In an Aug. 26 update, Agnico reported that exploration drilling in July and August has expanded the scope of the mineralization at the IVR property, which has now reached four zones. Since the beginning of the company’s exploration at IVR in 2013, a total of 102 drill holes (18,702 meters) have been completed.

“The new IVR discovery has yielded some very exciting results for Agnico Eagle this summer,” said Agnico Eagle President and CEO Sean Boyd. “We are particularly interested in the project because of its proximity to our Meadowbank mine and mill, which is currently our best cash flow generator.”

Agnico Eagle’s recent work has revealed the potential for multiple mineralized zones within a two-kilometer-wide (1.24 miles) northeast-southwest corridor that can be traced along strike for at least 10 kilometers (6.2 miles). Based on the current information, Agnico said all four structures identified to date are open in all directions including at depth.

This summer’s drilling on the IVR property has resulted in significant expansion of the Whale Tail zone, which is now recognized over a strike length of more than 1,000 meters,

Hole IVR14-054 intersected four apparently parallel zones grading respectively: 7.7 grams per metric ton gold over 6.5 meters at 52 meters below surface, 7.1 g/t gold over 9.6 meters at 104 meters depth, 7.3 g/t gold over 5.4 meters at 115 meters depth, and 3.1 g/t gold over 5.2 meters at 132 meters depth. Across a 400-meter-wide lake, Hole IVR14-058 intersected what is interpreted as the same structure 500 meters along strike to the northeast, grading 4.9 g/t gold over 16.7 meters at 109 meters depth, including 8.1 g/t gold over 8.0 meters at 113 meters depth. Some 70 meters farther to the east, hole IVR14-060 intersected 10.1 g/t gold over 3.8 meters at 86 meters depth.

Hole IVR14-081, drilled to test vertical continuity on the same section as IVR14-054, intersected 6.0 g/t gold over 23.7 meters at 122 meters depth. Deeper in hole IVR14-081, another significant intercept returned 7.2 g/t gold over 7.5 meters at 289 vertical depth representing the deepest intercept so far on the project and demonstrating a good vertical continuity of the mineralization.

On the next section, 70 meters to the west of drill hole IVR14-054, hole IVR14-056 returned two intercepts grading 3.6 g/t gold over 9.0 meters at only 9 meters depth including 5.3 g/t gold over 4.5 meters and a second intercept of 7.3 g/t gold over 3.5 meters at 43 meters depth. On the next section, 70 meters to the west of drill hole IVR14-056, hole IVR14-079 returned an intercept grading 8.1 g/t gold over 21.6 meters at only 35 meters depth, including 27.3 g/t gold over 4.5 meters. The assay results of the lower part of drill hole IVR14-079 as well as all the other drill holes completed along strike to the west and at depth are still pending.

The most recent intercept in the I zone is hole IVR14-050, which returned 7.6 g/t gold over 3.3 meters at 37 meters depth.

In the R zone, hole IVR14-057 encountered 5.6 g/t gold over 12.8 meters at 159 meters depth.

In addition to drilling, a 600-meter-long boulder field containing large blocks of quartz vein material (locally with sulfides and visible gold) has been located approximately 3.5 kilometers (2.2 miles) west of the main IVR area.

The blocky shape and large size of the boulders suggests they have not been transported far from their original location, an important discovery in a region lacking true exposed bedrock. Based on the nature of the boulders, the proximity of a significant electromagnetic conductor and Agnico’s understanding of the glacial transport direction, a third drill rig has been mobilized to investigate this area.

The second phase 20,000-meter drilling program commenced in July and is expected to be completed by mid-September. An extension of the drilling program could be considered with the ongoing commissioning of a new 25-man exploration camp on site with the potential to expand to 60 men in 2015 if additional drilling activities are required.

Field work, including mapping and sampling, is currently underway focusing on the anomalies highlighted by an airborne VTEMplus Time-Domain electromagnetic survey conducted earlier this year. A total of 510 surface rock samples have been collected so far in an area of about 1,300 hectares, work that led to the discovery of the gold-bearing boulder field.

Agnico Eagle has begun collecting environmental baseline data in the IVR project area in the second half of 2014, as well as beginning the preliminary engineering for road design. Qualified fisheries, geochemical, terrestrial and archaeological consultants have begun to review available baseline data from public sources and design field programs to gather additional data. Agnico said this baseline work could be used in future permitting for the IVR project.