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Gold/Mining/Energy : Agnico-Eagle Mines Ltd. - AGE (U.S. AEM) -- Ignore unavailable to you. Want to Upgrade?

To: Robert J Mullenbach who wrote (750)	2/28/2000 9:30:00 AM
From: Robert J Mullenbach	Read Replies (1) \| Respond to of 1612

Sure would be nice for Sudbury to have some great hits. AGNICO-EAGLE MINES LTD ("AEGGF-Q") SUDBURY CONTACT MINES LTD ("SUD-T;SUCMF-L") - Agnico-Eagle Subsidiary Sudbury Contact Begins Drilling Program - At Tonkin Springs in Nevada Sudbury Contact Mines Limited ("Sudbury Contact") is pleased to announce that it has started an exploration drill program on its 60% owned Tonkin Springs Project located in Eureka County, Nevada. Six new targets have been identified. An initial phase of 19,000 feet of reverse circulation drilling has been proposed to test three of the target areas. Two machines have been mobilized. The Tonkin Springs Project land package is comprised of 1055 lode mining claims covering 36 square miles with 12 linear miles centred along the Battle Mountain Trend. The Project currently has a drill indicated resource of 1.4 million ounces of gold. Sudbury Contact is required to spend US$2.0 million in direct exploration costs over a three-year period under its joint venture agreement with US Gold Corporation of Denver, Colorado. The exploration program has three primary objectives: 1) identify targets within the resource area where significant expansion can be accomplished, 2) identify and conduct initial testing of new targets having the potential of yielding Cortez-Pipeline style deposits, and 3) re-evaluate the economics and technical aspects of the existing resource. During the summer field season, all existing data was compiled and digitized. The entire property was mapped in detail with infill geochemical sampling and CSAMT geophysics completed on selected target areas. The drilling program will test areas of favourable structural preparation with coincident geochemical anomalies. All of the target areas have been permitted. The drilling program has started on the Black Springs target area. The Black Springs target is located along the same structural zone that hosts the Cortez and Pipeline deposits to the north and the past producer, Gold Bar to the south. Lower Plate calcareous siltstones and limestones are exposed through a window of upper plate siltstones, quartzites and cherts. Limited previous drilling had yielded a 45 foot intercept of 0.05 ounces of gold per ton. Five drill holes are planned on the Black Springs target area. The second target, the East Mercury, is located to the east of the Rooster deposit. A resource estimate of 850,000 ounces of gold was previously calculated for the Rooster deposit. Five drill holes are planned to test for down dip extensions of the Rooster deposit as well as geochemical anomalies that occur at structural intersections in the same area. The third target, Indian Springs South, is located on the eastern side of the property adjacent to an area previously drilled by White Knight Resources. White Knight had previously reported thick intervals of low-grade gold mineralization hosted in Roberts Mountains Formation, the same formation hosting the Pipeline and Cortez deposits. Five drill holes are planned testing areas of favourable structural preparation and coincident geochemical anomalies. Eight drill holes have recently been completed for metallurgical and hydrogeologic purposes in the TSP-1 open pit area. Previously, a resource of 509,000 ounces of gold had been calculated in this area. The drill holes were drilled to obtain further information after positive metallurgical test results were received from TSP-1 sulfide samples sent previously to Newmont Metallurgical Services. Three tests were conducted using Newmont's proprietary N2TEC process. The overall recoveries from flotation and cyanidation ranged from 80% to 91%. Historical recoveries using the bio-oxidation - heap leach process were lower than the results achieved by Newmont test work. Assays have been received from three of the drill holes. Hole No. Intercept (ft) Thickness (ft) Grade (oz/ton) 199001 15 - 65 50 0.094 199003 55 - 85 30 0.059 199006 20 - 80 60 0.088 These intercepts will be forwarded to Newmont Metallurgical Services for additional metallurgical testing. Confirmation of the initial recovery rates could have a positive impact on the economies of the gold resource in the TSP-1 open pit area. Sudbury Contact is an exploration and development company with gold and diamond properties in Nevada, northeastern Ontario and northwestern Quebec. Sudbury Contact is the principal exploration subsidiary of Agnico-Eagle Mines Limited (AEM - NYSE, AGE - TSE, ME). The common shares of Sudbury Contact are listed on the Toronto Stock Exchange. TEL: (416) 947-1212 Sean Boyd, President and CEO Ebe Scherkus, Executive Vice President & COO David Garofalo, Vice President Finance