Agnico boosts stake in Riddarhyttan

Agnico-Eagle Mines (age-t) will acquire 12.7 million shares of Swedish-based Riddarhyttan Resources for US$10.8 million.

The Toronto-based producer can pick up the shares from Riddarhyttan’s largest shareholder, privately held Swedish miner Dunross & Co. The new notes will boost Agnico’s stake in the company to 14.1%.

Riddarhyttan’s key asset is the Suurikuusikko gold deposit, in Finland, about 890 km north of Helsinki. Agnico says the 22-claim, 17-sq.-km property has geology and topography similar to its land package in the Precambrian greenstone belt of Quebec’s Abitibi region.

Gold mineralization at Riddarhyttan occurs along a north-trending, steeply dipping shear zone stretching for more than 16 km. The gold is associated with near-surface, lens-shaped sulphide bodies that strike north-south and are almost vertically oriented.

The Main zone at Suurikuusikko is 1.6 km long, varies in thickness from 3 to 30 metres, has been traced to a depth of at least 366 metres, and remains open at depth.

Most of the gold is associated with arsenopyrite and pyrite, though less than 10% exists as free gold in the upper oxidized portions of the mineralized zones.

Since 1998, Riddarhyttan has drilled 393 holes (75,000 metres) along a 16-km mineralized structure. Of that length, about 1 km has been tested to depths of 300-460 metres (around the main zone). Another 3 km of the structure has been drilled to a depth of up to 150 metres.

Drilling and metallurgical testing will attempt to define a mineral resource and provide material for further metallurgical tests. As well, the company will review a previously completed preliminary economic assessment of the project.

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