Our strong performance has allowed us to further invest in our exploration and development pipeline, which represents the long-term future of our business. In 2015, we doubled our exploration budget with excellent results at each of our operations and projects. We have now reported an initial mineral resource for our El Barqueño project in Mexico and the Sisar Zone at Kittila, while drilling at Amaruq yielded a significant increase in inferred mineral resources. In 2016, we have committed significant resources to our exploration program, which is budgeted at $93 million.

We will continue to focus on adding incremental production at our current mines through 2018, while advancing Amaruq, Meliadine and El Barqueño, which are expected to add significant production starting in 2019 to 2020. However, we will continue to take a prudent and measured approach to development while maintaining financial flexibility.

Amaruq – Mineral resource base expanded by 119%, drilling extends Whale Tail deposit
In 2015, our $37.7 million exploration program at Amaruq yielded significant results. Inferred resources increased by 119%, and now totals 3.3 million ounces (16.9 million tonnes grading 6.05 grams per tonne of gold).

A large portion of last year’s drill program was focused on the Whale Tail Zone, where drilling has outlined up to five mineralized lenses along a strike length of 2.3 kilometres and to a depth of up to 600 metres below surface. Mineralization remains open in all directions. Significant mineralization has also been outlined in the IVR area, where the inferred mineral resource has more than doubled to 208,635 ounces of gold (1.01 million tonnes grading 6.43 grams per tonne of gold).

In 2016, an initial $19 million drilling program is designed to expand and upgrade the gold resources and outline a second source of open pit ore for the project. We anticipate developing Amaruq as a satellite operation to Meadowbank, with the potential to begin production in 2019.

Meliadine – Focus turns to preserving production options
In 2015, we invested approximately $67 million at Meliadine to advance ramp development, permitting, camp operations and an updated technical study.

Meliadine now hosts 3.4 million ounces of proven and probable mineral reserves (14.5 million tonnes of ore grading 7.32 grams per tonne of gold), 3.31 million ounces of measured and indicated mineral resources (20.78 million tonnes of ore grading 4.95 grams per tonne of gold), and 3.55 million ounces of inferred mineral resources (14.71 million tonnes of ore grading 7.51 grams per tonne of gold).

Specifically, we are studying the potential to extract additional ounces of gold from the Tiriganiaq and Wesmeg/Normeg deposits, which could potentially extend the mine life, increase annual production, and improve the project economics and the after-tax internal rate of return. These studies are expected to be completed in the third quarter of 2016.

In 2016, we are budgeting $96 million in expenditures to conduct further underground development, detailed engineering and procurement, construction of essential surface infrastructure, and for the acquisition of a used camp facility. The goal is to ensure that the project remains on track for a possible 2020 production start-up, which is approximately a one-year delay from previous internal expectations.

There are numerous other known gold occurrences in the 80-kilometre-long greenstone belt that require further evaluation. During 2015, we also acquired 68,012 hectares of new property in Nunavut, along the continuation of the greenstone belt that hosts the Meliadine deposits.

El Barqueño – Initial mineral resource announced, significant drilling planned in 2016
The El Barqueño project was a major focus of our exploration activities in 2015. A $17 million exploration program delivered an initial inferred mineral resource of 19.7 million tonnes, grading 0.96 grams per tonne of gold and 5.78 grams per tonne of silver, for an estimated total of 608,000 ounces of gold and 3.7 million ounces of silver, at the Azteca-Zapoteca, Angostura and Peña de Oro zones. Additionally, we acquired two adjacent blocks of land to the property from Soltoro Limited – at El Rayo and El Tecolote.

In 2016, we will conduct an initial $13 million exploration program to further expand and infill the known mineral resource areas and evaluate other prospective targets. While it is too early to estimate the full extent of the mineral resources and the number of deposits with economic potential at El Barqueño, we believe it has the potential to be developed into a series of open pits utilizing heap leach processing, similar to the Creston Mascota and La India mines. Conceptual design studies and additional metallurgical testing are now underway, with a goal of potentially starting operations in 2019.

Kittila – Initial inferred mineral resource declared at new Sisar Zone
In 2015, a new zone of mineralization, known as the Sisar Zone, was discovered at the Kittila mine by exploration drilling from the underground ramp being driven towards the deeper portion of the Rimpi Zone. The Sisar Zone is located to the east of the main Kittila ore zone, and is in close proximity to existing underground infrastructure. The Sisar Zone could potentially provide an additional source of underground ore to the Kittila mill with relatively little additional underground development, should further drilling outline an economic deposit. An initial inferred mineral resource of approximately 651,000 ounces of gold (3.4 million tonnes grading 5.91 grams per tonne of gold) has been declared. In 2016, additional drilling is planned to infill and further expand the Sisar mineralization.

Akasaba West – Creating flexibility
The Akasaba West deposit could potentially create flexibility and synergies for Agnico Eagle’s operations in the Abitibi region by using extra milling capacity at both Goldex and LaRonde, while reducing overall costs. Permitting and technical studies are ongoing with the goal of moving the project toward a production decision in late 2016 or early 2017.

Health, safety, environmental & regulatory matters
In July 2015, we signed an IIBA with the Kivalliq Inuit Association for the Meliadine gold project after three years of negotiations. The IIBA addresses protection of Inuit values, culture and language, protection of the land, water and wildlife, provides financial compensation to Inuit over the mine life and contains provisions for training, employment and contracting of Inuit personnel.

In October 2015, the Nunavut Water Board issued the License B permit for pre-development work at Meliadine. The Type “A” Water License, which is required for production activities, is expected to be granted in the second quarter of 2016.

Engineering and environmental baseline studies also got underway to support the permitting process for Amaruq. In late 2015, the Company received approvals for the construction of an all-weather exploration access road linking the Amaruq exploration site to the Meadowbank mine. In 2016, the Company expects to carry out additional engineering and begin road preparation from the Vault pit at Meadowbank.

Permitting activities got underway for the Barnat extension at the Canadian Malartic Mine during 2015. The Environmental Impact Assessment was submitted in February 2015. A series of questions from the Quebec government was received in December, and final responses were submitted in January 2016. Public hearings are expected to be held later in 2016, with granting of final permits anticipated after the completion of the consultation process.

The permitting process for the Akasaba project was started in 2015 with baseline studies and public consultation on the project, including First Nations consultation. An environmental impact assessment of the project was prepared and submitted to the federal and provincial authorities in the fall of 2015. It is expected that the project will be subject to public hearings at the end of 2016.