Royal Gold Announces Impact From Goldcorp's Expansion Plans at the Penasquito Project

    DENVER, Dec. 5 /CNW/ -- ROYAL GOLD, INC. (Nasdaq:   RGLD; TSX: RGL), the
leading precious metals royalty company, today announced that Goldcorp Inc.
("Goldcorp"), the operator of the Penasquito project located in Zacatecas,
Mexico, has approved plans to expand mill throughput by 30% to 143,000 tons
(130,000 tonnes) of ore and to accelerate the construction schedule at the
project. According to Goldcorp, the expanded operation is now expected to
produce an average of 1.7 million gold equivalent ounces per year, compared to
a previous estimate of 1.3 million gold equivalent ounces per year.(1)  Royal
Gold holds a 2.0% net smelter return royalty on all metals at the Penasquito
    Goldcorp estimates the average annual life-of-mine production to be
400,000 ounces of gold, 31 million ounces of silver, 417 million pounds of
zinc and 214 million pounds of lead.  Goldcorp's June 2006 feasibility study
had previously estimated annual production levels of 388,000 ounces of gold,
23 million ounces of silver, 302 million pounds of zinc, and 157 million
pounds of lead.
    "Since the acquisition of our royalty interest at the Penasquito project
one year ago, reserves have increased 48%(2), the planned annual production
has increased 30%, and the mine life has been extended to 19 years," commented
Tony Jensen, President and Chief Executive Officer.  "This is exactly the type
of project upside we target for acquisitions.  These operational improvements
will increase and accelerate our royalty revenues and significantly enhance
our return on this investment."
    Goldcorp also reported that the project remains on schedule and is
expected to produce gold from heap leaching of oxides in 2008 with mill
start-up in 2009. In addition, Goldcorp reports exploration drilling,
metallurgical evaluations and optimization efforts are continuing to provide
further project enhancements.  As a royalty owner, Royal Gold is not required
to contribute to any capital, development, exploration or mine operation costs
for the project.
    Royal Gold is a precious metals royalty company engaging in the
acquisition and management of precious metal royalty interests.  Royal Gold is
publicly traded on the NASDAQ Global Select Market under the symbol "RGLD,"
and on the Toronto Stock Exchange under the symbol "RGL."  The Company's web
page is located at

    (1) Current gold equivalent ounces calculated using metal values of
        $650/oz gold, $12/oz silver, $0.50/lb lead, and $0.90/lb zinc.

    (2) Based on gross metal value using $650/oz gold, $12/oz silver, $0.50/lb
        lead, and $0.90/lb zinc versus $450/oz gold, $7/oz silver, $0.30/lb
        lead, and $0.60/lb zinc used in the June 2006 feasibility study.
    Cautionary "Safe Harbor" Statement Under the Private Securities
Litigation Reform Act of 1995:
    With the exception of historical matters, the matters discussed in this
press release are forward-looking statements that involve risks and
uncertainties that could cause actual results to differ materially from
projections or estimates contained herein.  Such forward-looking statements
include statements regarding increases in mill throughput, acceleration of
construction schedule, gold production, annual life-of-mine production for
gold, silver, zinc and lead, increase in reserves, increases in planned
production, mine life, increase and acceleration of royalty reserves,
enhancement of returns on Royal Gold's investment in the project, and timing
for the leaching of oxides and mill start-up.  Factors that could cause actual
results to differ materially from forward-looking statements include, among
others, precious metals prices, decisions and activities of the operator of
the property, unanticipated grade, geological, metallurgical, processing or
other problems the operator may encounter, changes in project parameters as
plans continue to be refined, economic and market conditions, as well as other
factors described elsewhere in this press release and in our Annual Report on
Form 10-K, and other filings with the Securities and Exchange Commission. Most
of these factors are beyond Royal Gold's ability to predict or control. The
PeC1asquito Project NSR royalty acquisition is Royal Gold's largest royalty
acquisition to date.  Like any royalty acquisition on a non-producing or
development project, it is subject to certain risks, such as the ability of
the operator to bring the project into production and operate in accordance
with the feasibility study and the ability of Royal Gold to make accurate
assumptions regarding valuation and timing and amount of royalty payments.  In
addition, the acquired royalty interests and the project are subject to risks
associated with conducting business in a foreign country, including
application of foreign laws to contract and other disputes, foreign
environmental laws and enforcement and uncertain political and economic
environments.  Royal Gold disclaims any obligation to update any forward-
looking statement made herein.  Readers are cautioned not to put undue
reliance on forward-looking statements.

For further information:

For further information: Karen Gross, Vice President and Corporate 
Secretary of Royal Gold, Inc., +1-303-573-1660 Web Site:

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