Technical Report on the Lapa Gold Project, Cadillac Township, … · 2016. 12. 6. · The mineral...
Transcript of Technical Report on the Lapa Gold Project, Cadillac Township, … · 2016. 12. 6. · The mineral...
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Technical Report on the Lapa Gold Project, Cadillac Township, Quebec, Canada
Report Prepared for:
Agnico-Eagle Mines Limited
145 King Street East, Suite 500
Toronto, Ontario Canada M5C 2Y7
Report Compiled by:
Normand Bédard, P.Geo., Senior Geologist
Harold Boulanger, Eng., Project Engineer
Paul Cousin, Chief Project Metallurgist
Dino Lombardi, P.Geo.,Project Geologist
Alain Mercier, Eng., Project Engineer
Camil Prince, Eng., Metallurgist
Cadillac, Quebec, May 31st, 2006
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SUMMARY
The Lapa property, owned 100% by Agnico-Eagle Mines Limited, is located Cadillac
Township, Municipality of Rivière Héva, in north-western Quebec, Canada (UTM
NAD83 5,345,000mN, 702,500m E; NTS 32 D/01), and is approximately 45 kilometres
west of Val d’Or (or more than 700 kilometres by road north of the city of Toronto). The
property consists of 43 claims and 1 mining concession (799.22 hectares).
The Lapa Gold project is an underground gold deposit located in the western portion of
the property that has been the focus of exploration by the Company since 2002. An
underground exploration program of the Lapa deposit has recently been completed in
May 2006. The program consisted of sinking a shaft to its current depth of 760 metres,
diamond drilling (approximately 8,850 metres from stations excavated 490 metres and
690 metres below surface) and a bulk sampling program (which consisted of excavating,
mapping and sampling for approximately 140 metres within the mineralization and
recovering and testing an approximately 2,500 tonne sample). The exploration program
provided information for a Mineral Resource and Mineral Reserve Estimate and a
Feasibility Study that shows positive economic results.
The Lapa deposit is a disseminated gold deposit hosted by deformed and silicified
volcanic and sedimentary rocks (minor disseminated pyrite, arsenopyrite and stibnite
occur along with visible gold). The deposit is roughly east-west trending and vertically
dipping begins at approximately 400 metres depth and that can been traced for over 800
metres vertically and 400 metres horizontally. The Lapa deposit is made up of at least 4
narrow subparallel and adjacent lenses (each averaging less than 5 metres in thickness). It
is open at depths below 1,300 metres.
The probable mineral reserves of the Lapa deposit are 3.445 million tonnes grading 10.17
gram per tonne gold (containing 1.127 million ounces of gold). The indicated mineral
resource is 1.064 million tonnes grading 5.92 gram per tonne gold (containing 0.202
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million ounces of gold) and the inferred mineral resource is 1.360 million tonnes grading
9.36 gram per tonne gold (with 0.409 million ounces of contained gold). The metal price
and foreign exchange assumptions were US$ 405 per ounce of gold and 1.30 C$/US$.
The cut-off gold grade for the mineral resource model is 5.0 gram per tonne while the cut-
off for the mineral reserve model is 5.0 gram per tonne (after applying dilution, which
average 30% at a gold grade of 0.46 gram per tonne). The cut-off assumes a metallurgical
recovery of 81.4% for gold and mine operating costs of C$68.55 per tonne.
The feasibility study reviewed an underground mining operation with a shaft to 1,370
metres below surface and the viability of extracting an average of 1,500 tonnes per day of
mineralization. The Eureka longitudinal mining method was chosen and will involve
extracting 30 metre tall by 12 metre long stoping blocks (and backfilling with cemented
rockfill) using an inverse double pyramidal sequence. A ramp will link mining sub-levels
spaced 30 metres vertically. Mineralization extracted will be trucked to the LaRonde
Division where the processing and waste disposable facilities will be adapted for the Lapa
mineralization.
The mineral processing will necessitate a separate grinding and gravity circuit, talc and
sulphide flotation circuits and a leaching circuit for LaRonde; the LaRonde tailings site
will need to be adapted for the Lapa deposit material. Based on a Lapa average mined
head grade of 10.2 gram per tonne, the model indicates an in plant gold recovery of
87.1%.
The feasibility study projects mine site costs to average approximately C$70 per tonne
and an additional $90 million in capital costs to bring the Lapa mine into production
based on a C$/US$ rate of 1.25 (and a gold price of US$450 per ounce). Reserves are
sufficient for an initial mine life of approximately seven years with an average annual
gold production of 125,000 ounces. Average annual sustaining capital costs are estimated
at US$ 4 million. The feasibility study’s base case projects an after tax rate of return of
21.8%.
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The Lapa Gold project is economic and a warranted a positive construction decision by
Agnico-Eagle Mines Limited.
Additional drilling is recommended by the geology staff in order to possibly increase
mineral reserves (as the deposit is open below the bottom of the shaft). Additional
optimisation and characterization studies are also recommended by the mining, processing
and environmental engineering staff.
Figure 1: Lapa Gold Project Location map
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TABLE OF CONTENTS TITLE PAGE i
SUMMARY ii.
TABLE OF CONTENTS v
LIST OF TABLES ix
LIST OF FIGURES xi
1 INTRODUCTION 1 1.1 Qualified Persons 1 1.2 Personal Inspection 3 1.3 Basis of the Technical Report 4 1.4 Limitations & Reliance on Information 4 2 PROPERTY DESCRIPTION AND LOCATION 5 2.1 Lapa Gold Project 5 2.2 Underlying Agreements 6 2.3 Mine Workings and Existing Tailings Ponds 10 2.4 Permits Required for Exploration Work 11 2.5 Other Permits 11 2.6 Environmental Considerations 12 2.6.1 Surface Waters 12 2.6.2 Water Management 13 2.6.3 Underwater Excavation and Dewatering 2.6.4 Environmental Considerations Associated with the Treatment of Lapa
Mineralization at the LaRonde mill 15
2.7 Potential Environmental Liabilities 15 3 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE
AND PHYSIOGRAPHY 16
3.1 Accessibility 16 3.2 Climate 17 3.3 Physiography 17 3.4 Infrastructure 18 4 History 19
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4.1 Previous Work 19 4.2 Previous Mineral Resource and Mineral Reserve Estimates 22
5 GEOLOGICAL SETTING 24 5.1 Regional Geology 24
5.2 Property Geology 24
5.3 Deposit Types 26
5.4 Mineralization 26
6 EXPLORATION 31 6.1 Procedures 31 6.2 Diamond Drilling Results 32 6.2.1 2002-2004 Diamond drilling program 32
6.2.2 2006 Diamond drilling program 42
6.3 Sampling method and approach 49 6.4 Sample Preparation, Analysis and Security 50 6.4.1 Sample Preparation 50 6.4.2 Assaying 51 6.4.2.1 Laboratoire Expert Inc. Assaying Procedures 52 6.4.2.2 Bourlamaque Assay Laboratories Ltd. Assaying Procedures 53 6.4.2.3 ALS Chemex Chimitec Inc. Assaying Procedures 53 6.4.3 Laboratory certification 54 6.4.4 Discussion of Sample Quality 54 7 DATA VERIFICATION 54 7.1 Verification of the 2002-2004 Assay Results 55 7.1.1 Expert 55
7.1.2 Bourlamaque 55
7.1.3 Chimitec 56
7.2 Data Verification of the 2006 Assay Results 56 7.2.1 Expert 56
7.2.2 Bourlamaque 56
7.2.3 Chimitec 57
7.3 Discussion 57
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8 ADJACENT PROPERTIES 57 9 MINERAL PROCESSING AND METALLURGY 59 9.1 Introduction 59 9.2 Sample Composites 60 9.3 Grinding 62 9.4 Gravity Concentration 63 9.5 Flotation 64 9.6 Cyanide Leaching 65 9.7 Gold Recovery 66 10 MINERAL RESOURCE AND RESERVE ESTIMATION 68 10.1 Data 68 10.2 Mineralization solids 68 10.3 Grade Capping 69 10.4 Variography 69 10.5 Specific gravity 70 10.6 Estimation Methodology 70 10.7 Dilution 71 10.8 Mineral Resource Classification 72 10.9 Conversion of Mineral Resources into Mineral Reserves 73 10.10 Mineral Resources and Mineral Reserves Statement 75 10.11 Bulk Sampling and Grade Validation Program 76 11 OTHER RELEVANT DATA AND INFORMATION 101 12 LAPA MINING PROJECT 101 12.1 Mining operations 101 12.1.1 Surface mining 101 12.1.1.1 Mine Site 101 12.1.2 Technical underground mining information 105 12.1.2.1 Mineral Reserves 105 12.1.2.2 Rock mechanics 106 12.1.2.3 Properties of the rock 106 12.1.2.4 Mining method evaluation 112
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12.1.3 Ventilation 113 12.1.3.1 Air requirement 113 12.1.3.2 Mine air heating 117 12.1.4 Shaft & Hoisting 117 12.1.4.1 Shaft Size 117 12.1.4.2 Hoisting & Headframe 118 12.1.4.2.1 Rock hoist 118 12.1.4.2.2 Headframe 121 12.1.4.3 Shaft development 123 12.1.5 Mine Development 124 12.1.5.1 Horizontal development team and design 124 12.1.5.2 Vertical development team and design 126 12.1.5.3 Development strategy 129 12.1.6 Mining method 131 12.1.6.1 Eureka method 132 12.1.6.2 Transverse Primary/Secondary method 135 12.1.6.3 Ore and waste handling 137 12.1.6.4 Back filling 138 12.1.6.5 Underground equipment list 139 12.1.7 Process and Plant Description 139 12.1.7.1 Crushing and Coarse Ore Handling 139 12.1.7.2 Grinding and Gravity 140 12.1.7.3 Flotation 140 12.1.7.4 Concentrate Leach 141 12.1.8 Production Forecast 143 12.2 Recoverability 149 12.3 Markets 150 12.4 Contracts 150 12.5 Environmental Considerations 150 12.5.1 Bond Posting for the Production Phase 150
12.5.2 Closure Costs 152
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12.6 Taxes 152 12.6.1 Introduction 152 12.6.2 Quebec Mining Duties 152 12.6.3 Federal and Provincial Income Taxes 153 12.6.4 Federal and Provincial Capital Taxes 153 12.7 Capital and Operating Costs Estimates 154 12.7.1 Capital Cost Estimates 154 12.7.2 Operating Cost estimates 155 12.8 Economic Analysis 158 12.9 Sensitivity analysis 163 12.10 Payback 165 12.11 Mine Life 165 13 CONCLUSIONS 166 14 RECOMMENDATIONS 170 15 REFERENCES 171
LIST OF TABLES Table 1.1: List and status of Mining Rights 8
Table 5.1 Historical Contact Zone Gold Intercepts 29
Table 6.1: Gold Intercepts ( 2002-2004 DDH Campaign) 33
Table 6.2: Gold Intercepts ( 2006 DDH Campaign) 43
Table 9.1 : Lapa Sample Composites 2003/2004 Testwork 61
Table 9.2: Bond Ball Mill Work Index 64
Table 9.3: Gravity & Flotation Results 65
Table 9.4: Whole Ore Leach Results 66
Table 10.1: Summary of Resources Solids Models 69
Table 10.2: Variography of Lapa deposit zones 70
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Table 10.3: Modifying Factors Used by Agnico-Eagle for the Conversion of Mineral
Resources to Mineral Reserves 74
Table 10.4: Mineral Resources and Mineral Reserves Statement, Lapa Gold project, Agnico-
Eagle, May 31st 2006 75
Table 10.5: Grade comparison of bulk sample 80
Table 12.1: Probable Reserves (including 95% mining recovery) 106
Table 12.2: Summary of Rock Quality and Typical Stable Spans 107
Table 12.3: Global RQD Results 108
Table 12.4: Complete RDQ Results 109
Table 12.5: Unconfirmed failure tests 111
Table 12.6: Preliminary Rock Mechanic Data 111
Table 12.7: Air Quantity Factor 114
Table 12.8: LaRonde no. 1 Shaft Hoist Data 121
Table 12.9: Lapa development summary 129
Table 12.10: Horizontal Development 130
Table 12.11: Vertical Development (18 months of pre-production) 131
Table 12.12: Underground Equipment List 139
Table 12.13: Daily Production by Horizon 144
Table 12.14: Production by Year and Elevation 145
Table 12.15 Total Production by Horizon 145
Table 12.16: Budget Estimate for closure costs 151
Table 12.17 Deferred and operating development 154
Table 12.18: Lapa Project Capital Expenditures by Category 155
Table 12.19: Average Operating Cost 156
Table 12.20: Payable Ounces for the life of the Mine 160
Table 12.21: Lapa Mining Project Cash Flow Evolution ( x 000 Cdn $) 162
Table 12.22: Summary of the Sensitivity Analysis of the Lapa Mine 164
Table 12.23: Life of Mine Production Tonnage 165
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LIST OF FIGURES
Figure 1.1: Lapa Gold Project Location Map 4
Figure 2.1: Property location 7
Figure 2.2: Lapa Property claim map 9
Figure 2.3: Lapa claim map and proposed location of Lapa mining lease 10
Figure 2.4: Lapa Area (1: 15 000) 13
Figure 3.1: Map of property 16
Figure 3.2: Lapa area (1: 8 000) and Topography 18
Figure 3.3: Aerial view of the current Lapa project infrastructures 19
Figure 5.1: The Regional Geology Map and Agnico-Eagle Properties 25
Figure 5.2: Lapa Geology Map 28
Figure 8:1 Adjacent Properties 58
Figure 9.1 : Lapa Sample Composites Location 62
Figure 9.2: Global Gold Recovery as a function of feed grade 67
Figure 10.2: Diamond drilling – Level 69 76
Figure 10.3: Chip samples – Level 69 East 77
Figure 10.4: Chip samples – Level 69 West 78
Figure10.5: Muck sampling – Level 69 78
Figure 10.6: Transverse section 5480E 79
Figure 10.7: Longitudinal section Contact zone (Upper part) 81
Figure 10.8: Longitudinal section Contact zone (Lower part) 82
Figure 10.9: Longitudinal section Contact-South zone 83
Figure 10.10 : Longitudinal section Contact Center zone 84
Figure 10.11: Longitudinal section Contact North zone 85
Figure 10.12: Geology Section 5300E 86
Figure 10.13: Geology Section 5350E 87
Figure 10.14: Geology Section 5400E 88
Figure 10.15: Geology Section 5450E 89
Figure 10.16: Geology Section 5500E 90
Figure 10.17: Geology Section 5550E 91
Figure 10.18: Geology Section 5600E 92
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Figure 10.19: Geology Section 5650E 93
Figure 10.20: Geology Section 5700E 94
Figure 10.21: Geology Section 5750E 95
Figure 10.22: Geology Section 5800E 96
Figure 10.23: Level Plan 4600 elevation 97
Figure 10.24: Level Plan 4300 elevation 98
Figure 10.25: Level Plan 4000 elevation 99
Figure 10.26: Level Plan 3850 elevation 100
Figure 12.1: General View of the Proposed Surface Site 102
Figure 12.2: Actual and Proposed Mine Site Infrastructure 104
Figure 12.3: Conceptual View of Proposed Mine Site 105
Figure 12.4: HR Stable Stope Dimensions 107
Figure 12.5: Ventilation Circuit 116
Figure 12.6: Proposed 4.9m Shaft Section 118
Figure 12.7: LAPA Installation - Nordberg 162 inch by 77 inch Hoist 119
Figure 12.8: Production Rate vs Shaft Depth 120
Figure 12.9: LAPA Headframe 122
Figure 12.10: LAPA Site View 123
Figure 12.11: Typical Level Development (Level 77) 125
Figure 12.12: Typical Sub-Level Development (Level 74) 126
Figure 12.13: Vertical Raise Circuits 128
Figure 12.14: Schematic View—Eureka Method 133
Figure 12.15: Proposed Lapa Mining Sequence, Eureka Method 135
Figure 12.16: Schematic view - Transversal Primary/Secondary method 136
Figure 12.17: Location of Primary/Secondary Mining 137
Figure 12.18: Lapa Selected Simplified Milling Flowsheet 142
Figure 12.19: View of Mining Horizons 144
Figure 12.20: Mining Sequence Contact Zone 146
Figure 12.21: Mining Sequence Contact South 147
Figure 12.22: Mining Sequence Contact Centre and North 148
Figure 12.23: Global Gold Recovery as a function of feed grade 149
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Figure 12.24: Operating Cost per Tonne 157
Figure 12.25: Operating Cost Per Ounce 158
Figure 12.26: Ounces Payable Per Year 159
Figure 12.27: Annual & Cumulative Cash Flows M$ 161
Figure 12.28: Grade Sensitivity 163
Figure 12.29: Costs Sensitivity 164
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1 INTRODUCTION On June 2nd, 2006, the Board of Directors of Agnico-Eagle Mines Limited (“Agnico-
Eagle”) approved the construction of the Lapa mine project. As a result of this approval,
the Lapa Gold property is now considered material to the Company and, under National
Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), a
technical report is required to be prepared in the required form and filed to support
scientific and technical information disclosed by an issuer relating to a mineral project on
a property that is material to the Company.
This technical report presents the technical information supporting the disclosure of
Mineral Resources and Mineral Reserves for the Lapa Gold Project. The report was
prepared by a team of Qualified Persons from Agnico-Eagle following the guidelines of
Canadian Securities Administrators’ NI 43-101 and Form 43-101F1 and in conformity
with generally accepted CIM “Exploration Best Practices” and “Estimation of Mineral
Resources and Mineral Reserves Best Practices” guidelines.
1.1 Qualified Persons The compilation of this technical report represents a collaborative effort by Agnico-Eagle
staff. Each aspect of this technical report was prepared by or under the supervision of an
appropriately Qualified Person as defined by NI 43-101. Each qualified person retains the
responsibility for their contribution as indicated below.
This technical report was compiled by Mr. Normand Bédard, P.Geo (OGQ #715),
Madame Louise Grondin, P.Eng, Eng. (PEO #17384504, OIQ #125863), Mr. Paul
Cousin, Eng. jr (OIQ #98319), Mr. Harold Boulanger, Eng. (OIG #112271), Mr. Dino
Lombardi, P.Geo. (OGQ #700), Mr. Alain Mercier, Eng. (OIQ #26583) and Mr. Camil
Prince, Eng. (OIQ #33968).
Mr. Normand Bédard, P.Geo., is a Qualified Person and has been employed by Agnico-
Eagle since 2003; he is currently Senior Geologist at the Regional Division. He
supervised the 2006 underground exploration program and the Mineral Resource and
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Mineral Reserve estimation work for the Lapa Gold Project; he authored Sections 1, 3, 4,
8, 10 and 11 co-authored Sections 2, 5, 6, 7, 13 and 14 of the Technical Report.
Mr. Paul Cousin is Chief Project Metallurgist for Agnico-Eagle and has been employed
by the Company since 1990. Mr. Cousin co-authored portions of the Technical Report
namely, Section 9 and portions of Section 12 that concern mineral processing and
recoverability, and Sections 13 and 14.
Ms. Louise Grondin, P.Eng, Eng., is the Regional Environment Manager for Agnico-
Eagle’s Regional Division. She has been with Agnico-Eagle since 2003. Ms. Grondin is a
Qualified Person and co-authored Section 2, 12, 13 and 14 of the Technical Report
concerning the environment.
Mr. Harold Boulanger, Eng., is a Project Engineer for the Lapa Project and has been
employed by Agnico-Eagle since 1999. In the Technical Report, he co-authored Sub-
sections 12.1 and Sections 13 and 14 and is the author of all the other portions of Section
12 that discuss subjects other than metallurgy and the environment.
Mr. Dino Lombardi, P.Geo., is Agnico-Eagle’s Senior Geologist for International
Projects; he has been with Agnico-Eagle since 1997. Mr. Lombardi is a Qualified Person
and supervised the surface exploration work at Lapa until 2005; he co-authored Sections
5, 6, 7, 13 and 14 of the Technical Report.
Mr. Alain Mercier, Eng., is a Qualified Person and has been employed by Agnico-Eagle
since 2006 as a senior mining engineer for the Technical Services Group. He is a
Qualified Person and supervised some of the mining engineering work for the Lapa Gold
Project. He co-authored Sub-sections 12.1 and Sections 13 and 14 of the Technical Report
which discuss subjects other than metallurgy and the environment.
Mr. Camil Prince, Eng. is senior metallurgist with Agnico-Eagle Regional Division. As a
Qualified Person responsible for the metallurgical aspect of the Lapa Gold project, Mr.
Prince reviewed and supervised the work completed by Mr. Paul Cousin and co-authored
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Section 9, portions of Section 12 that describe mineral processing and recoverability and
Sections 13 and 14.
1.2 Personal Inspection
In compliance with NI 43-101 guidelines (Part 6.2), the majority of the people responsible
for compiling this report have visited the Lapa project site on several occasions.
Mr. Normand Bédard has personally inspected the Lapa mine project and surrounding
areas during regular site visits throughout the month of April, 2006.
Mr. Harold Boulanger has personally inspected the Lapa mine project and surrounding
areas during regular site visits since 2004.
Mr. Paul Cousin has visited personally inspected the Lapa mine project and surrounding
areas during site visits in Quebec on April 25 and 26, 2006.
Ms. Louise Grondin has personally inspected the Lapa mine project and surrounding areas
during weekly site visits over 2005 and monthly site visits over 2006 including, most
recently, a visit on May 19, 2006.
Mr. Dino Lombardi has personally inspected the Lapa mine project and other adjacent
Agnico-Eagle Mines’ claim blocks during the years 2002 to 2005.
Mr. Alain Mercier has personally inspected the Lapa mine project during a site visit on
May 22, 2006.
Mr. Prince has not visited the Lapa mine project.
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1.3 Basis of the Technical Report
The present report is based on a new Mineral Resource and Mineral Reserve model
prepared by Agnico-Eagle after completing an underground exploration program at the
Lapa Gold Project in March 2006, and a feasibility study, dated May 2006, that was also
prepared by Agnico-Eagle and demonstrated the mineral reserves to be economically
mineable.
Additionally, the present technical report benefited from the following sources of
information:
• Independent reviews of the Lapa feasibility study; and
• A review of the 2006 drill hole assay quality assurance and quality control data
from the Lapa Project by Keith Blair, C.P.G., dated June 1st, 2006.
1.4 Limitations & Reliance on Information
The effective date of this technical report is May 31st, 2006. The technical information
contained herein is based on information available to Agnico-Eagle throughout the course
of the present investigations, which in turn reflect various technical and economic
conditions at the time of writing. These conditions can change significantly over
relatively short periods of time. Consequently actual results may be significantly more or
less favourable.
This report includes technical information that requires subsequent calculations to derive
sub-totals, totals and weighted averages. Such calculations inherently involve a degree of
rounding and consequently introduce a margin of error. Where these occur, Agnico-Eagle
does not consider them to be material.
Each qualified person that contributed to the compilation of this technical report retains
responsibility for their respective contribution as outlined in Section 1.2 above and as
indicated in their respective certificates.
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2 PROPERTY DESCRIPTION & LOCATION
2.1 Lapa Gold Project
The Lapa property is located at mid-distance (approximately 50 kilometres) between the
cities of Val-d’Or and Rouyn-Noranda within the limits of the municipality of Rivière
Héva, Cadillac Township (NTS 32D/01; UTM NAD83 703,000 mE, 5,345,000 mN) in
the Province of Quebec, Canada (Figure 2.1).
The property comprises a total of forty three (43) claims and one (1) mining concession
that cover an aggregate area of approximately 799.22 hectares (Figures 2.1 and 2.2). The
mineral titles are listed in Table 2.1. As the registered mineral title holder, Agnico-Eagle
controls 100% of the mineral rights. The status of each of the claims and the concession
(obligations and expiration date) was verified using GESTIM, from the “Ministère des
Ressources naturelles, de la Faune et des Parcs du Québec”, a claim management system
that is accessible through the internet at https://gestim.mines.gouv.qc.ca. The status results
of each of the mineral titles are also presented in Table 2.1.
The boundary of the Zulapa mining concession is determined by ground surveyed points
whereas the boundaries of the claims have not been legally surveyed. The claim posts of
the western limit of the Lapa property were located, along with claim 5265593, which
covered open ground discovered along the northwest boundary of the property,and were
surveyed with a GPS (Global Positioning System) instrument (of unknown accuracy) in
November 2003 by an independent firm Valminex Inc. of Val-d’Or. The remaining
contour of the property and the claims has never been surveyed and is therefore located
with a limited precision.
Except for surface rights reserved for powerline, gasline and road rights of way, the
remaining surface rights are controlled by the Government of Quebec.
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The property consists of three contiguous claim blocks: Tonawanda, Zulapa and Agnico-
Eagle. The Tonawanda portion consists of 42 claims (namely Mining Claims Nos.
3079761 to 3079765, 3079771 to 3079775, 3655611 to 3655615, 3655621 to 3655625,
3655791 to 3655795, 3655801 to 3655805, 3681041 to 3681044, 3692571, 3692572,
3692581 to 3692584, 3692591 and 3692592) covering 696.37 hectares; the Zulapa
portion consists of one mining concession (290 BL-45) covering 93.45 hectares; and the
Agnico-Eagle claim block consists of a single (1) claim (5265593) covering 9.40 hectares.
The Lapa deposit is covered by the Tonawanda claim block.
2.2 Underlying Agreements
As described above, the Zulapa block covers the former producing Lapa-Cadillac mine
that is not considered in the current resource estimate and feasibility study. The Zulapa
block is burdened by a 1 percent (1%) net smelter return (NSR) royalty reserved in favour
of Bond Gold Canada Inc. (which on June 16th, 2003, was held by Barrick Gold
Corporation), by a five percent (5%) net profit (NPI) royalty derived (after recoupment of
the investment) from operations on the properties that is reserved (outstanding as of\
September 4th, 2003) to Alfer Inc. (100/101) and Mr. René Amyot (1/101) and a 0.5%
NSR royalty retained by Breakwater Resources Ltd. (Fraser Milner Casgrain LLP, 2003a,
2003b).
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Figure 2.1 : Property Location
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Claim number Survey's Date Recording Date Expiration Date Area (ha) Township Lot Range Localisation NTS Work credit($) Work required ($)Rente
($) Owner
3079761 1970/07/13 1989/07/13 2007/07/12 17.82 Cadillac 32D/01 256,143.63 1,000.00 24.00 Agnico-Eagle Ltd.3079762 1970/07/13 1989/07/13 2007/07/12 7.97 Cadillac 32D/01 49,267.60 1,000.00 24.00 Agnico-Eagle Ltd.3079763 1970/07/13 1989/07/13 2007/07/12 14.84 Cadillac 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3079764 1970/07/13 1989/07/13 2007/07/12 16.00 Cadillac 32D/01 13,176.00 1,000.00 24.00 Agnico-Eagle Ltd.3079765 1970/07/13 1989/07/13 2007/07/12 12.62 Cadillac 32D/01 21,960.00 1,000.00 24.00 Agnico-Eagle Ltd.3079771 1970/07/14 1989/07/14 2007/07/13 13.62 Cadillac 32D/01 1,415,112.61 1,000.00 24.00 Agnico-Eagle Ltd.3079772 1970/07/14 1989/07/14 2007/07/13 13.08 Cadillac 32D/01 1,686,562.00 1,000.00 24.00 Agnico-Eagle Ltd.3079773 1970/07/14 1989/07/14 2007/07/13 10.60 Cadillac 32D/01 294,263.00 1,000.00 24.00 Agnico-Eagle Ltd.3079774 1970/07/14 1989/07/14 2007/07/13 14.98 Cadillac 32D/01 1,910,136.53 1,000.00 24.00 Agnico-Eagle Ltd.3079775 1970/07/14 1989/07/14 2007/07/13 18.05 Cadillac 32D/01 2,463,588.27 1,000.00 24.00 Agnico-Eagle Ltd.3655611 1977/07/11 1989/07/11 2007/07/10 4.41 Cadillac 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3655612 1977/07/11 1989/07/11 2007/07/10 5.64 Cadillac 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3655613 1977/07/11 1989/07/11 2007/07/10 19.02 Cadillac 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3655614 1977/07/11 1989/07/11 2007/07/10 17.27 Cadillac 32D/01 8,784.06 1,000.00 24.00 Agnico-Eagle Ltd.3655615 1977/07/11 1989/07/11 2007/07/10 5.44 Cadillac 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3655621 1977/07/10 1989/07/10 2007/07/09 17.60 Cadillac 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3655622 1977/07/10 1989/07/10 2007/07/09 16.00 Cadillac 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3655623 1977/07/10 1989/07/10 2007/07/09 7.37 Cadillac 32D/01 131,760.00 1,000.00 24.00 Agnico-Eagle Ltd.3655624 1977/07/10 1989/07/10 2007/07/09 6.30 Cadillac 32D/01 43,920.00 1,000.00 24.00 Agnico-Eagle Ltd.3655625 1977/07/10 1989/07/10 2007/07/09 5.63 Cadillac 32D/01 4,893.54 1,000.00 24.00 Agnico-Eagle Ltd.3655791 1977/07/09 1989/07/09 2007/07/08 18.40 Cadillac 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3655792 1977/07/09 1989/07/09 2007/07/08 20.00 Cadillac 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3655793 1977/07/09 1989/07/09 2007/07/08 16.00 Cadillac 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3655794 1977/07/09 1989/07/09 2007/07/08 16.00 Cadillac 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3655795 1977/07/09 1989/07/09 2007/07/08 12.11 Cadillac 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3655801 1977/07/09 1989/07/09 2007/07/08 16.00 Cadillac 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3655802 1977/07/09 1989/07/09 2007/07/08 15.60 Cadillac 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3655803 1977/07/09 1989/07/09 2007/07/08 18.00 Cadillac 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3655804 1977/07/09 1989/07/09 2007/07/08 16.80 Cadillac 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3655805 1977/07/09 1989/07/09 2007/07/08 16.00 Cadillac 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3681041 1977/09/29 1989/09/29 2007/09/28 13.60 Cadillac 52 7 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3681042 1977/09/29 1989/09/29 2007/09/28 6.80 Cadillac 51 7 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3681043 1977/09/29 1989/09/29 2007/09/28 39.60 Cadillac 52 5 32D/01 0.00 2,500.00 48.00 Agnico-Eagle Ltd.3681044 1977/09/29 1989/09/29 2007/09/28 39.60 Cadillac 51 5 32D/01 0.00 2,500.00 48.00 Agnico-Eagle Ltd.3692571 1977/09/29 1989/09/29 2007/09/28 40.00 Cadillac 51 6 32D/01 0.00 2,500.00 48.00 Agnico-Eagle Ltd.3692572 1977/09/29 1989/09/29 2007/09/28 40.00 Cadillac 52 6 32D/01 0.00 2,500.00 48.00 Agnico-Eagle Ltd.3692581 1977/09/30 1989/09/30 2007/09/29 12.80 Cadillac 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3692582 1977/09/30 1989/09/30 2007/09/29 16.00 Cadillac 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3692583 1977/09/30 1989/09/30 2007/09/29 20.00 Cadillac 50 6 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3692584 1977/09/30 1989/09/30 2007/09/29 19.60 Cadillac 45 5 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3692591 1977/09/30 1989/09/30 2007/09/29 19.60 Cadillac 46 5 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.3692592 1977/09/30 1989/09/30 2007/09/29 19.60 Cadillac 47 5 32D/01 0.00 1,000.00 24.00 Agnico-Eagle Ltd.5265593 2003/05/09 2004/01/30 1/29/2010 9.40 Cadillac 32D/01 0.00 500.00 24.00 Agnico-Eagle Ltd.CM290 1989/09/22 12/31/2006 93.45 Cadillac 32D/01 0.00 3,270.75 0.00 Agnico-Eagle Ltd.
List of concession and claimsMines Agnico-Eagle Ltée - Lapa PN-118 (118)
Table 1.1: List and status of Mining Rights
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The Tonawanda claim block is burdened by a five percent (5%) net profit (NPI) royalty
derived (after recoupment of the investment) from operations on the properties that is
reserved (as of\ September 4th, 2003) to Alfer Inc. (100/101) and Mr. René Amyot (1/101)
and by a 1% NSR royalty retained by Breakwater Resources Ltd..
Claim 5265593, which was covered open ground discovered along the northwest boundary of
the Lapa property is not encumbered by any royalties.
Figure 2.2: Lapa Property Claim Map
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Figure 2.3: Lapa claim map and proposed location of Lapa mining lease
2.3 Mine Workings and Existing Tailings Ponds
The Zulapa property was the object of an underground operation, the Lapa Cadillac mine,
between 1938 and 1943 (the shaft is located approximately near UTM NAD83 5,344,500,
703, The secured mine shaft, former mine buildings’ foundations and a portion of the
abandoned tailings (although not accurately located) are still on site (Figure 2.2).
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A 759 metre long exploration ramp was excavated on the Tonawanda property by Breakwater
Resources Ltd.. in 1987-1988. The ramp, located at the base of the hill where the current
Lapa project site is constructed (near UTM NAD83 5,345,000mN, 702,000mE) reached a
vertical depth of approximately 80 metres from surface and the collar is sealed with waste
rock material.
2.4 Permits Required for Exploration Work
A certificate of authorisation was received from the Ministry of the Environment for the
underground exploration program on August 5, 2004.
In mid-2004, Agnico-Eagle initiated an underground exploration program which included the
construction of a headframe, a hoist room, a service garage and temporary office buildings.
A settling pond, a pump station and a waste pad were also constructed. The exploration
program included underground diamond drilling and the extraction of a bulk sample.
For the project to come into full production, a new access road, service building and parking
area will be added to the existing infrastructures. Given that treatment of the ore will be done
at the LaRonde mill, the Lapa site will only be affected by mining activities. A certificate of
authorisation will be required for the new infrastructure at the Lapa site and for the mining
activities. An amendment to the LaRonde mill certificate of authorisation will be required to
process the Lapa ore and use the LaRonde tailings pond.
2.5 Other Permits
In order to extract gold in Quebec, the Mining Act requires that a mining lease needs to be
issued by the Ministère des Ressource Naturelles, de la Faune et des Parcs du Québec. Any
person who already holds a claim, a mining exploration licence or a mining concession
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limited to specific mineral substances as described under section 5 of the Mining Act can
obtain a mining lease.
To obtain a mining lease, the claim holder must establish the existence of indicators of the
presence of a workable deposit and describe the nature, extent and probable value of that
deposit. The surface area of must not exceed 100 hectares, unless the applicant has submitted
an application to the Minister of Natural Resources and Wildlife and the circumstances
warrant an exception. The initial term of a mining lease is 20 years, and it can be renewed
every 10 years while mining continues.
The holder of a mining lease is required to restore the site once mining has ceased. For this
purpose, the leaseholder is required to submit a site rehabilitation and restoration plan before
mining begins, and provide a financial guarantee to ensure the completion and performance
of the restoration work required. No guarantee payments are required before mining begins,
but these guarantee payments must be spread progressively over the last fifteen years of
mining on the site.
An application to convert approximately 70 hectares of the Lapa property covered by claims
into a mining lease was submitted by Agnico-Eagle to the Ministère des Ressource
Naturelles, de la Faune et des Parcs du Québec in April 2006 (Figure 2.2).
2.6 Environmental Considerations
2.6.1 Surface Waters
The site is located at the split of the continental watersheds (Figure 2.X). The surface waters
on the western and northern claims flow down to the west into Lac Preissac and to the south
into the St-Lawrence River via the Kinojévis and Outaouais rivers. The surface waters from
the central and eastern part of the property flow down to the east into the Lac Malartic and to
the north into James Bay via the Harricana River.
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Figure 2.4: Lapa Area (1: 15 000)
Surface waters were sampled from August to October 2003. Results showed that the only
surface waters slightly exceeding the guidelines for aquatic life were the ones near the area
occupied by the abandoned tailings. Surface waters on the northern side of Highway 117
were of good quality.
2.6.2 Water Management A sedimentation pond was constructed in a natural depression. It required the construction of
a dike about 150 m long and 5 000 m3 in volume. The pond capacity is 50 000 m3.
The sedimentation pond is used to remove suspended solids from the dewatering water before
either release to the environment or re-use in the underground mining operation. The waste
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rock pile naturally drains towards the sedimentation pond. A waste rock sampling program
was implemented during the shaft sinking phase and verified the non-acid generating nature
of the waste rock.
Water overflowing from the sedimentation pond will be sampled according to the
requirements of Directive 019, the Quebec mining effluent guidelines, and is expected to
comply with the water quality criteria.
The sedimentation pond overflows into an old open pit which discharges into Preissac Lake.
The impact of the additional water from Lapa is expected to be negligible. Part of the water
is pumped back to the mine for use in the underground mining activities such as drilling.
2.6.3 Underwater Excavation and Dewatering
At the end of April 2006, the first phase of the project (the exploration program) was
completed. The shaft had reached the depth of 703 metes. An access drift was excavated on
level 69 (690 metre depth) toward the ore zone and 140 metres were excavated in the Lapa
deposit mineralization. The total amount of waste rock from these excavations was
approximately 130,000 metric tonnes and the total amount of mineralization extracted was
2,800 metric tonnes. These materials are stockpiled on surface at the Lapa mine site.
The waste rock that was not used as fill for the mining site was deposited on a waste rock pile
west of the shaft. The ore will be transported to the LaRonde mill.
For the second phase of the project, the shaft will be sunk to 1,360 m in depth. Ventilation
and fill raises, and an internal service ramp will be excavated, and production will reach the
full 1,500 metric tonnes of ore per day and approximately 500-800 metric tonnes of waste per
day. During the mining phase the waste rock produced and the rock in the waste pile at
surface would be recycled underground as backfill.
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2.6.4 Environmental Considerations Associated with the Treatment of Lapa Mineralization at the LaRonde mill
The Lapa gold mineralization will be treated in a separate circuit at the LaRonde mill. The
tailings from the flotation circuit will be send to the LaRonde tailings pond and because of
their neutralisation potential should have a beneficial effect on the acid generating tailings generated by the LaRonde mine. The cyanidation circuit tailings will be contained in a
separate lined cell in the LaRonde tailings pond because it will contain arsenic. Leaching
tests will be carried out on the tailings from the pilot tests to determine the stability of the
arsenic in the tailings and to evaluate the arsenic content of the supernatant water.
Depending on the arsenic concentration in the water, treatment to remove the arsenic might
be required. Given the small volume of that water and that the technology to treat water
containing arsenic is readily available; this is not expected to create undue technical or cost
constraints.
2.7 Potential Environmental Liabilities
There are no known environmental liabilities associated with the Lapa site. The property is
on crown land. The northern part of the property, north of Highway 117 is mostly rock with
shallow overburden. The mining site is located on the side of a hill in close proximity to the
highway. There is an existing access ramp (closed) on the side of the hill. A communication
tower is currently located on top of the hill. There is no agricultural land use on this side of
the highway and the neighbouring properties are mostly used for mining exploration and for
recreational purposes by all terrain vehicles and in the winter by snowmobiles.
The southern part of the property, south of Highway 117, contains an abandoned tailings area
from mining activities that took place from 1937 to 1942 under the name of Lapa-Cadillac
mine.
It contains approximately 346,000 tons and covers about 15 hectares. The Ministry of Natural
Resources acknowledged in writing that Agnico-Eagle would not be responsible for the
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rehabilitation of this tailings area. In any case, the mining activities would not take place on
this side of the highway and except for diamond drilling work from the surface; this area
would be left in its original state. A transmission line crosses the southern part of the
property. The surrounding land use includes some agricultural lands located on Rang VI in
the Municipality of Rivière-Héva.
3 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE & PHYSIOGRAPHY
3.1 Accessibility
The Lapa project is located approximately 45 kilometres west of the town of Val-d’Or and it
is easily accessible by paved road via Highway 117. This road transects the property in an
east-west direction. The LaRonde Division is less than 10 kilometres to the west of the
property via Highway 117 for roughly 8 kilometres and north on Highway 395 for 2
kilometres.
Figure 3.1: Map of property
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The northern portion of the property is accessible via a gravelled road leading up to a
communications tower located a few hundred metres north of Highway 117. This road is
actually used to access the infrastructures put in place for the underground exploration
program. The southern portion is accessible via a gravel road put in place by Agnico-Eagle
Exploration and then through a network of hydroelectric power lines and tractor roads.
3.2 Climate
The area has a typical continental climate, comparable to more well known communities at
the same latitude in mid Canada like Timmins, Sudbuary and Thunder Bay. The snow stays
on the ground around mid-November and the ice leaves the lakes in early May. Winter
temperatures average -15 degrees Celcius in January and February. The ground is frost free
from May to October. Summers are warm and relatively dry with a mean temperature of 22
degrees Celcius.
The climate allows for access and mining activities all year-round.
3.3 Physiography
The project area is situated between 320 and 390 meters above sea level. The maximum
elevation is in the communication tower area and the minimum is in the southern part of the
property. The topography slopes relatively gently from north to south.
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Figure 3.2 : Lapa area (1: 8 000) and Topography
The property is generally covered by a boreal-type forest consisting mainly of black spruce
and white pine with minor birch and poplar.
3.4 Infrastructure
The project is located in a well developed mining region with all the facilities and services
easily available. The towns of Rouyn-Noranda and Val-d’Or with populations between 25
and 35 thousand are well known for their mining history. The manpower will mainly be
supplied from these towns.
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All the main services required for the mining operations are already on site as mentioned
earlier and the surface rights are sufficient to fulfill all the future requirements.
The feasibility study envisages that the LaRonde Division milling and tailings facilities will
be adapted to treat and store Lapa project ores and processing waste.
Figure 3.3 : Aerial view of the current Lapa project infrastructures
4 HISTORY 4.1 Previous Work
A summary of work carried out on the Lapa property is presented below. A detailed
description of the work described below and of other work carried out on adjacent properties
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is available from an claims assessment report submitted by Cambior Inc. in 2000 titled
“Rapport des travaux – 1999 Propriété Lapa (236)” (Couture, J.F. , 2000).
1938-43 Lapa-Cadillac Gold Mines, mined 345 844t at 4.3 g/T Au; completed 15,100 metres of
drilling from underground operations. These estimates are not compliant with the 43-101
standards.
1955 Canadian Malartic Gold Mines, 8 drill holes totalling 1,200 metres. Gold mineralization was
intersected within the Piché volcanic Group.
1981-86 Breakwater Resources Ltd.: Line cutting, ground geophysics and geological surveys.
Recognition of 5 gold bearing horizons (A1, A2, A-Nord, B, and C) within the Piché volcanic
Group.
1986-89 Breakwater Resources Ltd.: 104 drill holes totalling 25,862 metres over the Tonawanda
mining concession.
1987-88 Breakwater Resources Ltd.: Exploration ramp, 759 metres excavated and 60 drill holes (754
metres).
1988 Breakwater Resources Ltd.: Resource estimate for “Highway” zone of 676,177 tonnes
grading 5.3 g/t of gold (J-F Couture, 2000). This estimate is not compliant with the 43-101
standards
1989 Breakwater Resources Ltd.: 11 drill holes to test continuity of previously defined zones.
1999 Cambior Exploration Canada: 4 drill holes for a total of 2,925.9 metes testing the depth
continuity of Zone A and the Contact Zone.
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2002 Agnico-Eagle Mines Limited, Exploration Division: 3 diamond drill holes for a total of
2,728 meters to fence off the Contact Zone at depth.
2003 Agnico-Eagle Mines Limited acquires the Lapa property for $8.925 million and net smelter
royalties ranging from 0.5% to 1%. An additional $1 million will be payable if Lapa’s
published inferred resource reaches 2 million ounces of gold. Of the $9.925 million in total
cash considerations, $2 million is creditable against future net smelter royalties.
2002-2004 Agnico-Eagle Mines Limited, Exploration Division: From the end of 2002 through 2004,
intensive diamond drilling campaign using up to seven rigs for the delineation of the newly
discovered Lapa deposit zones at depth for a total of 97 holes and 83,479 meters.
2004 to present : Underground exploration program
2004 Agnico-Eagle Mines Limited, Regional Division : Head frame and hoist building erection
2005 Agnico-Eagle Mines Limited, Regional Division : Shaft sinking start-up in March.
2006 Agnico-Eagle Mines Limited, Regional Division : Underground diamond drilling from shaft
station 49 (490 metre depth) was performed from January to March with a total of fourteen
(14) NQ core holes completed totalling 3,903.5 m. Shaft sinking reached 703m depth in
February. Horizontal development on level 69 (690 metre depth) was performed from
February to April with approximately 225 metres of access drift and 140 metres in the
mineralization to collect a bulk sample. Three diamond drill rigs were in operation in March
and April from level 69. Fourteen (14) NQ core holes totalling 3,054 m were completed from
the shaft station on a 40 metre by 40 metre spacing. Thirty (30) BQ core holes totalling
1,899.2 metres were completed on a 20 metre by 20 metre spacing from a footwall drift
located about 35 metres north of the mineralized zone.
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4.2 Previous Mineral Resource and Mineral Reserve Estimates The following estimates completed and disclosed by Agnico-Eagle Mines Limited were NI
43-101 compliant and reliable
April 2003 Agnico-Eagle Mines Limited
An inferred mineral resource is estimated by the polygonal method by Marc Legault, P.Eng.,
at 3.3 million tons grading 0.25 ounces per ton containing 816,000 ounces of gold (cut to 1.5
ounces per ton); parameters and assumptions include $300 per ounce gold price, a 0.13 ounce
per ton cut-off, polygons limited to 150 feet radius and 9.2 feet minimum horizontal width. .
(Agnico-Eagle Mines Limited press release dated April 24, 2003).
June 2003 Agnico-Eagle Mines Limited
An inferred mineral resource is estimated by the polygonal method by Marc Legault, P.Eng.,
at 4.0 million tons grading 0.25 ounces per ton containing 1,015,000 ounces of gold (cut to
1.5 ounces per ton); parameters and assumptions include $300 per ounce gold price, a 0.13
ounce per ton cut-off, polygons limited to 150 feet radius and 9.2 feet minimum horizontal
width. (Agnico-Eagle Mines Limited press release dated June 19,, 2003).
October 2003 Agnico-Eagle Mines Limited :
A Mineral Resource estimate was completed October 29th, 2003 by Agnico-Eagle Mines
Limited Toronto office (Marc Legault, P.Eng.) and outlined an indicated mineral resource of
722,000 ounces of gold in 2.5 million tons grading 0.29 ounces per ton and an inferred
mineral resource of 462 000 ounces of gold in 1.9 million tons grading 0.25 ounces per ton
(cut to 1.5 ounces per ton); the estimate used the block model method with inverse square
distance power squared interpolation and the parameters and assumptions included $300 per
ounce gold price, a 0.13 ounce per ton cut-off, models limited to 150 feet radius from drill
hole intercepts and 9.2 feet minimum horizontal width. (Agnico-Eagle Mines Limited press
release dated October 29th, 2003).
February 2004 Agnico-Eagle Mines Limited:
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In February 2004, Agnico-Eagle Mines Limited (Marc Legault, P.Eng.) estimated probable
mineral reserves of 1.187 million ounces of gold contained in 4.661 million tons grading 0.25
ounces per ton (after dilution). The Indicated Mineral Resources were estimated at 705,000
tons grading 0.16 ounces per ton and the Inferred Mineral Resources were estimated at
324,000 tons grading 0.18 ounces per ton. The estimate used a block model method with
inverse square distance power squared interpolation and the parameters and assumptions
included $325 per ounce gold price, a $C/US$ rate of 1.40, minimum grade cut-offs of 0.17
ounce per ton and 0.15 ounces per ton respectively for probable reserves and mineral
resources, models limited to 150 feet radius from drill hole intercepts and 9.2 feet minimum
horizontal width. The pre-feasibility study was prepared by Rosaire Emond Eng., Regional
Division senior engineer (Agnico-Eagle Mines Limited press release dated February 25th,
2004).
February 2005 Agnico-Eagle Mines Limited:
In February 2005, Christian D’Amours, P.Geo. from Geopointcom of Val d’Or updated the
Reserves/Resources estimate. The probable mineral reserve estimate was 1.168 million
ounces of gold contained in 4.090 millions metric tonnes grading 8.88 g/T (after dilution).
The Indicated Mineral Resources were estimated at 0.754 million tonnes grading 5.49 g/T
and the Inferred Mineral Resources were estimated at 1.709 million tonnes grading 7.69 g/T.
The estimate used a block model method with inverse square distance power squared
interpolation and the parameters and assumptions included $360 per ounce gold price, a
$C/US$ rate of 1.42, minimum grade cut-offs of 0.19 ounce per ton and 0.15 ounces per ton
respectively for probable reserves and mineral resources, models limited to 150 feet radius
from drill hole intercepts and 9.2 feet minimum horizontal width. The pre-feasibility study
was prepared by Rosaire Emond Eng., Regional Division senior engineer (Agnico-Eagle
Mines Limited press release dated February 23th, 2005). (press release dated; D’Amours,
2005).
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5 GEOLOGICAL SETTING 5.1 Regional Geology
The geology that underlies the Lapa project is located along the southern boundary of the
Abitibi geological Subprovince (2.7 billion years; Figure 1.1). The contact between the
Abitibi greenstone belt and the Pontiac Subprovince is the Cadillac-Larder Lake Fault.
5.2 Property Geology
The Lapa property straddles the Cadillac-Larder Lake Fault. This fault is regionally
extensive and is spatially related to numerous gold prospects and past producers. The fault
zone transects mafic to ultramafic schists intercalated with less deformed mafic and
ultramafic flows (Piché Group). The Piché Group, varies in thickness from 150 to 300
metres on the property. Feldspathic porphyritic and aphanitic dykes are frequently injected in
the schist zones and are also deformed. According to compilation data, these dykes are more
abundant in the eastern portion of the property where the Piché Group is folded and turns
north – south. The Piché Group is in contact with Pontiac Group (Pontiac Subprovince)
greywackes to the south and Cadillac Group (Abitibi Subprovince) greywackes,
conglomerates and iron formations to the north. All these units are sub vertically dipping.
Refer to the regional geology map on Figure 5.1.
Locally, the Piché Group is folded into a series of large dextral asymmetric folds. The gold
mineralized zones of the Zulapa and Pandora projects are located in the hinges of two of
these fold structures.
Between these folds and underlying the Tonawanda property, the Piché Group forms a
relatively linear panel striking at 105 degrees azimuth. Numerous late brittle faults striking
northeast and northwest are mapped across the properties. These faults have throws of meter
scale and are seen to displace gold mineralized lense
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Figure 5.1 - The Regional Geology map and Agnico-Eagle Properties
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5.3 Deposit Types
Gold occurrences in the Cadillac-Rivière Héva sector are all vein type epigenetic deposits
spatially associated to the Cadillac-Larder Lake deformation zone. As such all the deposits
occur within or proximal to the Piché Group. These deposits are relatively arsenic enriched
and occur as quartz veins and veinlets or as sulphide disseminations. It is generally agreed
that the gold mineralization in the Cadillac region was emplaced after regional deformation
and metamorphism. The most important production in the sector is the O’Brien mine
immediately north of the town of Cadillac. 18.6 tonnes of gold were extracted from this past
producer (P.Trudel, 1990). Note that this estimate is not conformable to actual estimation
standards and was not verified by the author.
5.4 Mineralization
Gold mineralization on and proximal to the Lapa property is spatially related to the Piché
Group volcanics. Gold mineralization in the sector falls into three broad categories and can
be described as follows:
• Located in fold hinges of asymmetric dextral folds. Composed of irregular quartz
veins parallel to axial plan (Pandora shaft 2) or as cylindrical sulphide mineralized
pods parallel to fold axis (Lapa –Cadillac Zones A to H and Branch North).
• Low grade tabular shaped zones between fold zones (Zones A, A North, A East,
B,and
• Contact) within Piché group schists. Mineralization in these zones consists of gold
bearing veins and veinlets hosted by biotite altered sulphide mineralized volcanics.
• Biotite – Mica altered zones associated to sheared feldspathic dykes (Zone C). These
zones are of limited lateral continuity.
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Zulapa:
Two gold enriched zones were exploited on the Zulapa mining block. The Main Zones (A to
H) consist of biotite schists, pyrite – pyrhotite – arsenopyrite – chalcopyrite mineralized and
hosting gold bearing quartz veinlets. Morphologically, these zones are roughly cylindrical
and measure between 12 and 43 metres in strike length, 1.5 to 7.5 metres wide and of
considerable vertical extension. Albitite dykes are spatially associated to the mineralization.
In addition to these zones, eight gold bearing lenses are present to the north of the Main
Zones. Mineralization consists of smoky quartz veins with arsenopyrite, pyrhotite, pyrite,
and visible gold.
Tonawanda
Following work undertaken in the 1980’s by Breakwater Resources, numerous gold zones
were identified on the Tonawanda group. Zone A is a tabular shaped biotite schist, silica
altered, with quartz veining and disseminated sulphides. It has been traced for upwards of
1km and varies in thickness from 30m to less than 1m. To the west, the A zone is at the
northern contact of a chlorite schist. It is split into 2 distinct zones (A1 and A2). Eastward
the A East zone is in contact with graywackes intercalated into the Piché group. It splinters
into two zones (A East N and A East S) with sterile graywackes separating the zones.
To the north of the A Zone are two more gold enriched horizons named A North and B.
These zones are separated by less than 10m. The B zone is located roughly 20 to 40 metres
north of A and is roughly 10 metres from the Cadillac Group – Piché Group contact. Finally
the C zone is located to the south of the A zone. This zone is discontinuous. A thorough
compilation of the known gold enriched zones in the sector is presented in the report titled
Rapport des travaux – 1999 Propriété Lapa (236) (Couture, J.F. , 2000) prepared for Cambior
Exploration Canada.
The next page shows the Lapa geology map.
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28
Figure 5.2 : Lapa Geology Map
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Contact Zone
Previous drilling had defined the Contact zone as a sub-vertically dipping panel proximal to
the Cadillac Group – Piche Group contact. It is characterized by moderate to strong biotite –
silica alteration. Hole La99-01 returned 0.8g Au / T/12m and hole La99-02 returned
1.3gAu/T/8.0m. However, hole La99-02 intersected strong gold mineralization at the contact
of the Piché Group with the Cadillac Group (Contact Zone). In 2002, Agnico-Eagle Mines
via its Exploration Division, made 3 diamond drill holes for a total of 2 728m to fence off the
Contact Zone at depth. A summary of previous holes and the first 3 Agnico-Eagle drill holes
intersecting the Contact Zone is provided in the table below.
DDH Zone Grade
(g/T)
Length (m) /
(Horizontal Thickness)
La99-01 « Contact » .19 2.7
La99-02 « Contact » 10.67 14.5
La99-03 « Contact »
10.57
3.0
La99-04
« Contact »
5.49
3.0
118-02-01A « Contact » 9.8 3.0
118-02-02B « Contact » 5.77 13.0
118-02-03 « Contact » 2.54 3.0
Table 5.1: Historical Contact Zone Gold Intercepts
Subsequent drilling (2002-2004 campaign) has defined the Contact Zone and appears to have
cut it off in its eastern and western extents. The ‘Contact Zone’ consists of an anatomising
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sheared horizon ranging from one meter to tens of meters in width. The top of the zone is
roughly 400 metres below surface. Two main horizons form the bulk of the previous
Reserves/Resources mineral estimate; the Contact Zone and the Contact South Zone.
Economic grade intersections define a funnel shaped horizon in longsection looking north,
raking steeply towards East. Following the tightly spaced drilling undertaken during the 2006
underground programme, the zone was re-interpreted as four sub-parallel sheared and altered
horizons. In the text, the term ‘Contact Zone’ refers to the corridor containing all the
mineralized zones proximal to Cadillac Group/Piché Group contact. The newly interpreted
Contact North and Contact Center were initially assigned to the Contact Zone and are
detailed in the current reserve estimate.
The deformation and alteration associated to the Contact Zone crosscut lithologies at a very
low angle but is spatially associated to the Piché Group – Cadillac Group contact. As a
result, the ‘Contact Zone’ can be hosted locally by Piché Group chlorite schists and mafic
volcanics as well as Cadillac Group wackes and conglomerates. The zone is characterized by
biotite – silica – sericite alteration as millimetric discontinuous wisps parallel to foliation.
Buff yellow sericitic alteration is more developed within the wackes whereas biotite – silica
alteration predominates within the Piche Group volcanics. A wide zone of quartz – carbonate
alteration marks the Piché Group south of its contact with the Cadillac Group sediments.
Smokey grey quartz stringers, parallel to the shear fabric, make up from 5% to 25% of the ore
zone. These veins range from millimeters to decimeters in width. Visible gold is frequently
hosted by these veins but is also sporadically noted outside of the veins within the biotite
altered zones. Arsenopyrite – pyrite – pyhrotite – stibnite are the characteristic sulphides
associated to the zone. Arsenopyrite is fine to medium grained, subhedral to euhedral and
usually proximal to silicified intervals. Stibnite is present as fine grained needles usually
more abundant proximal to smokey grey quartz veining. Pyhotitite – pyrite as fine grained
disseminations is usually present in the one to two percent range. Atypically, graphite was
noted in the smokey grey veins.
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6 Exploration
6.1 Procedures
Surface exploration drilling (2002-2004) was contracted to, and carried out by, Forages
Roullier of Amos, Quebec. All aspects of the program were supervised by Mr. Dino
Lombardi P.Geo.,of Agnico-Eagle Mines Exploration Division in Val d’Or. The position and
orientation of the diamond drill holes were determined by Agnico-Eagle staff using pertinent
longitudinal and cross-sectional projections. UTM co-ordinates for the collar and front sites
were given to surveyors (from the firm of J.L. Corriveau et Associés of Val d’Or) who in turn
implanted these points in the field using a differential GPS (with an accuracy generally of
less than 5 centimetres). The diamond drill rig was aligned by Agnico-Eagle staff using these
surveyed points as reference. A Reflex borehole surveying instrument was used to control
the hole’s direction as drilling progressed. Once completed, all holes were surveyed using a
North Seeking gyroscope with intervals of no more than 15m between readings. This
surveying was done by Sperry Sun Services of North Bay, Ontario. Once the hole was
completed, and the rig moved off the collar, the casing’s co-ordinates were surveyed by
surveyors (J.L. Corriveau et Associés) using a differential GPS (with accuracy generally of
less than 5 centimetres). All orientation and survey data was submitted digitally to Agnico-
Eagle and appended to the central database by Agnico-Eagle staff (and verified individually).
When wedges were necessary, they were implanted by the drill crews under the supervision
of Agnico-Eagle staff. A Reflex survey instrument was used to measure the orientation of
the wedges.
The 2006 underground exploration program was awarded to Forage Garant et Fils of Evain,
Quebec. The program was supervised by Jocelyn Côté P.Geo, and Normand Bédard P.Geo.,
respectively project geologist and senior geologist at Agnico-Eagle’s Regional Division. The
drill holes azimuth and location were implanted by the mining contractor’s surveyor (Dumas
et Fils) who is responsible of the shaft sinking and the drifting on level 69. Upon completion,
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32
drill holes on level 69 deeper than 70 metre were surveyed using a North Seeking gyroscope
to calculate the borehole trace. Only three of the fourteen drill holes on level 49 had a
gyroscopic survey but the work will be done in the next few months when the return on site.
This surveying was done by Sperry Sun Services of North Bay, Ontario. Services of North
Bay, Ontario. Once completed, the collar of every holes were surveyed by the mining
contractor’s surveyor for co-ordinates, azimuth and plunge.
6.2 Diamond Drilling Results 6.2.1 2002-2004 Diamond Drilling Program
The 2002 – 2004, program undertaken by Agnico-Eagle Mines Exploration Division was
focused on extending the high-grade Contact Zone first recognized by Cambior Exploration
in 1999. All the drilling was done on BQ size core. Ninety-seven (97) holes (and wedge cuts)
crossed the Cadillac Group – Piché Group contact in order to define and test the extent of the
Contact Zone mineralized envelope. The campaign succeeded in extending and defining the
upper, western, and eastern limits of the Contact Zone. The deepest hole to have intercepted
the Cadillac Group –Piché Group contact is hole 118-04-57A at a depth of 1,730 meters. The
deepest significant Contact Zone gold intercept is 7.24 g/t Au/6.0m is from hole 118-04-57C
at 1,560 meters vertically from surface. The zone remains open at depth.
Because of the zones’ depth (450 metres to 1,600 metres below surface), the length of the
drill holes needed to reach them can be substantial. Drill string deviation must therefore be
carefully monitored and corrected. The control of the holes has therefore rendered necessary
the installation of several wedges. Steel wedges were also used to obtain several pierce
points (through the mineralized zone) from the same collar notably to recover composite
samples for metallurgical tests. This approach greatly reduced the amount of drill footage
required to reach targets.
A total of 9,603 samples were recovered from drill core during the 2002-2004 program. All
samples were sawed with half sent to Laboratoires Expert Inc. laboratories in Rouyn -
Noranda for gold analysis. Checks on selected samples were carried out at ALS Chemex
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33
Chimitec and Bourlamaque Assay Laboratories Ltd. in Val d’Or. The other half of the core
was returned to the core box.
All core was stored at Agnico-Eagle Mines Limited’s LaRonde and Bousquet mine sites.
Samples outside the Contact Zone were sent for gold analysis and those assigned to the
Contact Zone were assayed for Au, Ag, As, Sb.
Table 6.1 outlines the drill holes and the gold values associated to the Contact North,
Contact, Contact Center and Contact South Zones. The intersections, grade and thickness
correspond to the new interpretation of the mineralized zones and differs locally from the
intercepts reported on previous press releases. All intercepts within each zone corridors are
listed (inside and outside of the reserves area).
The Contact Zone is a sub-vertically dipping panel striking approximately at North 105
degrees, therefore, the horizontal width listed on the following table correspond to the true
thickness of the zones.
Table 6.1 : Gold Intercepts ( 2002-2004 DDH Campaign)
DDH no. from (m) to (m) Zone
Horizontal
Width
(m) Au g/t
27-43 340.0 343.7 Contact 2.8 0.18
27-46 376.9 381.5 Contact 2.9 0.03
27-60 314.5 320.0 Contact 2.9 0.02
27-77 302.3 307.0 Contact 2.8 4.08
27-78 320.5 324.6 Contact 2.8 6.48
27-81 653.0 658.5 Contact 2.8 0.24
LA99-01 264.0 270.4 Contact 2.8 0.19
LA99-02 626.2 635.2 Contact 3.8 9.94
LA99-03 734.1 741.5 Contact 4.1 10.57
LA99-04 524.5 530.2 Contact 2.9 5.05
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34
118-02-01A 775.1 781.1 Contact 3.4 9.81
118-02-02B 778.2 784.3 Contact 3.5 12.32
118-02-03 762.2 766.3 Contact 2.8 2.84
118-02-04 940.9 948.2 Contact 5.0 20.42
118-02-05 408.8 419.3 Contact 4.8 5.66
118-02-06 817.3 826.0 Contact 4.6 9.22
118-02-07 981.4 986.4 Contact 3.2 9.03
118-02-08 686.1 695.1 Contact 5.1 20.52
118-03-04A 983.8 989.3 Contact 3.1 12.96
118-03-04C 913.2 916.8 Contact 2.8 6.21
118-03-06A 770.0 774.7 Contact 3.2 7.50
118-03-07B 860.0 866.0 Contact 4.5 18.57
118-03-09 365.2 369.0 Contact 2.8 0.02
118-03-10A 596.8 602.4 Contact 3.1 18.80
118-03-11 490.9 495.5 Contact 2.8 2.41
118-03-12A 527.3 532.3 Contact 3.0 2.21
118-03-13A 427.4 431.5 Contact 2.8 0.72
118-03-14 621.2 628.6 Contact 4.7 7.37
118-03-15 558.6 564.0 Contact 3.0 5.44
118-03-16 1275.9 1281.2 Contact 3.4 17.79
118-03-16A 1209.5 1213.3 Contact 2.8 23.15
118-03-16C 1165.0 1169.0 Contact 2.9 18.43
118-03-16E 1092.0 1096.0 Contact 3.5 7.50
118-03-18B 602.7 607.4 Contact 2.8 2.23
118-03-19A 876.5 882.7 Contact 2.8 2.03
118-03-19B 848.2 853.2 Contact 2.8 2.14
118-03-20 642.5 650.0 Contact 2.8 5.77
118-03-21A 1006.0 1010.4 Contact 3.5 2.72
118-03-22A 896.9 903.1 Contact 3.0 2.31
118-03-22B 867.5 872.8 Contact 2.9 0.07
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35
118-03-23 514.5 521.3 Contact 2.8 0.55
118-03-25 1327.3 1332.8 Contact 4.1 8.18
118-03-25A 1206.6 1209.9 Contact 2.9 2.36
118-03-25B 1312.4 1316.1 Contact 2.8 2.89
118-03-25C 1249.4 1253.0 Contact 3.0 1.70
118-03-25F 1203.3 1207.7 Contact 3.9 11.22
118-03-26 484.2 488.7 Contact 3.0 1.99
118-03-27 698.3 710.3 Contact 5.8 5.88
118-03-27A 580.6 585.2 Contact 2.8 1.89
118-03-28B 1146.2 1150.7 Contact 3.6 3.73
118-03-28E 1072.2 1075.4 Contact 2.8 2.20
118-03-28F 1096.2 1099.2 Contact 2.8 0.60
118-03-28G 1073.9 1078.2 Contact 3.8 3.12
118-03-29 1169.5 1173.7 Contact 2.8 5.48
118-03-29A 1032.9 1036.0 Contact 2.8 1.89
118-03-29B 1114.3 1117.9 Contact 3.1 8.02
118-03-29C 964.6 967.9 Contact 2.9 2.47
118-03-30A 734.4 738.1 Contact 2.8 0.54
118-03-31 543.8 552.8 Contact 5.3 6.57
118-03-32 783.5 788.0 Contact 2.8 1.32
118-03-32A 742.5 746.0 Contact 2.9 0.10
118-03-33A 764.0 770.1 Contact 4.9 14.36
118-03-34A 1208.9 1213.9 Contact 2.9 2.34
118-03-35 1161.6 1168.0 Contact 5.9 8.85
118-03-35A 1307.0 1319.3 Contact 7.6 24.97
118-03-35B 1275.5 1280.1 Contact 3.6 11.73
118-03-35D 1207.3 1216.3 Contact 6.7 21.08
118-03-35E 1252.4 1257.5 Contact 3.9 16.79
118-03-36 585.8 591.6 Contact 2.8 2.94
118-03-37 613.5 617.0 Contact 3.1 1.48
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36
118-03-38 450.0 453.8 Contact 2.8 0.84
118-03-39 698.0 705.8 Contact 3.3 9.35
118-03-39A 596.1 605.1 Contact 5.3 6.71
118-03-39B 540.8 546.0 Contact 3.3 7.80
118-03-40 1072.0 1076.2 Contact 2.9 4.17
118-03-40A 1084.8 1089.3 Contact 3.4 5.38
118-03-42 556.0 560.0 Contact 3.2 6.25
118-03-43 465.4 470.0 Contact 2.8 5.33
118-03-44B 557.8 562.5 Contact 2.8 3.74
118-03-45 647.7 652.0 Contact 2.8 0.66
118-03-46 379.7 384.0 Contact 2.8 0.79
118-03-47 460.9 464.1 Contact 2.8 0.96
118-03-48 308.0 312.7 Contact 2.8 4.62
118-03-49 289.6 299.5 Contact 4.8 3.23
118-04-07D 890.4 896.3 Contact 4.2 6.99
118-04-08B 539.0 543.3 Contact 3.1 5.88
118-04-21B 986.7 990.6 Contact 3.0 8.04
118-04-34C 1135.2 1140.5 Contact 3.7 4.39
118-04-50A 1395.5 1399.1 Contact 2.8 1.01
118-04-50B 1318.0 1321.1 Contact 2.8 1.29
118-04-50C 1219.5 1222.5 Contact 2.8 0.48
118-04-50D 1306.8 1310.0 Contact 2.8 1.40
118-04-51E 1598.5 1602.7 Contact 2.8 0.28
118-04-52 1548.2 1552.6 Contact 3.0 1.65
118-04-52B 1473.8 1477.1 Contact 2.8 6.65
118-04-52D 1414.8 1418.0 Contact 2.8 3.03
118-04-52E 1393.8 1396.9 Contact 2.9 4.48
118-04-53 864.0 868.0 Contact 3.0 0.33
118-04-54B 1174.0 1178.0 Contact 3.0 0.18
118-04-55 847.3 851.7 Contact 3.0 0.03
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37
118-04-56 1161.0 1166.5 Contact 2.6 0.03
118-04-57A 2036.2 2039.7 Contact 2.8 0.05
118-04-57C 1886.7 1892.9 Contact 5.9 7.24
118-04-57E 1827.9 1831.8 Contact 3.8 6.71
118-04-57G 1749.4 1752.6 Contact 3.0 6.05
118-04-58 1057.4 1061.9 Contact 3.0 1.10
118-04-59A 1017.0 1020.4 Contact 3.0 0.47
118-04-60A 1175.1 1178.6 Contact 2.9 0.27
118-04-63 813.8 816.5 Contact 2.1 1.42
27-46 294.5 299.5 Contact South 2.8 3.59
27-60 399.5 404.8 Contact South 2.9 0.01
27-81 592.0 597.6 Contact South 2.8 1.46
LA99-02 468.0 475.0 Contact South 2.8 1.59
LA99-03 636.0 641.2 Contact South 2.8 0.86
LA99-04 443.7 449.8 Contact South 2.9 4.04
118-02-01A 679.0 684.0 Contact South 2.8 0.00
118-02-02B 669.3 674.5 Contact South 2.8 1.05
118-02-03 691.6 696.2 Contact South 2.8 1.97
118-02-04 874.8 879.6 Contact South 3.0 2.37
118-02-07 948.8 953.5 Contact South 2.9 3.26
118-03-04A 941.3 956.3 Contact South 7.9 7.03
118-03-04C 847.2 851.2 Contact South 2.9 0.86
118-03-06A 673.7 678.5 Contact South 2.8 1.25
118-03-07B 795.0 798.8 Contact South 2.8 0.03
118-03-14 567.4 572.1 Contact South 2.8 0.47
118-03-16 1217.4 1222.0 Contact South 2.8 1.62
118-03-16A 1180.5 1184.4 Contact South 2.8 6.45
118-03-16C 1108.7 1113.2 Contact South 3.2 1.48
118-03-16E 1049.0 1052.5 Contact South 2.9 1.76
118-03-19B 778.0 783.7 Contact South 2.9 1.39
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38
118-03-21A 959.8 964.1 Contact South 3.4 11.36
118-03-25 1300.6 1304.6 Contact South 2.9 2.27
118-03-25A 1175.8 1179.1 Contact South 2.8 4.75
118-03-25B 1271.0 1275.0 Contact South 2.9 0.54
118-03-25C 1215.6 1219.0 Contact South 2.8 0.45
118-03-25F 1176.5 1179.8 Contact South 2.8 1.29
118-03-26 417.8 422.8 Contact South 3.0 5.76
118-03-27 588.0 593.8 Contact South 2.8 0.71
118-03-27A 500.5 506.0 Contact South 3.2 7.76
118-03-28B 1091.3 1095.0 Contact South 3.0 1.61
118-03-28E 1023.7 1028.0 Contact South 3.7 26.06
118-03-28F 1036.8 1043.3 Contact South 6.1 6.48
118-03-28G 1028.0 1031.8 Contact South 3.4 35.13
118-03-31 465.6 471.0 Contact South 2.9 2.70
118-03-35 1132.6 1135.6 Contact South 2.8 4.24
118-03-35A 1226.8 1231.3 Contact South 2.8 0.51
118-03-35B 1212.5 1216.3 Contact South 2.9 2.48
118-03-35D 1165.0 1168.8 Contact South 2.8 1.66
118-03-35E 1206.0 1210.0 Contact South 2.9 1.56
118-03-36 492.8 498.6 Contact South 2.8 4.76
118-03-38 378.2 382.3 Contact South 2.8 2.45
118-03-39 554.2 561.0 Contact South 2.8 0.13
118-03-39A 509.4 514.6 Contact South 2.8 0.38
118-03-39B 464.7 469.3 Contact South 2.8 0.60
118-03-43 388.1 393.0 Contact South 2.8 4.73
118-04-07D 840.0 844.0 Contact South 2.8 1.33
118-04-21B 938.5 942.1 Contact South 2.8 2.42
118-04-50A 1307.7 1311.4 Contact South 2.8 2.44
118-04-50B 1247.4 1250.7 Contact South 2.9 0.87
118-04-50C 1160.8 1163.8 Contact South 2.8 1.33
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39
118-04-50D 1241.5 1244.8 Contact South 2.8 0.69
118-04-51C 1504.0 1509.0 Contact South 2.7 0.00
118-04-57G 1771.6 1774.7 Contact South 2.8 1.30
27-81 638.5 644.5 Contact Centre 3.0 0.48
LA99-02 613.2 620.7 Contact Centre 3.1 7.85
LA99-03 716.0 721.3 Contact Centre 3.0 1.60
LA99-04 511.5 517.4 Contact Centre 3.0 0.57
118-02-01A 769.0 774.0 Contact Centre 2.8 0.43
118-02-02B 762.7 767.7 Contact Centre 2.9 4.42
118-02-03 757.9 762.2 Contact Centre 2.9 0.01
118-02-04 925.7 929.9 Contact Centre 2.8 0.10
118-02-06 800.5 806.0 Contact Centre 2.9 0.89
118-02-07 975.0 979.4 Contact Centre 2.8 0.65
118-02-08 666.7 671.7 Contact Centre 2.8 0.06
118-03-04A 968.6 977.0 Contact Centre 4.6 25.11
118-03-04C 905.6 909.2 Contact Centre 2.8 1.10
118-03-06A 760.1 764.4 Contact Centre 2.9 1.82
118-03-07B 850.3 854.0 Contact Centre 2.8 0.12
118-03-10A 586.0 591.6 Contact Centre 3.0 1.68
118-03-12A 519.6 524.3 Contact Centre 2.8 1.69
118-03-14 614.0 618.2 Contact Centre 2.7 6.35
118-03-15 550.2 555.6 Contact Centre 3.0 0.90
118-03-16 1269.5 1273.9 Contact Centre 2.8 0.75
118-03-16A 1201.7 1205.5 Contact Centre 2.8 4.13
118-03-16C 1136.0 1140.0 Contact Centre 2.9 2.15
118-03-16E 1087.0 1090.2 Contact Centre 2.8 0.77
118-03-18B 590.1 594.7 Contact Centre 2.8 0.67
118-03-19A 845.0 851.6 Contact Centre 2.8 1.49
118-03-19B 819.5 824.7 Contact Centre 2.8 1.11
118-03-21A 984.3 988.0 Contact Centre 3.0 2.69
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40
118-03-22A 884.7 890.9 Contact Centre 3.0 0.01
118-03-22B 851.5 856.8 Contact Centre 2.8 0.02
118-03-25 1317.2 1321.2 Contact Centre 2.9 0.14
118-03-25A 1191.6 1195.0 Contact Centre 2.9 1.81
118-03-25B 1293.4 1297.4 Contact Centre 3.0 0.50
118-03-25C 1224.6 1228.0 Contact Centre 2.8 5.35
118-03-25F 1188.3 1191.6 Contact Centre 2.9 5.53
118-03-27 676.6 682.6 Contact Centre 2.9 1.94
118-03-27A 571.5 576.1 Contact Centre 2.8 0.69
118-03-28B 1131.0 1134.7 Contact Centre 2.9 1.28
118-03-28E 1060.3 1063.5 Contact Centre 2.8 0.20
118-03-28F 1082.6 1085.6 Contact Centre 2.8 4.67
118-03-28G 1059.9 1063.0 Contact Centre 2.8 2.71
118-03-31 531.8 536.6 Contact Centre 2.8 0.18
118-03-32 792.2 796.9 Contact Centre 3.0 0.07
118-03-32A 748.5 752.0 Contact Centre 2.9 0.05
118-03-33A 754.9 758.5 Contact Centre 2.8 4.81
118-03-34A 1220.0 1224.5 Contact Centre 2.6 0.06
118-03-35 1151.1 1154.2 Contact Centre 2.8 1.56
118-03-35A 1296.4 1301.0 Contact Centre 2.8 6.67
118-03-35B 1264.4 1268.0 Contact Centre 2.8 0.91
118-03-35D 1200.1 1204.0 Contact Centre 2.9 5.60
118-03-35E 1241.8 1245.5 Contact Centre 2.8 2.69
118-03-36 571.5 577.5 Contact Centre 2.9 2.64
118-03-39 677.2 683.8 Contact Centre 2.8 0.90
118-03-39A 567.6 572.6 Contact Centre 2.9 3.91
118-03-39B 530.0 534.4 Contact Centre 2.8 0.44
118-03-40 1092.0 1096.0 Contact Centre 2.8 3.07
118-03-40A 1102.7 1106.5 Contact Centre 2.8 2.09
118-03-44B 545.0 550.0 Contact Centre 3.0 1.14
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41
118-04-07D 882.3 886.5 Contact Centre 3.0 0.11
118-04-08B 525.5 530.0 Contact Centre 3.3 0.00
118-04-21B 975.4 979.0 Contact Centre 2.8 1.82
118-04-34C 1155.2 1159.1 Contact Centre 2.8 0.03
118-04-50A 1354.0 1357.6 Contact Centre 2.8 7.04
118-04-50B 1282.2 1285.5 Contact Centre 2.9 1.61
118-04-50C 1189.4 1192.4 Contact Centre 2.8 6.16
118-04-50D 1290.5 1293.9 Contact Centre 2.9 2.43
118-04-51E 1561.4 1565.9 Contact Centre 2.9 2.32
118-04-52 1554.8 1559.0 Contact Centre 2.8 0.99
118-04-52B 1485.3 1488.7 Contact Centre 2.9 1.04
118-04-52D 1425.1 1428.5 Contact Centre 2.9 4.05
118-04-52E 1405.4 1408.4 Contact Centre 2.8 2.49
118-04-57E 1852.8 1856.8 Contact Centre 3.9 4.58
118-04-57G 1756.6 1759.7 Contact Centre 2.9 2.77
LA99-02 639.8 649.2 Contact North 4.0 22.34
LA99-03 759.0 764.3 Contact North 3.0 2.72
LA99-04 537.7 543.7 Contact North 3.0 1.09
118-02-01A 806.6 811.6 Contact North 2.8 5.43
118-02-02B 796.0 801.3 Contact North 3.1 10.79
118-02-03 770.2 774.4 Contact North 2.9 0.03
118-02-04 957.5 961.8 Contact North 3.0 0.08
118-02-06 831.5 837.2 Contact North 3.0 1.49
118-02-07 997.0 1001.5 Contact North 2.9 0.10
118-02-08 702.2 708.0 Contact North 3.3 0.00
118-03-04C 924.8 928.5 Contact North 2.9 0.42
118-03-06A 780.7 785.8 Contact North 3.6 12.92
118-03-07B 879.7 883.5 Contact North 2.9 1.96
118-03-10A 613.0 618.0 Contact North 2.7 0.00
118-03-14 640.0 644.5 Contact North 2.9 0.00
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118-03-18B 623.6 628.3 Contact North 2.8 6.19
118-03-19A 901.4 907.6 Contact North 2.8 2.40
118-03-21A 1017.8 1021.3 Contact North 2.8 0.53
118-03-26 509.6 513.9 Contact North 2.9 0.70
118-03-27 716.0 723.0 Contact North 3.4 9.89
118-03-27A 612.5 617.0 Contact North 2.8 0.23
118-03-31 560.3 565.0 Contact North 2.8 0.54
118-03-32 769.1 773.8 Contact North 2.9 0.29
118-03-32A 719.5 723.0 Contact North 2.8 0.18
118-03-33A 775.0 778.5 Contact North 2.8 1.94
118-03-36 595.9 601.9 Contact North 2.9 0.98
118-03-39 728.7 735.4 Contact North 2.8 1.41
118-03-39A 606.1 611.0 Contact North 2.9 1.30
118-03-39B 550.3 554.7 Contact North 2.8 0.53
118-03-44B 566.4 571.0 Contact North 2.8 0.01
118-04-07D 916.9 920.8 Contact North 2.8 0.82
118-04-21B 993.2 997.0 Contact North 3.0 0.44
6.2.2 2006 Diamond Drilling Program
The 2006 underground drilling campaign started in January from station 49 (490 metres
depth). Fourteen (14) NQ core holes were completed totaling 3,903.5 meters (LA06-49—1 to
14). From March to the end of April, three drill rigs were in operation from level 69 (690
metres depth). One rig was dedicated to defining the mineralized zone that was developed in
April during the bulk sampling program (thirty BQ core holes totaling 1,899.2 meters). Two
rigs were used to complete a 40 metre by 40 metre spaced pattern of intercepts in the vicinity
of the planned drift (using NQ core). This drilling amounted to 3,054 meters from fourteen
(14) NQ core holes.
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43
A total of 1,591 samples were recovered from the drill core during the 2006 program. All
samples were sawed with half sent to lab for assaying; the other half of the core was returned
to the core box. For the 2006 underground exploration program samples from level 49 were
sent to Bourlamaque Assay Laboratories in Val d’Or with checks carried out by ALS
Chemex Chimitec in Val d’Or for the first five holes (LA06-49-1 to 5). Samples from level
69 were sent to Laboratoires Expert Inc. of Rouyn-Noranda. All samples were analyzed for
Au, Ag, As, Sb. All core was stored at Agnico-Eagle Mines’ Bousquet 2 mine site.
Table 6.2 : Gold Intercepts ( 2006 DDH Campaign)
DDH no. from (m) to (m) Zone
Horizontal
Width
(m) Au g/t
LA06-49-1 172.0 175.0 Contact 2.9 2.77
LA06-49-10 230.1 234.7 Contact 3.3 4.85
LA06-49-11 228.3 232.6 Contact 3.0 8.29
LA06-49-12 189.6 192.8 Contact 2.9 1.08
LA06-49-13 210.1 214.1 Contact 3.0 16.11
LA06-49-14 228.5 233.2 Contact 3.3 6.22
LA06-49-2 179.0 182.2 Contact 2.8 3.52
LA06-49-3 237.3 241.8 Contact 3.1 18.04
LA06-49-4 196.4 201.5 Contact 4.0 2.92
LA06-49-5 210.8 214.7 Contact 2.9 8.01
LA06-49-6 278.5 283.7 Contact 3.0 1.73
LA06-49-7 197.8 202.7 Contact 4.1 15.71
LA06-49-8 339.6 350.9 Contact 4.9 7.09
LA06-49-9 176.5 179.5 Contact 3.0 13.92
LA06-69-1 145.6 148.6 Contact 2.8 4.98
LA06-69-10 136.8 142.1 Contact 5.0 17.33
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LA06-69-11 138.3 141.5 Contact 2.8 0.65
LA06-69-12 152.0 158.7 Contact 5.7 8.47
LA06-69-13 138.9 142.1 Contact 2.9 9.33
LA06-69-14 148.0 151.5 Contact 2.8 1.22
LA06-69-15 166.0 170.0 Contact 2.8 1.74
LA06-69-16 190.5 195.0 Contact 2.9 1.83
LA06-69-18 21.2 24.2 Contact 3.0 7.48
LA06-69-19 23.9 27.7 Contact 3.4 16.82
LA06-69-2 136.5 141.2 Contact 4.1 4.39
LA06-69-20 32.4 36.5 Contact 2.8 23.98
LA06-69-21 22.3 25.5 Contact 2.9 4.26
LA06-69-22 27.2 31.0 Contact 2.8 5.55
LA06-69-23 36.2 39.4 Contact 3.0 12.60
LA06-69-24 41.6 45.2 Contact 3.0 3.68
LA06-69-25 48.4 52.4 Contact 3.0 6.96
LA06-69-26 58.5 62.7 Contact 2.8 5.04
LA06-69-27 38.0 41.2 Contact 2.8 7.64
LA06-69-28 40.2 43.7 Contact 3.1 7.59
LA06-69-29 44.4 48.0 Contact 2.8 2.38
LA06-69-3 164.8 168.5 Contact 3.0 4.13
LA06-69-30 43.8 49.3 Contact 4.5 12.92
LA06-69-31 37.1 40.1 Contact 3.0 11.91
LA06-69-32 38.4 42.4 Contact 3.9 12.41
LA06-69-33 41.4 44.4 Contact 2.8 17.84
LA06-69-34 45.8 50.8 Contact 4.2 7.37
LA06-69-36 44.7 48.5 Contact 3.5 53.10
LA06-69-37 40.0 44.0 Contact 3.6 31.12
LA06-69-38 47.8 51.8 Contact 3.1 26.82
LA06-69-39 53.9 59.4 Contact 4.2 6.01
LA06-69-4 144.0 150.7 Contact 5.9 4.88
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LA06-69-40 44.4 48.4 Contact 3.6 11.73
LA06-69-41 40.6 44.7 Contact 3.6 11.28
L