Agnico-Eagle raises LaRonde funds

Toronto-based Agnico-Eagle Mines (AGE-T) has completed a $108-million equity financing.

Proceeds are primarily earmarked for the LaRonde gold-copper mine, near Val d’Or, Que., where daily production is being increased to 7,000 from 5,000 tons. The expansion is expected to increase gold production to 341,000 oz. in 2002, 373,000 oz. in 2003, and 396,000 oz. in 2004, up from an estimated 229,000 oz. for 2001.

Cash costs, forecast at US$150 per oz. in 2001, should decrease by 15% with the extra output. Assuming a gold price of US$280 per oz., the rate of return is pegged at 20%, and paypack is foreseen in three years.

Reserves at LaRonde are pegged at 33.7 million tons grading 0.1 oz. gold and 2.34 oz. silver per ton, plus 0.32% copper and 4.4% zinc. Miners will employ the new Penna shaft, as well as the existing shaft, to exploit that material.

LaRonde also hosts a resource of 25.4 million tons grading 0.18 oz. gold, 0.85 oz. silver, 0.73% copper and 0.41% zinc. The resource sits beneath the reserve and extends to 9,900 ft. below surface, where it remains open.