Wednesday, September 5, 2012

Agnico-Eagle Moves Forward with La India Mine Development, Expects Commercial Production by 2014

Agnico-Eagle Mines Ltd. (NYSE:AEM,TSX:AEM) announced that the development and construction of its Mexico-based La India mine have been approved by its board of directors and commented that the mine will be an open-pit, heap leach operation. Commercial production is expected in the second half of 2014.

As quoted in the press release:

Construction costs for the project are expected to total approximately?$158 million, which will be funded from the Company?s operating cash flows.? Sustaining capital costs are forecast to total approximately?$25 million?over the eight year life of the mine.? New capital of? approximately?$40 million?is expected to be added to the Company?s total in 2012.

The feasibility study estimates that the La India project will generate an internal rate of return of approximately 31% assuming a gold price of?$1,379?per ounce. Metallurgical recoveries are estimated to average approximately 80%, resulting in average gold production of 90,000 ounces per year.? The waste to ore stripping ratio in the open pit mine is estimated at approximately 1:1. Life of mine total cash costs at La?India?are expected to average?$500?per ounce.

Click here to read the full?Agnico-Eagle Mines Ltd. (NYSE:AEM,TSX:AEM) press release.

Source: http://goldinvestingnews.com/27847/agnico-eagle-moves-forward-with-la-india-mine-development-expects-commercial-production-by-2014.html

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