Agnico Eagle Mines (AEM) provided an exploration update on its Amaruq project in September 2016. To find out more, read Agnico Eagle Mines’ and Senior Miners’ Explorations Pay Off.
According to the latest update, Amaruq’s mineral resources rose 13%, bringing 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.
Another important highlight of Agnico’s exploration update was the confirmation of the V mineralized zone as a potential second source of open pit ore.
Growth in production
Agnico is constantly trying to develop its internal project pipeline, which is quite strong. This leads to upsides in its production almost every year.
Kinross Gold (KGC) and Yamana Gold (AUY), on the other hand, could face long-term production issues due to thinning pipelines. The companies could resort to acquisitions to replenish these pipelines. Investors looking to invest in gold can also look at leveraged ETFs such as the Direxion Daily Junior Gold Miners Bull 3X ETF (JNUG) and the Direxion Daily Gold Miners Bull 3X ETF (NUGT).
In the next part of this series, we’ll look at the 3Q16 expectations for Yamana Gold.