Agnico Eagle Mines provides an update on activities at its 100% owned Nunavut projects.  These include the Amaruq project, which is located approximately 50 km northwest of the Meadowbank mine, and the Meliadine project, which is located approximately 25 km from Rankin Inlet.  Highlights include:
• Type A water licence received for the Whale Tail pit at the Amaruq project – On July 11, 2018, the Type A water licence was approved by the Minister of Crown-Indigenous Relations and Northern Affairs Canada.  This permit allows for the construction and development of the Whale Tail pit
• Preliminary construction work and stripping of the Whale Tail pit will begin in the third quarter of 2018 as expected – The Whale Tail deposit remains on schedule and budget for the start of production in the third quarter of 2019
• The Whale Tail underground exploration ramp is proceeding as planned – At the end of June 2018, approximately 478 m of ramp development had been completed at a cost of approximately $10.7 million.  In 2018, approximately 1.2 km of ramp development is planned
• Amaruq exploration drilling continues to expand known mineralized zones – Recent drilling intersected 10.2 g/t Au over 16.9 m at 316 m depth, confirming the grade and geometry in the Whale Tail ore shoot.  A recent hole in the V Zone returned 10.3 g/t Au over 5.0 m at 20 m depth, which is expected to extend mineral resources westward at surface
• Meliadine project proceeding on schedule and on budget – Development activities remain on track for the commencement of production at the Meliadine project in the second quarter of 2019.  The first boat of the 2018 shipping season has been off-loaded at Rankin Inlet, and additional boats are expected in the coming weeks

“We would like to thank the various regulatory agencies, both federal and territorial, the Inuit Organizations, the local communities and our employees for their diligent participation in the permitting process.  With the approval of the Whale Tail Type A Licence, the project remains on schedule to commence production in the third quarter of 2019, and exploration activities continue to expand the known mineralization, which could potentially extend the mine life”, said Sean Boyd, Agnico Eagle’s Chief Executive Officer.

“Elsewhere in Nunavut, development activities at Meliadine are progressing on schedule and on budget, which continues to support the start of production in the second quarter of 2019”, added Boyd.

Agnico Eagle has a 100% interest in the Amaruq project, northwest of the Meadowbank mine. Amaruq is situated on a 99,878-ha property, almost adjacent to the 68,735-ha Meadowbank property.  Development of the Amaruq project was approved in February 2017 by the Company’s Board of Directors as a satellite deposit to supply ore to the existing Meadowbank mill, pending the receipt of the required permits.

In late July 2018, the company plans to initiate construction of the Whale Tail dike (rock fill has already been stockpiled for use as per approval within the pre-development license) and begin progressive overburden and waste stripping for Phase 1 of the Whale Tail Pit.
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The schedule for construction activities, including Whale Tail Lake dewatering, is expected to allow for progressive mining and stockpiling of ore in the second quarter of 2019 to support the expected start of production in the third quarter of 2019, which will coincide with the end of production at the Meadowbank mine in 2019.

The Amaruq project remains on budget with capital expenditures in 2018 forecast to be approximately $175 million. During the second quarter of 2018, Amaruq site activities focused on:
• Underground ramp development, which advanced by 350 m in the quarter
• Detailed engineering studies for Whale Tail infrastructure (87% complete)
• Expansion of the temporary camp facility and completion of a maintenance shop for mining equipment
• Expansion of the exploration road to a production haulage road, which began in April 2018.

Exploration continues at depth in both the Whale Tail deposit and V Zone, as well as conversion drilling of underground mineral resources at Whale Tail closer to the planned pit bottom.  In addition, several rotary air blast drill holes were completed east of Mammoth to test a magnetic anomaly.

The Whale Tail deposit has been defined over at least 2.3 km of strike length and extends from surface to 915 m depth.

Exploration continues at depth with the aim of extending the limits of the deeper mineral resources.  In the shallower parts of the underground mineral resources, closer to the planned pit bottom, infill drilling is occurring from surface.  The objective is to improve the understanding of the geometry and limits of the main Whale Tail ore shoot.  The current understanding is that the Whale Tail ore shoot stretches from surface to almost 550 m depth over a strike length of approximately 1,500 m, following a shallowly east- to northeast-plunging fold hinge in the mineralized chert-iron formation sequence.  The results should allow a more rapid assessment of the economic potential of this area.

The Whale Tail deposit remains open at depth.  The drill program for the remainder of 2018 will continue to test the Whale Tail deposit and the parallel structure to its north at depth, to expand the mineral resources and continue to convert inferred mineral resources to indicated mineral resources.

The V Zone consists of a series of parallel stacked mineralized structures striking northeast from near surface to as deep as 653 m below surface; the dip of the structures ranges from 30 degrees near surface to more complex geometry at depth.

A mineralized corridor 100 to 150 m wide plunging shallowly to the northeast has recently been interpreted as a V Zone ore shoot at depth.  It extends from approximately 300 m to more than 650 m depth.  The V Zone ore shoot follows the south limb of a fold in the contact between volcanic and sedimentary rock units, which is a favourable location for mineralization.  While the V Zone ore shoot is approximately parallel to the Whale Tail ore shoot, it is offset approximately 200 m to the northwest and occupies a different stratigraphic horizon.  Most of the recent results are from the deep part of the V Zone structures.

Significant gold grades are being encountered along multiple stacked mineralized horizons associated with the V Zone ore shoot described above.  These mineralized zones are hosted within both the volcanic and sedimentary rocks, contributing to contrasting styles of mineralization.  Volcanic host rocks result in ore styles typical of what is observed in the V Zones close to surface (a series of discrete shear veins), while sedimentary host rocks result in mineralization styles more typical of the Whale Tail type of mineralization (a mix of more diffuse veins and silica flooding within greywackes and chert units).  The latter style of mineralization is characterized by less nugget effect and often a wider and generally more predictable gold distribution.

Drilling will continue in the V Zone to test its depth and lateral extent.

The Meliadine project was acquired in July 2010, and is Agnico Eagle’s largest gold deposit in terms of mineral resources.  The company owns 100% of the 111,358 ha property.  In February 2017, the Board of Directors approved the construction of the Meliadine project.

Underground development and surface construction at Meliadine continued through the second quarter of 2018 and the project remains on schedule and on budget for the commencement of production in the second quarter of 2019.  The estimated capital budget for 2018 is unchanged at $398 million.

On July 9, 2018, the first vessel of the sealift shipping season arrived in Rankin Inlet.  The first boat has been unloaded and a second boat is in position to begin its off-loading.  Additional details on the Meliadine project will be provided in the Company’s news release reporting second quarter 2018 results, which is scheduled for release on July 25, 2018.