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AEM Exploration Update and Upside:
A projection in the future June 26th, 2012
Agnico-Eagle Mines Limited
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The information in this document has been prepared as at June 26, 2012. Certain statements contained in this document constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward looking information under the provisions of Canadian provincial securities laws. When used in this document, the words “anticipate”, “expect”, “estimate”, “forecast”, “will”, “planned”, and similar expressions are intended to identify forward-looking statements or information.
Such statements include without limitation: statements regarding timing and amounts of capital expenditures and other assumptions; estimates of future reserves, resources, mineral production, optimization efforts and sales; estimates of mine life; estimates of future internal rates of return, mining costs, cash costs, minesite costs and other expenses; estimates of future capital expenditures and other cash needs, and expectations as to the funding thereof; statements and information as to the projected development of certain ore deposits, including estimates of exploration, development and production and other capital costs, and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development and production; estimates of reserves and resources, and statements and information regarding anticipated future exploration; the anticipated timing of events with respect to the Company's mine sites and statements and information regarding the sufficiency of the Company's cash resources. Such statements and information reflect the Company's views as at the date of this document and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements and information. Many factors, known and unknown could cause the actual results to be materially different from those expressed or implied by such forward looking statements and information. Such risks include, but are not limited to: the volatility of prices of gold and other metals; uncertainty of mineral reserves, mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, capital expenditures, and other costs; currency fluctuations; financing of additional capital requirements; cost of exploration and development programs; mining risks; community protests; risks associated with foreign operations; governmental and environmental regulation; the volatility of the Company's stock price; and risks associated with the Company's byproduct metal derivative strategies. For a more detailed discussion of such risks and other factors that may affect the Company’s ability to achieve the expectations set forth in the forward-looking statements contained in this document, see the Company's Annual Report on Form 20-F for the year ended December 31, 2011, as well as the Company's other filings with the Canadian Securities Administrators and the U.S. Securities and Exchange Commission. The Company does not intend, and does not assume any obligation, to update these forward-looking statements and information. Marc Legault, a Qualified Person and the Company’s Senior Vice-President, Project Evaluations, reviewed the technical information disclosed herein. For a detailed breakdown of the Company’s reserve and resource position see the February 15, 2012 press release on the Company’s website. That press release also lists the Qualified Persons for each project.
Forward Looking Statements
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Note Regarding The Use Of Non-GAAP Financial Measures This document presents estimates of future "total cash cost per ounce" and "minesite cost per tonne" that are not recognized measures under United States generally accepted accounting principles ("US GAAP"). This data may not be comparable to data presented by other gold producers. These future estimates are based upon the total cash costs per ounce and minesite costs per tonne that the Company expects to incur to mine gold at the applicable projects and do not include production costs attributable to accretion expense and other asset retirement costs, which will vary over time as each project is developed and mined. It is therefore not practicable to reconcile these forward-looking non-GAAP financial measures to the most comparable GAAP measure. A reconciliation of the Company's total cash cost per ounce and minesite cost per tonne to the most comparable financial measures calculated and presented in accordance with US GAAP for the Company's historical results of operations is set forth in the notes to the financial statements included in the Company's Annual Information Form and Annual Report on Form 20-F, for the year ended December 31, 2011, as well as the Company's other filings with the Canadian Securities Administrators and the SEC. Note Regarding Production Guidance The gold production guidance is based on the Company’s mineral reserves but includes contingencies and assumes metal prices and foreign exchange rates that are different from those used in the reserve estimates. These factors and others mean that the gold production guidance presented in this disclosure does not reconcile exactly with the production models used to support these mineral reserves.
Notes To Investors
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Agenda
■ Exploration Budget
■ Kittila Mine
■ Abitibi Mines ■ Lapa Mine ■ LaRonde Mine
■ Mexico Mine & Projects ■ Mascota ■ LaIndia & Tarachi Project
■ Meliadine Project
■ Appendix: AEM Reserve & Resource
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2012 Exploration Budget
Project Drill program (M) Budget (‘000 US$) Greenfield Exploration
Finland 16,100 5,079
Eastern Canada 23,500 8,082
Western Canada 1,565
USA 24,800 12,890
Mexico 12,800 4,499
Total 77,200 $32,115
Minesite Exploration
Total Exploration Drilling 74,500 15,537
Total Conversion Drilling 24,300 6,279
Total Drilling 98,800 21,816
Total Development 750 4,673
Total 98,800 $26,489
Advanced Exploration projects
Meliadine 115,000 30,300
La India / Tarachi 45,000 10,500
Goldex (1st Quarter) 8,000 + 150 (Development) 2,900
Corporate Development - 3,700
Total 168,000 $47,400
Grand Total 344,000 $106,000
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Kittila Exploration Key Facts
Location: Lapland, Northern Finland, 900 km north of Helsinki and 150 km north of Arctic Circle Property: 10,652 ha Proven and probable gold reserves*: 5.2 million ounces (35 million tonnes at 4.7 g/t) Indicated resource*: 1.0 million ounces (13 million tonnes at 2.5 g/t) Inferred resource*: 1.2 million ounces (8.0 million tonnes at 4.6 g/t) Stage: Operational mine since 2009 Secondary metals: none Type of mine: open-pit and underground mining, transitioning to underground only; Mill capacity: 3,000 tonnes/day Estimated mine life: 2009- Date acquired: In 2004 Agnico-Eagle became largest shareholder in Riddarhyttan Resources (which owned the property); acquired 100% interest in Riddarhyttan in November 2005 Percent ownership: 100%
Current work: exploration and conversion drilling from surface and starting in 2013 from exploration ramp; focus on Rimpi zone (north of current mining at Suuri and Roura), where mineralization seems to be thicker and higher grade than Suuri zone. Could increase northern resources. Feasibility study for 25% expansion underway; expected for completion end of 2012 Production forecast in 2012: mining 1,045,000 tonnes to produce 155,000 ounces gold * Source: Kittila December 31, 2011 Reserves and Resources
Hanhimaa
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Kittila Mine Finland/Sweden Exploration Properties & 2012 budget
Project Mining District Area
Kittilä Kittilä, northern Finland 107 km2
Central Lapland Sodankylä, northern Finland 7 km2
Oijärvi Oijärvi, Oulu, central Finland 4 km2
Solvik Värmland, southern Sweden 28 km2
Total 146 km2
Hanhimaa
Project 2012 Finland/Sweden Exploration Budget
Actual Exploration (January-May 2012)
$ millions Drilling or
ramp (metres)
$ millions
Drilling (metres)
Kittilä mine-site drilling
$11.5 39,700 $4.6 15,141
Kittila ramp development
$2.8 620 $0.6 134
Kittilä regional drilling
$2.9 10,900 $1.8 8,197
Kittilä total exploration
$17.2 drilling 50,600 $7.0 drilling 23,338
Finland other grassroots drilling
$1.2 2,000 $0.1 0
Sweden grassroots drilling
$0.9 3,200 $0.5
0
Total (Finland and Sweden)
$19.3 drilling 55,800 $7.6 drilling 23,338
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Hanhimaa Project Location
Option Agreement:
Acquire an interest and ownership rights in the Hanhimaa
51% interest: €5M/3 years
Add19% interest: €4M/3 years
Total: 70% interest €9M/6 years
AEM is the operator
Ready to drill
6728.92 hectares – exploration license
5222.4 hectares – claim reservation area
Total area 11,951 hectares
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Kittila Mine
Suuri Pit
Roura Pit
Rimpi
Kittila mine Au (M oz)
Tonnes ('000)
Au (g/t)
Proven Reserves 0.11 702 5.09
Probable Reserves 5.06 33,862 4.65
P & P Reserves 5.18 34,564 4.66
Indicated Resources 1.03 12,978 2.46
Inferred Resources 1.16 7,953 4.55
Suuri trend
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Gold reserves (m oz) 5.2
Average reserve gold grade (g/t) 4.7
Measured & Indicated gold resource (m oz) 1.0
Inferred gold resource (m oz) 1.2
Est. LOM (years) 32
Estimated average production, 2012-2014 (k oz/yr) 160
2012 exploration budget (m US$) $16.4
Kittila Mine
Suuri Roura
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RIE11012 4.8 g/t Au / 10.7 m SCON11511
6.6 g/t Au / 3.9 m
ROU11004 12.2 g/t Au / 5.1 m
RIE11010B 6.6 g/t Au / 10.0 m
3.0 g/t Au / 7.6 m
SCON11510 5.2 g/t Au / 13.0 m
SCON11518 5.6 g/t Au / 4.0 m
SCON11507 3.7 g/t Au / 10.8 m 7.2 g/t Au / 12.4 m
SCON11506 5.7 g/t Au / 8.6 m
SCON11501 6.9 g/t Au / 6.0 m
RIE11019 7.6 g/t Au/ 3.8 m 7.2 g/t Au/ 6.4 m
Incl. 10.7 g/t Au / 3.8 m
Finland - Kittila Composite Longitudinal Section
2012 Kittila Exploration Budget Actual Kittila Exploration (January-May 2012)
$17.2 million $7.0 million
50,600 metres DDH 23,338 metres DDH
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ROU11004 12.2 g/t Au / 5.1 m
RIE11010B 6.6 g/t Au / 10.0 m
3.0 g/t Au / 7.6 m
RIE11012 4.8 g/t Au / 10.7 m
RIE11019 7.6 g/t Au/ 3.8 m 7.2 g/t Au/ 6.4 m
Incl. 10.7 g/t Au / 3.8 m
2012 Exploration Program - $17.2 M Deep exploration ramp
continues northward 620 metres; drilling from ramp begins
Exploration success at Rimpi
and Roura Deep
Drilling underway to expand resources on property (32K metres), convert resources to reserves (8K metres) and for grassroots exploration 11K metres)
25% expansion feasibility study expected Q4 2012
Larger expansion being considered, possibly with shaft; dependent on exploration results
ROU11005 4.22 g/t Au / 8.5 m
ROU10036E 6.98 g/t Au / 10.1 m
ROU11001H 8.46 g/t Au / 4.5 m
RIM10004 14.94 g/t Au / 3.5 m 6.03 g/t Au / 11.8 m
RIE11017 8.27g/t Au / 3.5 m
RIE11017B 7.67 g/t Au / 17.9 m
RIE11010 6.00g/t Au / 14.7 m 6.58 g/t Au / 7.5 m
Composite Longitudinal Section
Kittila - Rimpi
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Lapa Mine
Project 2012 Lapa Budget and supplement Actual Exploration (January-May 2012)
$ millions Drilling/development (metres) $ millions Drilling/ development (metres)
Lapa mine-site exploration drilling $2.64 28,600 $0.80 10,358
Lapa exploration drift development (east and west)
$2.32 637 $1.21 453
Lapa regional drilling $0.27 2,500 $0.15 1,166
Total $5.23 31,100 m drilling; 637 m drift development $2.15 11,523 m drilling; 453 m drift development
Project Township Area
Lapa mine Cadillac 8 km2
Exploration property & 2012 budget
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Lapa Exploration Key Facts
Location: near the town of Cadillac, 11 kilometres east of LaRonde mine, Abitibi region, northwest Quebec, Canada Property: 796 ha Proven and probable gold reserve*: 0.5 million ounces (2.4 million tonnes at 6.5 g/t) Indicated gold resource*: 0.3 million ounces (2.0 million tonnes at 4.1 g/t) Inferred gold resource*: 0.1 million ounces (0.7 million tonnes at 4.7 g/t) Stage: Commercial mining operations since May 2009 Secondary metals: none Type of mining: underground Mill Capacity: 1,500 tonnes/day Date acquired: Initial option acquired in 2002; property purchased in 2003. Percent ownership: 100% Current work: Exploring property to east and west of the mine workings, drilling from an exploration drift that is being driven at about 1 kilometre depth. Production forecast in 2012: mining 600,000 tonnes to produce 100,000 ounces gold
*Source: Lapa December 31, 2011 Reserves and Resources
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Lapa
LA10-101-39 14.8 g/t Au / 4.9 m
LA11-101-54A 9.3 g/t Au / 2.8 m
LA10-98-19 12.6 g/t Au / 2.8 m
LA11-98-48 27.5 g/t Au / 2.8 m
Priority Infill Drilling
Lapa Eastern zone
Au (M oz)
Tonnes ('000)
Au (g/t)
Proven Reserves 0.07 399 5.48
Indicated Resources 0.04 287 4.07
Composite Longitudinal Section
New budget - $2.8M
West 101 Level - $1.3M
Eastern Infill program in two zones - $1.5M
Possibility to expand by 1 -2 years
Easy access by shaft
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LaRonde Exploration Key Facts
Location: halfway between the cities of Rouyn-Noranda and Val d’Or, Abitibi region, northwest Quebec, Canada Property: LaRonde: 1,826 ha; Bousquet: 465 ha; Ellison: 101 ha Proven and probable gold reserve*: LaRonde: 4.7 million ounces (33 million tonnes at 4.4 g/t); Bousquet: 0.2 million ounces (3.2 million tonnes at 1.9 g/t gold) Indicated gold resource*: LaRonde: 0.4 million ounces (7.2 million tonnes at 1.8 g/t); Bousquet: 0.8 million ounces (9.8 million tonnes at 2.4 g/t gold); Ellison: 0.1 million ounces (0.4 million tonnes at 5.7 g/t gold) Inferred gold resource*: LaRonde: 1.3 million ounces (11.4 million tonnes at 3.7 g/t); Bousquet: 0.6 million ounces (4.6 million tonnes at 4.0 g/t gold); Ellison: 0.1 million ounces (0.8 million tonnes at at 5.8 g/t gold) Stage: LaRonde mining operations since 1988; Bousquet 2011 scoping study being optimized in 2012; ongoing exploration Secondary metals: silver, zinc, copper, lead Type of mining: underground at LaRonde; potential open pit and underground at Bousquet Zone 5 Mill Capacity: 7,200 tonnes/day Date acquired: Agnico-Eagle acquired the remaining 57% interest in Dumagami Mines Ltd. not already owned by it in 1989. In 1992, Dumagami transferred all of its property and assets to Agnico-Eagle, including the LaRonde mine. Percent ownership: 100% Current work: Exploration focused on converting resources to reserves, and systematically exploring at depth to the east and west along the LaRonde horizon — part of a five-year plan. Near-surface exploration at Bousquet’s Zone 5 (3 kilometres west of LaRonde’s Penna shaft), and optimization of a 2011 scoping study. Production forecast in 2012: mining 2,300,000 tonnes to produce 157,500 ounces gold *Source: LaRonde December 31, 2011 Reserves and Resources
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LaRonde Mine
Project Township Area
LaRonde mine Cadillac /Bousquet 18 km2
Bousquet Bousquet 5 km2
Ellison Bousquet 1 km2
Total 24 km2
Project 2012 LaRonde Area Mine-site
Budget Actual Mine-site Exploration
(January-May 2012)
$ millions Drilling (metres) $ millions Drilling (metres)
LaRonde $1.1 7,700 $0.51 1,528
Bousquet $0.30 3,000 $0.25 689
Total $1.45 10,700 $0.76 2,217
Exploration property & 2012 budget
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Ellison-Bousquet- LaRonde – Exploration Targets 2012 Composite Regional Longitudinal Section
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LaRonde Composite Longitudinal Section
Budget - Deep Exploration Program
Below 3,100 m
Evaluate 2 distinct gold trends
Zone 6 and zone 7
Zone 21 and zone 21
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LaRonde – Zone 6 Composite Cross Section – 6340E
Section influence over 1km
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LaRonde - Bousquet Composite Longitudinal Section
Resource Zone 5
Scoping study
Open pit or underground scenario
Bousquet Zone 5 Au (M oz)
Tonnes ('000)
Au (g/t)
Probable Reserves 0.19 3,165 1.88
Indicated Resources 0.46 8,101 1.76
Inferred Resources 0.19 2,901 2.08
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Mexico Exploration Key Facts Pinos Altos / Creston Mascota
Location: Chihuahua State, Northern Mexico Property: 31,863 ha Proven and probable gold reserves*: 3.1 million ounces gold and 89 million ounces silver (47 million tonnes at 2.1 g/t gold and 58.9 g/t silver) Indicated resource*: 0.8 million ounces gold and 18.6 million ounces silver (20.6 million tonnes at 1.3 g/t gold and 28.1 g/t silver) Inferred resource*: 0.8 million ounces gold and 16.8 million ounces silver (23 million tonnes at 1.1 g/t gold and 22.7 g/t silver) Stage: Pinos Altos mine commercial since 2009; Creston Mascota satellite mine commercial since 2011 Secondary metal: silver Type of mine: Pinos Altos open-pit and underground mining, transitioning to mainly underground; Mascota open-pit mining Mill Capacity: 4,000 tonnes/day Estimated mine life: 2009-2029 at Pinos Altos and 2011-2017 at Creston Mascota Date acquired: Purchased in 2006 Percent ownership: 100%
Current work: Exploration work converting resources to reserves. Bravo deposit a focus; also expanding Cubiro, Sinter, Reyna de Plata and Creston Mascota zones. Production forecast in 2012: mining 4,200,000 tonnes to produce 205,000 ounces gold * Source: Pinos Altos December 31, 2011 Reserves and Resources including Creston Mascota
Creston Mascota
Pinos Altos
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Mexico - Pinos Altos
Project 2012 Pinos Altos Exploration Budget Actual Exploration (January-May 2012)
$ millions
Drilling (metres) $ millions Drilling (metres)
Pinos Altos mine-site exploration $4.7 16,800 $1.3 7,832
Pinos Altos / Mascota regional exploration $1.1 3,000 $2.0 5,641
Total $5.8 19,800 $3.3 13,473
Pinos Altos mine including Mascota Au (M oz)
Ag (M oz)
Tonnes ('000)
Au (g/t)
Ag (g/t)
Proven Reserves 0.12 3.30 1,987 1.83 51.59
Probable Reserves 2.99 85.21 44,792 2.07 59.17
P & P Reserves 3.10 88.51 46,779 2.06 58.85
Indicated Resources 0.84 18.61 20,576 1.27 28.13
Inferred Resources 0.78 16.83 23,113 1.05 22.65
2012 Exploration Program - $5.8 M Large land package, with exploration
focus on the Creston Mascota area, including considering Bravo and Veta Flor as potential ore suppliers to the Mascota heap leach operations
Drilling underway to convert resources to reserves (12K metres) and to explore outside the current resources (5K metres)
Regional drill program (3K metres) focusing on expanding resources at Cubiro, Sinter and Reyna de Plata zones
Sinter being examined as possible source of ore for Pinos Altos mill
$106-million, four-year production shaft project recently begun to increase underground mining capacity
Mineral Reserves and Mineral Resources
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Exploration properties and 2012 budget Mexico Exploration
Project Mining district Area
Pinos Altos mine
Pinos Altos 319 km2
El Aguila Ocampo-Moris 265 km2
PDG Plomosas 43 km2
Los Hilos Uruachi 6 km2
Pitaya Caborca 66 km2
La India / Tarachi
Mulatos 560 km2
Total 1,258 km2
Project 2012 Mexico
Exploration Budget
Actual Exploration Spending (January-May
2012)
$ millions Drilling
(metres) $ millions
Drilling (metres)
Pinos Altos / Mascota
$5.8 19,800 $3.3
13,473
La India / Tarachi $10.5
45,000
$4.2
24,965
Other grassroots $3.4 9,800 $0.9
2,927
Total $19.7 74,600 $8.4 41,365
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Mexico Exploration
Pinos Altos Program Metres 2012 Budget (‘000’s)
Conversion Program 11,800 $2,936
Minesite Exploration 5,000 $1,566
Regional Exploration 12,800 $4,557
Total 29,600 $9,059
Zone M oz Au M oz Ag tonnes g/t Au g/t Ag Indicated Resources Total Sinter indicated o/p 0.25 3.44 7,404,504 1.07 14.46 Cubiro u/g 0.17 1.08 2,002,682 2.57 16.72 Total indicated 0.42 4.52 9,407,186 1.39 14.94
Zone M oz Au M oz Ag tonnes g/t Au g/t Ag Inferred Resources Total Sinter inferred o/p 0.09 1.27 2,894,211 0.97 13.64 Mina Bravo (North of 5000N) 0.12 1.72 5,009,338 0.75 10.65 Total Reyna de Plata o/p 0.28 7.84 9,509,296 0.93 25.66 Cubiro zone u/g 0.10 0.67 1,237,056 2.58 16.80 Total inferred 0.60 11.50 18,649,901 0.99 19.17
Exploration properties and 2012 budget
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Pinos Altos including Creston Mascota
Bravo
Creston Mascota
New Pit Design
A
A’
Previous Pit Design
Veta Flor
Project 2012 Pinos Altos Exploration Budget
Actual Exploration (January-May 2012)
$ millions Drilling (metres)
$ millions Drilling (metres)
Pinos Altos mine-site exploration
$4.7 16,800 $1.3 7,832
Pinos Altos / Mascota regional exploration
$1.1 3,000 $2.0 5,641
Total $5.8 19,800 $3.3 13,473
2012 Exploration Program - $5.8 M Large land package, with exploration
focus on the Creston Mascota area, including considering Bravo and Veta Flor as potential ore suppliers to the Mascota heap leach operations
Drilling underway to convert resources to reserves (12K metres) and to explore outside the current resources (5K metres)
Regional drill program (3K metres) focusing on expanding resources at Cubiro, Sinter and Reyna de Plata zones
Sinter being examined as possible source of ore for Pinos Altos mill
$106-million, four-year production shaft project recently begun to increase underground mining capacity
Exploration properties and 2012 budget
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CM-12-350 1.6 g/t Au / 10.6 g/t Ag / 37.5 m
0.9 g/t Au / 0.7 g/t Ag / 7.5 m
CM-12-377 2.2 g/t Au / 18.3 g/t Ag / 13.0 m
0.4 g/t Au / 7.4 g/t Ag / 4.5 m
Bravo
A
A’
Creston Mascota
CM-12-371 1.0 g/t Au / 12.1 g/t Ag / 13.0 m 2.9 g/t Au / 35.4 g/t Ag / 25.0 m
CM-12-365 1.9 g/t Au / 53.4 g/t Ag / 6.4 m
Incl. 4.5 g/t Au / 117.0 g/t Ag / 0.9 m 1.8 g/t Au / 11.2 g/t Ag / 1.5 m
Composite Longitudinal Section Mexico Exploration – Creston Mascota
Mascota Au
(000’ oz) - 2010
Tonnes ('000) – 2010
Au (g/t) - 2010
Au (000’ oz)
- 2011
Tonnes ('000) –
2011
Au (g/t) - 2011
Variance Au
(000’ oz)
P & P Reserves 365 7,605 1.49 440 12,317 1.11 75
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Mexico Exploration Key Facts
Location: Sonora State, Mexico Property: approx. 56,000 ha Measured and indicated gold reserve*: 1.2 million ounces gold (48.2 million tonnes at 0.7 g/t) Inferred Gold resource*: 0.7 million ounces gold (32.1 million tonnes at 0.7 g/t) Stage: Advanced exploration, feasibility-level studies initiated Secondary metals: minor silver component Type of potential mining: open pit heap-leach Date acquired: Agnico-Eagle acquired the property in a friendly take-over of Grayd Resource Corporation in November 2011 Percent ownership: 100% Current work: Resource exploration and conversion drilling activities, geological mapping, and feasibility-level studies *Source: La India December 31, 2011 Resources
La India
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Mexico - La India & Tarachi Project
Measured & Indicated gold resource (m oz) 1.2
Inferred gold resource (m oz) 0.7 2012 exploration budget (m US$) $10.5
La Amargosa Camp June 2012
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Mexico - La India
La India property Au (M oz)
Tonnes ('000)
Au (g/t)
Measured Resources 0.13 3,730 1.06
Indicated Resources 1.02 44,496 0.72
M & I Resources 1.15 48,226 0.74
Inferred Resources 0.72 32,125 0.69
2012 Exploration Program - $10.5 M
Highly prospective land package, with exploration focus in 2012 on the Tarachi discovery
Drilling underway to expand resources at Tarachi (20K metres) and La India (4K metres), and to convert resources to reserves at La India (21K metres)
70 kilometres between two properties
Ongoing evaluation of La India’s potential as low-cost open pit heap leach mine
Additional $13 million in predevelopment work at La India, advancing engineering study and permitting process
Goal is initial production by late 2014
Project 2012 La India Property Budget Actual Exploration (January-May 2012)
$ millions Drilling (metres) $ millions Drilling (metres)
La India mine-site exploration $5.5 25,000 $1.9
14,004
Tarachi regional exploration $5.0
20,000
$2.3
10,961
Total $10.5 45,000 $4.2 24,965
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Mexico - La India & Tarachi Project
Project Pipeline La India
Planned 100k oz per year production Cash cost $500/oz
La India
Tarachi Chivitas
El Pilar
Tarachi Mexico's first gold porphyry discovery Maiden resource early 2012 253m@0.9 g/t Au Including: 117m@1.5 g/t
Chivitas Newest discovery (Nov 2011) 5 km from Tarachi
El Pilar 3 km Au soil anomaly Never drill tested
5km
Salto Colorado
San Javier Never drill tested
Never drill tested
San Javier
Salto Colorado
Aster alteration zones
Exploration targets
Deposits with resources estimated
Exploration Target Areas
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Mexico - La India
Resource Zone
100 m
0 m
Dacite
DDH-11-200 42m@0.9g/t Au
RC-11-265 58m@0.87g/t Au
33
Las Huejas
El Llano
Llano Grande
500 m
Resource Estimate (December 31, 2011)
Tonnes (000’s )
Gold Grade
g/t
Gold (ounces)
Indicated gold resource (m oz)
21,456 0.57 390,000
Inferred gold resource (m oz)
12,.395 0.52 208,000
Cut off grade 0.4 g/t
2012 DDH & RC Drilling Mexico - Tarachi
34
Llano
Las Huejas Llano Grande
Initial Resource Area
Mexico - Tarachi Exploration Zones
35
Mexico - Tarachi
36
Meliadine Project
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Meliadine Exploration Key Facts
Location: 25 km north of Rankin Inlet, 290 km southeast of Meadowbank mine in Nunavut, Canada Property: 55,603 ha Proven and probable gold reserve*: 2.9 million ounces (12.5 million tonnes at 7.2 g/t) Indicated gold resource*: 1.7 million ounces gold (12.6 million tonnes at 4.1 g/t) Inferred gold resource*: 2.4 million ounces gold (12.7 million tonnes at 6.0 g/t) Stage: Advanced exploration, feasibility study underway Secondary metals: none Type of potential mining: open pit and underground Date acquired: Agnico-Eagle purchased 16% interest in July 2008; acquired 100% interest in July 2010 Percent ownership: 100% Current work: surface exploration drilling and permitting, access road construction underway; initial feasibility study completed March 2011; scoping study has begun using larger reserves & resources. *Source: Meliadine December 31, 2011 Reserves and Resources
38
Meliadine Property mineral rights Area
Crown Land
mining claims 8.9 km2
mineral leases 512.8 km2
Subsurface NTI concessions – ANT 1, ANT 3, TAN 1, FAY 1B, FAY 2, FAY 3, FELSIC 1 34.3 km2
Total 556.0 km2
Meliadine Project – Location Map
39
Meliadine Exploration Upside
Pump Au (M oz)
Tonnes ('000)
Au (g/t)
Inferred Resources 0.13 775 5.34
Tiriganiaq Au (M oz)
Tonnes ('000)
Au (g/t)
Proven Reserves 0.008 34 7.31
Probable Reserves 2.77 11,821 7.30
Indicated Resources 0.65 5,098 3.96
Inferred Resources 1.33 4,951 8.35
Discovery Au (M oz)
Tonnes ('000)
Au (g/t)
Indicated Resources 0.38 1,780 6.63
Inferred Resources 0.19 763 7.68
Wolf Au (M oz)
Tonnes ('000)
Au (g/t)
Indicated Resources 0.03 289 3.60
Inferred Resources 0.20 1,459 4.20
F zone Au (M oz)
Tonnes ('000)
Au (g/t)
Probable Reserves 0.10 613 4.91
Indicated Resources 0.25 1,921 4.11
Inferred Resources 0.18 1,039 5.36
Wesmeg Au (M oz)
Tonnes ('000)
Au (g/t)
Indicated Resources 0.34 3,534 3.02
Inferred Resources 0.41 3,700 3.45
2012 budget $82 million for drilling, feasibility and infrastructure Resource to reserve conversion drilling (90K metres)
underway at Tiriganiaq /Wesmeg
Construction of access road underway
Study into accelerating underground ramp development expected in Q3 2012
Aggressive regional exploration includes 25K metres drilling
Production decision expected in late 2013
2012 Exploration Budget Actual Exploration (January-May 2012) $30.3 million $15.8 million
115,000 metres DDH 71,967 metres DDH
80 kilometres strike length
40
Meliadine Project – Geology Plan Map
41
Meliadine Project – Tiriganiaq
Largest deposit at Meliadine Resource expansion and resource-to-reserve
conversion drilling underway
Underground bulk sample project results Q2 2012
Accelerated ramp study underway
Tiriganiaq Au (M oz)
Tonnes ('000)
Au (g/t)
Proven Reserves 0.008 34 7.31
Probable Reserves 2.77 11,821 7.30
Indicated Resources 0.65 5,098 3.96
Inferred Resources 1.33 4,951 8.35
M11-1314 14.4 g/t Au / 4.3 m
M12-1504 9.3 g/t Au / 5.4 m
Incl. 15.9 g/t Au / 2.8 m
M11-1370 10.4 g/t Au / 12.1 m
Incl. 18.6 g/t Au / 5.0 m
M11-1364 7.7 g/t Au / 9.6 m
Incl. 10.9 g/t Au / 5.1 m
M11-1304 13.5 g/t Au / 10.9 m
Incl. 36.1 g/t Au / 3.8 m
Composite Longitudinal Section
42
M12-1405 5.4 g/t Au / 4.6 m
M12-1489 8.4 g/t Au / 12.9 m Incl. 10.4 g/t Au / 9.9 m
M12-1518 5.8 g/t Au / 13.5 m Incl. 8.5 g/t Au / 8.4 m M12-1474
4.8 g/t Au / 8.9 m Incl. 6.3 g/t Au / 5.5 m
M12-1412 6.2 g/t Au / 8.0 m
Incl. 10.8 g/t Au / 2.9 m
M11-1314 5.1 g/t Au / 6.8 m
M12-1405 7.7 g/t Au / 4.2 m
Normeg Wesmeg 1.5 km
M12-1514 10.0 g/t Au / 6.2 m Incl. 14.2 g/t Au / 4.0 m
Composite Longitudinal Section Meliadine Project – Wesmeg & Normeg
Gold reserves (m oz) 2.9 Average reserve gold grade (g/t) 7.2 Measured & Indicated gold resource (m oz) 1.7 Inferred gold resource (m oz) 2.4 2012 exploration budget (m US$) $30.3
Wesmeg’s initial indicated resource in Dec’ 2011
Exploration success extends Wesmeg open pit potential more than 3.3 kilometres; Underground potential also developing
New horizon discovered between Wesmeg and Tiriganiaq highlights exploration potential of property
Growing Wesmeg resource enhances feasibility of mining at Tiriganiaq
Wesmeg Au (M oz)
Tonnes ('000)
Au (g/t)
Indicated Resources 0.34 3,534 3.02
Inferred Resources 0.41 3,700 3.45
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Tiriganiaq Schematic Cross Section
2012 Exploration Program at Tiriganiaq
Results of 2011 underground bulk sampling released in Q2 2012 to refine feasibility resource model
Resource-to-reserve conversion drilling
Resource expansion drilling
Study into acceleration of exploration ramp program to be complete in Q3 2012 to facilitate further exploration and the eventual development of the growing Tiriganiaq and Wesmeg deposits
44
Bulk Sampling Program Meliadine Project
Lode & Level Block Model Bulk Sample
Drill holes Tonnes Gold grade (g/t)
Gold (oz) Tonnes Gold grade
(g/t) Gold (oz)
1000 Lode (9,950 L.) 20 2,391 9.4 720 2,158 10.0 691 1100 Lode (10,000 L.) 13 2,555 14.0 1,149 2,415 16.7 1,298 Total 33 4,946 11.8 1,869 4,573 13.5 1,989
Results of the Tiriganiaq 2011 bulk sample vs. the block model estimates
The Company processed approximately 4,600 tonnes of ore from an underground bulk sample during 2011. The ore was extracted from lateral development in the Tiriganiaq deposit on two levels. The areas were sampled beforehand by diamond drilling on 15-metre spicing. Each development round was also sampled individually through the on-site sampling tower and the samples were shipped to an independent laboratory for assaying. The results of the program were compared with the December 31, 2011 reserve and resource estimate. The program confirmed, within expected precision, the resource estimation model that has been developed for the two principal zones (Zones 1000 and 1100) at Tiriganiaq. In fact, the sampling results indicate approximately 6% more gold than was predicted by the block model for these areas. The 2011 bulk sample program also confirmed the previous assessment of the Company’s block model in terms of grade continuity, consistency and distribution, and the evaluation of related mining properties through geological mapping, underground chip-, channel- and muck-sampling, and geotechnical observations.
45
Appendix
46
Gold Tonnes (000’s)
Gold (g/t)
Gold (ounces)
(000’s)
Proven 11,029 2.80 994
Probable 146,057 3.78 17,757
Total Reserves 157,086 3.71 18,750
Measured & Indicated 168,336 1.78 9,633
Inferred 131,216 2.30 9,712
Silver Tonnes (000’s)
Silver (g/t)
Silver (ounces)
(000’s)
Proven 7,318 45.35 10,670
Probable 72,693 45.06 105,319
Total Reserves 80,011 45.09 115,989
Measured & Indicated 27,801 27.24 24,344
Inferred 34,513 19.00 21,082
See AEM Feb 15, 2012 press release for detailed breakdown of reserves and resources. Reserves are not a subset of resources.
December 31, 2011 Gold and Silver Reserves and Resources
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Copper Tonnes (000’s)
Copper (%)
Copper (tonnes)
Proven 5,331 0.28 15,025
Probable 27,901 0.27 76,160
Total Reserves 33,232 0.27 91,184
Indicated 7,225 0.12 8,629
Inferred 11,400 0.26 29,664
Zinc Tonnes (000’s)
Zinc (%)
Zinc (tonnes)
Proven 5,331 2.04 108,626
Probable 27,901 0.77 215,522
Total Reserves 33,232 0.98 324,149
Indicated 7,225 1.49 107,338
Inferred 11,400 0.44 49,745
Lead Tonnes (000’s)
Lead (%)
Lead (tonnes)
Proven 5,331 0.23 12,391
Probable 27,901 0.05 13,441
Total Reserves 33,232 0.08 25,832
Indicated 7,225 0.15 11,127
Inferred 11,400 0.05 5,138
See AEM Feb 15, 2012 press release for detailed breakdown of reserves and resources. Reserves are not a subset of resources
December 31, 2011 Copper, Zinc and Lead Reserves and Resources
48
Cautionary Note to Investors Concerning Estimates of Measured and Indicated Resources This document uses the terms "measured resources" and "indicated resources". We advise investors that while those terms are recognized and required by Canadian regulations, the SEC does not recognize them. Investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves. Cautionary Note to Investors Concerning Estimates of Inferred Resources This document also uses the term "inferred resources". We advise investors that while this term is recognized and required by Canadian regulations, the SEC does not recognize it. "Inferred resources" have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an inferred mineral resource will ever be upgraded to a higher category. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. Scientific and Technical Data Agnico-Eagle Mines Limited is reporting mineral resource and reserve estimates in accordance with the CIM guidelines for the estimation, classification and reporting of resources and reserves. Cautionary Note To U.S. Investors - The SEC permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. Agnico-Eagle uses certain terms in this press release, such as “measured”, “indicated”, and “inferred”, and “resources” that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. investors are urged to consider closely the disclosure in our Form 20-F, which may be obtained from us, or from the SEC’s website at: http://sec.gov/edgar.shtml. A “final” or “bankable” feasibility study is required to meet the requirements to designate reserves under Industry Guide 7. Estimates for all properties were calculated using historic three-year average metals prices and foreign exchange rates in accordance with the SEC Industry Guide 7. Industry Guide 7 requires the use of prices that reflect current economic conditions at the time of reserve determination, which the Staff of the SEC has interpreted to mean historic three-year average prices. The assumptions used for the mineral reserves and resources estimates reported by the Company on February 15, 2012 were based on three-year average prices for the period ending December 31, 2011 of $1,255 per ounce gold, $23.00 per ounce silver, $0.91 per pound zinc, $3.25 per pound copper, $0.95 per pound lead and C$/US$, US$/Euro and MXP/US$ exchange rates of 1.05, 1.37 and 12.86, respectively. The Canadian Securities Administrators’ National Instrument 43-101 (“NI 43-101”) requires mining companies to disclose reserves and resources using the subcategories of “proven” reserves, “probable” reserves, “measured” resources, “indicated” resources and “inferred” resources. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Notes to Investors Regarding the Use of Resources
49
A mineral reserve is the economically mineable part of a measured or indicated mineral resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified. A mineral reserve includes diluting materials and allows for losses that may occur when the material is mined. A proven mineral reserve is the economically mineable part of a measured mineral resource demonstrated by at least a preliminary feasibility study. A probable mineral reserve is the economically mineable part of an indicated, and in some circumstances, a measured mineral resource demonstrated by at least a preliminary feasibility study. A mineral resource is a concentration or occurrence of natural, solid, inorganic material, or natural solid fossilized organic material including base and precious metals in or on the Earth’s crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge. A measured mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity. An indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed. An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. Mineral resources which are not mineral reserves do not have demonstrated economic viability. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable. A Feasibility Study is a comprehensive technical and economic study of the selected development option for a mineral project that includes appropriately detailed assessments of realistically assumed mining, processing, metallurgical, economic, marketing, legal, environmental, social and governmental considerations together with any other relevant operational factors and detailed financial analysis, that are necessary to demonstrate at the time of reporting that extraction is reasonably justified (economically mineable). The results of the study may reasonably serve as the basis for a final decision by a proponent or financial institution to proceed with, or finance, the development of the project. The confidence level of the study will be higher than that of a Pre-Feasibility Study. The effective date for all of the Company’s mineral resource and reserve estimates in this document is December 31, 2011. Additional information about each of the mineral projects that is required by NI 43-101, sections 3.2 and 3.3 and paragraphs 3.4 (a), (c) and (d) can be found in Technical Reports, which may be found at www.sedar.com. Other important operating information can be found in the Company’s Form 20-F and its news release dated February 15, 2012. Marc Legault, a Qualified Person and the Company’s Senior Vice-President, Project Evaluations, reviewed the technical information disclosed herein.
Notes to Investors Regarding the Use of Resources
50
A solid financial position, low-cost structure, well-funded growth projects in regions of low political risk, and a focused, consistent strategy put Agnico-Eagle in a strong position to continue creating exceptional per share value.
Sean Boyd President and Chief Executive Officer
Ammar Al-Joundi SVP Finance and Chief Financial Officer
David Smith SVP, Strategic Planning & Investor Relations
Trading Symbol: AEM on TSX & NYSE
Investor Relations: 416-947-1212 info@agnico-eagle.com
Executive and Registered Office: 145 King Street East, Suite 400 Toronto, Ontario, Canada, M5C 2Y7 Tel: 416-947-1212 Toll-Free: 888-822-6714 Fax: 416-367-4681
agnico-eagle.com