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Goldcorp Inc (2) (C-G) - News Release
Goldcorp hits High Grade gold deeper than ever
Goldcorp Inc (2) G
Shares issued 182,709,874 Sep 19 2003 close $ 18.50
Monday September 22 2003 News Release
Mr. Chris Bradbrook reports
GOLDCORP INC. -- DEEPEST HGZ MULTI-OUNCE INTERSECTION OF GOLD, YET -- 2.11 OUNCES PER TON OVER 48 FEET BEST INTERSECTION: 39.98 OUNCES PER TON OVER 34.1 FEET EXPANSION ON TARGET
(All assay values are uncut.)
(All dollar amounts are in U.S. dollars.)
Goldcorp has received encouraging exploration results from its Red Lake mine, in Northwestern Ontario, Canada. Multiple zones of multiounce gold mineralization continue to be encountered at greater depths. This type of mineralization is a characteristic of the upper areas of the High Grade zone (HGZ), where the richest concentrations of gold have been found, to date. In addition, the dimensions of HGZ and sulphide mineralization (SZ) in all of the target areas continue to expand. Also, the mine expansion and construction of the new shaft are moving forward quickly.
Highlights of the exploration results are summarized below:
the deepest multiple-ounce occurrence of the HGZ ever encountered: 2.11 ounces of gold per ton (72.4 grams per tonne) over 48 feet (14.63 metres) at a vertical depth of 7,165 feet (2,184 metres). This intersection indicates the HGZ now extends below the planned bottom of the new shaft (7,150 feet or 2,180 metres);
multiple zones of high-grade mineralization were encountered beneath current reserves. The best values were found within a 134-foot (40.84-metre) interval containing four intersections of the HGZ that included 16.46 ounces per ton (564.3 gpt) over 22 feet (6.71 metres) and 3.24 ounces per ton (111.1 gpt) over 33.5 feet (10.21 metres);
the extremely high-grade nature of the hangingwall zones beneath the current reserves was confirmed by intersections of up to 39.98 ounces per ton (1,370.7 gpt) over 34.1 feet (10.39 metres);
the HGZ was identified 260 feet (79 metres) east of its previously identified eastern limits with intersections of up to 3.52 ounces per ton (120.7 gpt) over 7.4 feet (2.26 metres) at a vertical depth of 7,112 feet (2,168 metres); and
the deepest intersection of sulphide mineralization ever was obtained at a vertical depth of 7,300 feet (2,225 metres), approximately 3,000 feet (920 metres) below where it was last mined.
Continuing exploration success
High Grade zone (HGZ)
Objective to increase ounces per vertical foot
In the upper 1,200 feet (366 metres) of the HGZ, to a depth of 5,500 feet (1,676 metres), which is the area which has received the most intensive exploration efforts, the average gold content (including mined material) is 3,500 ounces of gold per vertical foot. Below this, the HGZ has been shown to extend deeper for at least an additional 1,900 feet (579 metres). However, the HGZ in this lower area is less explored and so far, the gold content (including mined material) is lower at 1,500 ounces of gold per vertical foot. The recent discovery of multiple zones of multiounce, high-grade mineralization at depth indicates that the gold content is increasing and with it the possibility to increase the reserve and resource base of the HGZ.
Hangingwall zones --
Deepest intersection of multiounce mineralization
Intersection of 2.11 ounces per ton (72.4 gpt) over 48 feet (14.63 metres)
Hole 37L034IW intersected 2.11 ounces per ton (72.4 gpt) over 48 feet (14.63 metres) at a vertical depth of 7,165 feet (2,184 metres) in the hangingwall zones of the HGZ. This is the deepest intersection of multiounce mineralization yet obtained in the HGZ. This result is significant as it indicates the HGZ continues at least to the planned depth (7,150 feet or 2,180 metres) of the new shaft and further suggests the likelihood that it is continuous at depths below this.
HGZ 260 feet (79 metres) east of previous limits
Intersection of 3.52 ounces per ton (120.7 gpt) over 7.4 feet (2.26 metres)
Hole 37L460AW intersected 3.52 ounces per ton (120.7 gpt) over 7.4 feet (2.26 metres) at a vertical depth of 7,112 feet (2,168 metres), 260 feet (79 metres) east of the previously defined eastern limits of the hangingwall zones. This hole is significant since it is the second deepest occurrence of multiounce mineralization in the HGZ and it suggests the possibility that the dimensions of the mineralization increase at depth either through increased lateral continuity or increased structural complexity, or possibly a combination of both.
Continuity confirmed at depth -
Extremely high-grade and multiple zones
Up to 39.98 ounces per ton (1,370.7 gpt) over 34.1 feet (10.39 metres)
Exploration below the limits of reserves (6,475 feet or 1,974 metres) has been successful in establishing the continuity of the hangingwall zones of the HGZ and confirming the extremely high-grade nature of this mineralization over substantial thicknesses.
For example, hole 37L422A intersected 39.98 ounces per ton (1,370.7 gpt) over 34.1 feet (10.39 metres) at a vertical depth of 6,480 feet (1,975 metres). In addition, hole 37L464 intersected multiple zones of high-grade mineralization to a maximum depth of 6,800 feet (2,073 metres). This latter hole encountered four zones of mineralization over a length of 134 feet (40.84 metres) which included 16.46 ounces per ton (564.3 gpt) over 22 feet (6.71 metres), 5.61 ounces per ton (192.3 gpt) over five feet (1.52 metres) and 3.24 ounces per ton (111.1 gpt) over 33.5 feet (10.21 metres).
The occurrence of multiple zones of high-grade mineralization has increased with the intensity of drilling at depth. It potentially indicates increased structural complexity at depth, which is a feature of the upper areas of the HGZ where it is richest.
Footwall zones
Extended 100 feet (30.5 metres) vertically
Up to two ounces per ton (68.6 gpt) over 7.1 feet (2.16 metres)
The most recent results have demonstrated that these zones extend for at least an additional 100 feet (30.5 metres) to a vertical depth of 6,250 feet (1,905 metres). Among the more significant intersections were two ounces per ton (68.6 gpt) over 7.1 feet (2.16 metres), in hole 34L1267, which was the deepest intersection to date in the footwall zones and 1.52 ounces per ton (52.1 gpt) over 10 feet (3.05 metres) in hole 34L1275.
Since the beginning of 2003 the vertical extent of the footwall zones has been increased by 500 feet (152 metres). This success illustrates the potential for exploration of this target area to significantly increase the reserves and resources of the footwall zones. Future exploration will investigate whether the footwall zones have the same vertical continuity as the hangingwall zones to the west, which currently extend to at least 7,360 feet (2,243 metres).
Sulphide zone (SZ)
Expanding resources
Identifying mineralization at depth
Exploration of these targets is focused on two goals. First, defining and expanding areas of known resources in order to increase the reserve base of the SZ and, second, exploring for new areas of mineralization in order to increase the resource base. The latest exploration results demonstrate Goldcorp has continued to have success with both goals.
Depth extensions of previously mined ore -- 300 feet (91 metres) beyond current resource limits
Up to 0.37 ounce per ton (12.6 gpt) over 31.7 feet (9.66 metres)
Drilling within the currently defined resources confirmed continuity of the SZ with intersections including 0.37 ounce per ton (12.6 gpt) over 16 feet (4.88 metres) in hole 34L1254.
Significant sulphide mineralization was encountered as far as 300 feet (91.44 metres) outside the currently defined margins of these resources in three directions, above, below and to the west. Wide intersections as high as 0.37 ounce per ton (12.7 gpt) over 31.7 feet (9.66 metres) were obtained in hole 34L1216. In addition, narrow high-grade intersections were also encountered including 1.76 ounces per ton (60.3 gpt) over 1.6 feet (0.49 metre) in hole 37L419.
The variation in grade and thickness of the sulphide mineralization intersected was consistent with that of the same mineralization previously extracted (1948-1996) from the upper levels of the mine and illustrates the potential for the resource base of this mineralization to continue to grow in both the near and long terms.
Deepest intersection of sulphide mineralization ever -- 7,300 feet (2,225 metres) and 3,000 feet deeper than mined
As part of the larger scale step-out exploration work, hole 34L1276 intersected the deepest occurrence of sulphide mineralization yet with 0.27 ounce per ton (9.3 gpt) over nine feet (2.74 metres) at a vertical depth of 7,300 feet (2,225 metres). This is 1,300 feet (396 metres) deeper than the current base of sulphide mineralization resources and 3,000 feet (920 metres) below previously mined sulphide zones. Together, these results suggests there is excellent potential to increase these resources over the long term.
Far East zone
Continuity of resources confirmed
Up to 0.84 ounce per ton (28.7 gpt) over six feet (1.83 metres)
Approximately 240,000 ounces of sulphide mineralization resources at a grade of 0.47 ounce per ton (16.1 gpt) have already been identified in the Far East zone from the 16 Level to a depth of 3,100 feet (945 metres). The latest results continue to better define the continuity of this mineralization with the goal of moving it into the reserve category. The latest results include intersections of up to 0.84 ounce per ton (28.7 gpt) over six feet (1.83 metres) in hole 16L1243, which are consistent with mineralization previously encountered.
Drilling from the 26 and 34 levels is directed toward identifying more significant extensions of sulphide mineralization. The deepest intersection obtained from this work was 0.13 ounce per ton (4.5 gpt) over 15 feet (4.57 metres) in hole 34L1270 at a vertical depth of 6,460 feet (1,969 metres). Sulphide mineralization has now been identified in scattered intersections over vertical and lateral distances of 5,000 feet (1,524 metres) and 1,700 feet (518 metres). Future work over the next two to three years will focus on establishing continuity of this mineralization and increasing the reserve and resource base.
Mine expansion on target
Construction of the new shaft at Goldcorp's Red Lake mine is progressing well. The shaft collar has been sunk to 191 feet (58 metres), the contractor is equipping the shaft sinking setup, and the headframe construction and hoist installation are under way. The shaft sinking will commence in January, 2004; completion is scheduled to occur before the end of 2006.
This new shaft will go to a depth of 7,150 feet (2,180 metres) and will allow annual gold production at the mine to increase to more than 700,000 ounces and reduce cash costs to $70 per ounce. The economics of this expansion project are very attractive with a 46-per-cent internal rate of return (IRR) at a gold price of $350 per ounce and a U.S. dollar/Canadian dollar exchange rate of 1.4.
Qualified person
These results have been prepared under the guidance of Gilles Filion, Eng (OIQ), vice-president of exploration, who is designated as a qualified person with the ability and authority to verify the authenticity and validity of these data. All samples were analyzed by either ALS Chemex Laboratories Ltd. of Mississauga, Ont., TSL Laboratories of Saskatoon, Sask., or SGS XRAL Laboratories of Toronto, Ont.
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