Mid-Year 2016 Exploration Update: Expansion of Whale Tail and V Zones at Amaruq; Initial Results Reported from the Odyssey Zone; New Zones of Mineralization Outlined at Madrono and El Barqueno in Mexico; Sisar Zone Continues to Expand at Kittila
Stock Symbol: AEM (NYSE and TSX)
For further information: Investor Relations (416) 947-1212
MID-YEAR 2016 EXPLORATION UPDATE: EXPANSION OF WHALE TAIL AND V ZONES AT AMARUQ; INITIAL RESULTS REPORTED FROM THE ODYSSEY ZONE; NEW ZONES OF MINERALIZATION OUTLINED AT MADRONO AND EL BARQUENO IN MEXICO; SISAR ZONE CONTINUES TO EXPAND AT KITTILA
Toronto (July 27, 2016) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM) ("Agnico Eagle" or the “Company”) is pleased to provide an update on its 2016 exploration activities at the Amaruq project in Nunavut, the Sisar Zone at Kittila, the Barsele project in Sweden, the 50% owned Odyssey prospect adjoining the Canadian Malartic mine, the Madrono prospect adjoining the Pinos Altos and Creston Mascota operations and the El Barqueno project in Mexico. Highlights include:
- Drilling at Amaruq discovers an additional vein structure in V Zones and further infills the Whale Tail deposit – Exploration drilling has encountered a new vein structure in the V Zones, with results up to 15.5 grams per tonne (“g/t”) gold (capped) over 9.4 metres estimated true width at 18 metres depth in drill hole AMQ16-706. The V Zones have been shown to include multiple parallel structures. A recent lower intercept was 15.5 g/t gold (capped) over 5.4 metres estimated true width at 349 metres depth in drill hole AMQ16-833. The V Zones are being evaluated as a potential second source of open pit ore at Amaruq.
- Kittila drilling continues to extend Sisar Zone to the north and south – Recent exploration drilling continues to return good intercepts such as in drill hole ROD16- 700D that intersected 7.4 g/t gold (uncapped) over 9.6 metres estimated true width at 1,161 metres depth, and hole ROD16-700B that intersected 6.4 g/t gold (uncapped) over 6.5 metres estimated true width at 1,261 metres depth. Optimization studies are ongoing to evaluate the potential to bring Sisar into the Kittla mine plan.
- At the Barsele Project in Sweden, drilling extends the Skirasen Zone – Recent drilling at the Skirasen Zone has extended the mineralization at depth by approximately 100 metres, and 80 metres to the southeast. Highlights include hole SKI16-006 grading 1.31 g/t gold (capped) over an estimated true width of 69.8 metres at 445 metres depth. This drill intercept is located roughly 850 metres southeast of the core of the Central Zone, indicating that the current known mineralization could be part of a larger mineralized system. The Skirasen and
Central zones are intrusive-hosted deposits that appear similar to the Goldex mine deposit.
- Odyssey prospect at 50%-owned Canadian Malartic mine – Drilling outlines significant areas of mineralization in the North and South Odyssey zones – In the first half of 2016, 57 drill holes were completed, continuing the investigation of the Odyssey prospect. Recent drilling continues to return significant intercepts such as 2.63 g/t gold (capped) over 33.5 metres estimated true width at 1,138 metres depth in drill hole ODY16-5039, showing similarities to the Goldex mine deposit. Additional drilling totalling C$5.5 million (35,000 metres) has been added to the original budget of C$8.0 million (60,000 metres) (on a 100% basis).
- New zones of mineralization outlined at the Madrono prospect – Agnico Eagle has undertaken a first campaign of drilling on this recently acquired property surrounded by its Pinos Altos mine property, just 0.5 kilometres from the Creston Mascota pit. Mapping and sampling of historical mine workings have quickly identified high-potential targets. The initial drilling has returned up to 4.1 g/t gold and 64.5 g/t silver (both grades uncapped) over 6.2 metres estimated true width at 45 metres depth in hole MAD16-005, confirming the potential to outline additional highgrade satellite zones close to the existing mines.
- El Barqueno Project – Drilling outlines new, 700-metre-long Olmeca structure and extends existing deposits – Drilling is currently moving beyond the deposits that host the mineral resources. Significant high-grade intercepts are reported at the new Olmeca prospect, which has been traced over 700 metres of strike length. Results from Olmeca include up to 4.5 g/t gold (capped) and 4.7 g/t silver (uncapped) over 11.0 metres estimated true width at 85 metres depth in drill hole OLM16-010, and 9.4 g/t gold (capped) and 14.1 g/t silver (uncapped) over 5.1 metres estimated true width at 67 metres depth in drill hole in OLM16-003.
“Despite a significant downturn in the gold price over the past few years, we continued to invest in our operations and advance our development projects, and we significantly increased exploration spending. As a result, we have made several new discoveries and we are now seeing the potential for many of these projects to have a positive impact on our production profile in the coming years” said Sean Boyd, Chief Executive Officer of Agnico Eagle. “Based on current exploration results, we believe that there is good potential to expand and upgrade the mineral resources at most of our key projects by year-end 2016”, added Mr. Boyd.
Amaruq Project – Focus on Infilling Whale Tail Mineral Resources and Defining Multiple Lenses of V Zones
Agnico Eagle has a 100% interest in the Amaruq project. The large property consists of 116,717 hectares, located approximately 50 kilometres northwest of the Meadowbank mine. The most recent drill results from the Amaruq project were reported in the Company news release dated April 28, 2016. The inferred mineral resource estimate as of December 31, 2015 is 3.3 million ounces gold (16.9 million tonnes grading 6.05 g/t gold).
The goals of the first phase of the 2016 exploration program were to infill and expand the known mineral resource areas and to test other favourable targets with a focus on identifying a second source of open pit ore. Drilling began at the end of January and continued through May based mainly on lake ice; the drilling since June has been land-based supported by helicopters. Exploration and infill drilling to the end of June has totalled 77,517 metres (338 holes), using up to nine rigs, completing the initial 75,000-metre 2016 drill program. Almost half of this drilling was in the IVR deposit (36,545 metres, 152 holes), with 30% at Whale Tail (24,820 metres, 103 holes) and the rest at Mammoth (16,153 metres, 83 holes). In addition, there was 2,186 metres (nine holes) related to engineering studies (rock mechanics / geotechnical drilling and metallurgical testing) in this period.
Selected recent drill results are set out in the table below; drill hole collar coordinates are set out in a table in the Appendix of this news release. Drill hole collars are also shown on the Amaruq Project Local Geology Map. All intercepts reported for the Amaruq 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 Whale Tail (WT) deposit and the V Zones, Amaruq 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)* |
|---|---|---|---|---|---|---|---|
| AMQ16-600 | WT | 168.0 | 174.2 | 141 | 3.1 | 268.8 | 31.8 |
| and | WT | 300.0 | 322.2 | 257 | 19.2 | 5.2 | 5.2 |
| AMQ16-611 | WT | 148.0 | 170.0 | 135 | 15.6 | 3.5 | 3.5 |
| and | WT | 241.6 | 252.3 | 211 | 10.1 | 8.8 | 8.8 |
| and | WT | 274.4 | 305.8 | 248 | 28.5 | 7.7 | 7.7 |
| AMQ16-613 | WT | 310.4 | 318.7 | 261 | 6.8 | 10.3 | 10.3 |
| and | WT | 328.4 | 337.1 | 277 | 7.1 | 5.8 | 5.8 |
| AMQ16-629A | WT | 300.0 | 304.5 | 244 | 4.1 | 16.8 | 16.8 |
| AMQ16-637 | WT | 140.0 | 156.8 | 121 | 15.8 | 11.9 | 11.9 |
| AMQ16-653A | WT | 92.1 | 105.0 | 84 | 6.5 | 4.1 | 4.1 |
| and | WT | 295.0 | 326.4 | 271 | 28.5 | 9.6 | 9.6 |
| including | 308.8 | 315.7 | 272 | 6.3 | 16.3 | 16.3 | |
| AMQ16-673 | WT | 290.7 | 337.0 | 262 | 40.1 | 7.3 | 7.3 |
| including | 327.2 | 337.0 | 277 | 8.5 | 12.1 | 12.1 | |
| AMQ16-683 | V Zones | 27.0 | 33.5 | 25 | 6.1 | 16.8 | 15.1 |
| AMQ16-688 | WT | 153.6 | 197.7 | 143 | 31.2 | 5.0 | 5.0 |
| and | WT | 249.7 | 263.7 | 209 | 12.1 | 10.7 | 10.7 |
| and | WT | 291.2 | 312.1 | 246 | 18.1 | 13.5 | 13.5 |
| AMQ16-690 | WT | 34.3 | 57.8 | 34 | 15.1 | 3.1 | 3.1 |
| AMQ16-694 | V Zones | 72.0 | 83.7 | 68 | 10.6 | 17.7 | 12.7 |
| including | 78.5 | 83.7 | 70 | 4.7 | 18.7 | 15.2 | |
| AMQ16-701 | WT | 234.0 | 245.5 | 198 | 10.4 | 9.1 | 9.1 |
| and | WT | 295.2 | 308.2 | 249 | 11.3 | 6.2 | 6.2 |
| AMQ16-703 | WT | 296.7 | 339.0 | 262 | 36.6 | 6.1 | 6.1 |
| including | 296.7 | 305.0 | 248 | 7.2 | 17.1 | 17.1 | |
| AMQ16-706 | V Zones | 16.0 | 26.4 | 18 | 9.4 | 18.1 | 15.5 |
| including | 16.0 | 22.2 | 16 | 5.6 | 29.3 | 25.0 | |
| AMQ16-709 | WT | 141.8 | 150.5 | 119 | 6.2 | 5.8 | 5.8 |
| and | WT | 206.6 | 225.2 | 177 | 16.1 | 7.5 | 7.5 |
| and | WT | 272.8 | 292.5 | 232 | 17.9 | 4.7 | 4.7 |
| including | 280.0 | 285.5 | 232 | 5.0 | 12.4 | 12.4 | |
| AMQ16-720 | V Zones | 72.0 | 80.0 | 62 | 7.3 | 7.2 | 7.2 |
| and | V Zones | 249.4 | 263.1 | 212 | 12.9 | 13.4 | 6.6 |
| including | 249.4 | 253.2 | 208 | 3.6 | 41.7 | 17.2 | |
| AMQ16-722 | WT | 20.3 | 36.0 | 21 | 13.6 | 5.7 | 5.7 |
| AMQ16-731 | V Zones | 63.7 | 71.8 | 56 | 7.0 | 11.2 | 9.3 |
| AMQ16-736 | WT | 22.5 | 26.8 | 20 | 4.3 | 17.2 | 17.2 |
| AMQ16-741 | V Zones | 69.0 | 72.9 | 58 | 2.8 | 65.9 | 25.4 |
| AMQ16-748 | V Zones | 73.8 | 83.7 | 65 | 7.0 | 14.0 | 10.6 |
| AMQ16-755 | V Zones | 97.0 | 106.2 | 81 | 8.0 | 18.8 | 7.6 |
| and | V Zones | 130.4 | 146.8 | 112 | 14.9 | 3.5 | 3.5 |
| AMQ16-758 | V Zones | 79.6 | 86.0 | 77 | 4.5 | 6.8 | 6.8 |
| AMQ16-765 | V Zones | 76.5 | 83.8 | 75 | 7.2 | 65.5 | 14.2 |
| including | 76.5 | 79.5 | 73 | 3.0 | 156.5 | 31.6 | |
| AMQ16-776 | V Zones | 261.1 | 273.3 | 221 | 11.1 | 28.7 | 14.0 |
| AMQ16-793 | WT | 63.4 | 73.9 | 62 | 5.3 | 14.6 | 14.0 |
| and | WT | 205.7 | 214.0 | 190 | 7.8 | 8.5 | 8.5 |
| AMQ16-810 | V Zones | 186.0 | 196.3 | 156 | 8.9 | 6.1 | 6.1 |
| AMQ16-812 | V Zones | 306.9 | 310.9 | 268 | 3.1 | 6.8 | 6.8 |
| and | V Zones | 407.0 | 410.4 | 353 | 3.3 | 25.6 | 21.2 |
| AMQ16-819 | V Zones | 293.0 | 297.4 | 241 | 3.8 | 16.4 | 14.7 |
| AMQ16-830 | V Zones | 112.0 | 128.0 | 112 | 13.1 | 5.8 | 5.2 |
| AMQ16-833 | V Zones | 362.5 | 368.7 | 349 | 5.4 | 15.7 | 15.5 |
| and | V Zones | 399.0 | 413.0 | 387 | 12.7 | 5.5 | 4.3 |
*Holes at Whale Tail deposit use a capping factor of 80 g/t gold. Holes at IVR Zone use a capping factor of 60 g/t gold.
[Amaruq Project - Local Geology Map]
[Amaruq Project – Schematic Cross Section 15650E]
Approximately half of the exploration drilling so far this year has been in the V Zones, which form a series of parallel quartz vein structures within a 1.3-kilometre-long by 400-metre-wide area immediately north of the Whale Tail deposit. The mineralized structures in the V Zones strike northeast and dip shallowly to the southeast, as shown on the Amaruq Project Schematic Cross Section.
Within the V Zones, the largest structure found to date has a high-grade core traced over more than 1,000 metres along strike from near surface to 387 metres depth. Among the better recent intercepts in this structure is hole AMQ16-776 that intersected 14.0 g/t gold over 11.1 metres at 221 metres depth, and hole AMQ16-833 that intersected 15.5 g/t gold over 5.4 metres at 349 metres depth.
Recent drilling has discovered an additional significant structure approximately 125 metres above and to the southeast of previously known V Zones structures, with a strike length of 300 metres from near surface to approximately 270 metres below surface. Hole AMQ16-706 yielded 15.5 g/t gold over 9.4 metres at 18 metres depth, including 25.0 g/t gold over 5.6 metres in the new structure. Hole AMQ16-720 yielded 7.2 g/t gold over 7.3 metres at 62 metres depth (in the new structure), as well as 6.6 g/t gold over 12.9 metres at 212 metres depth (in a deeper parallel structure of the V Zones).
Drilling in the Whale Tail deposit continues to encounter multiple mineralized horizons. Infill drilling is helping to increase confidence in the geometry and grade of the Whale Tail ore shoot, which plunges about 30 degrees to the east from surface to at least 430 metres depth. The thickening of the ore shoot appears to be due to folding of the mineralized horizons.
Most of the recent drilling has therefore been directed from north into the ore shoot, to help ascertain the geometry and true thickness in this important area. For example, hole AMQ16- 688 returned an intercept 5.0 g/t gold over 31.2 metres at 143 metres depth above the ore shoot, as well as two intercepts within the ore shoot: 10.7 g/t gold over 12.1 metres at 209 metres depth, and 13.5 g/t gold over 18.1 metres at 246 metres depth. Slightly to the east of this, hole AMQ16-703 intersected 6.1 g/t gold over 36.6 metres at 262 metres depth, including 17.1 g/t over 7.2 metres. Approximately 300 metres to the southwest of these two holes, hole AMQ16-613 intersected 10.3 g/t gold over 6.8 metres at 261 metres depth, as well as 5.8 g/t gold over 7.1 metres at 277 metres depth.
Shallow drilling east of Mammoth Lake, in the region where the Whale Tail and Mammoth mineralized lenses interfinger has infilled the westernmost Whale Tail deposit. Hole AMQ16- 722 is of particular interest as a near-surface intercept in the westernmost part of the Whale Tail deposit, intersecting 5.7 g/t gold over 13.6 metres at 21 metres depth. Approximately 200 metres to the east is another near-surface intercept: hole AMQ16-690 intersected 3.1 g/t gold over 15.1 metres at 34 metres depth.
Drilling is ongoing with six rigs on the property. The goal of the current Whale Tail program is to expand the deposit, while the V Zones program is aiming to gain a better understanding of the geometry and to determine if the V Zones could become a potential second source of open pit ore for Amaruq. Regional exploration is also testing targets outside the currently known deposits. The Company is actively exploring the Amaruq deposit with the goal of potentially developing the deposit as a satellite operation to Meadowbank. An updated Amaruq mineral resource is expected late in the third quarter of 2016, incorporating the results of the phase 1 drill program in the V Zones and Whale Tail deposit.
A budget of $14 million has been approved for a second phase of exploration this year, including 50,000 metres of drilling as well as the purchase of equipment and supplies for the 2017 exploration program. Phase 2 is already underway.
Construction of the Amaruq Exploration Access Road began in the first quarter of 2016, with 13 kilometres of the expected total length of 62 kilometres completed to the end of June.
Permitting is ongoing to allow for the development of an exploration ramp and the potential collection of a bulk sample. The permit is anticipated in late 2016 or early 2017.
In order to mine the Whale Tail deposit, a Project Certificate for this satellite pit must be obtained from the Nunavut Impact Review Board (the “NIRB”) along with an amendment of the existing Meadowbank Type A water license. A positive land use conformity determination was received from the Nunavut Planning Commission on June 17, 2016 for the Amaruq Whale Tail pit project confirming that the planned activity meets conformity with the existing land use plan. On June 30, 2016 the Company submitted an application and environmental impact statement for the Whale Tail satellite pit with both the NIRB and Nunavut Water Board. This application is currently undergoing screening by the NIRB which initiates the permitting process, a process that is expected to take place over a period of approximately two years.
Kittila Drilling Continues to Extend Sisar Zone to the North and South
The goal of the current drill campaign at Kittila is to infill and extend the mineralization in the Sisar Zone, which is subparallel to and slightly to the east of the Main ore zones. The current drilling is from the exploration ramp which accesses the Sisar Zone at about 800 metres below surface. The ramp is being driven northward into the Rimpi Deep Zone. In the second quarter of 2016, 14 holes (5,843 metres) were drilled in the Sisar Top, Central and Deep zones. The total drilling in Sisar for the first half of 2016 was 24 holes (12,773 metres). Assays are pending for many holes.
Selected recent drill results are set out in the table below; drill hole collar coordinates are set out in a table in the Appendix of this news release. Pierce points for all these holes are shown on the Kittila Composite Longitudinal Section. All intercepts reported for the Kittila mine show uncapped grades over estimated true widths, based on a current geological interpretation that is being updated as new information becomes available with further drilling.
Recent exploration drill results from the Sisar Zone at the Kittila mine
| Drill hole | Zone | From (metres) | To (metres) | Depth of midpoint below surface (metres) | Estimated true width (metres) | Gold grade (g/t) (uncapped) |
|---|---|---|---|---|---|---|
| RIE16-600 | Sisar Top | 316.0 | 321.1 | 997 | 3.6 | 4.8 |
| RIE16-601 | Sisar Top | 194.8 | 202.0 | 847 | 6.8 | 7.6 |
| RIE16-603 | Sisar Top | 247.8 | 256.6 | 902 | 7.7 | 3.0 |
| RIE16-604 | Sisar Top | 302.0 | 308.3 | 977 | 4.5 | 4.3 |
| RIE16-606 | Sisar Top | 263.0 | 271.0 | 903 | 6.1 | 4.1 |
| RIE16-607 | Sisar Top | 185.0 | 190.4 | 771 | 5.4 | 4.1 |
| ROD16-700B | Sisar Central | 691.0 | 706.1 | 1,261 | 6.5 | 6.4 |
| including | 694.7 | 702.0 | 1,261 | 3.1 | 9.7 | |
| ROD16-700C | Sisar Central | 620.5 | 631.0 | 1,176 | 6.9 | 6.3 |
| ROD16-700D | Sisar Central | 441.6 | 450.2 | 1,069 | 6.9 | 4.7 |
| and | Sisar Central | 587.3 | 592.8 | 1,153 | 3.3 | 4.4 |
| and | Sisar Central | 597.0 | 613.0 | 1,161 | 9.6 | 7.4 |
| including | 604.6 | 613.0 | 1,163 | 5.1 | 11.2 | |
| ROD16-700E | Sisar Central | 642.4 | 655.6 | 1,203 | 6.9 | 7.0 |
[Kittila composite longitudinal section]
Recent holes drilled from the exploration ramp continue to extend the Sisar Zone upward and to the north and south. For the purposes of description, the zone has been divided into two depths, referred to as “Sisar Top” (approximately 775 to 1,000 metres below surface), and “Sisar Central” (between 1,100 and 1,300 metres below the surface). Some of the Sisar mineralized lenses extend from one depth to another.
A campaign of conversion drilling in Sisar Top has returned several good intercepts suggesting the potential of this area to become a new production source in the near term. The best recent result in this area was hole RIE16-601 that intersected 7.6 g/t gold over 6.8 metres at 847 metres depth. Hole RIE16-604 intersected 4.3 g/t gold over 4.5 metres at 977 metres depth; this intercept extends the Sisar Zone 53 metres to the north at this depth. Hole RIE16-607 intersected 4.1 g/t gold over 5.4 metres at 771 metres depth, extending the Sisar Zone 40 metres shallower than previous intercepts. Assays are pending on several other recent holes even farther north in this area. Sisar Top is approximately 100 metres east of the Rimpi Zone.
Follow-up exploration drilling in Sisar Central, close to the discovery hole (hole ROU10-037, reported in a Company news release dated April 28, 2011), has yielded good results confirming the continuation of the Sisar Zone at this depth. Hole ROD16-700 and its wedged branches are investigating the area. The best two recent intercepts are hole ROD16-700D that intersected 7.4 g/t gold over 9.6 metres at 1,161 metres depth including 11.2 g/t gold over 5.1 metres, and hole ROD16-700B that intersected 6.4 g/t gold over 6.5 metres at 1,261 metres depth including 9.7 g/t gold over 3.1 metres. Sisar Central is approximately 150 metres east of the Roura Zone. Directional drilling in the area continues with two high-capacity drilling units.
Underground exploration drilling will continue to the north as the exploration ramp is extended, allowing the small gap between the Sisar and Rimpi zones to be investigated at approximately 1,000 metres depth. The continued extension of the Sisar Zone could prove to be significant for the future of the Kittila mine, given its close proximity to the existing mine instrastructure (approximately 150 to 200 metres away). The results of the Sisar Zone infill drilling campaign will be reflected in the year-end 2016 mineral resources estimate for Kittila.
Barsele Project – Drilling Extends Skirasen Zone
In June 2015, Agnico Eagle acquired a 55% interest in the Barsele project in Västerbotten County, northern Sweden. The Company can earn an additional 15% interest in the project through the completion of a pre-feasibility study. The most recent results from the 28,600hectare property were released in a Company news release dated April 28, 2016.
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. The property also hosts gold-rich polymetallic volcanogenic massive sulphide mineralization (the Norra Zone). The Avan, Central and Skirasen zones extend over a strike length of 2.6 kilometres within a granodiorite that ranges in width from 200 to 500 metres over a strike length of more than eight kilometres. Gold is generally associated with arsenopyrite and low base metal content, but also occurs as native metal locally.
A second phase of drilling commenced the end of April with one drill rig, and a second rig was added in early June. During the second quarter, drilling was done on the Skirasen and Avan zones testing induced polarization and magnetotelluric geophysical anomalies (similar to anomalies in the Central Zone) that were identified in a Titan-24 geophysical survey conducted in the second quarter.
Drilling at Barsele during the second quarter totalled 3,972 metres (6 holes). The total drilling in the first half of 2016 is 8,807 metres, while a cumulative total of 17,192 metres has been drilled since the start of the Company’s program in October 2015.
Recent intercepts from this program are set out in the table below; drill hole collar coordinates are set out in a table in the Appendix of this news release. The drill hole pierce points are also shown on the Barsele Project Composite Schematic 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)* |
|---|---|---|---|---|---|---|---|
| SKI16-006 | Skirasen | 279.0 | 303.5 | 210 | 18.4 | 1.08 | 1.08 |
| and | 461.0 | 471.0 | 345 | 7.5 | 2.51 | 2.51 | |
| and | 551.0 | 644.0 | 445 | 69.8 | 1.31 | 1.31 | |
| including | 556.3 | 582.0 | 420 | 19.3 | 2.17 | 2.17 | |
| SKI16-007 | Skirasen | 364.0 | 408.0 | 310 | 33.0 | 4.08 | 1.87 |
| and | 496.0 | 518.4 | 410 | 16.8 | 2.24 | 2.24 | |
| and | 560.0 | 570.0 | 455 | 7.5 | 6.11 | 1.59 | |
| and | 670.0 | 690.0 | 550 | 15.0 | 0.70 | 0.70 |
and 714.0 729.0 580 11.3 0.74 0.74 *Holes at Barsele use a capping factor of 20 g/t gold.
Multiple lenses of mineralization are intersected in the Skirasen Zone. Recent exploration drill results include hole SKI16-006 that had three intersections: 1.08 /t gold over 18.4 metres at 210 metres depth; 2.51 g/t gold over 7.5 metres at 345 metres depth; and 1.31 g/t gold over 69.8 metres at 445 metres depth, including 2.17 g/t gold over 19.3 metres. This hole extends the known Skirasen mineralization by approximately 200 metres down-plunge towards the southeast.
Drill hole SKI16-007 was designed to probe for mineralization below SKI16-006. Assay results have returned several mineralized lenses, including 1.87 g/t gold over 33.0 metres at 310 metres depth, 2.24 g/t gold over 16.8 metres at 410 metres depth and 1.59 g/t gold over 7.5 metres at 455 metres depth. The lowest intersection in this hole is at 580 metres depth, which extends the currently known depth of the Skirasen Zone by 95 metres.
These drill intercepts are located roughly 850 metres southeast of the core of the Central Zone.
[Barsele Project Composite Schematic Longitudinal Section]
In 2016, the Company plans to spend approximately $4.9 million on exploration to further evaluate the mineral potential of the property. This includes 19,000 metres of diamond drilling, a Titan-24 induced polarization geophysical survey, till sampling and hyperspectral core scanning. A basic environmental assessment will be done, as well as ongoing community relations programs to engage with the various stakeholders in the region.
Odyssey Prospect at Canadian Malartic Mine – Drilling Outlines Significant Areas of Mineralization in the North and South Odyssey Zones
The Odyssey prospect lies on the east side of the Canadian Malartic property in northwestern Quebec, approximately 1.5 kilometres east of the current limit of the Canadian Malartic open pit. The Canadian Malartic property is owned by the Canadian Malartic General Partnership (the “Partnership”) in which Agnico Eagle and Yamana Gold Inc. each have an indirect 50% ownership interest. This news release discloses some of the first drill results from Odyssey since it was first acquired in June 2014.
The Odyssey Zone is composed of multiple mineralized bodies spatially associated with a porphyritic intrusion, “Porphyry 12”, close to the contact of the Pontiac Group sediments and the Piché Group of volcanic rocks. They are grouped into two elongated zones — the Odyssey North and Odyssey South zones — which strike east-southeast and dip south. Odyssey North has been traced from a depth of 600 to 1,300 metres below surface along a strike length of approximately 1.5 kilometres. Odyssey South has a strike length of 0.5 kilometres, and has been located between approximately 200 and 550 metres depth.
Gold occurs preferentially along lithological contacts but also within the porphyry. The Odyssey mineralization appears to be controlled by structures associated with the Sladen Fault or its splays. The gold mineralization is associated with an alteration halo of feldspar-hematitesericite and local silica with 1-3% disseminated pyrite. Grades are in the range of 1.5 to 3.0 g/t gold, but higher grades are observed locally within stockwork and silicified breccia zones.
The Partnership’s initial budget in 2016 was C$8.0 million for approximately 60,000 metres of drilling to infill and expand the known mineralized zones on the Odyssey prospect. To the end of June, 57 holes (53,417 metres) have been completed.
Selected drill results are set out in the table below; drill hole collar coordinates are set out in a table in the Appendix of this news release. Drill hole collars are also shown on the Odyssey Prospect Local Geology Map. All intercepts reported for the Odyssey prospect 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 Odyssey North and Odyssey South zones
| 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)* |
|---|---|---|---|---|---|---|---|
| ODY11-2404*** | North | 1,223.0 | 1,333.2 | 1,136 | 78.1 | 3.66 | 3.06 |
| ODY14-2480 | South | 546.0 | 587.7 | 480 | 41.1 | 2.55 | 2.55 |
| ODY14-2480*** | North | 1,111.0 | 1,124.5 | 936 | 10.6 | 4.64 | 4.64 |
| ODY14-2480A | North | 1,056.0 | 1,065.9 | 838 | 8.6 | 2.46 | 2.46 |
| ODY14-2482*** | North | 1,163.4 | 1,169.3 | 996 | 4.7 | 9.61 | 9.61 |
| ODY14-2483*** | North | 1,170.0 | 1,212.5 | 988 | 33.0 | 2.37 | 2.37 |
| ODY14-2486*** | North | 1,205.5 | 1,224.1 | 959 | 16.8 | 2.29 | 2.29 |
| ODY14-2491BExt | South | 518.9 | 533.8 | 471 | 14.6 | 5.44 | 5.44 |
| And | North | 1,165.7 | 1,185.0 | 1,034 | 13.6 | 1.60 | 1.60 |
| ODY14-2492Ext | North | 1,188.2 | 1,211.0 | 988 | 18.3 | 5.22 | 5.04 |
| including | 1,196.6 | 1,204.7 | 6.5 | 10.22 | 9.73 | ||
| ODY14-2493Ext | North | 1,261.5 | 1,281.2 | 1,151 | 13.4 | 3.81 | 3.81 |
| ODY15- 2494Ext | North | 1,298.9 | 1,324.0 | 1,213 | 15.6 | 3.31 | 3.31 |
| including | 1,308.4 | 1,315.8 | 4.6 | 6.92 | 6.92 | ||
| ODY15-2495 | South | 520.6 | 537.8 | 449 | 17.3 | 2.73 | 2.73 |
| ODY15-2498 | South Contact | 367.9 | 384.0 | 272 | 12.3 | 2.50 | 2.50 |
| ODY15-2500 | North | 1,148.5 | 1,157.8 | 998 | 7.3 | 2.16 | 2.16 |
| ODY15-5003 | South Contact | 344.8 | 360.4 | 292 | 13.4 | 2.28 | 2.28 |
| ODY15-5004 | North | 1,309.0 | 1,334.0 | 1,139 | 18.4 | 2.13 | 2.13 |
| including | 1,319.5 | 1,328.2 | 6.4 | 3.73 | 3.73 | ||
| ODY15-5007 | North | 1,359.0 | 1,377.0 | 1,104 | 14.8 | 2.22 | 2.22 |
| including | 1,368.9 | 1,375.5 | 5.4 | 4.62 | 4.62 | ||
| ODY15-5008 | South | 436.9 | 452.9 | 340 | 15.8 | 3.36 | 3.36 |
| including | 436.9 | 445.4 | 8.4 | 4.62 | 4.62 | ||
| ODY15-5010 | North | 1,222.9 | 1,232.8 | 1,000 | 7.8 | 2.55 | 2.55 |
| ODY15-5023 | South | 529.0 | 547.5 | 410 | 17.5 | 1.63 | 1.63 |
| ODY15-5024 | North | 1,153.0 | 1,166.2 | 899 | 11.2 | 5.12 | 5.12 |
| ODY15-5025 | North | 1,129.3 | 1,144.5 | 936 | 12.2 | 2.25 | 2.25 |
| ODY15-5026 | South | 463.5 | 474.8 | 316 | 11.3** | 3.52 | 3.52 |
| including | 466.0 | 474.8 | 8.8** | 4.13 | 4.13 | ||
| ODY15-5029 | North | 1,036.2 | 1,042.6 | 781 | 5.6 | 2.83 | 2.83 |
| ODY16-5033 | South | 473.9 | 491.5 | 427 | 17.6 | 1.50 | 1.50 |
| ODY16-5039 | North | 1,355.5 | 1,398.3 | 1,171 | 33.5 | 2.63 | 2.63 |
| including | 1,380.8 | 1,393.6 | 10.0 | 4.63 | 4.63 | ||
| ODY16-5040A | North | 1,236.8 | 1,268.0 | 1,018 | 27.7 | 1.93 | 1.93 |
| Including | 1,258.4 | 1,268.0 | 8.5 | 3.50 | 3.50 | ||
| ODY16-5042 | North | 995.5 | 1019.5 | 822 | 18.4 | 1.11 | 1.11 |
| ODY16-5043 | North | 1,380.0 | 1,388.0 | 1,236 | 5.4 | 3.40 | 3.40 |
| ODY16-5044 | North | 1,404.2 | 1,417.8 | 1,299 | 8.6 | 1.95 | 1.95 |
| ODY16-5051 | North | 1,260.2 | 1,285.5 | 1,135 | 17.8 | 1.76 | 1.76 |
| ODY16-5054 | North | 1,312.5 | 1,366.8 | 1,234 | 33.2 | 1.54 | 1.54 |
- Holes at the Odyssey prospect use a capping factor of 20 g/t gold.
** True thickness not determined; these values are core length.
*** Drill-hole results previously reported by former owners. Some were previously reported with different grades and thicknesses.