Agnico-Eagle Finds More Gold And Silver In Mexico Mine

Agnico-Eagle Mines Ltd. (AEM) announced Wednesday an exploration update at its Pinos Altos mine in Mexico, indicating the potential for significant increases to its current gold and silver inventory.

"The most recent Pinos Altos exploration results give us further confidence that we will be able to meet our previously stated gold reserve target of 18-million to 20-million ounces by the end of 2008," said Agnico-Eagle CEO Sean Boyd in a statement. "Agnico-Eagle's gold reserves already exceed the average of the rest of the mid-tier gold producers by more than double."

Drilling results at Pinos Altos suggest current reserves at the project of 1.8 million ounces of gold and 55.5 million ounces of silver.

Already making up 10% of Agnico's net asset value and poised to grow, Pinos Altos is becoming one of the company's more attractive assets, Blackmont analyst Richard Gray told clients in a note. Mr. Gray maintained his "buy" rating on the stock and left unchanged his C$48.50 price target, which represents roughly 26% upside on the current stock price.

Agnico-Eagle also announced that it recently entered into an exploration and purchase option agreement with a private Mexican company regarding the El Realito Property in Sinaloa, Mexico. This property is on the southern extension of the same trend of the Sierra Madre Occidental Range that hosts Agnico-Eagle's Pinos Altos property.

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