dividend for 26 consecutive years. Notes
to Investors Concerning Estimates of Mineral Resources Cautionary
Note to investors concerning estimates of Measured and Indicated
Resources. This press release may use the terms "measured
resources" and "indicated resources". We advise investors that
while those terms are recognized and required by Canadian
regulations, the U.S. Securities and Exchange Commission (the
"SEC") does not recognize them. Investors are cautioned not to
assume that any part or all of mineral deposits in these categories
will ever be converted into reserves. Cautionary Note to investors
concerning estimates of Inferred Resources. This press release may
also use the term "inferred resources". We advise investors that
while this term is recognized and required by Canadian regulations,
the SEC does not recognize it. "Inferred resources" have a great
amount of uncertainty as to their existence, and great uncertainty
as to their economic and legal feasibility. It cannot be assumed
that all or any part of an inferred mineral resource will ever be
upgraded to a higher category. Under Canadian rules, estimates of
inferred mineral resources may not form the basis of feasibility or
pre-feasibility studies, except in rare cases. Investors are
cautioned not to assume that part or all of an inferred resource
exists, or is economically or legally mineable. Scientific and
Technical Data Agnico-Eagle Mines Limited is reporting mineral
resource and reserve estimates in accordance with the CIM
guidelines for the estimation, classification and reporting of
resources and reserves. Cautionary Note to Investors - The SEC
permits U.S. mining companies, in their filings with the SEC, to
disclose only those mineral deposits that a company can
economically and legally extract or produce. We use certain terms
in this press release, such as "measured," "indicated," and
"inferred," "resources," that the SEC guidelines strictly prohibit
U.S. registered companies from including in their filings with the
SEC. U.S. Investors are urged to consider closely the disclosure in
our Form 20-F/A, which may be obtained from us, or from the SEC's
website at: http://sec.gov/edgar.shtml. The Canadian Securities
Administrators' National Instrument 43-101 ("NI 43-101") requires
mining companies to disclose reserves and resources using the
subcategories of "proven" reserves, "probable" reserves, "measured"
resources, "indicated" resources and "inferred" resources. Mineral
resources that are not mineral reserves do not have demonstrated
economic viability. A mineral reserve is the economically mineable
part of a measured or indicated resource demonstrated by at least a
preliminary feasibility study. This study must include adequate
information on mining, processing, metallurgical, economic and
other relevant factors that demonstrate, at the time of reporting,
that economic extraction can be justified. A mineral reserve
includes diluting materials and allows for losses that may occur
when the material is mined. A proven mineral reserve is the
economically mineable part of a measured resource for which
quantity, grade or quality, densities, shape and physical
characteristics are so well established that they can be estimated
with confidence sufficient to allow the appropriate application of
technical and economic parameters, to support production planning
and evaluation of the economic viability of the deposit. A probable
mineral reserve is the economically mineable part of an indicated
mineral resource for which quantity, grade or quality, densities,
shape and physical characteristics can be estimated with a level of
confidence sufficient to allow the appropriate application of
technical and economic parameters, to support mine planning and
evaluation of the economic viability of the deposit. A mineral
resource is a concentration or occurrence of natural, solid,
inorganic or fossilized organic material in or on the earth's crust
in such form and quantity and of such a grade or quality that it
has reasonable prospects for economic extraction. The location,
quantity, grade, geological characteristics and continuity of a
mineral resource are known, estimated or interpreted from specific
geological evidence and knowledge. A measured mineral resource is
that part of a mineral resource for which quantity, grade or
quality, densities, shape, physical characteristics, can be
estimated with a level of confidence sufficient to allow the
appropriate application of technical and economic parameters, to
support mine planning and evaluation of the economic viability of
the deposit. The estimate is based on detailed and reliable
exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes that are spaced closely enough to
confirm both geological and grade continuity. An indicated mineral
resource is that part of a mineral resource for which quantity,
grade or quality, densities, shape and physical characteristics can
be estimated with a level of confidence sufficient to allow the
appropriate application of technical and economic parameters, to
support mine planning and evaluation of the economic viability of
the deposit. The estimate is based on detailed and reliable
exploration and testing information gathered through appropriate
techniques from locations such as outcrops, trenches, pits,
workings and drill holes that are spaced closely enough for
geological and grade continuity to be reasonably assumed. An
inferred mineral resource is that part of a mineral resource for
which quantity and grade or quality can be estimated on the basis
of geological evidence and limited sampling and reasonably assumed,
but not verified, geological and grade continuity. The estimate is
based on limited information and sampling gathered through
appropriate techniques from locations such as outcrops, trenches,
pits, workings and drill holes. Mineral resources which are not
mineral reserves do not have demonstrated economic viability.
Investors are cautioned not to assume that part or all of an
inferred resource exists, or is economically or legally mineable. A
feasibility study is a comprehensive study of a mineral deposit in
which all geological, engineering, legal, operating, economic,
social, environmental and other relevant factors are considered in
sufficient detail that it could reasonably serve as the basis for a
final decision by a financial institution to finance the
development of the deposit for mineral production. Francois
Blanchet, P.Eng., LaRonde Division's superintendent of geology, is
the qualified person responsible for the LaRonde Division
exploration information presented in this press release. The
qualified person responsible for the LaRonde I and LaRonde II
mineral reserve and resource estimate is Marc Ruel, P.Geo., LaRonde
Division's superintendent of mining. The effective date of the
estimate is February 22, 2006, using, except for the operating and
capital cost assumptions (that are described above), key
assumptions, parameters and methods used to estimated the mineral
resources and reserves that are not significantly different as that
found in the Technical Report by Guy Gosselin, P.Geo., the
Company's manager of Canadian exploration, that was posted on SEDAR
on March 23, 2005. Issues that might materially affect the LaRonde
I and LaRonde II mineral resources and resources are set out in the
Technical Report filed on March 23, 2005. Normand Bedard, P.Geo.,
the superintendent of technical services for the Lapa project is
the qualified person responsible for the exploration information
presented in this press release concerning the Lapa project. The
quality of the assay data comprising the exploration information
presented in this press release was reviewed by a qualified person,
Keith Blair, P.Geo. of Applied Geoscience LLC of Reno, Nevada. Some
preliminary results are exceptionally disclosed herein; in the
opinion of Normand Bedard, although their quality is expected but
not yet possible to verify, they can be disclosed. The qualified
person responsible for the Lapa mineral reserve and mineral
resource estimate is Normand Bedard P.Geo., the superintendent of
technical services, Lapa project. A description of the key
assumptions, parameters and methods used to estimate the mineral
resources and reserves and any issues which might materially affect
the latter may be found in the Technical Report on the Lapa Gold
Project that was posted on SEDAR on June 8, 2006. The effective
date of the estimate is May 31, 2006. Marc Legault, P.Eng., the
Company's vice-president, project development, is the qualified
person responsible for the exploration information presented in
this press release concerning the Kittila and Oijarvi projects. The
quality of the assay data comprising the exploration information
reported in this press release was reviewed by a qualified person,
Keith Blair, P.Geo. of Applied Geoscience LLC of Reno, Nevada. The
qualified person responsible for the Kittila mineral resource and
mineral reserve estimate is Normand Bedard P.Geo., superintendent
of Technical Services, Lapa project. The effective date of the
estimate is February 22, 2006. The Kittila open pit mineral reserve
was revised on April 11th 2006 by a qualified person, Patrice Live,
Eng. of Breton, Bandeville et Associes of Montreal, Quebec. For the
revised open pit reserves, a minimum 1.40 gram per tonne gold grade
was used. This resulted in a minor change in the Kittila mine
project's probable reserves and mineral resources. Other than the
open pit parameters describe above, information regarding the
scientific and technical information contained herein, including a
description of the key assumptions, parameters and methods used to
estimate the mineral resources and reserves, is set out in the
technical report on the Suurikuusikko project (now the Kittila mine
project) that was posted on SEDAR on March 14, 2006. There are no
known environmental, permitting, legal, title, taxation,
socio-political, marketing, or other relevant issues that
materially affect the Kittila mineral resources or mineral
reserves. Roger Doucet, P.Geo., manager of exploration in Mexico
for the Company, is the qualified person responsible for the Pinos
Altos project's exploration information presented in this press
release. The quality of the assay data comprising the exploration
reported in this press release was monitored by a qualified person,
Keith Blair, P.Geo. of Applied Geoscience LLC of Reno, Nevada.
Assay values from the Carola area were either from grab samples or
saw-cut continuous channel samples; sample quality is being
monitored using the same procedures as for diamond drill samples.
All samples from Pinos Altos are assayed for gold at ALS Chemex in
Vancouver using standard fire assay (30 gram charge) with either an
atomic absorption or gravimetric finish. The qualified person
responsible for the Pinos Altos mineral resource estimate is
Christian D'Amours, P.Geo. of Service Conseil Geopointcom of Val
d'Or Quebec. The effective date of the estimate is February 13,
2006. Wireframe models of zones comprising the Pinos Altos deposit
that were used to estimate the mineral resource were derived using
drill hole intercepts. The key assumptions used to determine the
drill hole intercept intervals were a gold price of $400 per ounce,
a silver price of $6.00 per ounce, metallurgical recoveries of
92.4% for gold and 47.8% for silver, and net smelter return
cut-offs that varied were applied depending on whether the material
could be potentially mined by open pit or by underground methods.
Gold assays were cut to 41 grams per tonne while silver assays were
cut to 1,500 grams per tonne. For the open pit resource models
(estimated to a maximum depth of approximately 130 metres to 170
metres, depending on the zone), a minimum net smelter return
cut-off of $11.90 per tonne was used to evaluate drill hole
intercepts that have been adjusted to respect a minimum mining
width of 4.0 metres (horizontal width). For the underground
resource models, a minimum net smelter return cut-off of $35.60 per
tonne was used to evaluate drill hole intercepts that have been
adjusted to respect a minimum mining width of 3.0 metres
(horizontal width). The mineral resource estimate was derived using
a three dimensional block model of the deposit; the grades were
interpolated using the inverse distance power squared method. The
same cut-off values and metallurgical recoveries were used to
estimate the mineral resource as were to build the wireframe models
but the price assumptions are the mean historic three-year average
prices assumptions (fixed by the Company and described above).
Although the price assumptions used to constrain the wireframe
models are slightly lower than used to compile the resource model,
it is the opinion of the qualified person that the differences are
not significant. The data verification process of historic drill
hole information for Pinos Altos consisted of comparing a selective
amount of primary information in the mineral resource data base
(such as drill hole location, orientation, sample location, assay
result and geological description data) against original records
(such as field drill sites, original survey reports and drill core
descriptions, drill core stored in the library, and assay
laboratory reports). Verification also consisted of reviewing the
historic assay data base and selecting additional samples for check
assaying. This verification was done under the supervision of a
qualified person, Marc Legault, P.Eng., the Company's Vice
President, Project Development. The historic drill hole information
that was verified showed acceptable results and only a very small
but acceptable error rate was observed. Although this method of
selective verification suggests that the entire mineral resource
data base is of good quality, there may be errors in the proportion
of data that was not verified. All of the exploration information
collected by the Company (except for the assay results) and
inserted into the mineral resource data base was verified against
original records by a qualified person, Dino Lombardi, P.Geo., the
Company's Senior Geologist for International Projects. The quality
of the assay data inserted into the Pinos Altos mineral resource
data base was monitored by a qualified person, Keith Blair, P.Geo.
of Applied Geoscience LLC of Reno, Nevada. The verification methods
used do not eliminate all of the possible errors (for example,
sample bias that can only be verified through additional testing).
There are no known environmental, permitting, legal, title,
taxation, socio-political, marketing, or other relevant issues that
materially affect the Pinos Altos mineral resources. Disclosure of
Hakokodanmaa Drill Hole Locations:
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HOLE-ID N(x) E Z AZIMUTH DIP LENGTH
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HAK06001 7540900 2558750 220 270 -49.03 159.35
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HAK06002 7541000 2558870 220 270 -48.75 196.05
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HAK06003 7541000 2558750 220 270 -48.29 191.1
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HAK06004 7541000 2558630 220 270 -47.59 175
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HAK06005 7540900 2558860 220 270 -48.89 230.1
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HAK06006 7541100 2558730 220 270 -47.41 185.05
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HAK06007 7541300 2558700 220 270 -49.6 164.3
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HAK06008 7541700 2558750 220 270 -49.53 277.25
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HAK06009 7540900 2558800 220 270 -47.48 232.8
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HAK060010 7540900 2558935 220 270 -55.7 364.2
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HAK060011 7540900 2558990 220 270 -55.89 167.1
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HAK060012 7540950 2558800 220 270 -49.53 201.4
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HAK060013 7541000 2558790 220 270 -51.71 248.15
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HAK060014 7541000 2558680 220 270 -49.76 201.85
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HAK060015 7540850 2558815 220 270 -47.99 285.75
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HAK060016 7541700 2558690 220 270 -47.34 290.05
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(x) Finnish KKJ2 Coordinate System DATASOURCE: Agnico-Eagle Mines
Limited CONTACT: David Smith, Director, Investor Relations, (416)
947-1212
Copyright