AGNICO EAGLE RELEASES DETOUR LAKE PROPOSED UNDERGROUND MINING PLAN DEMONSTRATING STRONG RETURNS AND PATHWAY TO ANNUAL GOLD PRODUCTION OF ONE MILLION OUNCES

Core Viewpoint - Agnico Eagle Mines Limited has provided an update on the Detour Lake mine, highlighting the completion of an updated mineral reserve and resource estimate, along with a new life of mine plan that aims to significantly increase gold production through the development of an underground project and mill optimization. Group 1: Updated Mineral Reserve and Resource Estimate - The updated mineral reserve and resource estimate (MRMR) as of March 31, 2024, includes a total of 1.2 million ounces of indicated mineral resources and 7.1 million ounces of inferred mineral resources, with a gold cut-off grade of 1.22 grams per tonne [4][19][20] - The life of mine payable gold production is projected to increase by 27% to 22 million ounces compared to the previous estimate, with the underground project contributing an additional 4 million ounces [4][5][12] Group 2: Underground Project and Economic Assessment - The 2024 Preliminary Economic Assessment (PEA) indicates that the underground project could increase overall production to approximately one million ounces of gold per year starting in 2030, representing a 43% increase compared to the average annual production from 2024 to 2029 [2][4][30] - The underground project is expected to have a development capital expenditure of approximately $731 million, with sustaining capital expenditures forecasted to be between $40 million to $45 million per year from 2030 to 2043 [5][37] Group 3: Production and Cost Metrics - The average total cash costs for the underground project and mill optimization are expected to be $690 per ounce, while the overall average total cash costs for the 2024 PEA are projected to be $741 per ounce over the life of the mine [5][36] - The underground project is anticipated to generate an after-tax internal rate of return (IRR) of approximately 18% at a gold price of $1,900 per ounce, increasing to about 25% at current gold prices of $2,300 per ounce [5][14] Group 4: Exploration and Future Potential - The company plans to invest $100 million over the next three years to further study and de-risk the underground project, including the development of an exploration ramp and a high-intensity drilling program [3][5][14] - There is significant exploration potential to grow underground mineral resources, with an additional exploration budget of $65 million allocated for the next three years [5][15]