Agnico Eagle is spending $158 million on Mexican project
Canadian miner Agnico-Eagle Mines (TSX:AEM) announced Wednesday its board of directors has approved the development and construction of its recently acquired La India project in Mexico.
The company says it expects construction costs to be about $158 million for the project and that commercial production will begin in the second half of 2014.
The La India project is in the Mulatos gold belt in Sonora, Mexico. It has an indicated resource of 26.8 million tonnes Au at a grade of 0.88 of a gram per tonne, the company said.
Agnico-Eagle acquired La India, which is located approximately 70 kilometres from its Pinos Altos mine, in November 2011 as part of the transaction with Grayd Resource Corporation. In addition to La India, the large 54,981 hectare property position contains an early-stage exploration project named Tarachi, located only 10 kilometres to the north.