11 August 2022
Toronto (August 11, 2022) – 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 resource replacement and growth. Exploration highlights during the first half of 2022 include:
"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.
Agnico Eagle has identified Nunavut as a politically attractive and stable jurisdiction with enormous geological potential. With the Company's Meliadine mine and Meadowbank complex (including the Amaruq satellite deposit), together with the Hope Bay project and other exploration projects, Nunavut is a strategic operating platform that builds on the Company's established infrastructure, access roads, procurement synergies and the region's tremendous geological potential, with the ability to generate strong gold production and cash flows over several decades.
The Meliadine property includes seven gold deposits, six of which are part of the current mine plan. Tiriganiaq is the largest of the deposits with a strike length of approximately 3.0 kilometres at surface and a known depth of 812 metres.
Exploration during the first half of 2022 at the Meliadine mine site and surrounding areas totaled 35,606 metres, with work focused on three areas: deep exploration and conversion drilling at the Pump deposit; infill drilling of inferred mineral resources at depth in the Wesmeg and Tiriganiaq deposits; and exploration drilling at the F-Zone deposit.
Selected recent exploration drill intercepts from the Pump deposit at the Meliadine property are set out in a table in the Appendix and in the plan map and composite longitudinal section below.
During the first half of 2022 at the Pump deposit, the Company completed 51 holes from surface totalling 16,890 metres to convert and expand the mineral resources at the Pump South and North zones.
The positive results from infill drilling at shallow depth into the Pump South Zone are expected to convert a portion of inferred mineral resources into indicated mineral resources in the eastern (main) ore plunge. Highlights include: hole M22-3364, which intersected 6.5 g/t gold over 4.1 metres at 143 metres depth; and hole M22-3361, drilled 36 metres to the east, which intersected 11.7 g/t gold over 4.2 metres at 125 metres depth. Other notable infill drilling results include hole M22-3362, drilled 51 metres further east, which returned
6.4 g/t gold over 5.4 metres at 76 metres depth; and hole M22-3360, drilled 93 metres east of hole M22-3364, which returned 9.4 g/t gold over 3.0 metres at 87 metres depth.
Approximately 200 metres deeper down-plunge in the same gold-mineralized oreshoot, hole M22-3380A intersected 9.3 g/t gold over 4.2 metres at 328 metres depth. Hole M22- 3382A, drilled 33 metres to the east, intersected 7.7 g/t gold over 5.0 metres at 321 metres depth and hole M22-3384, drilled 80 metres east of hole M22-3364, intersected 20.4 g/t gold over 3.7 metres at 339 metres depth. These holes are expected to convert inferred mineral resources located between two substantial areas of indicated mineral resources.
In 2021, the exploration drilling program identified an important mineral inventory at the limits of the mineral resource along the main plunge. This year's follow-up drilling program has confirmed the grade, thickness and continuity of this new mineralized zone. Hole M22- 3391, which returned 18.8 g/t gold over 5.3 metres at 565 metres depth, is expected to extend the inferred mineral resources down plunge. Hole M22-3401, drilled into inferred mineral resources located 106 metres to the east, returned 10.1 g/t gold over 5.0 metres at 488 metres depth.
Drilling of the Pump North and Pump South targets is planned to resume next winter. An internal study is underway of the underground portion of the Pump deposit and is due for completion in early 2023.
Elsewhere on the Meliadine property in the first half of 2022, a total of 18,716 metres of exploration and conversion drilling was carried out in Tiriganiaq and Wesmeg deposits from the newly developed exploration drift as well as from surface in the F-Zone deposit.
Based on recent success of the exploration programs at Meliadine in the first half of 2022,
$6 million of the additional $30 million in exploration expenditure will be dedicated to drill an additional 40,000 metres to support mineral resources to mineral reserves conversion and the addition of mineral resources in the extensions of the known deposits.
The exploration program at Amaruq in 2022 is budgeted at $19.5 million for a planned 61,800 metres of exploration and conversion drilling, with 31,996 metres of drilling completed during the first half of 2022.
The exploration drilling in 2022 has several objectives: completing definition drilling of mineral resources to allow evaluation for possible Whale Tail Pit extension at its western end toward the Mammoth prospect as well as extending mineral resources at depth in the Whale Tail, IVR and Mammoth deposits; below the IVR pit, testing a gap between the open pit and the underground mineral resources; and continuing delineation drilling in the underground mine in the Whale Tail deposit to confirm the final shapes of stopes as production will gradually ramp up in the second half of 2022.
Selected recent drill intercepts from the exploration and conversion drilling at Amaruq are set out in a table in the Appendix and in the composite longitudinal section below.
Underground infill drilling in the Whale Tail deposit during the first half of 2022 has increased confidence in the geological modelling of the deposit and better defined the stopes that are scheduled for production during the second half of 2022.
Highlights from this infill drilling include: hole AMQ-290-200-F1 returning 5.2 g/t gold over
7.2 metres at 285 metres depth and 5.5 g/t gold over 20.8 metres at 284 metres depth; hole AMQ-320-200-U1 returning 5.6 g/t gold over 27.0 metres at 305 metres depth; hole AMQ-320-201-U1 returning 3.4 g/t gold over 25.2 metres at 299 metres depth; hole AMQ- 320-204-F1 returning 6.3 g/t gold over 20.0 metres at 314 metres depth; and hole AMQ- 320-205-U1A returning 9.3 g/t gold over 21.2 metres at 282 metres depth.
Drilling into the gap between the IVR pit and the underground IVR mineral resources intersected significant mineralization that will likely contribute to increased mineral resources and the conversion of inferred mineral resources into indicated mineral resources in the upper portion of the underground IVR mineral resources. Highlights from this drilling include 6.8 g/t gold over 5.9 metres at 223 metres depth in hole AMQ21-2729,
5.3 g/t gold over 8.1 metres at 352 metres depth in hole AMQ21-2707A, 5.4 g/t gold over
9.5 metres at 296 metres depth in hole AMQ21-2745 and 20.3 g/t gold over 5.1 metres at 336 metres depth in hole AMQ21-2728A.
Drilling along the western limits of the IVR deposit resulted in highlights such as 13.5 g/t gold over 5.2 metres at 360 metres depth and 7.3 g/t gold over 3.3 metres at 401 metres depth in hole AMQ21-2690A. In the central portion of the IVR deposit, conversion hole AMQ21-2680 returned 6.0 g/t gold over 22.4 metres at 391 metres depth.
A deep drilling campaign began at Amaruq in late April with the objective of extending underground mineral resources under the Whale Tail, IVR and Mammoth known orebodies. To date, two deep holes at Whale Tail and two others at Mammoth were completed and intersected the targeted mineralized horizons, with all results pending. Drilling is also ongoing at IVR at depth where the deposit remains open.
On February 18, 2022, the Company announced that it decided to maintain the suspension of production activities at the Hope Bay mine in order to dedicate the infrastructure of the Hope Bay site to exploration activities. Infrastructure work for water treatment and camp maintenance is also underway while the Company is studying larger production scenarios integrating the most recent results and the progress of the ongoing exploration campaign.
The exploration program is continuing to ramp up at Hope Bay, with 136 drill holes totalling 46,658 metres completed from surface and underground during the first half of 2022. Three drill rigs are now operating underground at the Doris deposit, three drill rigs are targeting deep extensions of the Doris deposit from surface and a seventh surface drill rig is operating at the Madrid deposit.
Doris Deposit
During the first half of 2022 at the Doris deposit, three drill rigs operating underground explored extensions of the BTD Extension, BTD Connector, Connector, Central and West Valley zones, and three drill rigs at surface tested deep extensions of the BTD Connector and BTD Central zones.
Selected recent drill intercepts from these zones extensions at Doris are set out in a table in the Appendix and in the composite longitudinal section below.
Drill results continue to demonstrate the excellent potential to grow the Doris deposit at depth below the dike in the BTD Extension and BTD Connector zones, and in the West Valley Zone above the dike to the south.
Drilling in the northernmost portion of the BTD Extension Zone has confirmed that the main hinge zone extends further north. Recent highlights include 20.9 g/t gold over 2.3 metres at 344 metres depth in hole HBDBE22-50888 and 20.9 g/t gold over 3.5 metres at 327 metres depth in hole HBDBE22-50886. Follow up drilling is ongoing in this area.
Drilling in the BTD Connector Zone has continued to confirm the northern and southern extensions of the West Limb and has extended the East Limb at depth. Recent highlights from BTD Connector include: hole HBD22-036, which intersected 6.9 g/t gold over 32.2 metres at 495 metres depth, including 25.9 g/t gold over 5.0 metres at 494 metres depth; hole HBD22-030, which intersected 12.2 g/t gold over 7.1 metres at 492 metres depth; and hole HBD22-026, which intersected 20.4 g/t gold over 3.3 metres at 550 metres depth.
Drilling in the West Valley Zone has confirmed the extension of the zone by 77 metres to the south and above the dike, and the zone appears to continue into a gap of drilling immediately below the 210-metre level. Highlights from this drilling include: 25.4 g/t gold over 3.0 metres at 286 metres depth and 21.6 g/t gold over 3.1 metres at 292 metres depth in hole HBDWV22-50979; and 25.2 g/t gold over 3.4 metres at 250 metres depth and 14.1 g/t gold over 3.3 metres at 258 metres depth in hole HBDWV22-50953.
The results further demonstrate the potential to significantly grow the Doris mineral resources to support the development of additional underground exploration drifts and platforms to further confirm the size, shape and grade of these high-grade mineralized zone extensions.
During the second half of 2022 at Doris, work will continue extending the exploration drifts and investigating the deposit from underground and surface drill rigs.
Madrid Deposit
During the first half of 2022 at the Madrid deposit, one surface drill rig was in operation and mainly targeting the inflexion zone in the Naartok East area and the vertical extension of the Suluk zone.
The first result from the 2022 campaign at Madrid was from hole HBM22-040, which was drilled outside the Naartok East inflexion zone and intersected 7.0 g/t over 7.0 metres at 385 metres depth. Results from Suluk are pending.
During the second half of 2022, two drill rigs are planned to be in operation at Madrid targeting the Suluk vertical extension and the Naartok East Zone at greater depth.
The Suluk drilling will follow-up on two historical holes (HB03PMD225 and HBTMMSU-19- 00023) that respectively returned 5.6 g/t over 9.0 metres at 540 metres depth and 10.8 g/t
over 4.4 metres at 698 metres depth. These two holes are the deepest intersections of the Suluk Zone to date, and the zone remains open in all directions.
The Naartok East "below the dike" drilling will target areas below a barren (non gold- bearing) diabase dike where previous operators had ended their exploration holes. A recent reinterpretation of the geology at Naartok East and Naartok West suggests there is potential for near-surface gold mineralization to continue below the dike in a manner similar to the geological setting at the Doris deposit.
Selected recent drill intercepts from Madrid are set out in a table in the Appendix and in the composite longitudinal section below.
Boston Deposit
The Boston deposit is located 60 kilometres south of the Doris processing facility and is accessible by helicopter support or via a winter trail for supply and has an airstrip for small fixed-wing aircraft.
At the camp, maintenance work is underway to refurbish the various facilities prior to resuming exploration drilling activities in the area in 2023.
The Boston deposit remains open in all direction with one of the best historical results at depth returning 56.6 g/t over 8.8 metres at 1,014 metres depth, demonstrating great potential to expand this high grade deposit further in all directions. There are also several near surface high grade occurrences that have not yet been drilled. Compilation and validation of the historical exploration database at Boston is underway, and the geological and structural models for the deposit will be updated to help generate new drill targets for the 2023 campaign.
Regional field exploration
This year's regional field exploration program began in early June, with geological teams set to evaluate more than 50 showings identified by previous explorers near current infrastructure in the northern portion of the Hope Bay property. The aim of the program is to increase understanding of the structural controls on mineralization and generate regional drill targets.
Exploration Plan and Budget
Based on recent success identifying deposit extensions and discovering new mineralized zones at depth in the Doris and Madrid deposits, the Company has allocated $24 million of the additional $30 million in exploration expenditure to continue drilling and development of exploration drifts at Doris in order to accelerate exploration from underground in the high potential areas that will ease future definition drilling for mineral resources conversion and mine development for future production resumption. The Company is now expected to spend approximately $56 million at Hope Bay in 2022 to develop new exploration drifts and for surface and underground exploration drilling at Doris and for surface exploration drilling on exploration at Madrid and other regional targets along the Hope Bay greenstone belt.
Exploration at Hope Bay is expected to continue through 2023 while larger production scenarios are being evaluated.