Agnico advances development programs in northern Quebec

Exploration drilling has increased the size and grade of the 20 North zone at LaRonde mine near Val d’Or, Que.

Owner Agnico-Eagle Mines (TSE) reports that Hole 20-115A cut 80 ft. of massive sulphides at 6,800 ft. below surface. The intersection was 150 ft. downdip from a previously drilled, high-grade intersection. The massive sulphide interval averaged 0.18 oz. gold and 8.1 oz. silver per ton, 1.31% copper and 5.18% zinc over a true thickness of 39 ft.

As a result, the mineral inventory of the 20 North zone has been increased to 11.4 million tons averaging 0.075 oz. gold and 4.3 oz. silver per ton, plus 0.3% copper and 9.18% zinc, from 10.4 million tons averaging 0.06 oz. gold, 3.41 oz. silver, 0.14% copper and 10.06% zinc.

Agnico believes this latest drill hole confirms the trend of increasing gold and copper mineralization with depth, as well as the potential for other mineralization within the zone.

The total mineral inventory for the five zones that comprise LaRonde mine exceeds 22.5 million tons averaging 0.16 oz. gold and 2.46 oz. silver per ton, plus 0.25% copper and 5.82% zinc.

In light of the latest results, Agnico has revised the underground exploration and development program that was begun at LaRonde in 1993. Shaft No. 3, originally planned to reach a depth of 5,700 ft. below surface, will be extended to a depth of 7,350 ft. The development program will include an additional 14,400 ft. of lateral development and 70,000 ft. of underground drilling. The total cost of the expansion program has risen to $66.5 million from $53 million.

Agnico has also initiated a surface exploration program on ground 1.5 miles east of the mine. The company has bought a 50% interest in a group of claims from Sphinx Mining (VSE). The property has a strike length of 1.4 miles, and covers the same geological setting that hosts LaRonde and three other gold producers west of the mine.

Last year was the seventh operating year for LaRonde; it enjoyed record cash operating profits, record copper production and an all-time low cash operating cost of US$174 per oz. And during the first quarter of 1995, the mine operated at a rate of 2,100 tons per day, exceeding the design capacity of 2,000 tons, with a cash operating cost of US$139 per oz. For the second quarter, Agnico is forecasting production of 44,000-45,000 oz. gold at LaRonde. Total annual production at the mine is expected to be about 170,000 oz.

Meanwhile, development programs are well under way at two other Agnico projects near Val d’Or.

The first phase of underground exploration and development at the Vezza project, which is now complete, has confirmed a mineral inventory of 2.78 million tons averaging 0.15 oz. gold per ton.

Before continuing with the second phase, the company has embarked on an underground drilling program in order to test for extensions of known mineralization below the bottom of the shaft at 1,050 ft.

In addition to drilling, Agnico is planning to take an 11,000-ton bulk sample to confirm the grade. If results are positive, Vezza will likely be brought into production at a rate of 35,000-45,000 oz. per year by early 1997.

Nearby, at the Goldex project, Agnico has outlined a large zone of low-grade mineralization containing a mineral inventory of 25.4 million tons averaging 0.073 oz. gold per ton. The company has started an $18-million exploration and development program, which includes deepening the shaft by 1,100-2,600 ft. and advancing an exploration drift on the 2,400 level. As of this past April, the level has been driven 4,200 ft. This year, Agnico expects to finish driving the drift and complete underground drilling to test for mineralization at depth.

Elsewhere in northeastern Ontario, Agnico, through its 62% interest in Sudbury Contact Mines (TSE), is involved in advanced-staged exploration of the Victoria Creek gold property, 10 miles east of Kirkland Lake, Ont.

Drilling completed by the end of 1994 outlined an inferred mineral resource of 4.72 million tons averaging 0.132 oz. gold per ton. This year, Sudbury Contact has started a $3.3-million exploration program designed to establish continuity of the resource.

Three drills are being used to complete 80 holes totalling 120,000 ft. To date, 21 holes totalling 30,000 ft. have been drilled in the Main zone at Victoria Creek. In addition to the Main zone, drilling will be completed at depth and along strike, west of the zone. Other untested geophysical anomalies will also be drilled.

By the end of 1995, Sudbury Contact expects to begin underground exploration at Victoria Creek. The program will cost about $25 million and should take about two years to complete.