EXPLORATION ’87 AGNICO-EAGLE

The primary emphasis of Agnico- TEagle Mines’ gold exploration division is on two principal groupings controlled by the Cominco/Agnico- Eagle joint venture: the Valest group (contiguous and northwest of the main Agnico-Eagle mine properties extending throughout Valrennes and Estrades twps.) and the McClure group (contiguous to the Telbel property extending from Joutel into Douay Twp.). On the Valest claim group 10,000 ft of drilling combined with pulse em surveys will follow up along a 4-km-long conductive trend where base and precious metal indications were returned during previous programs. In view of the underground exploration success on the Telbel mine property, additional drilling (8,000 ft) is planned to test hem conductors trending eastward from the Telbel property onto the McClure claim group.

Agnico-Eagle has budgeted $3 million to implement the follwing exploration programs:

* Slate Creek project — Underground exploration efforts will be concentrated on the eastern part of the company’s holdings south of the Silversides property.

* Beaver-Temiskaming — A major underground drilling program will be undertaken from the refurbished Brady Lake workings, where favorable fault structures have been located below the lower Nipissing Sill contact.

* Langis Mine — A major underground exploration program is slated for 1987. This will consist of drilling from a crosscut driven on the 400-ft level, 1,000 ft east of the old workings. A series of flat holes will probe the lower Nipissing sill contact, 2,000 ft eastward where several ore grade intersections were encountered by recent surface drilling.

* Castle Mine — Surface and underground drilling will be continued on Agnico property holdings in the Gowganda area.

Both Langis Silver and Silver Century will be active in the Casa Berardi area on their respective Estrades Twp. and Orvilliers Twp. properties. Langis will be drilling two hem conductors and Silver Century, three hem conductors, to be carried out this winter with a total budget of $80,000.

Sudbury Contact Mines continues to focus activity on three properties in the Larder Lake area. Gradiometer and maxmin surveys are now in progress on the Lincoln-Nipissing group (McElroy, Hearst and Skead twps.) and Sharp Creek group (Hearst and McFadden twps.). A 5,000-ft drilling program is now under way on the Larder Twp. property, testing several coincident magnetic, ip and overburden geochem anomalies delineated in the fall of 1986. Expenditures are forecast at $200,000 for 1987.