MI3 Market Alert: A senior Canadian gold mining company that has produced precious metals since 1957

Mario Drolet President of MI3 Communications Financières Inc. (MI3) released a technical note at market open today on Agnico Eagle Mines Limited (NYSE: AEM | TSX: AEM) for exclusive distribution on InvestorIntel. In this note, MI3 highlighted the following points on Agnico Eagle Mines Limited.

  • Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since 1957. Its mines are located in Canada, Finland and Mexico, with exploration activities in each of these countries as well as in the United States and Sweden.
  • Agnico Eagle has declared a cash dividend every year since 1983.
  • Since 1998, Agnico Eagle has consistently outperformed both gold and gold equities with a compound annual growth rate of approximately 12%.
  • Up 8-9$ over the last 45 days of trading – GOLD near $1360 …
  • Support: S2; $ 61.15   S1; $ 61.62       Resistance:   R1; $ 62.90   R2; $ 64.00

About Agnico Eagle

Agnico Eagle is a senior Canadian gold mining company that has produced precious metals since 1957.  Its operating mines are located in CanadaFinland and Mexico, with exploration and development activities in each of these countries as well as in the United States and Sweden.  Agnico Eagle and its shareholders have full exposure to gold prices due to its long-standing policy of no forward gold sales.  Agnico Eagle has declared a cash dividend every year since 1983.


Disclaimer: This MI3 Technical Note produced by MI³ Communications Financières is neither an offer to sell, nor the solicitation of an offer to buy any of the securities discussed therein. The information contained is prepared by MI3, emanating from sources deemed to be reliable. MI3 Communications Financières makes no representations or warranties with respect to the accuracy, correctness or completeness of such information. MI³ Communications Financières accepts no liability whatsoever for any loss arising from the use of the information contained therein. Please take note that for compliance purposes, all directors, consultants or employees of MI3 Communications Financières are prohibited from trading the securities of the company and MI3 Communications Financières is a shareholder and do not intend to sell any shares during the distribution of this note.

TerraX Shines in Yellowknife Gold Project

Stuart Rogers, President and Director of TerraX Minerals Inc. (TSXV: TXR) in an interview with Denis Clement of InvestorIntel discuss plans for a golden future in Yellowknife, Canada. Stuart highlights their access to the adjacent city of Yellowknife, where infrastructure reduces operating costs and adding the coveted ability to work through winter.

Denis Clement: We’re here today to meet with Mr. Stuart Rogers. I saw yesterday you had a press release with your company, adding new members to the team. Tell us a bit about that.

Stuart Rogers: Yes, that’s what we did. We’re advancing the project in Yellowknife. We’ve added two first-class guys to the project that have had experience developing a world-class asset with another company they were involved in, Cayden Resources, which was acquired by Agnico Eagle in 2014. They were attracted to this project as investors. That’s how we got to know them. We found that they have a lot of insight and contacts and people that can help us advance this project. We’re excited to have them join the board and work with us. They’re very enthusiastic.

Denis Clement: That’s great. Can you tell us a bit about your primary project, the Yellowknife City Gold Project?

Stuart Rogers: Yes. The Yellowknife City Gold Project is something that we’ve put together over the last four years. It started off to be a small block of claims and what we’ve done is taken this area that was undeveloped on strike with two high-grade gold mines, two of the highest grade gold mines that produced in Canada, the Con and Giant. We acquired and assembled a package, basically a world-class gold district. We now have 418 square kilometers. We have all the prospective ground immediately north and south of the city and the two high-grade gold mines that are in the area.

Denis Clement: And they’re in production, the Con and the Giant?

Stuart Rogers: Well, they were past producers. They operated for over 60 years. They produced over 14 million ounces of gold, an average grade of 16 grams a ton.

Denis Clement: That is good grade.

Stuart Rogers: That’s high-grade gold…to access the full interview, click here

Disclaimer: TerraX Minerals Inc. is an advertorial member of InvestorIntel Corp.

Homestake Ridge Resources benefits from Agnico’s 2014 drilling program

images3O7BO4XTHomestake Resource Corp. (‘Homestake’, TSXV: HSR) is developing the gold and silver in northwestern British Columbia has announced that Agnico Eagle Mines Ltd. (‘Agnico’, TSX: AEM) shall “let lapse its option to earn an initial 51% interest in the Homestake Ridge property in northwestern British Columbia, with Homestake retaining 100% ownership of the property.” Homestake already had full ownership of the Homestake Ridge property (3,600 Ha.) which features an NI 43-1010 estimated Inferred Resource of 911,000 oz. gold and 20,366,000 ounces of silver and an estimated Indicated Resource of 124,000 oz. gold and 939,000 oz. silver.  Agnico, one of the largest Canadian gold companies, was a partner in the Project, which is characterized by gold deposits located under caps which are host to over 20 million ounces of silver. Homestake has identified three significant deposits at the property making Homestake Ridge one of the leading undeveloped precious metals projects in Canada.

During the past summer, Agnico started, but did not complete, its 7,500 meter drilling program aimed at expanding the surface mineralization zone, reaching only 2,972 meters in six holes. This resulted in an extension of the new Slide target to 800 metres of strike length, “confirming a new zone of silver mineralization similar to that identified at the Homestake Silver Deposit and indicating the potential for a similarly rich gold zone down dip, which remains to be tested.” Agnico’s work, however, will not be in vain. According to Joe Kizis, President of Homestake, work at Homestake Ridge will proceed along the model in the development of drill targets below the silver mineralization: “Agnico’s drilling has demonstrated that a silver resource is likely to be developed with further drilling at the Slide target…. Our mineral-zoning model, based on our three discoveries made to date on the property, suggests that rich gold mineralization should occur beneath the envelope of silver-biased mineralization seen at the Slide target.” This will allow Homestake to explore identified targets without having to set up a new camp or mobilize drills.

The Homestake Ridge property belongs to the same stratigraphic assemblage of rocks as the Brucejack gold project, which was shown to contain several million ounces of gold (13 million ounces of gold and 62 million ounces of silver) and other gold-silver deposits hosted in lower Hazelton Group rocks. In 2013-2014, Agnico and partner Yamana Gold (TSX: YRI) engaged in a battle with Goldcorp (NYSE: GG | TSX: G) to purchase Osisko’s Malarctic mine. The bidding war for the battle for Osisko was surprising, given the gold industry’s efforts to cut costs in light of lower than expected gold prices. Evidently, Agnico was left with little appetite to get involved in a longer term exploration process, even though, the Homestake project started to expand already by last June. The price of gold was USD$ 1,286/ounce before the Labor Day long weekend; it reached a monthly peak of USD$ 1,322 during the second week of August. Nevertheless, the past two weeks have been marked by a sharp increase in geopolitical tensions (Russia / Ukraine, Israel / Palestine, Iraq / Kurdistan) and it is unlikely that gold will drop any further than the current price. This means that precious metals will remain in high demand as a safe haven in the long term.

The short term gold price prospects are ‘upset’ by the market expectations of higher interest rates and a stronger US Dollar. As noted in a previously published article on InvestorIntel, the American economy has gained strength over the past August and should expect the optimistic trend to continue in September. Growth rates in the United States have reached record levels (the best results since the beginning of President Obama’s first term). Meanwhile, the European Union is concerned by the prospects of deflation ahead of an important meeting of the European Central Bank. Both developments have been exercising pressure on gold and precious metal values. The markets are also monitoring the evolution of the Russian-Ukrainian conflict following the announcement of possible sanctions against Russia, in which case they are likely to turn to values ​​that are considered to pose the fewest risks, such as the US Dollar. However, despite all these factors and statistically speaking, September is the month that has favored gold – even if on September 2, it opened on a downward path at USD$ 1,276/oz.