The Meadowbank and Meliadine Experience Mining and Exploring North of 60

Transcription

1 The Meadowbank and Meliadine Experience Mining and Exploring North of 60 RBC Capital Markets North of 60 Conference April 30, 2013 Toronto Jean Robitaille SVP Technical Services and Project Development Agnico Eagle Mines Limited Louise Grondin SVP Environment and Sustainable Development Agnico Eagle Mines Limited

2 FORWARD LOOKING STATEMENTS The information in this document has been prepared as at April 30, Certain statements contained in this document constitute forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward looking information under the provisions of Canadian provincial securities laws. When used in this document, the words anticipate, expect, estimate, forecast, will, planned, and similar expressions are intended to identify forward-looking statements or information. Such statements include without limitation: statements regarding timing and amounts of capital expenditures and other assumptions; estimates of future reserves, resources, mineral production, optimization efforts and sales; estimates of mine life; estimates of future internal rates of return, mining costs, cash costs, minesite costs and other expenses; estimates of future capital expenditures and other cash needs, and expectations as to the funding thereof; statements and information as to the projected development of certain ore deposits, including estimates of exploration, development and production and other capital costs, and estimates of the timing of such exploration, development and production or decisions with respect to such exploration, development and production; estimates of reserves and resources, and statements and information regarding anticipated future exploration; the anticipated timing of events with respect to the Company s mine sites and statements and information regarding the sufficiency of the Company s cash resources. Such statements and information reflect the Company s views as at the date of this document and are subject to certain risks, uncertainties and assumptions, and undue reliance should not be placed on such statements and information. Many factors, known and unknown could cause the actual results to be materially different from those expressed or implied by such forward looking statements and information. Such risks include, but are not limited to: the volatility of prices of gold and other metals; uncertainty of mineral reserves, mineral resources, mineral grades and mineral recovery estimates; uncertainty of future production, capital expenditures, and other costs; currency fluctuations; financing of additional capital requirements; cost of exploration and development programs; mining risks; community protests; risks associated with foreign operations; governmental and environmental regulation; the volatility of the Company s stock price; and risks associated with the Company s byproduct metal derivative strategies. For a more detailed discussion of such risks and other factors that may affect the Company s ability to achieve the expectations set forth in the forwardlooking statements contained in this document, see the Company s Annual Report on Form 20-F for the year ended December 31, 2012, as well as the Company s other filings with the Canadian Securities Administrators and the U.S. Securities and Exchange Commission. The Company does not intend, and does not assume any obligation, to update these forward-looking statements and information. Alain Blackburn, a Qualified Person and the Company s Senior Vice-President, Exploration, reviewed the technical information disclosed herein. For a detailed breakdown of the Company s reserve and resource position see the February 13, 2013 press release on the Company s website. That press release also lists the Qualified Persons for each project. 2

3 NOTES TO INVESTORS Note Regarding the Use of Non-GAAP Financial Measures This document presents estimates of future total cash cost per ounce and minesite cost per tonne that are not recognized measures under United States generally accepted accounting principles ( US GAAP ). This data may not be comparable to data presented by other gold producers. These future estimates are based upon the total cash costs per ounce and minesite costs per tonne that the Company expects to incur to mine gold at the applicable projects and do not include production costs attributable to accretion expense and other asset retirement costs, which will vary over time as each project is developed and mined. It is therefore not practicable to reconcile these forward-looking non-gaap financial measures to the most comparable GAAP measure. A reconciliation of the Company s total cash cost per ounce and minesite cost per tonne to the most comparable financial measures calculated and presented in accordance with US GAAP for the Company s historical results of operations is set forth in the notes to the financial statements included in the Company s Annual Information Form and Annual Report on Form 20-F, for the year ended December 31, 2012, as well as the Company s other filings with the Canadian Securities Administrators and the SEC. Note Regarding Production Guidance The gold production guidance is based on the Company s mineral reserves but includes contingencies and assumes metal prices and foreign exchange rates that are different from those used in the reserve estimates. These factors and others mean that the gold production guidance presented in this disclosure does not reconcile exactly with the production models used to support these mineral reserves. 3

4 AGENDA Introduction History of AEM s 1 st venture in Nunavut Why Meadowbank? Permitting in Nunavut Meadowbank Mine: - Infrastructure - Geology - Challenges - Accomplishments - Meadowbank Today History of AEM s 2 nd venture in Nunavut Meliadine Project: - Infrastructure - History and Acquisition Rationale - Geology - Exploration - Current Status Summary 4

5 INTRODUCTION Agnico Eagle has a 100% interest in the Meadowbank gold mine and the Meliadine gold development project, both located in Nunavut. NUNAVUT TERRITORY CANADA Railway Seasonal Shipping Scheduled Air Route POLARIS MINE (closed) NUNAVUT LUPIN GOLD (closed) MEADOWBANK PROJECT NANISIVIK MINE (closed) DIAVIK DIAMONDS YELLOWKNIFE EKATI DIAMONDS TAHERA DIAMONDS BAKER LAKE RANKIN INLET CHURCHILL H u d s o n B a y RAGLAN MINE IQALUIT 5

6 HISTORY OF AEM S FIRST VENTURE IN NUNAVUT: MEADOWBANK History & Permitting Milestones 1987: First gold discovery : AEM former 55% option (spent C$3.5 M) 1997: Cumberland Resources acquires 100% for C$3.2M and 1.5M shares 2005: Feasibility announced: 2.8 Moz P&P within 3.8 MI&I 2006: Nunavut Impact Review Board recommends development of the project and an Inuit Impact & Benefits Agreement (IIBA) is signed with Kivalliq Inuit Association 2007: Agnico Eagle acquires Cumberland for $750 million ($650 net of cash) : Project construction 8,500 tpd open pit and conventional mill with initial capex of $710 million 2010: Commercial production achieved March 1 6

7 WHY MEADOWBANK? Strategic Rationale Construction stage project with feasibility and permitting essentially complete Open pit operation, i.e. shorter time to production Synergy: could be operated from its base of operations in Val d Or Forecasted to provide significant gold production starting in 2010 Located in a politically stable, promining jurisdiction Offered additional exploration potential in a new camp U.S.A. Nevada Mexico Pinos Altos Canada Meadowbank Canada LaRonde, Goldex & Lapa Canada Toronto, HQ Finland Kittila 7

8 PERMITTING IN NUNAVUT - INUIT OWNED LAND Inuit Land Ownership Inuit owned subsurface rights (35,000 km 2 or less than 2% of Nunavut) Inuit owned surface rights (350,000 km 2 or 16% of Nunavut) If claim on Inuit Owned Lands, agreements with Inuit Organisations will be required Nunavut 1.9 million km 2 8

9 INUIT ORGANIZATIONS Qikiqktani Sub-surface rights on Inuit Owned Lands are owned by Nunavut Tungavik Incorporated or NTI Kitikmeok Surface rights on Inuit Owned Lands are owned by the Regional Inuit Organization Kivalliq Meadowbank and Meliadine on Inuit Owned Lands in the Kivalliq region 9

10 PERMITTING FOR EXPLORATION IN NUNAVUT EXPLORATION Screening by Nunavut Impact Review Board Approximately 6-12 months Federal Gov t or Inuit Organization Nunavut Water Board Exploration Lease Type B Water License 10

11 PERMITTING FOR MINING IN NUNAVUT PROJECT CERTIFICATE Construction and Operation Submit Project Description to Nunavut Impact Review Board with Application for Water Licence Approved land use permit conformity with Nunavut Planning Commission Screening by Nunavut Impact Review Board (NIRB) Referred to NIRB Hearings Process Agreements with Inuit Organizations Inuit Impact Benefit Agreement (IIBA) Water Compensation Agreement Mining Lease Surface Lease Environmental Impact Assessment & Public Hearings Project Certificate Approximately 3-4 years Nunavut Water Board (NWB) Assessment and Public Hearings Type A Water License Project Construction can start 11

12 MEADOWBANK INFRASTRUCTURE : Air and water access Meadowbank supported from Val d Or (air): - Mine staff - Technical Services - Administration - Supplies Supplies shipped by barge (2-3 month shipping season ) 12

13 MEADOWBANK INFRASTRUCTURE: Road All season access via a 102 km conventional gravel road MEADOWBANK Construction started winter 2007 and finished in 2008 Whitehills Lake Conventional Road Bridge Crossing AIRPORT BAKER LAKE Baker Lake 0 10 Kilometres 13

14 MEADOWBANK PROJECT APRIL 2007 Current Status Site Construction Camp Facilities Airstrip Crushing Plant 5.6 M litre Fuel Tank Pad 14

15 MEADOWBANK PROJECT 2012 Meadowbank Access Goose Pit airstrip Portage Pit 15

16 MEADOWBANK GEOLOGY 16

17 MEADOWBANK CHALLENGES Prior to Start Up AEM had limited arctic experience Logistics limited shipping season, air transport issues Fuel storage and management Mining in a lake: dewatering dikes Staffing management team, training of Inuit workforce After Start Up Mining blizzard and cold temperatures temporary shutdowns and equipment issues mining in permafrost dewater to mine Process plant - challenges reaching 8,500 tpd capacity Ore storage - frozen stockpiles Dilution - narrow mining widths, ore zone angle and ore dispersion from blasting Turnover: 229 Inuit departures in 2011 (permanent and temporary) Kitchen fire in

18 MEADOWBANK ACCOMPLISHMENTS Block model confirmed locally better grade reconciliation June Installed permanent secondary crusher, which allowed designed mill throughput of 8,500 tpd to be consistently exceeded (now >11,000 tpd) Feb New optimized mine plan which reduced ore and waste tonnes by 36% Q1 : 11,300 tpd Secondary crusher increased throughput from 6,800 tpd in mid 2011 to 11,300 in Q1, 2013 Now have a well trained Inuit and expat workforce with arctic experience, ~32% Inuit workforce 18

19 MEADOWBANK TODAY Record performance in 2012 Expected to produce about 360,000 ozs at $985/oz in reserve growth (at higher grades) could have a positive impact on the current six year mine life P&P GOLD RESERVES (million oz) 2.3 AVERAGE GOLD RESERVE GRADE (g/t) Measured & Indicated resource (million oz) (10.3 M 2.49 g/t) Inferred resource (million oz) (3.6 M 3.81 g/t) Sustaining capital (est.) $ exploration budget $4M See AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources. 19

20 MELIADINE - PROJECT HISTORY History & Permitting Milestones 1972: First gold discovery reported by Rankin Nickel Syndicate at Tonic Lake 1989: Asamera & Comaplex Minerals find the Discovery deposit (4.4 g/t over 4.0m) and form a 50:50 JV 1993: Discovery of Tiriganiaq (17.2/ g/t over 1.1m), F Zone and Pump Zones 1994: Asamera sells its interest to Cumberland Resources 1995: WMC options the Meliadine West property 2003: Comaplex Minerals buys WMC 56% interest to own 78% of the property, Resource Capital Fund holds 50% interest in Meliadine East 2010: Comaplex acquires remaining interest in Meliadine East 2010: AEM acquires Comaplex in July for $668 million and gets 100% of the Meliadine property. 20

21 MELIADINE INFRASTRUCTURE Similar concept to Meadowbank Shorter road access (~24 km) to a larger community (Rankin Inlet) Airport can support larger aircraft Slightly longer shipping season with better port facility 21

22 WHY MELIADINE? Strategic Rationale Better infrastructure than Meadowbank Large resource base with higher-grade UG component Successor operation to Meadowbank Management and workforce now well experienced with arctic operations AEM has built up strong relationships with the government and local suppliers in Nunavut Located in a politically stable, pro-mining jurisdiction 100% ownership of an 80 km long belt with significant exploration potential 22

23 MELIADINE GEOLOGY 80 KM LONG BELT 23

24 MELIADINE PROJECT RESERVES & RESOURCES 2012 exploration resulted in significant new resources, primarily at the new Normeg deposit Normeg is about 100 metres from the main Tiriganiaq deposit - could enhance overall project economics P&P GOLD RESERVES (million oz) 3.0 AVERAGE GOLD RESERVE GRADE (g/t) Indicated gold resource (million oz) (17.2 M 3.9 g/t) Inferred gold resource (million oz) (14.8 M 6.2 g/t) See AEM Feb 13, 2013 press release for detailed breakdown of reserves and resources. 24

25 2013 MELIADINE EXPLORATION PROGRAM $31 million exploration program for 2013 Portal Drilling restarted in March 9 rigs currently operating 90,000 m drilling planned - Conversion of existing resources - Extension of known deposits Potential for the discovery of new zones like Normeg Portal cover will be installed this year to allow restart of exploration ramp 25

26 MELIADINE PROJECT CURRENT STATUS Road connected to camp in March - Final construction this summer Alternate energy study underway - LNG and wind power Expect updated technical study in Potential OP and UG operation Permitting activities are ongoing - Project certificate expected in Potential for first production in m bridge span over Meliadine river 26

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