Agnico-Eagle Mines Limited Kittilä Mine – Presentation ... - Bergforsk

Agnico-Eagle Mines LimitedKittilä Mine – Presentation May 4 th 2011

Agnico-Eagle Mines LimitedAEM has 52 years of operating history, dating back to 1957 when AgnicoMines Limited was foundedIn 1972, Agnico Mines merged with gold exploration company Eagle GoldMines Limited to form today’s AEMFrom inception, AEM has operated a quality business, always maintaininga healthy balance sheet and never selling its gold forwardIn 1994, AEM listed on the New York Stock ExchangeIn 2000, Completion of LaRonde’s Penna Shaft, the deepest single-liftshaft in the Western HemisphereIn 2005, AEM acquires the Suurikuusikko gold deposit in Finland andsigns an option agreement to purchase the Pinos Altos property in Mexico2

Operations at a glanceSix mines now operating.Located in mining-friendly regions of low political risk100% owned, with low total acquisition costsEach region has long-term mining camp potentialFraser Institute’sranking1Fraser Institute’sranking1Fraser Institute’sranking14LaRondeQUEBEC, CANADAGoldexQUEBEC, CANADAKittilaKITTILA, FINLANDFraser Institute’sranking1Fraser Institute’sranking28Fraser Institute’sranking44LapaQUEBEC, CANADAPinos AltosCHIHUAHUA, MEXICOMeadowbankNUNAVUT, CANADAFraser Institute’s 2008/2009 ranking of 71 mining jurisdictions3

KITTILÄ MINE

Kittilä Mine Location55 km north of Kittilä900 km north of HelsinkiExcellent Infrastructure: roads,airports, communicationLandholdings: 84 tenements (6,969 has)and one mining licence (847 has)NorwayMurmanskKiirunaMineKittilä25 kmRovaniemiSwedenRussia

KITTILÄ MINE - HISTORY1986 First findings in the Suurikuusikko field byGTK1998 Exploration started by RiddarhyttanResources AB, a Swedish junior miningcompany2002 Environmental permit for mining atSuurikuusikko (open pit and underground)granted by the Environmental Permittingauthorities2003 Mining license granted by the Ministry ofEmployment and Economics2005 Agnico-Eagle Mines Limited became the soleowner of Riddarhyttan by 2005 and theexploration was expanded2006 Upon completion of a final feasibility study,the decision to open the Kittilä Mine wasmade and the construction and developmentbegan2008 First ore production in May and firstconcentrate in September2009 The first gold pour on January 14th, 2009.The Grand Opening of the Kittilä Mine wason June 4th, 2009

KITTILÄ MINEfrom exploration to gold bullion

Kittilä Mine Areal View 07-2010TailingsProcessing - ServicesSuuri Open Pit

Kittilä Mine Ore Reserves 31.12.2010Suurikuusikko Ore LensesLongitudial Sections, N-SProven and Probable Mineral Reserve (diluted, no oreloss)Mt Au, g/t Au, MOz.32..7 4.64.9 (157tonne)Indicated Mineral Resource (diluted, no ore loss) 15.3 2.41SInferred Mineral Resource (not diluted, no ore loss) 8.3 2.5N2 km9

Kittilä MineMiningOpen pit mining during the forts 3-4 yearsFollowed by underground miningAnnual mining 1,100,000 tonnes of oreN1 km10

KITTILÄmining MT1,21,00,80,60,40,20,02008 2009 2010 2011 2012 2013 2014OPUG11

OPEN PIT MININGSuurikuusikko 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 bulldozersWaste mining started inSeptember 2007Ore Mining started May 2008Geological parametersDilution 15 % at 0.7 g/tOre Recovery 95%12

KITTILÄ MINE – Suuri open pit, July 2010

14OPEN PITS: BUFFER BLASTING

15OPEN PITS: BUFFER BLASTING

TUNNELING5,268 m in 2006 - 084,000 m in 20095,040 m in 20106,000 m in 2011 (planned)Decline 90 m/month5.5 mGradient 1:75.3 m16

MAIN LEVEL -350Proposed shaftVentilation raise (intake)SumpFuel BayWashing BayMain ShopcafeteriaParkingServicescableWarehouseElectricalstation17

18MAIN UNDERGROUND LEVEL 350

Kittilä MineOre Processing19

Kittilä MillControl Room

Kittilä Mill Production 2011Ore Processing: Flotation – Pressure Oxidation – Cyanide LeachingCurrent Annual Production 5 000 kg gold

Kittilä MineMill Process Flow Sheet

Processing - Simplified Flow SheetProcess Water in closed circuitENVIRONMENTNeutralizationIFlotationIICarbon-in-leachProcessWaterTankCyanide destructionFlotation Tailings DisposalC.I.L Tailings Disposal

KITTILÄ MINE - Tailings FacilityConstruction of new tailingsArea.(photos taken end of June2010)All ponds lined with waterproofbitumen liners

Kittilä Mine

Kittilä MineEnvironmentStrengths in Environmental Protection: Sufficient human and financial resources Good cooperation with authorities, localassociations and people living in the nearbyvillagesObjectives: 100% Compliance Waste Rock Management Water treatment / water balance Tailing pond expansion Waste management - recycling

Kittilä MinePlant Site

KITTILÄ MINE - LABOURKittilä mine personnelCurrently 570 employees working at the mine site 370 own employees55% residing in Kittilä and 86% residing in Lapland 200 contractor employees15% from Kittilä and 41% from LaplandIn addition in 2010, the mine employed 75 summer trainees The average age of own employee’s is39.3 years 14.3% of the employees are women

KITTILÄ MINE - ECONOMIC IMPACT ON THE MUNICIPALITYThe Economy of the Kittilä municipality is dependant on: The tourist industry and the Kittilä mineThe tourist industry provides ca. 1100 jobs for Kittilä residents, or 42% ofKittilä’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 resourcesThe unemployment rate in Kittilä is below 10% on average - during highseason 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’sunder 200 M EUR (in 2007)

Kittilä Mine

Kittilä Mine