Toronto Stock Exchange: G
New York Stock Exchange: GG
VANCOUVER, Feb. 24 /CNW/ - GOLDCORP INC. (TSX: G, NYSE: GG) today announced positive study results for the Company's two major
Canadian gold projects, Éléonore in Quebec and Cochenour in Red Lake,
Ontario, and the approval of full-scale development of both projects by
Goldcorp's Board of Directors.
Éléonore Gold Project
Average annual gold production of approximately 600,000 ounces over an
approximate 20-year mine life, an increase of over 80% from previous
Average life-of mine cash costs of less than $400 per ounce of gold.
Throughput of 7,000 tonnes per day from concurrent mining of upper and
lower portions of deposit.
Total initial capital cost of $1.4 billion.
Construction permit expected mid-2011; initial gold production planned
for the fourth quarter of 2014.
Long-term Collaboration Agreement signed with Cree Nation of Wemindji.
Cochenour Gold Project
Average annual gold production of between 250,000 - 275,000 ounces in
the Red Lake district over approximately a 20-year mine life.
Average life-of-mine cash costs of less than $350 per ounce of gold.
Processing rate of 1,500 tonnes per day; Red Lake processing
optimization studies to follow.
Initial capital cost of $420 million.
Initial gold production planned for the fourth quarter of 2014.
"The Éléonore and Cochenour projects are key components of Goldcorp's
next generation of gold growth projects, and the positive results of
these studies confirm our expectations for sustained, high quality gold
production from two very important areas in Canada - the historic and
prolific Red Lake camp and an exciting new district in the James Bay
region of northern Quebec," said Chuck Jeannes, Goldcorp President and
Chief Executive Officer. "Our advanced conceptual understanding of
these ore bodies, when taken together with Goldcorp's expertise
operating some of Canada's largest underground gold mines, enables our
project teams to optimize mine development plans for long-term benefits
for our shareholders and other stakeholders."
Éléonore Production Profile Nearly Doubles
The updated pre-feasibility study for Éléonore calls for robust,
low-cost gold production in the heart of one of the most attractive
mining jurisdictions in the world. In conjunction with refinements to
earlier technical work, the new development plan details a doubling of
the plant throughput to 7,000 tonnes per day, contributing to an
average of more than 600,000 ounces of gold production per year over an
approximate 20-year mine life. The deposit remains open at depth and
the mine plan will be optimized based on future exploration results.
Life-of-mine cash costs are expected to be below $400 per ounce.
The significant increase in project scale is being driven by a
development concept that calls for the simultaneous development of two
separate, vertically stacked mining operations each targeting different
areas of the ore body. The first will target production in the upper
portions of the Roberto deposit above 650 meters and will be accessed
from both the exploration shaft currently under development and a
decline from surface. The second operation will extend to a depth of
approximately 1,400 meters and access the deeper ore by way of a second
shaft to commence construction in mid-2011. Total capital expenditures
are expected to be approximately $1.4 billion. Commencement of
construction of the second shaft, processing facilities and related
infrastructure will proceed immediately upon receipt of the
Environmental and Social Impact Assessment permit expected in mid-2011.
Initial gold production is expected in the fourth quarter of 2014.
In advancing the Éléonore project, several important milestones have
been achieved in 2011, including the declaration of an initial proven
and probable gold reserve in excess of three million ounces and the
signing of the Collaboration Agreement with the Cree Nation of
Wemindji. The progress of site development continues to accelerate,
including full-face sinking of the planned 750-metre deep exploration
shaft which is currently at a depth of 130 metres.
Slide 1 - Éléonore Resource Potential
Cochenour to Further Enhance Red Lake's Production Profile
Goldcorp has completed a scoping study for the Cochenour gold project
confirming the strong economics of the Company's plan to develop the
Bruce Channel deposit in Red Lake. Simultaneous access of both the top
and bottom of the Bruce Channel ore body is being advanced through the
widening of the existing Cochenour shaft and the continued construction
of a 5-kilometer long rail haulage drift from the existing Red Lake
underground workings. Ore from Bruce Channel will be transported via
the high speed drift and processed at Red Lake's existing Campbell
milling facilities at a rate of approximately 1,500 tonnes per day.
Estimated life-of-mine gold production is expected to average between
250,000 - 275,000 ounces per year over an approximate 20-year mine life
at a total cash cost below $350 per ounce. Initial capital expenditure
for the project is $420 million with first gold production anticipated
in the fourth quarter of 2014.
On February 9th, Goldcorp announced an initial gold resource at
Cochenour of 2.7 million inferred gold ounces. This estimate includes
remnants of the old Cochenour deposit and the new drilling of primarily
the upper portions of the Bruce Channel deposit. Consequently, neither
the grade nor the total ounces are reflective of the potential of this
mineral deposit, which will be formally established by additional,
deeper drilling as the deposit remains open at depth. For construction
and planning purposes, the Company continues to estimate the Cochenour
project as a mineable deposit of 5 million gold ounces. Surface
drilling will continue throughout 2011, with the aim of delineating the
upper portions of the Upper Main Zone as well as further exploring the
upper extensions of the Footwall Zones. This work will be accomplished
by up to three surface drill rigs drilling from McKenzie Island and
additional drilling at the north end of the Cochenour property.
The development of Cochenour is a key component of the Company's overall
optimization plan to sustain the Red Lake operation for decades into
the future. The plan is analyzing the Company's portfolio of Red Lake
assets as a single, cost-efficient project with shared processing
capacity and optimized capital and operating costs.
Slide 2 - Cochenour Resource Definition
Goldcorp is one of the world's fastest growing senior gold producers.
Its low-cost gold production is located in safe jurisdictions in the
Americas and remains 100% unhedged.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements", within the
meaning of the United States Private Securities Litigation Reform Act
of 1995 and applicable Canadian securities legislation, concerning the
business, operations and financial performance and condition of
Goldcorp Inc. ("Goldcorp"). Forward-looking statements include, but are
not limited to, statements with respect to the future price of gold,
silver, copper, lead and zinc, the estimation of mineral reserves and
resources, the realization of mineral reserve estimates, the timing and
amount of estimated future production, costs of production, capital
expenditures, costs and timing of the development of new deposits,
success of exploration activities, permitting time lines, hedging
practices, currency exchange rate fluctuations, requirements for
additional capital, government regulation of mining operations,
environmental risks, unanticipated reclamation expenses, timing and
possible outcome of pending litigation, title disputes or claims and
limitations on insurance coverage. Generally, these forward-looking
statements can be identified by the use of forward-looking terminology
such as "plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", "believes" or
variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might" or "will be
taken", "occur" or "be achieved" or the negative connotation thereof.
Forward-looking statements are made based upon certain assumptions and
other important factors that, if untrue, could cause the actual
results, performances or achievements of Goldcorp to be materially
different from future results, performances or achievements expressed
or implied by such statements. Such statements and information are
based on numerous assumptions regarding present and future business
strategies and the environment in which Goldcorp will operate in the
future, including the price of gold, anticipated costs and ability to
achieve goals. Certain important factors that could cause actual
results, performances or achievements to differ materially from those
in the forward-looking statements include, among others, gold price
volatility, discrepancies between actual and estimated production,
mineral reserves and resources and metallurgical recoveries, mining
operational and development risks, litigation risks, regulatory
restrictions (including environmental regulatory restrictions and
liability), activities by governmental authorities (including changes
in taxation), currency fluctuations, the speculative nature of gold
exploration, the global economic climate, dilution, share price
volatility, competition, loss of key employees, additional funding
requirements and defective title to mineral claims or property.
Although Goldcorp has attempted to identify important factors that
could cause actual actions, events or results to differ materially from
those described in forward-looking statements, there may be other
factors that cause actions, events or results not to be as anticipated,
estimated or intended.
Forward-looking statements are subject to known and unknown risks,
uncertainties and other important factors that may cause the actual
results, level of activity, performance or achievements of Goldcorp to
be materially different from those expressed or implied by such
forward-looking statements, including but not limited to: risks related
to the integration of acquisitions; risks related to international
operations, including economical and political instability in foreign
jurisdictions in which Goldcorp operates; risks related to current
global financial conditions; risks related to joint venture operations;
actual results of current exploration activities; environmental risks;
future prices of gold, silver, copper, lead and zinc; possible
variations in ore reserves, grade or recovery rates; mine development
and operating risks; accidents, labour disputes and other risks of the
mining industry; delays in obtaining governmental approvals or
financing or in the completion of development or construction
activities; risks related to indebtedness and the service of such
indebtedness, as well as those factors discussed in the section
entitled "Description of the Business - Risk Factors" in Goldcorp's
annual information form for the year ended December 31, 2009 available
at www.sedar.com. Although Goldcorp has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can be
no assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements. Forward-looking
statements are made as of the date hereof and accordingly are subject
to change after such date. Except as otherwise indicated by Goldcorp,
these statements do not reflect the potential impact of any
non-recurring or other special items or of any dispositions,
monetizations, mergers, acquisitions, other business combinations or
other transactions that may be announced or that may occur after the
date hereof. Forward-looking statements are provided for the purpose of
providing information about management's current expectations and plans
and allowing investors and others to get a better understanding of our
operating environment. Goldcorp does not undertake to update any
forward-looking statements that are included in this document, except
in accordance with applicable securities laws.
SOURCE Goldcorp Inc.
For further information:
Vice President, Investor Relations
Telephone: (604) 696-3074
Fax: (604) 696-3001