The La India property is located in the prolific Mulatos Gold Belt of Mexico's Sonora State. The property covers the La India feasibility-stage heap leach gold project and the recently discovered Tarachi gold zone. It also covers several other prospective targets in the belt, including a potential new high-sulphidation system and a gold-silver prospect.

The La India gold project has 1.2 million ounces of gold in measured and indicated resources* (48.2 million tonnes grading 0.7 g/t gold), and 0.7 million ounces of gold in inferred resources (32.1 million tonnes grading 0.7 g/t), using a 0.4 g/t cut-off. The resources are in the North and Main zones on the La India property in the municipality of Sahuaripa, southeast Sonora State, northern Mexico. The Mulatos Gold Belt is part of the Sierra Madre gold and silver belt that also hosts the operating Mulatos gold mine immediately southeast of the La India property, and Agnico-Eagle’s Pinos Altos and Mascota mines 70 kilometres to the southeast.

The La India property consists of 42 mining concessions totalling approximately 54,000 hectares, making Agnico-Eagle the largest mineral title holder by area in the Mulatos Gold Belt. The climate is semi-arid with seasonal temperatures ranging from 35°C to –2°C, and torrential rainfall from July to September. Exploration activities may be conducted year-round.

The property is located between the small rural towns of Tarachi and Matarachi, which offer basic infrastructure in the form of roads, rural telephone service, small grocery stores and unpaved air strips. More services are available in the town of Sahuaripa located 60 kilometres by gravel road (about 1.5 hours) west of the La India property. The population of the district is estimated to be a few thousand, with most of the inhabitants involved in cattle ranching, farming, forestry, and mining and exploration. An adequate supply of labour for mining operations can be drawn from the region.

The closest major city with an international airport is Hermosillo, the capital of Sonora State, located 210 kilometres west-northwest of the La India property. Road travel from Hermosillo to the site takes approximately seven hours. Alternatively, the project can be accessed by small aircraft. The federally owned and operated electric transmission grid extends to within roughly 60 kilometres of the property.

Grayd Resource Corp. began to actively explore the project in 2004, including geologic mapping, geochemical rock chip sampling, airborne and ground geophysical surveys, photogrammetric topographic mapping, diamond drilling, reverse circulation drilling, baseline environmental studies and metallurgical testing. Grayd acquired additional mineral concessions and surface rights in the project area and initiated community relations activities. NI-43-101-compliant technical reports were produced for the project as of 2004, 2006, 2008, 2009 and May 2010.

A Preliminary Economic Assessment (PEA) was completed on behalf of Grayd on December 6, 2010 by independent consultants, based on only the oxide portion of the resources (as reported in May 2010). The PEA envisioned an open pit mine with gold recovery by heap leach. The results of the PEA showed a nine-year mine life producing, on average, 92,000 ounces of gold per year.

The Tarachi gold prospect, located approximately 10 kilometres north of the La India deposit on the same property, was discovered in 2010 (following the release of the May 2010 resources).

Agnico-Eagle obtained the La India property in November 2011 by taking control of Grayd. Both the La India deposit and the Tarachi prospect will continue to be actively explored by Agnico-Eagle.

Learn More

December 6, 2010 – “Preliminary Economic Assessment, La India Gold Prospect, Municipio of Sahuaripa, Sonora, Mexico” (prepared for Grayd Resource Corp.)

June 15, 2010 – “May 2010 Measured, Indicated, and Inferred Mineral Resource Estimate, La India Gold Project, Municipio of Sahuaripa, Sonora, Mexico” (prepared for Grayd Resource Corp.)

Mineral Resource	1.2 million oz gold in measured & indicated resources; 0.7 million oz gold in inferred resources
Strategic Plan	Continue resource exploration and resource conversion activities at the La India deposit
	Initiate feasibility-level mining study and permitting
	Continue resource exploration at the Tarachi prospect
	Evaluate the exploration potential of the La India property
	Proceed with additional mineral property acquisitions and negotiations for surface rights
	Take advantage of regional synergies with Pinos Altos

History

1806 – Spanish colonial discovery of gold at Mulatos deposit, 6.5 km from La India property; previous small-scale mining of deposit likely by indigenous people
1920s and 1930s – La Cruz and La Viruela deposits on La India property intermittently mined at small scale
Late 1980s – New Golden Sceptre Minerals and New Goliath Mineral complete 2,000 m percussion drilling
Early 1990s – Noranda acquires rights to La Cruz – La Viruela; completes 2,616 m (at least 72 holes) RC drilling as deep as 126 m.
1993 –San Fernando Mining acquires property and conducts diamond drilling – 10 holes (2,268 m) at La Viruela and 11 holes (1,292 m) at La Cruz.
2003-2004 – Grayd Resource options properties that form the La India property.
2004 – Grayd Resource begins to actively explore the property. Technical reports produced in 2004, 2006, 2008 and 2009.
2010 – A technical report (June 2010) outlines measured and indicated (M&I) gold resources of 760,000 oz (26.8 million tonnes at 0.88 g/t) plus inferred gold resources of 506,000 oz (19.7 million tonnes at 0.80 g/t). About 79% of the M&I resource and about 75% of inferred resource are in oxidized material. A Preliminary Economic Assessment (PEA, December 2010) based on oxidized resource concludes that La India has high potential to be developed into a profitable open pit mine and cyanide heap leach operation. PEA recommends advancing to either a prefeasibility or feasibility level study at La India project, continued exploration to define resources in the Tarachi area, and an expansion of the claim area with continued exploration.
2011 – In November Agnico-Eagle gains control of Grayd Resource Corporation in a friendly take-over and thereby acquires control of the La India property.

* Source: May 4, 2010 Grayd Resource Corporation news release, using a 0.4-g/t gold cut-off