Agnico Eagle Mines (AEM) has provided an exploration update along with an updated resource estimate for its Amaruq project. This project is situated in Nunavut, northern Canada. The company discovered the I, V, and R mineralized zones in 2013, shortly after it acquired the Amaruq property. The Whale Tail deposit, located south of the R zone, was discovered in 2014.
AEM’s exploration update is based on the drilling it completed in 1H16. According to the latest update, Amaruq’s mineral resources rose 13%, taking its total resources to 3.7 million ounces at a grade of 6.0 grams per ton.
The company’s open pit mineral resources rose 33% to 2.4 million ounces at an average grade of 5.5 grams per ton. Its total mineral resources are 65% open pit and 35% underground deposit.
The largest rise in its mineral resources has been in its IVR resources, where contained gold has risen 319% to 852,000 ounces. The grade of its IVR open pit resources has also risen from 6.1 grams per ton to 6.7 grams per ton. AEM said that most of this rise has been due to extensive drilling in the V zone.
During its latest quarterly results, AEM’s peer Newmont Mining (NEM) reported that its Tanami expansion could provide it with near-term production growth options. Kinross Gold (KGC) also announced that it would go ahead with its Tasiast Phase One expansion. Yamana Gold (AUY) has an upside through its ongoing exploration program.