Agnico Eagle starts work at Mexican gold/silver project

Mexico's economy Ministry says that Canadian miner, Agnico Eagle, has started work on its new Pinos Altos mine.

MEXICO CITY (Reuters) - 

Canada's Agnico Eagle mining company has started work at its Pinos Altos gold and silver project in northern Mexico with an investment of $240 million, Mexico's economy ministry said on Wednesday.

"Pinos Altos is one of the most important and modern mining projects in Mexico, with a capacity to process 4,000 tonnes of material a day in its underground and open pit operations," said a statement from the ministry.

Agnico's (AEM.TO: Quote,) property is in the Sierra Madre gold belt in the state of Chihuahua near the U.S.-Mexico border and has probable gold reserves of 3.6 million ounces and a large silver reserve of 100 million ounces.

The company expects production at around 175,000 ounces of gold and 2.6 million ounces of silver a year, according to Agnico's website.

In addition to the Pinos Altos mine, Agnico operates three mines in Quebec -- its flagship La Ronde mine, and the recently opened Lapa and Goldex mines -- as well as the Kittila mine in Finland. (Reporting by Mica Rosenberg; Editing by David Gregorio)

© Thomson Reuters 2009. All rights reserved.

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