Agnico-Eagle Approves Development of La India Mine in Mexico; Commercial Production Expected in 2014
Agnico-Eagle Mines Limited (NYSE: AEM)announced Tuesday that its Board
of Directors has approved the development and construction of the La
India mine in Sonora, Mexico.
Agnico-Eagle acquired La India, located approximately 70 kilometres from
Agnico-Eagle's Pinos Altos mine, in November 2011 as part of the
transaction with Grayd Resource Corporation. In addition to La India,
the large 54,981 hectare property position contains an early-stage
exploration project named Tarachi, which is 10 kilometres to the north.
Link to location and property map
The La India mine will be developed as an open pit, heap leach operation
with commercial production expected in the second half of 2014.
Construction costs for the project are expected to total approximately
$158 million, which will be funded from the Company's operating cash
flows. Sustaining capital costs are forecast to total approximately
$25 million over the eight year life of the mine. New capital of
approximately $40 million is expected to be added to the Company's
total in 2012.
The feasibility study estimates that the La India project will generate
an internal rate of return