agnicoeagle.comThe Meadowbank and MeliadineExperience“Mining and Exploring North of 60”RBC Capital MarketsNorth of 60 Conf...
agnicoeagle.comFORWARD LOOKING STATEMENTSThe information in this document has been prepared as at April 30, 2013. Certain ...
agnicoeagle.comNOTES TO INVESTORSNote Regarding the Use of Non-GAAP Financial MeasuresThis document presents estimates of ...
agnicoeagle.comAGENDA• Introduction• History of AEM’s 1st venture in Nunavut• Why Meadowbank ?• Permitting in Nunavut• Mea...
agnicoeagle.comINTRODUCTIONAgnico Eagle has a 100% interest in the Meadowbank gold mine and theMeliadine gold development ...
agnicoeagle.comHISTORY OF AEM’S FIRST VENTURE IN NUNAVUT:MEADOWBANKHistory & Permitting Milestones• 1987: First gold disco...
agnicoeagle.comWHY MEADOWBANK?FinlandKittilaMexicoPinos AltosCanadaToronto, HQCanadaLaRonde,Goldex & LapaCanadaMeadowbank•...
agnicoeagle.comPERMITTING IN NUNAVUT - INUIT OWNED LAND8Inuit ownedsubsurface rights(35,000 km2 or less than2% of Nunavut)...
agnicoeagle.comINUIT ORGANIZATIONS9Sub-surface rights on InuitOwned Lands are owned byNunavut Tungavik Incorporatedor NTIS...
agnicoeagle.comPERMITTING FOR EXPLORATION IN NUNAVUT10Federal Gov’t orInuit OrganizationEXPLORATIONNunavut Water BoardScre...
agnicoeagle.comPERMITTING FOR MINING IN NUNAVUT – PROJECTCERTIFICATE11Construction andOperationNunavut Water Board (NWB)As...
agnicoeagle.comMEADOWBANK INFRASTRUCTURE : Air and water access• Meadowbanksupported from Vald’Or (air):- Mine staff- Tech...
agnicoeagle.com BakerBAKERLAKEWhitehillsLakeAIRPORTMEADOWBANKLake0 10 KilometresConventional RoadBridge CrossingMEADOWBANK...
agnicoeagle.com5.6 M litre Fuel Tank PadCrushing PlantAirstripCamp FacilitiesMEADOWBANK PROJECT – APRIL 2007Current Status...
agnicoeagle.comMEADOWBANK PROJECT – 2012Meadowbank AccessPortage PitGoose Pitairstrip15
agnicoeagle.comMEADOWBANK GEOLOGY16
agnicoeagle.comPrior to Start Up• AEM had limited arctic experience• Logistics – limited shipping season, air transport is...
agnicoeagle.comMEADOWBANK ACCOMPLISHMENTS• Block model confirmed – locallybetter grade reconciliation• June 2011 - Install...
agnicoeagle.comMEADOWBANK TODAY• Record performance in 2012• Expected to produce about 360,000ozs at $985/oz in 2013.• 201...
agnicoeagle.comMELIADINE - PROJECT HISTORYHistory & Permitting Milestones• 1972: First gold discovery reported by Rankin N...
agnicoeagle.comMELIADINE INFRASTRUCTURE• Similar concept to Meadowbank• Shorter road access (~24 km) to alarger community ...
agnicoeagle.comWHY MELIADINE?• Better infrastructure than Meadowbank• Large resource base with higher-gradeUG component• S...
agnicoeagle.comMELIADINE GEOLOGY – 80 KM LONG BELT23
agnicoeagle.comMELIADINE PROJECT – RESERVES & RESOURCES• 2012 exploration resulted in significant newresources, primarily ...
agnicoeagle.com2013 MELIADINE EXPLORATION PROGRAM• $31 million exploration programfor 2013• Drilling restarted in March• 9...
agnicoeagle.comMELIADINE PROJECT – CURRENT STATUS• Road connected to camp in March- Final construction this summer• Altern...
agnicoeagle.comagnicoeagle.com27
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The meadowbank experience lessons learned about gold

  1. 1. agnicoeagle.comThe Meadowbank and MeliadineExperience“Mining and Exploring North of 60”RBC Capital MarketsNorth of 60 ConferenceApril 30, 2013TorontoLouise GrondinSVP Environment andSustainable DevelopmentAgnico Eagle Mines LimitedJean RobitailleSVP Technical Services andProject DevelopmentAgnico Eagle Mines Limited
  2. 2. agnicoeagle.comFORWARD LOOKING STATEMENTSThe information in this document has been prepared as at April 30, 2013. Certain statements contained in this document constitute “forward-lookingstatements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward looking information under theprovisions 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 futurereserves, 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 fundingthereof; statements and information as to the projected development of certain ore deposits, including estimates of exploration, development andproduction and other capital costs, and estimates of the timing of such exploration, development and production or decisions with respect to suchexploration, 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’scash 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 couldcause the actual results to be materially different from those expressed or implied by such forward looking statements and information. Such risksinclude, but are not limited to: the volatility of prices of gold and other metals; uncertainty of mineral reserves, mineral resources, mineral grades andmineral recovery estimates; uncertainty of future production, capital expenditures, and other costs; currency fluctuations; financing of additional capitalrequirements; cost of exploration and development programs; mining risks; community protests; risks associated with foreign operations; governmentaland 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 forward-looking 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 theCompany’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 theCompany’s Senior Vice-President, Exploration, reviewed the technical information disclosed herein. For a detailed breakdown of the Company’s reserveand resource position see the February 13, 2013 press release on the Company’s website. That press release also lists the Qualified Persons for eachproject.2
  3. 3. agnicoeagle.comNOTES TO INVESTORSNote Regarding the Use of Non-GAAP Financial MeasuresThis document presents estimates of future “total cash cost per ounce” and “minesite cost per tonne” that are not recognized measures underUnited 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 goldat the applicable projects and do not include production costs attributable to accretion expense and other asset retirement costs, which will varyover time as each project is developed and mined. It is therefore not practicable to reconcile these forward-looking non-GAAP financial measures tothe most comparable GAAP measure. A reconciliation of the Company’s total cash cost per ounce and minesite cost per tonne to the mostcomparable financial measures calculated and presented in accordance with US GAAP for the Company’s historical results of operations is set forthin the notes to the financial statements included in the Company’s Annual Information Form and Annual Report on Form 20-F, for the year endedDecember 31, 2012, as well as the Company’s other filings with the Canadian Securities Administrators and the SEC.Note Regarding Production GuidanceThe gold production guidance is based on the Company’s mineral reserves but includes contingencies and assumes metal prices and foreignexchange rates that are different from those used in the reserve estimates. These factors and others mean that the gold production guidancepresented in this disclosure does not reconcile exactly with the production models used to support these mineral reserves.3
  4. 4. agnicoeagle.comAGENDA• Introduction• History of AEM’s 1st venture in Nunavut• Why Meadowbank ?• Permitting in Nunavut• Meadowbank Mine: - Infrastructure- Geology- Challenges- Accomplishments- Meadowbank Today• History of AEM’s 2nd venture in Nunavut• Meliadine Project: - Infrastructure- History and Acquisition Rationale- Geology- Exploration- Current Status• Summary4
  5. 5. agnicoeagle.comINTRODUCTIONAgnico Eagle has a 100% interest in the Meadowbank gold mine and theMeliadine gold development project, both located in Nunavut.H u d s o nB a yCHURCHILLRANKININLETYELLOWKNIFERailwaySeasonal ShippingScheduled Air RouteNUNAVUT TERRITORY• CANADA •MEADOWBANKPROJECTPOLARIS MINE(closed)NUNAVUTBAKERLAKEIQALUITRAGLANMINEDIAVIK DIAMONDSLUPIN GOLD(closed)NANISIVIK MINE(closed)EKATIDIAMONDSTAHERA DIAMONDS5
  6. 6. agnicoeagle.comHISTORY OF AEM’S FIRST VENTURE IN NUNAVUT:MEADOWBANKHistory & Permitting Milestones• 1987: First gold discovery• 1990-1992: 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 projectand an Inuit Impact & Benefits Agreement (IIBA) is signed with Kivalliq InuitAssociation• 2007: Agnico Eagle acquires Cumberland for $750 million ($650 net of cash)• 2007 - 2010: Project construction – 8,500 tpd open pit and conventional mill withinitial capex of $710 million• 2010: Commercial production achieved March 16
  7. 7. agnicoeagle.comWHY MEADOWBANK?FinlandKittilaMexicoPinos AltosCanadaToronto, HQCanadaLaRonde,Goldex & LapaCanadaMeadowbank• Construction stage project withfeasibility and permittingessentially complete• Open pit operation, i.e. shorter timeto production• Synergy: could be operated fromits base of operations in Val d’Or• Forecasted to provide significantgold production starting in 2010• Located in a politically stable, pro-mining jurisdiction• Offered additional explorationpotential in a new campU.S.A.NevadaStrategic Rationale7
  8. 8. agnicoeagle.comPERMITTING IN NUNAVUT - INUIT OWNED LAND8Inuit ownedsubsurface rights(35,000 km2 or less than2% of Nunavut)Inuit owned surfacerights (350,000 km2or 16% of Nunavut)If claim on Inuit OwnedLands, agreements withInuit Organisations willbe requiredInuit LandOwnershipNunavut1.9 million km2
  9. 9. agnicoeagle.comINUIT ORGANIZATIONS9Sub-surface rights on InuitOwned Lands are owned byNunavut Tungavik Incorporatedor NTISurface rights on InuitOwned Lands are owned bythe Regional Inuit OrganizationKitikmeokKivalliqQikiqktaniMeadowbank and Meliadine on InuitOwned Lands in the Kivalliq region
  10. 10. agnicoeagle.comPERMITTING FOR EXPLORATION IN NUNAVUT10Federal Gov’t orInuit OrganizationEXPLORATIONNunavut Water BoardScreening by Nunavut Impact Review BoardExploration Lease Type B Water LicenseApproximately6-12 months
  11. 11. agnicoeagle.comPERMITTING FOR MINING IN NUNAVUT – PROJECTCERTIFICATE11Construction andOperationNunavut Water Board (NWB)Assessment and Public HearingsScreening by Nunavut Impact Review Board (NIRB)Environmental ImpactAssessment & PublicHearingsType A Water LicenseApproximately3-4 yearsSubmit Project Description to Nunavut ImpactReview Board with Application for Water LicenceReferred to NIRB Hearings ProcessInuit ImpactBenefitAgreement(IIBA)Mining LeaseWaterCompensationAgreementAgreements with Inuit OrganizationsSurface LeaseProject CertificateApproved land use permit conformity with Nunavut PlanningCommissionProject Construction can start
  12. 12. agnicoeagle.comMEADOWBANK INFRASTRUCTURE : Air and water access• Meadowbanksupported from Vald’Or (air):- Mine staff- Technical Services- Administration- Supplies• Supplies shipped bybarge (2-3 monthshipping season )12
  13. 13. agnicoeagle.com BakerBAKERLAKEWhitehillsLakeAIRPORTMEADOWBANKLake0 10 KilometresConventional RoadBridge CrossingMEADOWBANK INFRASTRUCTURE: Road• All season access via a 102km conventional gravel road• Construction started winter2007 and finished in 200813
  14. 14. agnicoeagle.com5.6 M litre Fuel Tank PadCrushing PlantAirstripCamp FacilitiesMEADOWBANK PROJECT – APRIL 2007Current Status - 2006 Site Construction14
  15. 15. agnicoeagle.comMEADOWBANK PROJECT – 2012Meadowbank AccessPortage PitGoose Pitairstrip15
  16. 16. agnicoeagle.comMEADOWBANK GEOLOGY16
  17. 17. agnicoeagle.comPrior 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 workforceAfter Start Up• Mining – blizzard and cold temperatures– temporary shutdowns and equipmentissues – 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 fromblasting• Turnover: 229 Inuit departures in 2011 (permanent and temporary)• Kitchen fire in 2011MEADOWBANK CHALLENGES17
  18. 18. agnicoeagle.comMEADOWBANK ACCOMPLISHMENTS• Block model confirmed – locallybetter grade reconciliation• June 2011 - Installed permanentsecondary crusher, which alloweddesigned mill throughput of 8,500tpd to be consistently exceeded(now >11,000 tpd)• Feb. 2012 - New optimized mineplan which reduced ore and wastetonnes by 36%• Now have a well trained Inuit andexpat workforce with arcticexperience, ~32% Inuit workforceQ1 : 11,300 tpdSecondary crusher increasedthroughput from 6,800 tpd in mid2011 to 11,300 in Q1, 201318
  19. 19. agnicoeagle.comMEADOWBANK TODAY• Record performance in 2012• Expected to produce about 360,000ozs at $985/oz in 2013.• 2012 reserve growth (at highergrades) could have a positive impacton the current six year mine life19P&P GOLD RESERVES (million oz) 2.3AVERAGE GOLD RESERVEGRADE (g/t)2.8Measured & Indicated resource(million oz)(10.3 M tonnes @ 2.49 g/t)0.8Inferred resource (million oz)(3.6 M tonnes @ 3.81 g/t)0.42013 Sustaining capital (est.) $402013 exploration budget $4MSee AEM Feb 13, 2013 press release for detailed breakdown of reserves andresources.
  20. 20. agnicoeagle.comMELIADINE - PROJECT HISTORYHistory & 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 over4.0m) 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 theMeliadine property.20
  21. 21. agnicoeagle.comMELIADINE INFRASTRUCTURE• Similar concept to Meadowbank• Shorter road access (~24 km) to alarger community (Rankin Inlet)• Airport can support larger aircraft• Slightly longer shipping season withbetter port facility21
  22. 22. agnicoeagle.comWHY MELIADINE?• Better infrastructure than Meadowbank• Large resource base with higher-gradeUG component• Successor operation to Meadowbank• Management and workforce now wellexperienced with arctic operations• AEM has built up strong relationships withthe government and local suppliers inNunavut• Located in a politically stable, pro-miningjurisdiction• 100% ownership of an 80 km long beltwith significant exploration potentialStrategic Rationale22
  23. 23. agnicoeagle.comMELIADINE GEOLOGY – 80 KM LONG BELT23
  24. 24. agnicoeagle.comMELIADINE PROJECT – RESERVES & RESOURCES• 2012 exploration resulted in significant newresources, primarily at the new Normegdeposit• Normeg is about 100 metres from the mainTiriganiaq deposit- could enhance overall project economicsP&P GOLD RESERVES (million oz) 3.0AVERAGE GOLD RESERVE GRADE(g/t)7.0Indicated gold resource (million oz)(17.2 M tonnes @ 3.9 g/t)2.2Inferred gold resource (million oz)(14.8 M tonnes @ 6.2 g/t)2.9See AEM Feb 13, 2013 press release for detailed breakdown of reservesand resources.24
  25. 25. agnicoeagle.com2013 MELIADINE EXPLORATION PROGRAM• $31 million exploration programfor 2013• 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 ofnew zones like Normeg• Portal cover will be installed thisyear to allow restart ofexploration rampPortal25
  26. 26. agnicoeagle.comMELIADINE 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 2014- Potential OP and UG operation• Permitting activities are ongoing- Project certificate expected in 2014- Potential for first production in 201865m bridge span over Meliadine river26
  27. 27. agnicoeagle.comagnicoeagle.com27

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