Agnico-Eagle reduces losses

Higher gold production and lower cash costs helped Agnico-Eagle Mines (AGE-T) trim its second-quarter loss to $1.1 million from $3.4 million a year earlier.

The company’s LaRonde mine near Val d’Or, Que., produced 65,937 oz. gold in the latest quarter, a 100% increase over the previous year. Cash costs fell 54% to US$134 per oz. over the same period.

Agnico-Eagle expanded LaRonde to 5,000 tons per day last fall, and has since decided to expand it further to 7,000 tons. President Sean Boyd says the next expansion will boost gold production to more than 340,000 oz. in 2002, rising to peak levels of 400,000 oz. by 2004. Cash costs are expected to fall to US$100 per oz.

This year, the company aims to produce 230,000 oz. gold at a cash cost of below US$150 per oz. Five rigs were at work on the property at the end of June.

The company is particularly encouraged by results of delineation drilling, for production purposes, on Zone 20 South. Some of the best results were obtained above Level 110 to Level 106, including:

– 26.2 ft. grading 0.59 oz. gold and 4.46 oz. silver per ton, 0.56% copper and 5.35% zinc;

– 19 ft. of 0.55 oz. gold and 3.09 oz. silver, 0.39% copper and 5.42% zinc;

– 16.7 ft. of 0.67 oz. gold, 5.62 oz. silver, 0.39% copper and 10.36% zinc; and

– 18.4 ft. of 0.56 oz. gold and 4.3 oz. silver, 0.51% copper and 6.85% zinc.