2010-04-29

Agnico Eagle´s Goldex Mine - Steady State Mine Continues Strong Performance

The 100% owned Goldex mine in northwestern Quebec began operation in 2008. Proven and probable gold reserves total 1.6 million ounces from 24.7 million tonnes grading 2.0 g/t.

The Goldex mill processed an average of 7,410 tpd in the first quarter of 2010, continuing to exceed the design capacity for the plant of approximately 6,900 tpd. During the first quarter of 2009, the plant processed 6,770 tpd.

Minesite costs per tonne at Goldex were approximately C$24 in the first quarter of 2010, slightly lower than the C$25 achieved in the first quarter of 2009 and reflecting continued optimization at this steady-state mine. Agnico-Eagle believes this is one of the lowest cost hard rock underground mines in the world on a minesite cost per tonne basis.

Payable gold production in the first quarter of 2010 was 42,269 ounces at total cash costs per ounce of $375. This compares to the first quarter of 2009 when gold production was 35,959 ounces at total cash costs per ounce of $338. The increase in production is mainly due to improved mill recoveries and higher throughput. The negative impact of the stronger Canadian dollar more than offset higher gold production and led to higher total cash costs in the 2010 period relative to the comparable period in 2009.

Gold production for 2010 is expected to be 164,000 ounces. Life of mine average annual gold production is expected to be approximately 168,000 ounces per year through 2017.

The expansion of the mine from 6,900 tpd to at least 8,000 tpd was approved in 2009. This project required additional infrastructure primarily in the crushing circuit, and minor additions to the mining fleet. Installation of the permanent surface crusher is complete and the increased mining rate is expected to be realized in early 2011 as the underground mining advances enough to consistently provide sufficient ore to support the higher throughput.

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I´m sure, there are a lot more examples out there that show a real possibility to profitably mine @ 2 g/t Au.

Just goes to show what kind of potential GNH has if they can prove some decent tonnage at or above 2 g/t Au (even better with open pit bulk mining potential).

FANTOMAS