TORONTO (miningweekly.com) – Canadian gold miner Agnico Eagle Mines, which operates eight mines in Canada, Finland and Mexico, on Monday issued an exploration update for its Mexican development projects, which extended mineralisation at El Barqueno, and could increase reserves and resources at Creston Mascota, a Pinos Altos satellite deposit, and La India.

At El Barqueno, which last saw an exploration update on June 9, Agnico reported highlight drill holes that included 8.04 g/t over 5 m and a depth of 227 m, and 2.25 g/t over 3.6 m and a depth of 303 m, extending the mineralised area further at depth.

At 87 m below surface, the company encountered 15.49 g/t gold over 3 m and, even closer to surface, it intercepted 10.82 g/t over an interval of 4.9 m at a depth of 32 m and 2.69 g/t over 27.5 m from surface.

"Drilling at El Barqueno continues to expand the known deposits and we are aiming to declare the first resource by mid-February 2016. Over time, we believe that El Barqueno could generate similar [to Creston Mascota and La India] value for our shareholders,” vice chairperson and CEO Sean Boyd advised.

Agnico had started preliminary studies on mine design, as well as metallurgical testwork on site. Despite being early days, Agnico envisioned an openpit, heap leach operation similar to Creston Mascota and La India. The El Barqueno project contained several known mineralised zones and several prospects that required further evaluation, and exploration expenditure at the site was expected to be $22-million this year.

Meanwhile, ongoing infill drilling at Creston Mascota had confirmed higher-grade intercepts located below the pit and also within the pit design, but outside the block model, including 4.15 g/t gold and 29.6 g/t gold at intervals of more than 23 m, at a depth of 42 m.

Management believed that the drill results could extend the mine life beyond 2018.

At La India, Agnico had improved the geological model for the Main Zone oxides from favourable reconciliation with the model, as well as through further drilling. With the experience gained since commercial production was declared in February 2014, the company believed that transition material, as well as some sulphide material, might be heap-leachable, which when included in the pit design, could allow the company to develop more oxide and sulphide material, and ultimately extend the mine life beyond 2020.