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Growing gold reserves, on a per-share basis, is integral to AEM’s strategy and critical to our long-term success. Our focus is on adding reserves at our existing properties.
At year-end 2009, AEM’s proven and probable gold reserves reached a record high of 18.4 million ounces, a 2% increase over the previous year. The largest increase came from Kittila where approximately 0.8 million ounces of reserves were added in 2009.
Due to improved drilling access in 2010, an even larger amount of reserves is expected to be added with the year-end target being 20 million to 21 million ounces of gold.
Based on the results of the 2009 exploration program, it is possible that Kittila will become our largest gold deposit, and one of the largest in Europe. It appears that Pinos Altos will ultimately support several stand-alone satellite zones which will supplement production from the main Santo Nino deposit.
In 2010, we are increasing our exploration budget by 40% to $76 million, and planning almost 300 kilometres of drilling. The emphasis will be on resource exploration (or discovery) and conversion.
The main exploration targets are at, or close to, our Kittila, Pinos Altos, and Meadowbank mines.
We have 11 drills operating at Kittila, where the focus is on resource-to-reserve conversion and expansion along strike and below the Suuri and Roura zones.
The Pinos Altos mine consists of a series of open pits, which will eventually be supplemented by underground production, primarily from the large Santo Nino deposit. Drilling over the past two years has identified a number of satellite deposits on the large 11,000-hectare property. The Creston Mascota deposit is under construction and expected to begin production in early 2011. Recent drilling at the Sinter deposit and the new Cubiro deposit has suggested that there is potential for these zones to be mined by open pit heap leach methods similar to Creston Mascota. We will continue to explore these deposits in 2010 and expect to complete a feasibility study for the Sinter deposit by year-end.
At Meadowbank, we are focused on resource-to-reserve conversion and the expansion of the Vault, Goose South and Portage deposits.
At year-end 2009, AEM’s proven and probable gold reserves reached a record high of 18.4 million ounces, a 2% increase over the previous year. The largest increase came from Kittila where approximately 0.8 million ounces of reserves were added in 2009.
Due to improved drilling access in 2010, an even larger amount of reserves is expected to be added with the year-end target being 20 million to 21 million ounces of gold.
Based on the results of the 2009 exploration program, it is possible that Kittila will become our largest gold deposit, and one of the largest in Europe. It appears that Pinos Altos will ultimately support several stand-alone satellite zones which will supplement production from the main Santo Nino deposit.
In 2010, we are increasing our exploration budget by 40% to $76 million, and planning almost 300 kilometres of drilling. The emphasis will be on resource exploration (or discovery) and conversion.
The main exploration targets are at, or close to, our Kittila, Pinos Altos, and Meadowbank mines.
We have 11 drills operating at Kittila, where the focus is on resource-to-reserve conversion and expansion along strike and below the Suuri and Roura zones.
The Pinos Altos mine consists of a series of open pits, which will eventually be supplemented by underground production, primarily from the large Santo Nino deposit. Drilling over the past two years has identified a number of satellite deposits on the large 11,000-hectare property. The Creston Mascota deposit is under construction and expected to begin production in early 2011. Recent drilling at the Sinter deposit and the new Cubiro deposit has suggested that there is potential for these zones to be mined by open pit heap leach methods similar to Creston Mascota. We will continue to explore these deposits in 2010 and expect to complete a feasibility study for the Sinter deposit by year-end.
At Meadowbank, we are focused on resource-to-reserve conversion and the expansion of the Vault, Goose South and Portage deposits.
