Pinos Altos Project Analyst Tour - s21.q4cdn.com · BISMARK PINOS ALTOS 100 Kilómetros Dolores El Sauzal Ocampo Mulatos Monterde Palmarejo TERRAZAS BOLIVAR 0 100 N ... Oberon de

Pinos Altos ProjectAnalyst Tour

June 26 , 2006

2

Analyst Tour June 2006

Esta presentación contiene ciertas “declaraciones previsoras” (según el significado de la Ley de Reforma al Litigio de Valores Bursátiles Privados de 1995 de los Estados Unidos) que incluye cierto número de riesgos e incertidumbres. No existe la certeza de que dichas declaraciones serán precisas ya que los resultados reales y eventos futuros pueden ser diferentes de aquellos anticipados en dichas declaraciones. Los riesgos y las incertidumbres están publicados bajo el título “Factores de Riesgo” en el Reporte Anual de la Compañía en el Formulario 20-F presentado ante Reguladores de Valores Bursátiles de Canadá y ante la Comisión de Valores de Bolsa de los Estados Unidos (U.S. Securities and Exchange Commision). Ciertas medidas financieras mencionadas en esta presentación tales como costos de dinero en efectivo por onza y costos de mina por tonelada no son medidas reconocidas por los Principios de Contabilidad Generalmente Aceptadas de los Estados Unidos (U.S.GAAP). La conciliación de estas medidas financieras con la medida más cercana a los principios del U.S. GAAP, así como la información técnica respecto a las reservas minerales y estimaciones de recursos se proporcionan en el comunicado de prensa de la Compañía anunciando las ganancias del segundo trimestre de 2005, que ha sido presentado ante la Securities and Exchange Commissiony que se encuentra publicado en la página electrónica de la Compañía en www.agnico-eagle.com

DECLARACIÓN PREVISORA FORWARD LOOKING STATEMENTThe information in this document has been prepared as at June 26, 2006. Certain statements and information contained in this document constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, or forward looking information under provisions of Canadian provincial securities laws. When used in this document, the words “anticipate”, “expect”, “estimate,” “forecast,”“planned” and similar expressions are intended to identify forward-looking statements or information.

Such statements and information may include without limitation: statements regarding future rates of return, and the sensitivity of those rates of return to gold prices, gold grades, capital and operating costs, currency exchange rates, timing of capital expenditures and other assumptions; estimates of future mineral production and sales; estimates of mine life; estimates of future 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 the anticipated future exploration and feasibility study results; the anticipated timing of events with respect to the Company’s minesites; 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; risks associated with foreign operations; risks related to title issues at the Pinos Altos project and governmental and environmental regulation. For a more detailed discussion of such risks and other factors, see the Company’s Annual information Form and Annual Report on Form 20-F, as amended, for the year ended December 31, 2005, 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.

Certain of the foregoing statements and information, primarily related to projects, are based on preliminary views of the Company with respect to, among other things, grade, tonnage, processing, mining methods, capital costs, and location of surface infrastructure and actual results and final decisions may be materially different from those currently anticipated.

About Agnico-Eagle

Agnico-Eagle is a long established Canadian gold producer with operations located in Quebec and exploration and development activities in Canada, Finland, Mexico and the United States. Agnico-Eagle's LaRonde Mine is Canada's largest gold deposit. The Company has full exposure to higher gold prices consistent with its policy of no forward gold sales. It has paid a cash dividend for 26 consecutive years.

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SIERRA MADRE REGION – A HISTORIC MINING DISTRICT

Pinos Altos discovered in 1871 by a Mexican prospectorIntermittent operations during late 19th Century and early 20th CenturyPeñoles spent $24 million on property between 1995 and 2003

Acquired by AEM in February 2006 via 2005 option agreementTotal consideration of approximately $80 million paid to Peñoles

4


GROWING GOLD AND SILVER RESOURCE

MonterdeMonterde

Pinos Altos Project

Current 2.1 Moz Au & 52.6 Moz Ag combined resource

$22.4 M exploration and feasibility study underway

5


Ojinaga

Delicias

Jiménez

Janos

Camargo

Buenaventura

N.C. GrandesAhumada

Tomochic

La Junta Cuauhtémoc

Madera

Creel

Guachochi

Juárez

CHIHUAHUA SANTA EULALIA

NAICA

PARRAL

STA. BARBARA

SN. FCO. DEL ORO

BISMARK

PINOS ALTOS

100Kilómetros

Dolores Dolores

El SauzalEl Sauzal

OcampoOcampo

Mulatos

MonterdeMonterdePalmarejoPalmarejo

TERRAZAS

BOLIVARBOLIVAR

1000

N

kilometres

Adjacent to infrastructure

Active mining region

Numerous existing and developing precious metal mines

Pinos Altos past production of 0.2 MozAu, 1.8 Moz Ag

CHIHUAHUA STATE

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KEY GOALS FOR 2006

Resource conversion for Q2, 2007 feasibility studyBaseline environmental and technical studies complete by Q1, 2007Environmental permit application ready for submittal by Q2, 2007Staff project with key personnel – largely Mexican NationalsSecure additional surface rights for explorationDiscover additional resourcesPrepare underground drilling platform for deep exploration

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BUDGET BREAKDOWN

$ 3.3Feasibility

$ 1.6Ramp

$ 22.4

$ 0.3

$ 11.9

$ 5.3

G&A

TOTAL EXPENSES

Exploration & Land Acquisition

Definition drilling

* All budget expenditures in US$, millions. Excludes $ spent in Q1, 2006.

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HIGHLIGHTS OF PROGRAM

Resource to reserve conversion29,800 m of drilling

Feasibility study by Q2, 2007By technical services group NW Quebec - Mexico project team - Consultants

Concurrent environmental studies and permit documentationBy Mexico consultants and staff with support from NW Quebec

Surface rightsEjido land - negotiating for temporary occupation and purchaseProject land - Fix minimum 400 ha area and purchase infrastructureEstablish community relations and sustainable development programs

Exploration outside of current resource envelope Deep exploration via 16,100 m drillingExploration via 5,800 m drilling

Underground ramp – Santo Niño ( 2,400 m including 760 m in 2006)Provides drill platform for further resource conversion and deep exploration

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Q1, 2006 SCOPING STUDY - KEY STATISTICS

11.6

41.0

Ounces Silver

(million)

111.0

102.0

Silver grade (g/t)

0.5

1.6

Ounces Gold

(million)

5.2

3.9

Gold grade (g/t)

3.2Inferred Resource

12.5 Indicated Resource

Tonnes (million)

2006 Mineral Resource

Open pit and underground mining scenario

Mill flow sheet – grind/leach/CCD/Merril Crowe

Throughput – 3,000 tpd nominal

Estimated 125,000 oz Au and 1.9 Moz Ag per year

Capital cost estimate – $150 million

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SATELLITE IMAGE – OCAMPO CALDERA

0 25

kilometers

11


Lithology of Pinos Altos and Ocampo Region

Alluvium Andesites

Upper Volcanic Supergroup

Epithermal Gold Occurrence

Lower Volcanic Complex

Pre-Volcanic Metamorphic Rocks

Quaternary

Middle to Upper Tertiary

Upper Cretaceous to Lower Tertiary

Pre-Cambrian

Diorite to GrandioritePorphyritic Rhyolite (Domes and Dikes)

Granite

Intrusive Rocks

Road

Mineral Rights

Town

Probable Resurgence Zones of the Ocampo Caldera

Inferred position of main ring-fracture of the Ocampo Caldera

Breccia Vein, Vein Zoneor Stockwork

Fault

Concheño

El Madroño

Bravo

Pinos Altos

Former Gold-Silver Producers, Prospects

Reference UTM NAD27; Source: Peñoles 1999

Scale: 1:50,0005.01.00 10.0 km

REGIONAL GEOLOGY - OCAMPO CALDERA

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EPITHERMAL GOLD DEPOSIT

LEGEND

Intrusions of porphyry rhyolites

Conglomerates

Aluvion

Sinter

Buenavista Ignimbrite

El Frijolar Andesites

Victoria Ignimbrite

El Madroño Volcanics

Andesites

Area of 10,000 Ha

0 3

km

SCALE

10,000 Ha Area

Pinos Altos

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RESOURCE CONVERSION AND DEEP EXPLORATION

Future UndergroundDDH (2007)

Limit of surface drilling – 1625 m

Resource Conversion – 29,800 m

Deep Exploration – 16,100 m

PA-06-8513.59 / 191.80 / 10.7

PA-06-86A.P.

PA-06-81A.P.

PA-05-79A1.84 / 22.30 / 4.5

PA-06-83A.P.

PA-06-80A.P.

PA-06-841.10 / 50.10 / 8.5Cerro Colorado

View Looking N55Santo Niño Oberon de Weber

El Apache

Gold g/t / Silver g/t / TT m

PA-06-820.64 / 10.43 / 58.9

Resource Unexplored Proposed Open Pit

Proposed Exploration Drift in 2007

A.P. = Assays Pending

500m

View Looking N10

14


VictoriaIgnimbrite

BuenavistaIgnimbrite

Hole: PA-05-093.6g Au/tm113.1g Ag/tm 26 m

Hole: BSN592.6g Au/tm31.5g Ag/tm 27.5 m


Hole: SN1925-2811.3g Au/tm320.6g Ag/tm 6 m



Hole: SN1925-583.4g Au/tm93.2g Ag/tm 6.5 m

Faul

tZo

neSa

nto

Niño

Ande

site

Ore

zon

eSanto Niño Sector(Transverse section – 4720E)

Hole: PA-05-453.2g Au/tm140.9g Ag/tm

Hole: BCOW-014.9g Au/tm246.4g Ag/tm




6.5 m


15 m

19.8 m

7 m4.9 m

Oberon de Weber Sector(Transverse section – 5840E)

VictoriaIgnimbrite


Fault

Zone

Sant

o Ni

ñoAn

desit

e

Ore zo

ne

50 m50 m

VictoriaIgnimbrite









Hole: SN1925-583.4g Au/tm93.2g Ag/tm 6.5 m

Faul

tZo

neSa

nto

Niño

Ande

site

Ore

zon

eSanto Niño Sector(Transverse section – 4720E)

Hole: PA-05-453.2g Au/tm140.9g Ag/tm





6.5 m


15 m

19.8 m

7 m4.9 m

Oberon de Weber Sector(Transverse section – 5840E)

VictoriaIgnimbrite


Fault

Zone

Sant

o Ni

ñoAn

desit

e

Ore zo

ne

50 m50 m50 m50 m

RESOURCE CONVERSION AND DEEP EXPLORATION

NNENNE

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FEASIBILITY STUDY WORK PLAN - 2006Environmental

Permitting and environmental impact study (concurrent with feasibility study)Mexico consultant selected, field work to begin July 2006Project will maintain North American standards, and will seek “Industria Limpia”certification

Base line environmental characterizationPreliminary surveys are complete, no “red flags”

Ore/tailings/waste characterizationCurrent mine workings provide large scale sampleMine water is neutral pHUnderground water supply available and easily permitted

Metallurgy Flow sheet, capital and operating cost development for feasibility study

Third party contract awarded to Kappes Cassiday & AssociatesLaboratory testing

Representative samples shipped in June 2006Kappes Cassiday & Associates work in progress

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FEASIBILITY STUDY WORK PLAN – 2006 (Continued)Engineering

Mine planning/engineering in house (NW Quebec)Site layout and optimizationThird party review for resource and reserves and cost estimationsMexico technical staff to participate in project development

Surface Rights400 hectare project area surface rights have been acquiredAdditional “upside” exploration rights in negotiation with neighbouring ejidosCommunity relations efforts underway- full time staff on boardSustainable development efforts will focus on education, timber, and job training

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Frijolar Andesite

Navosaygame Conglomerate

Victoria Ignimbrite

Vein Zone

Fault

Creek

Reference Line Longitudinal Section

ABBuenavista Ignimbrite

Santo Niño Andesite

Modified from Peñoles 2004

Ref. Grid UTM NAD27

San Eligio

Oberon de Weber Zone El Apache Zone

Victoria Adit

(325m depth)

Cerro Colorado ZoneSanto Niño Zone

0 300SCALE

Metres

400 ha

CURRENT SURFACE RIGHTS SUFFICIENT FOR MINE FOOTPRINT

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SITE LAYOUT

5 000 E

4 500 E

4 000 E

5 500 E

6 000 E

6 500 E

7 000 E

7 500 E

3 500 N

3 000 N

4 000 N

4 500 N

5 000 N

5 500 N

3 500 N

3 000 N

4 000 N

4 500 N

5 000 N

5 500 N

Tailings Pond

Waste dump

Oberon PitEl Apache Pit

Cerro Colorado Pit

Santo Niño Pits

San Eligio Pit

Leach Pad ToYepachic

To Cahuisori

Proposed Access RoadProposed site

Proposed Electric line

Portal – Existing Adit

Legend:

N

0 500

metres

19


EXPLORATION POTENTIAL EXISTS OUTSIDE CURRENT RESOURCE

1 km

Buenavista Ignimbrite

Frijolar Andesite

Lake Sediments

Victoria Ignimbrite

Navosaigame Conglomerate

Madroño Volcanics

Andesite Dike

Rhyolite Dome

Colluvium

Fault

Gold-Silver Vein

Cerro ColoradoCerro Colorado Santo NiñoSanto Niño Oberon de WeberOberon de Weber

El ApacheEl Apache

ReynaPlata

de

El Madroño

Carola

San Eligio

La Verde

16Cubiro

Continued success with drilling on eastern 1/3 of propertyExcellent exploration upside potential in the western 2/32006 exploration – 25 holes 5,836 m

Santo Niño West

BravoBravo El MadroñoEl Madroño

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SANTO NIÑO RAMP PROJECT

Frijolar Andesite

Navosaygame Conglomerate

Victoria Ignimbrite

Vein Zone

Fault

Creek

Reference Line Longitudinal Section

ABBuenavista Ignimbrite

Santo Niño Andesite

Modified from Peñoles 2004

Ref. Grid UTM NAD27

San Eligio

Oberon de Weber Zone El Apache Zone

Victoria Adit

(325m depth)

Cerro Colorado ZoneSanto Niño Zone

0 300SCALE

Metres

Proposed Ramp – 2405 m

2006 – 760 m

Santo Niño ramp project – 1330 m costing $1.6 million (starting Q4 2006) for resource conversion in 2007 - 2008

Cross Section Lines

A

B

21


EXPLORATION CAMP – FUTURE DEVELOPMENT CAMPSITE

Initial capacity 10 people

Occupancy July 2006

$0.4 million construction cost

PeñolesCampsite

Cahuisori

Townsite

10 k

m to

Pin

os A

ltos

260

km

to C

hihu

ahua

Road to Ocampo50 km

Limit of 16 hectares property

16

Core shack & warehouses

CafeteriaBunkhouse

River (normally dry)

0 100

Metres

SCALE

Cabins

22


PINOS ALTOS CAHUISORI, CHIHUAHUA, MEXICO

EXPLORATION CAMP – ARTIST’S IMAGE

23


PROJECT OPPORTUNITIES

Concurrent permitting and feasibility strategy will minimize overall project schedulePermit designs can allow flexibility for future relocation of facilities when future reserves are discoveredFeasibility will consider early open-pit development for improved cash flow and RORFeasibility will incorporate trade-off studies including a low-grade heap leach component and dry stack tailingsPinos Altos presents an opportunity for internal growth within the property area and a good foundation for future acquisitions and growth in MexicoUnparalleled access and infrastructure for Sierra Madre development- key elements include access, communications, power, water, and housingUpside opportunity for metallurgy, especially silver recoveryLarge property positionAbility to attract and maintain excellent professional Mexican workforce- minimum expatriate requirementOpportunity to capitalize on AEM’s underground mining expertiseStable geopolitics- mining is a welcome industry in Mexico

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0

2000

4000

6000

8000

10000

12000

14000

16000

1998 1999 2000 2001 2002 2003 2004 2005 2006F 2007F

Targeting additional reserve conversion at Pinos Altos and Kittila in 2006 and 2007

GOLD RESERVES

3.0 3.3 3.34.0

10.4

7.97.9

1.3

Target14 to 15Total Agnico-Eagle Reserves

(Millions of Ounces)

1999 2000 2001 2002 2003 2004 20051998

LaRonde, LaRonde II

Goldex

Lapa

Kittila

2008 Est.

25


SUBSTANTIAL GOLD PRODUCTION GROWTHLaRonde Goldex LaRonde II Lapa

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

2006 2007 2008 2009 2010 2011

Kittilä Pinos Altos (Estimated)

E

E E

26


NO HAY PREGUNTAS, VAMOS A LA CARNE ASADA!

27


FIELD TOUR STOPS

5 000 E

4 500 E

4 000 E

5 500 E

6 000 E

6 500 E

7 000 E

7 500 E

3 500 N

3 000 N

4 000 N

4 500 N

5 000 N

5 500 N

3 500 N

3 000 N

4 000 N

4 500 N

5 000 N

5 500 N

Tailings Pond

Waste dump

Oberon PitEl Apache Pit

Cerro Colorado Pit

Santo Niño Pits

San Eligio Pit

Leach PadTo Yepachic

To Cahuisori

Proposed Access RoadProposed site

Proposed Electric line

Portal – Existing Adit

Legend:

N

0 500

metres

Stop 1Stop 2Stop 3

Stop 5 Stop 4

Stop 6

Documents

Pinos Altos Project Analyst Tour - s21.q4cdn.com · BISMARK PINOS ALTOS 100 Kilómetros Dolores El Sauzal Ocampo Mulatos Monterde Palmarejo TERRAZAS BOLIVAR 0 100 N ... Oberon de