Agnico Eagle Reports First Quarter 2016 Operating and Financial Results – Continued Strong Operational Performance – Amaruq, El Barqueno and Barsele Drill Programs Yield Positive Results
Stock Symbol: AEM (NYSE and TSX)
For further information: Investor Relations (416) 947-1212
(All amounts expressed in U.S. dollars unless otherwise noted)
AGNICO EAGLE REPORTS FIRST QUARTER 2016 OPERATING AND FINANCIAL RESULTS – CONTINUED STRONG OPERATIONAL PERFORMANCE – AMARUQ, EL BARQUENO AND BARSELE DRILL PROGRAMS YIELD POSITIVE RESULTS
Toronto (April 28, 2016) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the “Company”) today reported quarterly net income of $27.8 million, or $0.13 per share, for the first quarter of 2016. This result includes unrealized gains on financial instruments of $9.6 million ($0.04 per share), non-cash foreign currency translation gains on deferred tax liabilities of $8.0 million ($0.04 per share), non-cash foreign currency translation losses of $6.8 million ($0.03 per share), non-cash stock option expense of $5.9 million ($0.03 per share), non-recurring losses of $1.9 million ($0.01 per share) and various mark-to-market and other adjustment losses of $0.9 million (nil per share). Excluding these items would result in adjusted net income of $25.7 million or $0.12 per share for the first quarter of 2016. In the first quarter of 2015, the Company reported net income of $28.7 million or $0.13 per share.
First quarter 2016 cash provided by operating activities was $145.7 million ($167.5 million before changes in non-cash components of working capital). This compares to cash provided by operating activities of $143.5 million in the first quarter of 2015 ($176.8 million before changes in non-cash components of working capital). The decrease in cash provided by operating activities before changes in working capital during the current period was largely due to higher exploration and corporate development expenditures (up 70%, period over period) which were partially offset by higher sales volumes.
"The year is off to a good start with a more constructive gold price environment and continued strong operating performance from all of our mines. As a result of the strong operating results, we now expect to meet the top end of our production guidance for 2016", said Sean Boyd, Agnico Eagle’s Chief Executive Officer. “At current margins, Agnico Eagle is generating sufficient cash flow to support its expanded exploration and development activities and potentially pay down additional debt", added Mr. Boyd.
First Quarter 2016 highlights include:
- Quarterly gold production – Payable gold production1 in the first quarter of 2016 was 411,336 ounces of gold at total cash costs2 per ounce on a by-product basis of $573 and all-in sustaining costs per ounce 3 (“AISC”) on a by-product basis of $797
- Strong operational performance at Mexican operations - In the first quarter of 2016, payable gold production was 87,899 ounces at the Company’s Mexican mines. Silver production was a new quarterly record of 752,000 ounces. Total cash costs per ounce of gold on a by-product basis averaged $364
- 2016 production now expected to reach high end of the guidance range – Production for 2016 is now expected to meet the high end of the guidance range of approximately 1.525 to 1.565 million ounces of gold with total cash costs per ounce on a by-product basis of between $590 to $630 and AISC of approximately $850 to $890 per ounce
- Continued strong operating performance enhances financial flexibility – In the first quarter of 2016, $55 million was repaid under the Company’s credit facility
1Payable production of a mineral means the quantity of mineral produced during a period contained in products that are sold by the Company whether such products are shipped during the period or held as inventory at the end of the period.
2Total cash costs per ounce is a Non-GAAP measure. For a reconciliation to production costs, see “Reconciliation of Non-GAAP Financial Performance Measures” below. Total cash costs per ounce of gold produced is presented on both a by-product basis (deducting by-product metal revenues from production costs) and co-product basis (before by-product metal revenues). Total cash costs per ounce of gold produced on a by-product basis is calculated by adjusting production costs as recorded in the consolidated statements of income (loss) for by-product revenues, unsold concentrate inventory production costs, smelting, refining and marketing charges and other adjustments, and then dividing by the number of ounces of gold produced. Total cash costs per ounce of gold produced on a co-product basis is calculated in the same manner as total cash costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. See “Note Regarding Certain Measures of Performance”. For information about the Company’s total cash costs per ounce on a co-product basis please see “Reconciliation of Non-GAAP Performance Measures”.
3All-in-sustaining costs per ounce is a Non-GAAP measure and is used to show the full cost of gold production from current operations. For a reconciliation to production costs, see “Reconciliation of Non- GAAP Financial Performance Measures below. The Company calculates all-in sustaining costs per ounce of gold produced as the aggregate of total cash costs per ounce on a by-product basis, sustaining capital expenditures (including capitalized exploration), general and administrative expenses (including stock option expense) and reclamation expenses divided by the amount of gold produced. All-in sustaining costs per ounce of gold produced on a co-product basis is calculated in the same manner as all-in sustaining costs per ounce of gold produced on a by-product basis except that no adjustment for by-product metal revenues is made. For information about the Company’s AISC on a co-product basis please see “Reconciliation of Non-GAAP Performance Measures”. The Company's methodology for calculating all-in sustaining costs per ounce may not be similar to the methodology used by other producers that disclose all-in sustaining costs per ounce. See "Note Regarding Certain Measures of Performance". The Company may change the methodology it uses to calculate all-in sustaining costs per ounce in the future, including in response to the adoption of formal industry guidance regarding this measure by the World Gold Council.
and net debt was reduced by approximately $89 million to $923 million at March 31, 2016. For the sixth consecutive quarter, the Company has reduced net debt
- Amaruq Project, Nunavut – Further drilling refines the geometry of the Whale Tail Ore Shoot and IVR deposit – Drilling resumed in January and results show that the Whale Tail Ore shoot is larger in the central area than previously interpreted and confirms that the IVR deposit extends to the East and to a depth of 230 metres
- Drilling at Barsele, in Sweden, extends the mineralization at depth and suggests the potential for a Goldex type deposit – Highlights include: 2.01 grams per tonne (“g/t”) gold (capped) over an estimated true width of 84.0 metres at a depth of approximately 310 metres in the Skirasen zone
- A quarterly dividend of $0.08 per share was declared
First Quarter Financial and Production Highlights – Higher Gold Production, Lower Production Costs
In the first quarter of 2016, strong operational performance continued at the Company's mines, which led to payable gold production of 411,336 ounces compared to 404,210 ounces in the first quarter of 2015. The higher level of production in the 2016 period was primarily due to higher grades and better recoveries at LaRonde, increased throughput at Goldex and Kittila and higher grades at Canadian Malartic. A detailed description of the production and cost performance of each mine is set out below.
Total cash costs per ounce on a by-product basis for the first quarter of 2016 were lower at $573 compared to $588 per ounce for the first quarter 2015. Total cash costs per ounce on a by-product basis in the first quarter of 2016 were positively affected by higher production levels at LaRonde, Goldex, Canadian Malartic and La India compared to the first quarter of 2015, as well as weaker local currencies (the Canadian dollar was 9% lower and the Mexican peso was 17% lower when compared to the first quarter of 2015).
AISC for the first quarter of 2016 were $797 per ounce on a by-product basis compared to $804 in the first quarter of 2015. The lower AISC is primarily due to lower total cash costs per ounce on a by-product basis compared to the first quarter of 2015.
Cash Position Remains Strong and Debt Levels Reduced
Cash and cash equivalents and short term investments increased to $168.0 million at March 31, 2016 from the December 31, 2015 balance of $131.6 million. The outstanding balance on the Company’s $1.2 billion credit facility was reduced from $265 million at December 31, 2015 to $210 million at March 31, 2016, resulting in current availability under the Company’s credit lines of approximately $990 million, not including the $300 million accordion facility.
Total capital expenditures (including sustaining) made by the Company in the first quarter of 2016 were $100.7 million, including $16.0 million at Pinos Altos, $15.2 million at Goldex, $15.1 million at Meliadine, $14.3 million at LaRonde, $14.1 million at Kittila, $11.5 million at Meadowbank, $10.5 million at Canadian Malartic, $1.7 million at La India and $1.3 million at Creston Mascota.
Sustaining capital expenditures made by the Company in the first quarter of 2016 were $66.3 million, including $14.3 million at LaRonde, $11.7 million at Kittila, $11.5 million at Meadowbank, $10.8 million at Pinos Altos, $10.0 million at Canadian Malartic, $5.0 million at Goldex, $1.7 million at La India and $1.3 million at Creston Mascota.
Dividend Record and Payment Dates for the Second Quarter of 2016
Agnico Eagle's Board of Directors has declared a quarterly cash dividend of $0.08 per common share, payable on June 15, 2016 to shareholders of record as of June 1, 2016. Agnico Eagle has declared a cash dividend every year since 1983.
Other Expected Dividend and Record Dates for 2016
| Record Date | Payment Date |
| September 1 | September 15 |
| December 1 | December 15 |
Dividend Reinvestment Plan
Please see the following link for information on the Company's dividend reinvestment plan: Dividend Reinvestment Plan
First Quarter 2016 Results Conference Call and Webcast Tomorrow
Agnico Eagle’s senior management will host a conference call on Friday, April 29, 2016 at 8:30 AM (E.D.T.) to discuss the Company’s financial and operating results.
Via Webcast:
A live audio webcast of the conference call will be available on the Company’s website at www.agnicoeagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial 416-260-0113 or toll-free 1-800- 524-8950. To ensure your participation, please call approximately five minutes prior to the scheduled start of the call.
Replay archive:
Please dial 1-647-436-0148 or toll-free 1-888-203-1112, access code 531498.
The conference call replay will expire on May 30, 2016. The webcast, along with presentation slides, will be archived for 180 days on the Company’s website.
Annual and Special Meeting
The Company will host its Annual and Special Meeting ("AGM") on Friday, April 29, 2016 at 11:00 am (E.D.T). The AGM will be held at the Sheraton Centre Toronto Hotel
(Dominion Ballroom) - 123 Queen Street West, Toronto, ON.
During the AGM, management will provide an overview of the Company’s activities. For those unable to attend in person, the alternatives to participate are listed below.
Via Webcast:
A live audio webcast of the AGM will be available on the Company’s website at www.agnicoeagle.com.
Via Telephone:
For those preferring to listen by telephone, please dial 1-416-260-0113 or toll-free 1-800- 524-8950. To ensure your participation, please call approximately five minutes prior to the scheduled start of the AGM.
Replay archive:
Please dial 1-647-436-0148 or toll-free 1-888-203-1112, access code 5039640.
The conference call replay will expire on May 30, 2016. The webcast, along with presentation slides, will be archived for 180 days on the Company’s website.
NORTHERN BUSINESS OPERATING REVIEW
ABITIBI REGION, QUEBEC
Agnico Eagle is currently Quebec’s largest gold producer with a 100% interest in three mines (LaRonde, Goldex and Lapa) and a 50% interest in the Canadian Malartic mine. These mines are located within 50 kilometres of each other, which provides operating synergies and allows for the sharing of technical expertise.
LaRonde Mine – Strong Operational Performance Driven by Increased Tonnage from the High-grade Mining Area (293 Pyramid)
The 100% owned LaRonde mine in northwestern Quebec achieved commercial production in 1988.
The LaRonde mill processed an average of 6,348 tonnes per day (“tpd”) in the first quarter of 2016, compared with an average of 6,203 tpd in the corresponding period of 2015. Minesite costs per tonne4 were approximately C$103 in the first quarter of 2016, lower than the C$104 per tonne experienced in the first quarter of 2015. The decreased costs in the 2016 period were primarily due to strong performance from the underground mine resulting in higher throughput levels in the processing facility.
LaRonde's total cash costs per ounce on a by-product basis were $529 in the first quarter of 2016 on payable production of 75,337 ounces of gold. This compares with the first quarter of 2015 when total cash costs per ounce on a by-product basis were $703 on production of 58,893 ounces of gold. The decrease in total cash costs per ounce in the 2016 period was largely due to higher production (due to higher throughput levels, higher gold grades from the lower mine area and improved recoveries from the CIP circuit).
During the first quarter of 2016, ramp development reached a depth of three kilometres which will allow access to the higher grade ore as mining continues into the deeper portions of the mine.
Studies are progressing to assess the potential to extend the mineral reserve base and carry out mining activities between the 311 and 371 levels at LaRonde. At present, the mineral reserve base extends to the 311 level, which is 3.1 kilometres below the surface. An infill drill program is continuing from the 311 to the 371 levels with a focus on the western portion of the deposit. Infill drilling will also be carried out on the eastern portion of the deposit as underground development extends into that area.
During the quarter, the Company continued with an internal scoping study to evaluate the potential to develop and mine Bousquet Zone 5 on the adjoining Bousquet property.
4 Minesite costs per tonne is a non-GAAP measure. For a reconciliation of this measure to production costs as reported in the financial statements, see “Reconciliation of Non-GAAP Financial Performance Measures – Reconciliation of Production Costs to Minesite Costs per Tonne by Mine” below. See also “Note Regarding Certain Measures of Performance”.
Previous property owners had partly exploited Bousquet Zone 5 by open pit and underground. The Company is evaluating the potential to initially mine Bousquet Zone 5 from a depth of 90 to 330 metres below surface using underground ramp access. The mining method is likely to be similar to that employed at Goldex and processing could utilize excess capacity from the Lapa circuit at LaRonde.
Dewatering of the old pit is underway and a certificate of authorization from the Quebec government to permit collection of a bulk sample is expected to be issued before the end of the second quarter of 2016. An internal technical study is expected to be completed by the end of 2016.
Canadian Malartic Mine – Record Quarterly Mill Performance During the Winter Season
In June 2014, Agnico Eagle and Yamana Gold Inc. ("Yamana") acquired all of the issued and outstanding common shares of Osisko Mining Corporation (“Osisko”) and created the Canadian Malartic General Partnership (the “Partnership”) that now owns and operates the Canadian Malartic mine in northwestern Quebec through a joint management committee. Each of Agnico Eagle and Yamana has an indirect 50% ownership interest in the Partnership.
During the first quarter of 2016, the Canadian Malartic mill (on a 100% basis) processed an average of 52,314 tpd, compared with an average of 51,988 tpd in the corresponding period of 2015. This represents a record quarter during the winter season.
Minesite costs per tonne were approximately C$24 (C$21.26 excluding royalties) compared to the C$23 (C$20.16 excluding royalties) per tonne experienced in the first quarter of 2015. In the 2016 period costs were higher primarily due to lower capitalized stripping. The average stripping ratio in the first quarter of 2016 was 2.01 to 1.0.
For the first quarter of 2016, Agnico Eagle’s 50% share of production at the Canadian Malartic mine was 73,613 ounces of gold at total cash costs per ounce on a by-product basis of $557. This compares with the first quarter of 2015 when total cash costs per ounce on a by-product basis were $632 on production of 67,893 ounces of gold. Production was higher in the 2016 period primarily due to higher throughput levels and higher gold grades. Costs in the 2016 period were lower due to lower costs for fuel and explosives and favourable foreign exchange rates.
In February 2016, the Partnership announced that throughput levels for 2016 were forecast to be 53,000 tpd. Any increase in throughput above this 53,000 tpd level remains contingent upon updating the existing operating permits.
Permitting activities for the Barnat Extension and deviation of Highway 117 are continuing. Having received answers to two series of questions, in April 2016, the Ministry of Sustainable Development, Environment and the Fight Against Climate Change (Quebec) accepted the Environmental Impact Assessment (“EIA”) for the Barnat Extension as admissible. This was the trigger for the public hearings process to start and the first step was the release of the EIA to the public. This will be followed with a public presentation of the project in May and subsequent public hearings in June.
During the quarter, drilling continued on the Odyssey North and South Zones and to date, 18 holes totaling 18,581 metres have been completed. Data from these holes are currently being compiled and integrated into the existing database. In 2016, approximately 60,000 metres of drilling has been proposed to infill and expand the known mineralized zones on the Odyssey property. The 2016 budget is C$8.0 million (on a 100% basis).
Update of Activities on the Canadian Malartic Corporation Exploration Projects
Canadian Malartic Corporation ("CMC"), a company in which each of Agnico Eagle and Yamana hold an indirect 50% interest, is exploring, among other things, a portfolio of properties in the Kirkland Lake area of Ontario and the Pandora property in the Abitibi region of Quebec.
In the Kirkland Lake area, target generation studies are ongoing on the Upper Canada, Upper Beaver and Amalgamated Kirkland properties. Additional exploration work may be carried out after the data review is completed.
Lapa – Optimization of Historical Mining Areas Leads to Increased Underground Tonnage
The 100% owned Lapa mine in northwestern Quebec achieved commercial production in May 2009.
The Lapa circuit, located at the LaRonde mill, processed an average of 1,763 tpd in the first quarter of 2016. This compares with an average of 1,690 tpd in the first quarter of 2015. The higher throughput in the 2016 period was due to the recovery of residual ore from old production areas in the mine and additional feed from stockpiles.
Minesite costs per tonne were C$121 in the first quarter of 2016, compared to the C$119 realized in the first quarter of 2015. Costs in the 2016 period were higher due to the processing of stockpiled ore compared to the same period in 2015.
Payable production in the first quarter of 2015 was 21,709 ounces of gold at total cash costs per ounce on a by-product basis of $668. This compares with the first quarter of 2015, when production was 25,920 ounces of gold at total cash costs per ounce on a byproduct basis of $568. In the 2016 period, production was lower and costs were higher due to lower gold grades and recoveries, partially offset by favourable foreign exchange rates.
At Lapa, 2016 is the last full year of production based on the current life of mine plan. In the remainder of 2016, production is expected to exhibit a decline with the full year expected to total 60,000 ounces of gold, as per February 2016 guidance. Additional exploration drilling in the Zulapa 7 Up and 7 East Zones is underway which, if successful, could potentially extend the mine life.
Goldex – Continued Strong Underground Performance Leads to Increased Mill Throughput in the First Quarter of 2016
The 100% owned Goldex mine in northwestern Quebec began operation in 2008 but mining operations in the original Goldex Extension Zone (“GEZ”) orebody were suspended in October 2011. In July 2012, the M and E satellite zones were approved for development. Mining operations at GEZ remain suspended. Mining operations on the M and E satellite zones commenced in September 2013.
The Goldex mill processed an average of 6,991 tpd in the first quarter of 2016. This compares with an average of 6,294 tpd in the first quarter of 2015. The higher throughput in the 2016 period was due to continued strong underground performance (mining and ore hoisting) compared to the 2015 period.
Minesite costs per tonne were approximately C$34 in the first quarter of 2016, the same as the C$34 per tonne experienced in the first quarter of 2015.
Payable gold production in the first quarter of 2016 was 32,340 ounces of gold at total cash costs per ounce on a by-product basis of $506. This compares with the first quarter of 2015, when production was 29,250 ounces of gold at total cash costs per ounce on a by-product basis of $541. The decrease in total cash costs in the 2016 period was largely a result of increased production (due to higher throughput levels and higher grades from the M zone) and favourable foreign exchange rates.
Development of the Deep 1 Zone remains on time and on budget. Work on the electrical substations commenced in March 2016 and the installation of the initial components of the underground conveyor system are underway.
In January 2014, Agnico Eagle acquired the Akasaba West gold-copper deposit from Alexandria Minerals Corporation. Located less than 30 kilometres from Goldex, the Akasaba West deposit could potentially create flexibility and synergies for the Company's operations in the Abitibi region by using extra milling capacity at both Goldex and LaRonde, while reducing overall costs. The Akasaba West deposit currently hosts a mineral reserve of approximately 141,000 ounces of gold (4.8 million tonnes of ore grading 0.92 g/t gold and 0.52% copper).
Following the submission of the environmental assessment for the Akasaba West deposit to the provincial government in August and to the federal government in September 2015, questions were received from both sets of regulators. Responses to provincial government questions were submitted in February and responses to the Canadian Environmental Assessment Agency were submitted in March 2016. Supplementary questions are expected from both levels of government in the second quarter of 2016. If public hearings are required they would likely take place in the first quarter of 2017.
FINLAND AND SWEDEN
Agnico Eagle’s Kittila mine in Finland is the largest primary gold producer in Europe and hosts the Company’s largest mineral reserves. Exploration activities continue to expand the mineral resources and studies are underway to evaluate the potential to costeffectively increase production.
Kittila – Underground Access Ramp to the Sisar Zone Now Underway
The 100% owned Kittila mine in northern Finland achieved commercial production in 2009.
The Kittila mill processed an average of 4,749 tpd in the first quarter of 2016, compared to 3,836 tpd in the first quarter of 2015. The higher throughput in the 2016 period is a reflection of the ongoing optimization of the overall mill capacity.
Minesite costs per tonne at Kittila were approximately €72 in the first quarter of 2016, compared to €77 in the first quarter of 2015. Minesite costs per tonne decreased in the first quarter of 2016 due to the increased throughput when compared with the 2015 period.
First quarter 2016 payable gold production at Kittila was 48,127 ounces at total cash costs per ounce on a by-product basis of $726. In the first quarter of 2015, the mine produced 44,654 ounces of gold at total cash costs per ounce on a by-product basis of $681. The higher production in the 2016 period is related to the increased mill capacity partially offset by lower than expected grades compared to the 2015 period. Total cash costs per ounce increased in the first quarter of 2016 primarily due to higher contractor costs which were partially offset by lower energy costs.
The Kittila mine and mill has shown potential to operate in excess of 4,000 tpd and efforts are ongoing to assess the optimal throughput rate. Studies are also underway to optimize underground mining rates and fully integrate the upper and lower Rimpi zones and the newly discovered Sisar Zone in a new Kittila mine plan. Unit costs are expected to improve once steady state operations are achieved.
Drilling is ongoing to infill and extend the mineralization in the Sisar Zone. Numerous holes have been completed and assay results are pending. In addition, underground ramp construction began in March to access the upper portion of the Sisar Zone, which is located approximately 200 metres from existing underground infrastructure.
Barsele Project – Drilling Extends the Central and Skirasen Zones and Suggests the Potential for a Goldex Type Deposit
In June 2015, Agnico Eagle acquired a 55% interest in the Barsele project in Vasterbotten County, northern Sweden from Orex Minerals (Orex Minerals subsequently transferred its interest in the project to Barsele Minerals Corp.). The Company can earn an additional 15% interest in the project through the completion of a pre-feasibility study.
The exploration program is being operated by Agnico Eagle. This is the first release of drill results on the property by Agnico Eagle since the acquisition of its interest in the 28,600-hectare property.
The Barsele project is located at the intersection of the western end of the Proterozoic “Skellefte Trend,” a prolific volcanogenic massive sulphide deposit belt with the “Gold Line” in northern Sweden. The Barsele property is known to contain intrusive-hosted gold mineralization (the Central, Avan and Skirasen zones) which appears to be similar to the Goldex deposit and gold-rich volcanogenic massive sulphide mineralization (the Norra Zone) which appears to be similar to the LaRonde deposit.
The Avan, Central and Skirasen zones extend over a strike length of 2.6 kilometres within a highly fractured granodiorite that ranges in width from 200 to 500 metres over a strike length of more than eight kilometres. Gold occurs as native metal and is generally associated with arsenopyrite, with low base metal content.
Drilling from October 2015 to early March 2016 (23 holes totalling 13,300 metres) focused on the Skirasen and Central zones.
Recent intercepts and drill hole coordinates from this program are set out below and the drill hole pierce points are also shown on the Barsele composite longitudinal section. All intercepts reported for the Barsele project show capped grades over estimated true widths, based on a preliminary geological interpretation that is being updated as new information becomes available with further drilling.
Recent exploration drill results from the Barsele project
| Drill hole | Location | From (metres) | To (metres) | Depth of midpoint below surface (metres) | Estimated true width (metres) | Gold grade (g/t) (uncapped) | Gold grade (g/t) (capped)* |
|---|---|---|---|---|---|---|---|
| CNT15-007 | Central Zone | 437.0 | 449.0 | 310 | 9.0 | 12.37 | 3.28 |
| CNT15-009 | Central Zone | 106.0 | 168.0 | 90 | 46.5 | 1.12 | 1.12 |
| and | 383.0 | 432.0 | 300 | 36.8 | 1.15 | 1.15 | |
| CNT15-010 | Central Zone | 223.0 | 252.0 | 230 | 21.8 | 1.59 | 1.59 |
| and | 494.0 | 589.0 | 515 | 71.2 | 0.88 | 0.88 | |
| CNT15-013 | Central Zone | 473.5 | 492.0 | 370 | 13.9 | 3.00 | 3.00 |
| and | 519.2 | 526.0 | 400 | 5.1 | 5.02 | 5.02 | |
| CNT15-015 | Central Zone | 23.0 | 34.0 | 20 | 8.2 | 8.06 | 6.74 |
| CNT15-016 | Skirasen Zone | 270.0 | 277.0 | 215 | 5.2 | 5.06 | 5.06 |
| and | 339.0 | 451.0 | 310 | 84.0 | 2.07 | 2.01 | |
| CNT15-017 | Central Zone | 623.0 | 632.0 | 540 | 6.8 | 1.72 | 1.72 |
| SKI15-001 | Skirasen Zone | 323.0 | 384.0 | 260 | 45.8 | 1.94 | 1.61 |
| and | 405.0 | 434.0 | 310 | 21.8 | 1.42 | 1.42 | |
| SKI16-001 | Skirasen Zone | 101.0 | 108.0 | 75 | 5.2 | 4.85 | 4.85 |
| and | 120.0 | 140.0 | 95 | 15.0 | 3.92 | 3.23 | |
| and | 276.0 | 312.1 | 210 | 27.1 | 3.06 | 2.40 | |
| SKI16-005 | Skirasen Zone | 193.0 | 213.0 | 170 | 15.0 | 1.19 | 1.19 |
| and | 399.0 | 504.0 | 370 | 78.8 | 1.25 | 1.25 |
and 593.0 609.0 485 12.0 1.86 1.86 *Holes at Barsele use a capping factor of 20 g/t gold.
Barsele project exploration drill collar coordinates of selected holes
| Drill collar coordinates* | ||||||
|---|---|---|---|---|---|---|
| Drill hole ID | UTM North | UTM East | Elevation (metres above sea level) | Azimuth | Dip (degrees) | Length (metres) |
| CNT15-007 | 7214686 | 618733 | 321 | 360 | -53 | 725 |
| CNT15-009 | 7214671 | 618829 | 317 | 360 | -57 | 701 |
| CNT15-010 | 7215040 | 618808 | 291 | 180 | -70 | 655 |
| CNT15-013 | 7214613 | 619033 | 306 | 333 | -55 | 597 |
| CNT15-015 | 7214601 | 619133 | 296 | 360 | -52 | 523 |
| CNT15-016 | 7214525 | 619127 | 302 | 360 | -55 | 664 |
| CNT15-017 | 7214895 | 618859 | 293 | 290 | -60 | 902 |
| SKI15-001 | 7214598 | 619125 | 296 | 040 | -48 | 580 |
| SKI16-001 | 7214515 | 619222 | 300 | 040 | -50 | 557 |
| SKI16-005 | 7214516 | 619221 | 300 | 360 | -57 | 645 |
- Coordinate System Sweref 99
[Barsele Project - Composite Longitudinal Section]
Recent drilling has connected the Central Zone with the Skirasen Zone. The combined Central-Skirasen Zone has a strike length of approximately 1,400 metres, extends from surface to a depth of at least 540 metres and ranges in width from ten to 150 metres. Mineralization remains open at depth and along strike.
Results include hole CNT15-016 that intersected the Skirasen Zone with two intercepts: 5.06 g/t gold over 5.2 metres at 215 metres depth, and 2.01 g/t gold over 84.0 metres at