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March20-Pinosaltos-Technicalreport-2008 V001 H57zuk.Pdf Item 1 Title page Agnico-Eagle Mines Limited PINOS ALTOS GOLD-SILVER MINING PROJECT CHIHUAHUA STATE, MEXICO TECHNICAL REPORT ON THE MINERAL RESOURCES AND RESERVES AS OF DECEMBER 31ST 2008 Prepared by Dyane Duquette, Geo. Louise Grondin, P. Eng. Pierre Matte, Eng. Camil Prince, Eng. March 20th 2009, Preissac, Quebec Item 2 Table of Contents ITEM 1 TITLE PAGE.................................................................................................................................. 1 ITEM 2 TABLE OF CONTENTS............................................................................................................... 2 ITEM 3 SUMMARY................................................................................................................................... 10 3.1 INTRODUCTION ............................................................................................................................... 10 3.2 PROPERTY DESCRIPTION, LOCATION AND OWNERSHIP ................................................................... 10 3.3 GEOLOGICAL SETTING, DEPOSIT TYPE AND MINERALIZATION ....................................................... 11 3.4 EXPLORATION ................................................................................................................................. 14 3.5 DEVELOPMENTS.............................................................................................................................. 15 3.6 MINERAL PROCESSING AND METALLURGY..................................................................................... 16 3.7 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATE............................................................... 17 3.8 MINING PROJECTS........................................................................................................................... 19 3.9 SURFACE MINING............................................................................................................................ 20 3.9.1 Pinos Altos................................................................................................................................. 20 3.9.2 Creston-Mascota ....................................................................................................................... 21 3.10 UNDERGROUND MINING ................................................................................................................. 21 3.11 PROCESS AND PLANT DESCRIPTION ................................................................................................ 22 3.12 MILLING PROCESS........................................................................................................................... 23 3.13 HEAP LEACHING PROCESS .............................................................................................................. 23 3.13.1 Pinos Altos............................................................................................................................ 23 3.13.2 Mascota................................................................................................................................. 24 3.14 ENVIRONMENTAL CONSIDERATIONS............................................................................................... 26 3.15 CAPITAL AND OPERATING COST ESTIMATES................................................................................... 27 3.15.1 Pinos Altos............................................................................................................................ 27 3.15.2 Creston-Mascota................................................................................................................... 28 3.16 ECONOMIC ANALYSIS ..................................................................................................................... 29 3.16.1 Pinos Altos............................................................................................................................ 30 3.16.2 Creston-Mascota................................................................................................................... 30 3.17 CONCLUSIONS AND RECOMMENDATIONS........................................................................................ 30 ITEM 4 INTRODUCTION........................................................................................................................ 33 4.1 QUALIFIED PERSONS ....................................................................................................................... 34 4.2 PERSONAL INSPECTION ................................................................................................................... 35 4.3 BASIS OF THE TECHNICAL REPORT.................................................................................................. 37 4.4 TERMS OF REFERENCE .................................................................................................................... 38 ITEM 5 RELIANCE ON OTHER EXPERTS ......................................................................................... 40 ITEM 6 LOCATION AND PROPERTY DESCRIPTION ..................................................................... 41 6.1 LOCATION ....................................................................................................................................... 41 6.2 AREA OF THE PROPERTY ................................................................................................................. 42 6.3 PROPERTY TENURE RIGHTS ............................................................................................................ 44 6.4 SURFACE RIGHTS ............................................................................................................................ 46 6.5 THE PROPERTY BOUNDARIES.......................................................................................................... 50 6.6 LOCATION OF MINERALIZATION ..................................................................................................... 51 6.7 ROYALTIES AND OTHER ENCUMBRANCE......................................................................................... 53 6.7.1. Pinos Altos................................................................................................................................. 53 6.7.2. Creston-Mascota ....................................................................................................................... 56 2 6.8 ENVIRONMENTAL CONSIDERATIONS............................................................................................... 57 6.8.1. Required Permits ....................................................................................................................... 59 ITEM 7 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY .......................................................................................................................................... 62 7.1 TOPOGRAPHY, ELEVATION AND VEGETATION ................................................................................ 62 7.2 ACCESS TO THE PROPERTY.............................................................................................................. 65 7.3 PROXIMITY TO A POPULATION CENTRE........................................................................................... 67 7.4 CLIMATE AND LENGTH OF OPERATING SEASON.............................................................................. 68 7.5 SURFACE RIGHTS FOR MINING OPERATIONS................................................................................... 70 7.5.1 Sources of Water and Power ..................................................................................................... 73 7.5.2 Sources of Mining Personel....................................................................................................... 76 7.5.3 Infrastructure Areas .................................................................................................................. 77 ITEM 8 HISTORY ..................................................................................................................................... 78 8.1 PREVIOUS WORK AND PRIOR OWNERSHIP ...................................................................................... 78 8.2 PREVIOUS RESOURCE AND RESERVE ESTIMATES ............................................................................ 84 8.3 PREVIOUS PRODUCTION FROM THE PROPERTY................................................................................ 92 ITEM 9 GEOLOGY ................................................................................................................................... 93 9.1 REGIONAL GEOLOGY ...................................................................................................................... 93 9.2 REGIONAL STRATIGRAPHY.............................................................................................................. 93 9.2.1 Pinos Altos................................................................................................................................. 93 9.2.2 Regional Structure..................................................................................................................... 97 9.3 LOCAL AND PROPERTY GEOLOGY................................................................................................... 98 9.3.1 Lithology.................................................................................................................................... 98 9.3.2 Structure
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