Newsletter … Dear thomas,
We are pleased to have launched the second half of the year with a highly strategic transaction that consolidates a key segment of the past-producing 1.1 Moz Eagle-Telbel mine trend at the Joutel Gold Project.
This month, we announced the option to acquire the Eagle Mine Property, which will allow us to systematically explore the entire 6-kilometre-long gold system that hosted the Eagle, Telbel and Eagle West mines. Since its decommissioning, the Eagle mine has seen only limited regional exploration over the past 28 years.
It is incredibly exciting to have rediscovered Agnico Eagle’s former namesake mine (the "Eagle" in Agnico Eagle) with so much remaining potential. We see near-term opportunities to extend high-grade gold mineralization around and below the historic mine workings throughout the Eagle-Telbel mine area.
Our high conviction view on the deposit’s size and grade potential is based on the ongoing work by the MGM-AEM joint venture to digitize, verify and model over 250,000 metres of historical drilling data within and surrounding the Telbel mine, which is located roughly 1.5 kilometres southeast of the Eagle mine and is in fact connected to Eagle via an underground cross-drift. Digitizing and verifying analog drill data and creating a 3D model around data of such magnitude has been both thrilling and a welcome challenge for our team.
It had been our hope to put out preliminary results of our 3D modelling work at Telbel work by now; however, this endeavour has also been impacted by the recent addition of the Eagle Mine Property. We ask for your patience as we work diligently to expand our 3D model and targeting along this entire trend and unveil our findings in the coming weeks. I continue to believe that it will be worth the wait.
With respect to our Douay Winter 2021 JV drill results, we share your concerns with the slow pace of assays due to the lingering impacts of Covid-19. However, we expect to see things pick up in August and hope to be able to release results from the final 16 holes of our 22-hole drill program soon. These results are part of the ~16,000 metres of drilling within the resource area that will be incorporated into an updated resource estimate at Douay which we expect to complete in the second half of the year.
I thank you as always for your support and deeply appreciate your patience as we work hard to build value for our shareholders. I hope you are having an enjoyable summer and look forward to connecting with you again next month. Stay cool and healthy.
Sincerely,