Agnico Eagle Mines CEO says Amaruq discovery “one of the Company’s most exciting”

Amaruq gold project is located approximately 50 kilometres northwest of the Meadowbank mine in Nunavut. — Photo courtesy Agnico Eagle

Agnico Eagle Mines Limited has completed its 2014 exploration activities at the high-grade Amaruq gold project, located approximately 50 kilometres northwest of the Meadowbank mine in Nunavut.

Here are some highlights from their recent drill program.

2014 drill program completed mid-October with a total of 144 holes (31,598 metres), including 60 holes (more than 17,000 metres) in the Whale Tail zone

Multiple high-grade, wide intercepts west and east of Whale Lake - Regularly spaced holes west and east of Whale Lake have consistently encountered high-grade gold mineralization in one to five horizons between surface and more than 350 metres depth. The best recent intercepts west of the lake were from hole IVR14-125A that intersected 7.6 grams per tonne ("g/t") gold (capped) over 23.2 metres estimated true width at 248 metres depth and hole IVR14-145 intersecting 8.2 g/t gold (capped) over 6.7 metres estimated true width at 165 metres depth. The best intercept to date east of Whale Lake was from hole IVR14-152 that intersected 10.8 g/t gold (capped) over 11.9 metres true width at 134 metres depth.

Whale Tail zone extended 200 metres farther to southwest, adding new horizon - The last phase of the drill program has stretched the Whale Tail zone over an additional 200 metres farther southwest for a total strike length of approximately 1.2 kilometres. Hole IVR14-150 represents the farthest west intercept to date at Whale Tail, intersecting 8.1 g/t gold (capped) over estimated true width of 12.1 metres at 14 metres depth. This drill hole also intersected what is interpreted to be an additional (fifth) mineralized horizon, yielding 5.9 g/t gold (capped) over estimated true width of 5.4 metres at 226 metres depth, approximately 150 metres north of the previous northernmost Whale Tail horizon.

Initial resource estimate expected in early 2015

"In just over a year, Amaruq has progressed from a new grassroots exploration discovery to one of the Company's most exciting exploration opportunities," said Sean Boyd , President and CEO of Agnico Eagle. "With an initial resource estimate expected early next year, Amaruq has the potential to significantly drive our Northern business platform, especially our Nunavut operations. We look forward to an expanded exploration program in 2015, which we hope will add further value," added Mr. Boyd.

The 408-square kilometre Amaruq property is located within Inuit Owned Land, and Agnico Eagle acquired a 100% interest in April 2013 pursuant to a mineral exploration agreement with Nunavut Tunngavik Incorporated.

The $10-million 2014 field program was concluded in mid-October, with a total of 144 drill holes (31,598 metres) plus geophysics, field work and camp construction to be in a position to expand activities in 2015. Assays of all drill samples have been received and incorporated into the project database. While the focus in the latter half of the year has been on Whale Tail, results from the I, V and R zones continue to indicate significant gold-bearing zones that will receive more work in the future. The I, V, R and Whale Tail zones are all open along strike and at depth.

About Agnico Eagle

Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since 1957. Its nine mines are located in Canada, Finland and Mexico, with exploration and development activities in each of these regions as well as in the United States. The Company and its shareholders have full exposure to gold prices due to its long-standing policy of no forward gold sales. Agnico Eagle has declared a cash dividend every year since 1983.