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Agnico-Eagle Mines LimitedKittilä Mine – Presentation May 4th 2011
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Agnico-Eagle Mines Limited
�AEM has 52 years of operating history, dating back to 1957 when Agnico Mines Limited was founded
�In 1972, Agnico Mines merged with gold exploration company Eagle Gold Mines Limited to form today’s AEM
�From inception, AEM has operated a quality business, always maintaining a healthy balance sheet and never selling its gold forward
�In 1994, AEM listed on the New York Stock Exchange
�In 2000, Completion of LaRonde’s Penna Shaft, the deepest single-lift shaft in the Western Hemisphere
�In 2005, AEM acquires the Suurikuusikko gold deposit in Finland and signs an option agreement to purchase the Pinos Altos property in Mexico
Located in mining-friendly regions of low political risk100% owned, with low total acquisition costsEach region has long-term mining camp potential
Operations at a glanceSix mines now operating.
LaRondeQUEBEC, CANADA
GoldexQUEBEC, CANADA
KittilaKITTILA, FINLAND
MeadowbankNUNAVUT, CANADA
Fraser Institute’s ranking 1 Fraser Institute’s
ranking 1 Fraser Institute’s ranking 14
Fraser Institute’s ranking 44
Fraser Institute’s 2008/2009 ranking of 71 mining jurisdictions
Fraser Institute’s ranking 1
LapaQUEBEC, CANADA
Fraser Institute’s ranking 28
Pinos AltosCHIHUAHUA, MEXICO
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KITTILÄ MINE
Rovaniemi
Kittilä
Murmansk
KiirunaMine
Sweden Russia
Norway
Kittilä Mine Location
25 km
55 km north of Kittilä900 km north of HelsinkiExcellent Infrastructure: roads, airports, communicationLandholdings: 84 tenements (6,969 has)
and one mining licence (847 has)
1986 First findings in the Suurikuusikko field by GTK
1998 Exploration started by Riddarhyttan Resources AB, a Swedish junior mining company
2002 Environmental permit for mining at Suurikuusikko (open pit and underground) granted by the Environmental Permitting authorities
2003 Mining license granted by the Ministry of Employment and Economics
2005 Agnico-Eagle Mines Limited became the sole owner of Riddarhyttan by 2005 and the exploration was expanded
2006 Upon completion of a final feasibility study, the decision to open the Kittilä Mine was made and the construction and development began
2008 First ore production in May and first concentrate in September
2009 The first gold pour on January 14th, 2009. The Grand Opening of the Kittilä Mine was on June 4th, 2009
KITTILÄ MINE - HISTORY
KITTILÄ MINE from exploration to gold bullion
Kittilä Mine Areal View 07-2010
TailingsProcessing - Services
Suuri Open Pit
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Kittilä Mine Ore Reserves 31.12.2010
Suurikuusikko Ore Lenses
Longitudial Sections, N-S
NS
2 km
Mt Au, g/t Au, MOz.
Proven and Probable Mineral Reserve (diluted, no ore loss) 32..7 4.6 4.9 (157
tonne)
Indicated Mineral Resource (diluted, no ore loss) 15.3 2.41
Inferred Mineral Resource (not diluted, no ore loss) 8.3 2.5
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Kittilä Mine Mining
Open pit mining during the forts 3-4 years
Followed by underground mining
Annual mining 1,100,000 tonnes of ore
1 km
N
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KITTILÄ mining MT
0,0
0,2
0,4
0,6
0,8
1,0
1,2
2008 2009 2010 2011 2012 2013 2014
OP UG
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OPEN PIT MINING
Suurikuusikko and Rouravaara pits, 35 MtEquipment:
1 AC ROC F9C rock drill2 AC ROC L8 rock drills3 Cat 385 excavators1 Cat 345 excavator7 Cat 777 trucks2 Cat D6 / D8 bulldozers
Waste mining started in September 2007
Ore Mining started May 2008Geological parameters
Dilution 15 % at 0.7 g/tOre Recovery 95%
KITTILÄ MINE – Suuri open pit, July 2010
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OPEN PITS: BUFFER BLASTING
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OPEN PITS: BUFFER BLASTING
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TUNNELING
5.3 m
5.5
m Gradient 1:7
5,268 m in 2006 - 084,000 m in 20095,040 m in 2010 6,000 m in 2011 (planned) Decline 90 m/month
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MAIN LEVEL -350
Fuel BayWashing Bay Main Shop
Sump
Parking
Services cable
Electrical station
cafeteria
Warehouse
Proposed shaft Ventilation raise (intake)
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MAIN UNDERGROUND LEVEL 350
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Kittilä Mine Ore Processing
Kittilä Mill Control Room
Kittilä Mill Production 2011
Ore Processing: Flotation – Pressure Oxidation – Cyanide Leaching Current Annual Production 5 000 kg gold
Kittilä Mine Mill Process Flow Sheet
Processing - Simplified Flow Sheet
C.I.L Tailings Disposal
Flotation Tailings Disposal
ProcessWaterTank
Process Water in closed circuit
Neutralization
Flotation
Carbon-in-leach
I
II
Cyanide destruction
ENVIRONMENT
Construction of new tailings Area.(photos taken end of June 2010)All ponds lined with waterproof bitumen liners
KITTILÄ MINE - Tailings Facility
Kittilä Mine
Strengths in Environmental Protection:� Sufficient human and financial resources� Good cooperation with authorities, local
associations and people living in the nearby villages
Kittilä Mine Environment
Objectives:� 100% Compliance� Waste Rock Management � Water treatment / water balance� Tailing pond expansion� Waste management - recycling
Kittilä Mine Plant Site
Kittilä mine personnel
Currently 570 employees working at the mine site� 370 own employees
�55% residing in Kittilä and 86% residing in Lapland� 200 contractor employees
�15% from Kittilä and 41% from Lapland
In addition in 2010, the mine employed 75 summer trainees� The average age of own employee’s is
39.3 years � 14.3% of the employees are women
KITTILÄ MINE - LABOUR
The Economy of the Kittilä municipality is dependant on: � The tourist industry and the Kittilä mine
�The tourist industry provides ca. 1100 jobs for Kittilä residents, or 42% of Kittilä’s total manpower resources (in total 1800 jobs during high season)
�The Kittilä mine provides 570jobs, about half from Kittilä, or 12% of Kittilä’stotal manpower resources
�The unemployment rate in Kittilä is below 10% on average - during high season 6%
� One mine employee provide jobs for three other persons
� The Kittilä annual municipal tax income is 3.5 M EUR and equal amount to the State
� Annual real estate tax paid by the Kittilä mine 0.2 M EUR
� Royalty payment to the State will be about 2 M EUR annually
� Corporation tax in the future will be about 15-20 M EUR
� The Kittilä mine’s annual turn-over is now about 150 M EUR - tourist industry’s under 200 M EUR (in 2007)
KITTILÄ MINE - ECONOMIC IMPACT ON THE MUNICIPALITY
Kittilä Mine
Kittilä Mine