Agnico Eagle Provides an Update ON Year-to-Date Exploration Results: Detour Lake Returning High Grade Intercepts up to 2 Km Away from Current Open Pit; East Gouldie Delivering Solid Infill
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AGNICO EAGLE PROVIDES AN UPDATE ON YEAR-TO-DATE EXPLORATION
RESULTS: DETOUR LAKE RETURNING HIGH GRADE INTERCEPTS UP TO 2 KM
AWAY FROM CURRENT OPEN PIT; EAST GOULDIE DELIVERING SOLID INFILL
CONVERSION RESULTS AND STEP-OUT DRILLING TO THE EAST AND WEST;
HOPE BAY RETURNING WIDE HIGH GRADE INTERSECTIONS BELOW THE DORIS
DEPOSIT; EXPLORATION OF AMALGAMATED KIRKLAND DEPOSIT IN KIRKLAND
LAKE ADVANCING FROM SURFACE AND UNDERGROUND
Toronto (August 11, 202 2) – Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM)
("Agnico Eagle" or the "Company") is pleased to provide an update on exploration activities
at several projects and select mine sites . The Company 's exploration focus remains on
pipeline projects, near -mine opportunities and mineral reserve and mineral r esource
replacement and growth. Exploration highlights during the first half of 2022 include:
• Detour Lake – Conversion and expansion drilling continue to return promising
results within and immediately adjacent to the current open pit, representing an
opportunity to further optimize the recently updated mine plan. By the end of June
2022, more than 84,660 metres of drilling had been completed since the closure of
the database in early February 2022 in connection with the most recent mineral
resource estimate. Highlight intercepts of 1.1 grams per tonne ("g/t") gold over 55.9
metres at 354 metres depth and 1.4 g/t gold over 78.9 metres at 565 metres depth
in hole DLM-22-425 in the Saddle Zone demonstrate the potential to deepen the pit
and extend it further north. Step-out drilling returned 32.3 g/t gold over 4.8 metres
at 955 metres depth in an intersection located more than two kilometres west of the
open pit, demonstrating the potential for a significant extension of the deposit to the
west that will be considered for underground mining opportunities
• Odyssey Underground Project at Canadian Malartic – Infill drilling continues to
return strong results in the Odyssey South Zone, with recent results of 5.2 g/t gold
over 17.0 metres at 359 metres depth. An initial mineral reserve estimate is
expected at year-end 2022 and pre-commercial production from the Odyssey South
orebody is expected to begin before the end of March 2023. Infill drilling also
continues to return wide, high -grade intersections in the core of the East Gouldie
deposit, with recent results including 4.9 g/t gold over 45.3 metres at 1,072 metres
2
depth. Eastern extension and western extension of the deposit continues to be
tested with recent results of 1.8 g/t gold over 62.9 metres at 1,580 metres depth,
extending the zone 225 metres towards the west , filling the gap between the East
Gouldie and the Norrie zones and providing potential for mineral resources addition
• Hope Bay – More than 46,000 metres of drilling have been completed year to date
with seven drill rigs now operating at the Doris and Madrid deposits. Recent results
at Doris confirm the potential to expand the deposit along strike to the north in the
BTD Extension Zone and to the south in the Central and West Valley zones and
demonstrate the potential for finding additional high grade fold -hinge structures
below the historical zones with a recent intersection in the BTD Connector zone of
6.9 g/t gold over 32.2 metres at 495 metres depth
• Kirkland Lake Region – Following the merger with Kirkland Lake Gold Ltd. (the
"Merger") that closed on February 8, 2022, the extension of the ramp from Macassa
is now allowing drilling of the Amalgamated Kirkland ( "AK") deposit from
underground to complement surface drilling and accelerate the infill drilling of AK.
The Company believes ore could be sourced for the Macassa mill in early 2024,
which could provide flexibility to the operations. Recent results include a highlight
intercept of 8.1 g/t gold over 13.8 metres at 208 metres depth. Infill drilling has also
been completed at the Upper Beaver deposit, with a recent highlight intercept of 8.8
g/t gold and 0.54% copper over 12.0 metres at 1,600 metres depth. The Company's
internal study on Upper Beaver is expected to be updated in 2023 taking into
consideration synergy opportunities from the Merger
"The Company's ambitious exploration program for 2022 is yielding exciting results. At
Detour Lake, the step -out drilling suggests good potential for an underground operation
and extensions to the current open pits. At Canadian Malartic, the step -out drilling
continues to significantly extend the East Gouldie deposit to the east and the west. At
Hope Bay, the drill results confirm the expansion of the Doris deposit at depth with wide
high grade intercepts, well ahead of our expectations," said Ammar Al -Joundi, Agnico
Eagle's President and Chief Executive Officer. "In addition, we continue to generate
significant exploration results at producing assets including Fosterville, Meliadine,
LaRonde and Kittila. With these positive results, we are adding $30 million dollars to our
exploration budget in 2022 as we aim to accelerate the realization of the full potential of
existing operations and key projects in the Company's pipeline," added Mr. Al-Joundi.
Based on positive exploration results in the first half of 2022 , a supplemental
exploration budget of $30 million has been approved – The Company has numerous
mines and pipeline projects with excellent potential to replace and increase mineral
reserves and has prioritized assessing the full potential of its portfolio through exploration
(see the Company's news release dated February 23 , 2022 for a breakdown of the 2022
exploration budget). Positive exploration results in the first half of 2022 support the focused
addition of supplemental budgets at several projects. An update on selected exploration
programs and budgets is set out in the sections below.
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Targeting growth of the Company's mineral reserves and mineral resources at year-
end 2022 from a record level at year-end 2021 – At December 31, 2021, Agnico Eagle's
proven and probable mineral reserve estimate totaled approximately 25.7 million ounces
of gold, consisting of 2.4 million ounces of gold of proven mineral reserves (38.7 million
tonnes grading 1.92 g/t gold ) and of 23.3 million ounces of probable mineral reserves
(298.3 million tonnes grading 2. 43 g/t gold.) This was an increase of approximately 1.6
million ounces of gold (7%) and a 10% increase in grade compared with the prior year. At
December 31, 2021, prior to the Merger, Kirkland Lake Gold's proven and probable mineral
reserves totaled approximately 18.9 million ounces of gold, consisting of 3.7 million ounces
of gold of proven mineral reserves (81.7 million tonnes grading 1.41 g/t gold) and of 15.2
million ounces of probable mineral reserves (502 million tonnes grading 0.94 g/t gold).
For a breakdown of the Company 's mineral reserves and mineral resources as at
December 31, 2021 by deposit refer to the Company 's news release dated February 23,
2022. For Detour Lake 's mineral reserves and mineral resources as at March 31, 2022
refer to the Detour Lake section of this new release and the Company's news release dated
July 27, 2022.
A wide selection of recent drill results is compiled in a table in the Appendix to this news
release, while highlight intercepts are set out in the section s below. Drill hole collar
coordinates for the holes in this news release are also set out in the Appendix.
ABITIBI REGION, QUEBEC
Agnico Eagle is Quebec 's largest gold producer with a 100% interest in the LaRonde
complex (which includes the LaRonde and LaRonde Zone 5 ("LZ5") mines), the Goldex
mine and a 50% interest in the Canadian Malartic mine. The Company has a multi-decade
track record of exploration success in the Abitibi region, building on the discovery in the
1980s of the world -class LaRonde gold -rich polymetallic volcanic massive sulphide
deposit, which has served as an operations and exploration hub that provides operating
synergies to the Company's nearby mines and allows for the sharing of technical expertise.
LaRonde Complex – Three Underground Development Drifts Progressing Westward
from LaRonde 3 Infrastructure; Drilling on Level 9 Tests Vertical Extension of Zone
3-1; Infill Drilling Confirms Grade and Width of Zone 11 -3; Drilling Shows Potential
for Westward Extension of LZ5 Mineralization
At the LaRonde complex, the Company now expects to spend approximately $14.8 million
in 2022 to drill 43,500 metres and to develop, extend or rehabilitate three new exploration
drifts on levels 9, 215 and 290 West from the LaRonde 3 infrastructure towards the west
below the LZ5 mine workings.
A total of 13,434 metres of definition and exploration drilling was completed in the first half
of 2022, amid a challenging environment for diamond driller staffing and as new exploration
drifts are being developed for future drilling.
4
In the track drift on Level 9, a second drill station has been completed and a drill rig is now
operating and targeting the down-plunge extension of the historical Bousquet Zone 3-1.
In the exploration drift on Level 215, the development is progressing faster than budgeted
with a total of 1,015 metres developed in the first half of 2022. The rehabilitation work is
completed, and the drift is currently being extended further to the west. Considering the
progress being made, the Company has allocated an additional $2.9 million budget to
extend the exploration drift compared to the original February budget . A first drill is
expected to be mobilized into the drift in the second quarter of 2023. The exploration
drilling program from the Level 215 exploration drift will test vertical extensions between
1.5 and 3 kilometres depth of several known mineralized zones — Zone 3-1, Zone 3-4, the
Bousquet 1 mine and the LZ5 mine — as the drift is advanced to the west.
In the exploration drift on Level 290 West, development progressed by 136 metres during
the first half of 2022 before being paused until year -end to focus on Level 215 and other
priority developments in the mine.
At the LZ5 mine, Zone 5 was extended to the west during the first half of 2022, with recent
drilling highlights that included: 2.4 g/t gold over 18.1 metres at 692 metres depth in hole
BZ-2021-008; 1.4 g/t gold over 16.0 metres at 1,017 metres depth in hole BZ -2021-009;
and 2.1 g/t gold over 17.5 metres at 841 metres depth in hole BZ -2022-001. These wide
and low -grade intercepts show the potential for the vertical and westward extension of
Zone 5 mineral reserves and mineral resources onto the Company's 100% -owned Ellison
property, which is immediately adjacent to the infrastructure at the LZ5 mine.
In Zone LR11 -3, which is located at de pth in the past-producing Bousquet 2 mine, infill
drilling was completed to validate historical results and infill the zone prior to development
in the ore. Gold production from LR11-3 development ore is expected to begin in late 2022
and full production is expected to start in the first half of 2023.
Selected recent drill results from Zone LR11-3 and the LZ5 mine are set out in a table in
the Appendix and in the composite longitudinal map below.
[LaRonde Complex – Composite Longitudinal Section]
Goldex – Exploration Continues to Expand South Zone ; Drilling Ongoing into
Mineralization Below the Deep 2 Zone and in the West Area
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At the Goldex mine, the Company expects to spend approximately $5.6 million in 2022 for
45,300 metres of drilling comprised of 39,300 metres of conversion drilling and 6,000
metres of exploration drilling, focused on the South Zone, M Zone, West area and at depth
in the Deep 3 Zone.
The main target of exploration at Goldex in 2022 is the South Zone, which is located in the
volcanic rocks south of the Goldex main deposit. The South Zone gold mineralization is
hosted in multiple quartz -biotite-sulphide veins that have higher grades than those in the
primary mineralized zones at Goldex.
Seven drills are currently active on the property a nd have completed a total of 22,036
metres of capitalized definition drilling and 1,697 metres of expensed exploration drilling
during the first half of 2022.
Recent results from the western extension of the South Zone in Sector 2 include a highlight
of 14.7 g/t gold over 3.0 metres at 955 metres depth in hole GD96 -002. In the eastern
extension of the South Z one, in Sector 3, the conversion drilling program continue s to
return excellent results, including 4.1 g/t gold over 20.0 metres at 1 ,291 metres depth in
hole GD128 -057. The Company expects that the South Zone will be an important
contributor to the replacement of mineral reserves at Goldex at year-end 2022.
Exploration is also being conducted to test the deposit at depth below the Deep 2 mine
and in the West area.
Selected recent drill results from Goldex are set out in the table in the Appendix and in the
composite longitudinal section below.
[Goldex Mine – Composite Longitudinal Section]
Odyssey Project – Infill Drilling Progressing in the Odyssey South Zone with
Expectations of Initial Mineral Reserves to be Declared at Year-end 2022 and Pre-
commercial Production to Begin before the end of March 2023 from an Underground
Ramp; Infill Drilling at East Gouldie Continues to Confirm Grade and Width in the
Core of the Deposit while Exploration Drilling Continues to Expand the Zone to the
East and West; Underground Development and Surface Construction Progressing
on Schedule and on Budget
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At the Canadian Malartic mine, the Company expects to spend approximately $11.9 million
(50% basis) in 2022 for 136,800 metres (100% basis) of exploration and conversion drilling
focused on aggressive infill drilling of the East Gouldie deposit to improve confidence in
the mineral resource, to continue the conversion of inferred mineral resources to indicated
mineral resources and to refine the geological model. With ramp development continuing
as part of the Odyssey mine project, Canadian Malartic GP (the "Partnership") is
conducting underground conversion drilling from the ramp.
Twenty drills are currently a ctive on the property, with four underground drills completing
infill drilling on the Odyssey South deposit , 12 surface drills focused on infilling and
expanding the East Gouldie mineralization and four drills active in regional exploration.
The Partnership drilled 95,030 metres (100% basis) during the first half of 2022.
Underground development in the first half of 2022 completed 685 metres of ramp and 2,622
metres of lateral development , with the ramp now reaching a depth of 380 metres below
surface.
Selected recent exploration drill results from Odyssey South, East Gouldie and the regional
program on the wider Canadian Malartic property portfolio are set out in a table in the
Appendix and in the composite longitudinal section below.
[Canadian Malartic Mine – Composite Longitudinal Section]
Odyssey South
Drilling from underground gradually increased during the first half of 2022 as ramp
development provided access to new diamond drill bays to test the Odyssey South and
Odyssey Internal zones. Recent results continue to confirm the grades of these zones and
the Company expects that the core portion of the Odyssey South deposit will be classified
as mineral reserves at year-end 2022, with pre-commercial production to begin before the
end of March 2023. The new underground access also allowed for additional drilling into
the Odyssey internal zones where recent results continue to better define the continuity of
zones within the porphyry , which is expected to have a positive impact on the mineral
resources update at year-end.
East Gouldie
7
With the continued success at infilling East Gouldie at 75-metre spacing in the core of the
deposit, the Company expects a significant portion of the East Gouldie deposit to be
classified as indicated mineral resources at year-end 2022.
Recent expansion drilling to the west at depth is producing positive results, with highlight
hole MEX22 -231 returning 1.8 g/t gold over 62.9 metres at 1,580 metres depth in the
western extension of the East Gouldie deposit approximately 225 metres west of the
current mineral resources outline (previously reported on July 27, 2022). This intercept is
approximately halfway between the East Gouldie deposit and the Norrie Zone to the west
and shows the potential for East Gouldie to connect with other mineral i nventories in the
Norrie and South Sladen mineralized zones that are not yet classified as mineral resources.
Regional Exploration
In regional exploration at Canadian Malartic , the Company is planning to spend
approximately $4.1 million (50% basis) in 2022 on 21,900 metres (100% basis) primarily
to expand mineralization towards the east in the East Gouldie horizon and the new Titan
zone at depth on the Rand Malartic property. During the first half of 2022, 18,896 metres
(100% basis) were completed on the Rand Malartic, East Amphi and Midway properties.
Rand Malartic
On the Rand Malartic property, the priority remains to test the eastern extension of the East
Gouldie deposit while also testing the eastern extension of the Odyssey North and
Odyssey South zones associated with porphyry mineralization within the Piché Group. As
previously disclosed during the first quarter of 2022 , the Partnership repurchased the 2%
NSR royalty on the Rand Malartic property for $7 million.
Recent hole RD20-4677B has intersected a new mineralized porphyry intrusion, returning
1.6 g/t gold over 29.3 metres (core length) at 1,208 metres depth approximately 820 metres
east of the easternmost limit of Odyssey South Zone mineral resources, demonstrating
potential to discover "Odyssey North and South " style of minerali zation as exploration
drilling advances towards the east.
In the eastern extension of East Gouldie, previously reported hole RD21 -4689AA
intersected 3.1 g/t gold over 7.9 metres (core length) at 2,537 metres depth, making it the
deepest and easternmost dril l hole to date . This intersection e xtends the East G ouldie
mineralized corridor eastward by 500 metres , to approximately 1,700 metres east of the
current mineral resources outline. Mineralization remains open to the east.
East Amphi and Camflo
Elsewhere on the Partnership's 13,582 hectare land position, exploration continue s with
work testing the deep extension of the East Amphi deposit and the ongoing compilation of
all historical information around the Camflo deposit on the Camflo property, which the
Partnership acquired in 2021.
8
The Ca mflo property lies to the north of the Odyssey project and includes the past
producing Camflo mine which had historical production of approximately 1.6 million ounces
of gold.
The Partnership's initial evaluation of the Camflo property has identified porp hyry hosted
gold mineralization that could potentially be mined via an open pit. Additional studies are
underway to evaluate this mineralization and additional potential mineralization in adjacent
rock types. A follow-up exploration program is planned for Camflo in 2023.
ABITIBI REGION, ONTARIO
Agnico Eagle acquired the Detour Lake and Macassa mines on February 8, 2022 as a
result of the Merger. With the inclusion of these two assets in its portfolio, the Company is
now Ontario's largest gold produce r. Furthermore, the proximity of these mines to the
Company's operations located in the Abitibi region of Quebec provides operating synergies
and allows for the sharing of technical expertise.
Detour Lake – Drilling Confirms a Broad Corridor of Mineralization Extending from
the Main Pit Continuing Through to the Planned West Pit ; Potential to Continue
Growing "Out-pit" Mineralization Two Kilometres West of the Current Resource Pit
At the Detour Lake mine , the Company expects to spend approximately $35.8 million in
2022 for 194,000 metres of capitalized drilling to expand mineral resources at depth and
to the west, and $10.1 million for 40,000 metres for exploration drilling to continue to
investigate the Sunday Lake Deformation Zone to the east and west of the current pit's
mineral resources.
During the first half of 2022 at Detour Lake, the Company completed 99 holes totalling
108,023 metres of combined capitalized and expensed drilling. Approximately 84,660
metres of the drilling completed in the first half of 2022 was not included in the latest mineral
reserve and mineral resource update for Detour Lake, which utilized a database that closed
on February 5, 2022.
Selected recent drill intercepts from Detour Lake are set out in a table in the Appendix and
in the plan map and composite longitudinal section below.
[Detour Lake Mine – Plan Map and Composite Longitudinal Section]