GOLD: New shaft for Agnico’s Kittila mine in Finland

[caption id="attachment_1003722105" align="aligncenter" width="503"] An aerial view of the Kittila mine and mill in northern Finland. AGNICO EAGLE MINES[/caption] FINLAND – Agnico Eagle’s board of directors has approved adding a 1,044-metre-deep shaft at its Kittila gold mine. At the same time, milling capacity will be boosted 25% to 30%, increasing annual production to 250,000 oz. of gold by 2021. The Toronto-based company plans to spend approximately C$250 million on the shaft and expansion. The shaft will service the Rimpi and Sisar zones. Work at the mill will include installation of a secondary crushing circuit, new thickener and reactor capacity, and minor changes to the existing grinding circuit and autoclave. Cash costs per ounce produced should be US$685-700 when the expansion is complete. Agnico gave Kittila guidance for 2018 and 2019 slightly below previous numbers due to a re-evaluation of the block model based on reconciliation data, leading to the  recovery of slightly lower grades. The mine is expected to produce 190,000 oz. of gold in each of those years, and 215,000 oz. in 2020. This year’s Kittila exploration budget is about US$7.6 million that will be spent on 31,000 metres of deep drilling. The goal is to expand resources in the northern part of the property and demonstrate the economic potential of the Sisar zone as a new mining horizon. Additional details about the Kittila project and Agnico’s other mines is posted at www.AgnicoEagle.com.