Agnico-Eagle expands portfolio

A pair of deals will see Agnico-Eagle Mines (AGE-T) leave its nest in Quebec for warmer climates to the south.

In Nevada, the company has agreed to acquire up to a 75% interest in Miranda Gold‘s (MAD-V) Cono and BPV projects by paying a total of $355,000 over a 5-year earn-in period.

To take an initial 60% stake, Agnico must also spend $1.5 million on exploration over five years, with $50,000 committed during the first year. Agnico can then acquire a further 10% by completing a bankable feasibility study and funding at least $200,000 worth of work per year, and on completion of the study, Agnico can boost its stake to 75% by arranging project financing, at Miranda’s discretion.

The properties comprise about 10 sq. km apiece and are separated by a distance of 1.6 km. The properties are in Nevada’s Cortez trend, 5 km south of the Cortez joint venture’s ET Blue deposit. Placer Dome (PDG-T) is operator and 60% owner of the Cortez joint venture; Rio Tinto (RTP-N) holds the remainder.

Both properties are in a west-northwest-trending structural projection of fault-controlled mineralization. They are north of the mineralized Grouse Creek fault and south of the Dry Hills fault. Historic drilling at Cono indicates that lower-plate carbonate rocks exist in the basement below pediment gravels. The BPV property is underlain by upper-plate clastic rocks and chert. Limited surface sampling has outlined a stream-sediment anomaly on the southern end of the property.

Farther south, Agnico has inked an option deal to acquire Industrias Peoles‘ advanced Pinos Altos silver-gold project in northern Mexico’s Sierra Madre gold belt.

To do so, Agnico must first spend $2.8 million on 16,800 metres worth of diamond drilling on the property over the next five months. Once the drilling is completed, Agnico will have two months in which to buy the project for US$65 million (US$39 million in cash and the remainder in the form of 1.8 million shares).

The 10-sq.-km Pinos Altos property is home to indicated resources of 4 million tonnes grading 6.2 grams gold and 131 oz. silver per tonne, equivalent to 800,000 oz. gold and 16.9 million oz. silver. An additional 2.3 million tonnes grading 6.2 grams gold and 117 grams silver are inferred.

Agnico Eagle’s initial drilling will attempt to convert resources to reserves.

More than 90% of Pinos Altos’s resource is in the Santo Nino vein zone, which reaches thicknesses of up to 46 metres over a length of about 2 km, and a vertical extent of 550 metres. The zone remains open to the west and at depth.

Peoles is carrying out metallurgical tests and permitting work.

Accessible by paved highway, the property is less than 100 km from a major electric power grid.