The La India mine, located about 70km from Agnico-Eagle’s Pinos Altos mine, will be developed as an open pit, heap leach operation.
Construction for the project is expected to cost about $158m, which the company plans to fund through its operating cash flows.
Initial probable reserves at the mine in Sonora have totaled 44.6 million tonnes grading 0.65 grams per tonne of gold, containing 930,000oz.
Agnico-Eagle Mines president and CEO Sean Boyd said, "The acquisition and development of the La India project is consistent with Agnico-Eagle’s strategy of delivering measured, low-risk, quality gold production growth in areas supportive of mining."
The company plans to continue infill and step-out exploration drilling at the mine, in an effort to further delineate and expand the mineral resources and reserves.
Commercial production at the mine is likely to start in the second half of 2014.
