Red Lake begins commercial production; realizes higher gold values;
accelerates exploration program; non-gold operations rationalized
TORONTO, Jan. 15 /CNW/ - GOLDCORP INC. (TSE: G; NYSE: GG) is pleased to
announce its achievement of several major milestones.
COMMERCIAL PRODUCTION BEGINS
----------------------------
Its new Red Lake Mine began commercial production on January 1, 2001.
Both the underground mine and the surface processing facilities (mill) are now
operating at the planned Phase I production rate of 600 tons per day.
HIGHER GOLD VALUES BEING REALIZED
---------------------------------
Gold values (grades) continue to improve at the new Red Lake Mine. The
mill head grade in the month of December 2000 was 1.83 ounces per ton
(opt)(62.7 grams per tonne (gpt)). In addition, preliminary calculations for
the 31 day period from December 11th to January 10th recorded the mill
processing 18,485 tons of ore at an estimated grade of 2.09 opt. (71.7 gpt)
During the startup and commissioning period for the new mine, from August
1st to December 31st 2000, a total of 74,148 tons with an estimated gold grade
of 1.57 opt (53.8 gpt) were processed (milled) to produce (pour) 85,116 ounces
of gold plus an estimated 15,994 ounces contained in the mill circuit at year
end. The calculated gold recovery rate in the gravity and CIP circuits was
87%.
Gold production was 30% higher than originally projected in the October
1998 Feasibility Study and 6% better than the forecast based on results to
November 15th contained in the November 29th, 2000 press release.
HIGHER GOLD PRODUCTION FOR 2001
-------------------------------
Gold production from the new Red Lake Mine is forecast to exceed 300,000
ounces in 2001. This represents a 25% increase above the 1998 Feasibility
Study projection of 240,000 ounces in 2001.
<<
RED LAKE OPERATIONAL RESULTS FOR 2000
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Description Actual Results
To December 31, 2000
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SI Metric
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Tons broken 92,801 tons 84,188 tonnes
Head grade 1.61 opt 55.2 gpt
Tons milled 74,148 tons 67,266 tonnes
Ore grade 1.57 opt 53.8 gpt
Recovery rate (Conventional) 87% 87%
Gold from gravity (Poured) 57,926 ozs 1,801.7 kg
Gold from electrowinning (Poured) 27,190 ozs 845.7 kg
Total Gold poured 85,116 ozs 2,647.4 kg
Gold in mill inventory 15,994 ozs 497.5 kg
Gold in concentrate inventory 9,484 ozs 295.0 kg
Gold in tailings 5,981 ozs 186.0 kg
Tons waste mined 182,253 tons 165,337 tonnes
Underground development 26,536 ft 8,088 m
Commercial Production started Jan. 1, 2001 Jan. 1, 2001
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PROJECTIONS versus ACTUAL RESULTS FOR 2000
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Oct. 1998 Nov. 15, 2000 Year-end
Feasibility To Year-end 2000 Actual
Forecast(x)
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Tons broken 73,000 90,000 92,801
Tons milled 73,000 73,000 74,148
Ounces poured 65,000 80,000 85,116
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(x)Contained in November 29, 2000 press release.
>>
EXPLORATION PROGRAM ACCELERATED
-------------------------------
Goldcorp has aggressively accelerated and expanded the scope of its 2001
exploration program in the Red Lake district. A total of nine Gold and
Platinum/Palladium target areas outside the mine property will be explored
this year. This was facilitated by a recently completed flow through share
financing. On December 31, 2000, Goldcorp sold 400,000 shares for gross
proceeds of $4.6 million. The agent for the financing was Dundee Capital.
Since many of the exploration targets are best accessed during the winter
months, this financing allows Goldcorp to accelerate its exploration plans by
a full year.
TIMETABLE - GOLD RESERVES ESTIMATE and YEAR END FINANCIALS
----------------------------------------------------------
Goldcorp plans to release its year end gold reserve estimates on January
26, 2001. The reserves and resources will be estimated using a gold price of
US$275 per ounce. In 1999 and 1998 a gold price of US$300 was used.
Goldcorp plans to release its fourth quarter and year end 2000 financial
statements on February 26, 2001.
NON GOLD OPERATIONS RATIONALIZED
--------------------------------
Sharply rising natural gas prices has led to the rationalization of our
industrial minerals division. Our Saskatchewan Minerals division had two
operating plants. The Ingebrigt plant was closed January 2, 2001.
The employees severance costs and the asset write down resulting from the
closure will be included in the fourth quarter 2000 financials. This division
is a non-core asset and up for sale.
Goldcorp is a North American based gold producer. In addition to its
rich, high-grade Red Lake Mine, Goldcorp owns a gold mine located in South
Dakota and two industrial mineral operations in Saskatchewan.
-30-
For further information: Corporate Office: 145 King Street West, Suite
2700, Toronto, Ontario, M5H 1J8, Canada; Robert R. McEwen, Chairman and CEO,
Telephone: (416) 865-0326, Fax: (416) 361-5741, e-mail: info@goldcorp.com,
website: www.goldcorp.com
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