LaRonde adds oomph to Agnico’s earnings

A strong performance by the LaRonde mine near Val d’Or, Que., enabled Agnico-Eagle (TSE) to boost second-quarter earnings by 75%.

For the quarter ended June 30, Agnico earned $6.3 million (or 17 cents a share) on revenue of $24.3 million, compared with $3.6 million (or 10 cents a share) on $20.7 million for the same period in 1994.

For the first six months of 1995, Agnico saw its earnings jump by 46% to $11.7 million (or 32 cents a share) on revenue of $45.7 million, compared with $8 million (or 22 cents a share) on $38.4 million in the first half of 1994.

At the LaRonde gold-silver-copper mine, annual production is expected to rise to 170,000 oz. from the planned rate of 156,000 oz., following a 22% rise in throughput and a US$36 drop in operating costs. This figure may increase further once production from the No. 6 zone begins later this month. The zone will be accessible from the deepened No. 2 shaft.

Along with higher production, recent exploration drilling at depth and along strike may increase reserves within the five massive sulphide lenses. Delineation drilling on the 20 North and 20 South lenses has shown the zone to be larger and wider than previously thought.

Drilling on the 20 South intersected a 39-ft. intercept that averaged 2.42 oz. silver and 0.37 oz. gold per ton, 0.44% copper and 4.92% zinc. Previous intercepts averaged 24 ft. in thickness.

In addition, three holes drilled in the 20 North averaged 15 ft. in width, with grades as high as 19% zinc and more than 12 oz. silver per ton.

So far, 79 holes have been drilled on the 20th level, on 400-by-800-ft. centres. The drilling covers a 6,000-ft.-long strike length, a vertical distance of 5,500 ft., and a horizontal distance of 1,300 ft. The deepest hole drilled to date has intersected 1.31% copper and 5.08% zinc, as well as 0.18 oz. gold and 8.1 oz. silver per ton over a 39-ft. thickness at a depth of 7,000 ft. below surface.

The five sulphide zones — 6, 7, 19, 20 North and 20 South — are estimated to contain 22.1 million tons averaging 0.164 oz. gold and 3.08 oz. silver per ton, plus 0.33% copper and 5.93% zinc.

Exploration and development programs are continuing.