Agnico-Eagle Mines Ltd.

Agnico-Eagle recorded a second quarter of $0.11 per share up from $0.05 per share due to higher production of 65,233 ounces versus 60,157 ounces. The LaRonde gold producer in northwestern Quebec has shown the street it has turned the corner with its third impressive quarter. In addition, the mill ran at a record 8,300 tonnes per day, up 8 percent and the company is on track to produce about 295,000 ounces this year. More importantly, the company is spending about $30 million on the underground development at its Lapa property about eleven kilometers east of LaRonde. Lapa will be in production in 2008 producing 125,000 ounces of gold at a cash cost of $175 an ounce. Agnico-Eagle is also carrying out studies at Goldex in order to bring that deposit into production. And finally, Agnico-Eagle has seven drills working underground at LaRonde as part the largest exploration program in Canada. We continue to like the shares here.  

Mexico's Penoles Grants Gold Mine Option To Agnico-Eagle
MEXICO CITY (Dow Jones)--Mexican mining company Industrias Penoles SA (PE& OLES.MX) said Tuesday it has granted Canada's Agnico-Eagle Mines Ltd (AEM) an option to acquire a gold project in Mexico's northern state of Chihuahua.In a press release, Penoles, the world's biggest silver producer, said Agnico- Eagle will invest $2.8 million to confirm reserves and evaluate the Pinos Altos project.At the end of a seven-month evaluation, the Canadian concern will have the option to buy the project for $65 million.
"Although the Pinos Altos deposit is of high quality, the identified volumes did not reach Penoles' investment criteria in terms of size of operation," Penoles said.
Penoles had sales of 16.6 billion pesos ($1=MXN11.2337) last year. The company produced 80.5 million ounces of silver, and 756,084 ounces of gold.

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