Friday, 29th July 2005 (3007 views)

Agnico-Eagle Mines has announced that the board has approved construction at its Goldex Project.

The mining company said gold production at Goldex is expected to commence in 2008, averaging 170,000 ounces per year at total cash costs of $200 per ounce.

The Toronto-based firm made the announcement as part of its second quarter earnings statement. Agnico-Eagle reported earnings for the three months to June of $12.8 million, or $0.15 per share, up from net earnings of $8.8 million, or $0.11 per share, for the same period of 2004.

Agnico-Eagle said profits over the quarter were boosted by solid operating performance at LaRonde mine, a deferred tax recovery of $3.8 million,

The company added that the drilling campaign on the Pinos Altos project in Mexico has returned multiple high grade gold intercepts beyond expectations and its $130 million offer for Riddarhyttan Resources is proceeding as planned.

Sean Boyd, president and chief executive officer of Agnico-Eagle, commented: "Our decision today to begin construction of a new gold mine at Goldex is an important step toward our goal of building value by expanding our low cost production base. Over the coming months we look forward to further progress at our LaRonde II and Lapa projects in Quebec, and our international opportunities in Finland and Mexico."

 

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