Our Pinos Altos mine has reserves of more than 3.5 million ounces of gold and 100 million ounces of silver.
It is located in the mountainous Sierra Madre gold and silver belt of northern Mexico, 220 kilometres west of Chihuahua. Mexico is known for its rich geology and pro-mining regulations. We have a large land position that measures 110 square kilometres and is directly accessible by paved highway.
Prestripping and mining at Pinos Altos began in 2008 from the Santo Niño pit. An underground mine is being developed beneath this pit and is expected to go into production early in 2010.
The first Pinos Altos gold was poured in July 2009. The mine is expected to produce 170,000 ounces of gold and 2.5 million ounces of silver per year through 2028. The nearby Creston Mascota project was recently approved as a stand-alone pit and heap leach operation. It will produce an additional 46,000 ounces of gold per year for five years, starting in 2011.
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E
xpansion
An expansion project was approved in July 2009, to begin construction of a 4,000-tonne-per-day open pit, heap leach operation on the Creston Mascota deposit. The capital cost of the stand-alone project is estimated at $64 million. Creston Mascota has about 357,000 ounces of gold and 3.7 million ounces of silver in probable reserves. Production should start in early 2011 and last for at least five years at the rate of 46,000 ounces of gold annually.
We are also considering increasing the Pinos Altos processing plant rate from 4,000 to 6,000 tonnes per day, reflecting a 125% increase in reserve tonnage since 2007. Results of the scoping study are expected in Q3 2010.
H
istory
1871
– Gold and silver are discovered on what is now the Pinos Altos property.
1890
– Mining begins but is interrupted in 1904.
1938 to 1956
– The mine goes back into production. By the time it closes, it yields 180,000 ounces of gold and 1.8 million ounces of silver.
1995
– The potential of the Pinos Altos property begins to be revealed using modern exploration techniques.
2003
– A positive pre-feasibility study is completed.
2005
– Agnico-Eagle options the property and conducts a drilling campaign, with encouraging results.
2006
– Agnico-Eagle acquires the Pinos Altos property.
2007
– An exploration ramp is started at Santo Niño in April. In August, a favourable feasibility study leads to the decision to commence construction of the mine.
2008
– Prestripping of the Santo Niño pit begins in April and the initial ore is mined by year-end.
2009
– The first gold/silver doré bar is poured from the Santo Niño heap leach operation in July, and from the mineral processing plant in September. The mine is officially opened in November.