Goldcorp increases reserves at Penasquito
Goldcorp Inc (2) (C:G)
Last Close 6/22/2007 $26.11
Monday June 25 2007 - News Release
Mr. Kevin McArthur reports
GOLDCORP ANNOUNCES SIGNIFICANT INCREASE TO RESERVES AT PENASQUITO AND INITIAL RESOURCE ESTIMATE AT ELEONORE
Goldcorp Inc. today released updated reserve and resource estimates for two of the company's key projects -- Penasquito in Zacatecas, Mexico and Eleonore in Quebec, Canada. The company today also released drilling results subsequent to the calculation of reserves and resources at Penasquito and Eleonore and updated development progress at both properties as well as the Los Filos mine in Guerrero state, Mexico.
All figures are in U.S. dollars, unless stated otherwise.
Highlights
Penasquito:
Proven and probable gold reserves increased 31 per cent to 13 million ounces. Proven and probable silver reserves increased 50 per cent to 864 million ounces.
Measured and indicated gold resources, inclusive of proven and probable reserves, increased 39 per cent to 17.8 million ounces. Measured and indicated silver resources increased 55 per cent to 1.3 billion ounces.
Proven and probable lead and zinc reserves both increased 60 per cent.
Eleonore:
First National Instrument 43-101-compliant resource calculated on Roberto zone;
Initial indicated gold resource of 1,834,900 ounces at an average grade of 7.4 grams per tonne. Initial inferred gold resource of 929,100 ounces at an average grade of 7.1 grams per tonne; and
High-grade drill results outside resource point to significant expansion potential.
Los Filos:
First gold pour completed on June 15; and
On track for commercial production during the fourth quarter of 2007.
"These early results from our 2007 exploration program serve to underscore the importance of our organic growth strategy," said Kevin McArthur, president and chief executive officer. "In addition to growing Penasquito's proven and probable gold reserves by 30 per cent, we have discovered a high-grade manto/skarn zone at depth which validates our exploration model and could develop into an eventual underground mine.
"At Eleonore, we are very pleased with the initial mineral resource calculation of 1.8 million indicated and 900,000 inferred gold ounces. This represents a limited area of drill density adequate to meet National Instrument 43-101 reporting requirements. The deposit remains open at depth and along strike, and recent drilling has identified as many as three additional mineralized zones to the north and south of the Roberto zone featuring very strong gold grades. In view of these results and our knowledge of these types of gold systems, the mine design work at Eleonore is expected to be sized for five million ounces."
Penasquito grows again, upside remains
Proven and probable gold reserves increased 31 per cent to 13 million ounces and proven and probable silver reserves increased 50 per cent to 864 million ounces. To calculate updated reserves, the company incorporated new drilling data into a revised geologic model, followed by reserves modelling. The calculation is based on new assay data from 240 drill holes (including condemnation drill holes) subsequent to the previous reserve update in June, 2006. The complete database of drill hole results at Penasquito as well as complete reserve and resource tables and supporting data can be found on the company's website. Open-pit limits were determined using a floating cone optimization routine, with cost parameters and metals recovery rates updated since the prior reserve announcement in June, 2006.
PENASQUITO PROVEN AND PROBABLE RESERVES SUMMARY DATA (1) (2) (3)
Prior update New update
June, 2006 June, 2007
Ore tonnes (millions)
Oxide (heap leach) 87.1 110.4
Sulphide (flotation) 476.9 807.1
------ ------
Total ore tonnes (millions) 564.0 917.5
------ ------
Oxide ore grade
Gold (grams per tonne) 0.28 0.18
Silver (grams per tonne) 23.8 18.1
Sulphide ore grade
Gold (grams per tonne) 0.60 0.48
Silver (grams per tonne) 33.2 30.8
Lead (per cent) 0.35 0.33
Zinc (per cent) 0.76 0.72
Contained metals
Gold (millions of troy ounces) 10.0 13.0
Silver (millions of troy ounces) 575 864
Lead (millions of tonnes) 1.77 2.67
Zinc (millions of tonnes) 3.62 5.81
Stripping ratio
(Tonnes waste: oxide ore plus sulphide ore) 2.76 2.77
(1) Cut-off grades for Penasquito reserves are as follows: $4.55
NSR for breccia and intrusive; $5.18 NSR for sediments; $1.30 NSR
for south oxides and $1.18 for north oxides using reserves metals
prices.
(2) Metals prices used in the pit design were $525 per ounce
gold, $10 per ounce silver, 40 cents per pound lead and 80 cents
per pound zinc.
(3) The mineral resources and mineral reserves for Penasquito
have been estimated under Canadian Institute of Mining,
Metallurgy & Petroleum Standards (CIM standards) in accordance
with National Instrument 43-101 of the Canadian Securities
Administrators. These resource and reserve estimates have been
prepared under the supervision of Robert Bryson, vice-president,
engineering, for Goldcorp, a qualified person as defined
under National Instrument 43-101. Mr. Bryson has reviewed and
approved the contents of this news release.
PENASQUITO MINERAL RESOURCES SUMMARY DATA (1), (2), (3)
Prior update Update
June, 2006 June, 2007
Measured resource
(inclusive of proven and
probable reserves)
Tonnes (millions) 466.6 576.0
Contained metals
Gold (millions of troy ounces) 7.0 9.0
Silver (millions of troy ounces) 462 568
Lead (millions of tonnes) 1.3 1.8
Zinc (millions of tonnes) 2.9 4.0
Indicated resource
(inclusive of proven and probable reserves)
Tonnes (millions) 405.9 1,020.0
Contained metals
Gold (millions of troy ounces) 5.8 8.8
Silver (millions of troy ounces) 360 709
Lead (millions of tonnes) 1.1 2.2
Zinc (millions of tonnes) 2.4 5.4
Inferred resource
Tonnes (millions) 2,577.0 1,220.0
Contained metals
Gold (millions of troy ounces) 14.3 8.9
Silver (millions of troy ounces) 882 508
Lead (millions of tonnes) 2.4 0.90
Zinc (millions of tonnes) 7.1 5.9
(1) Reported at cut-off grades of $4.55 NSR for breccia and
intrusive; $5.18 NSR for sediments; $1.30 NSR for south oxides
and $1.18 for north oxides using resource metals prices
(2) $650 Au; $13 Ag; 50 cents Pb; $1 Zn
(3) Mineral resources are not mineral reserves and do not have
demonstrated economic viability
These updated reserves and resources provide the basis for further optimization subsequent to the 2006 feasibility plan of two 50,000-tonne-per-day circuits, or 100,000 tonnes per day. Goldcorp is analyzing an increase of mill capacity to 65,000 tonnes per day in the first circuit and 65,000 tonnes per day in the second circuit, for a total of 130,000 tonnes per day. A revised capital schedule and economic review including these proposed capacity enhancements is expected to be available prior to year-end.
Construction progress at Penasquito remains on schedule for initial heap leaching of oxide ore during 2008 and start-up of the first milling and flotation circuit by late 2009. The initial mining fleet is on site and currently being erected. Excavation and preparation of the base for the primary crusher foundation have been completed and concrete has been poured. Completion of the Pabellon-Salaverna road and installation of the 400-kilovolt-ampere power line are expected later this summer. Preparations for a water well field in nearby Cedros basin are proceeding. Two wells have now been completed, indicating excellent permeability zones.
Mineral exploration also continues at Penasquito, with nine core rigs currently on the property. Recent intercepts from assays of two drill holes adjacent to the Penasco breccia body have encountered high-grade skarn/manto mineralization, which are summarized in the table, "Drill hole results from Manto-Skarn zone."
DRILL HOLE RESULTS FROM MANTO-SKARN ZONE
Estimated
true
Hole ID From To Au Ag Pb Zn Interval width
(m) (m) (g/t) (g/t) (%) (%) (m) (m)
GP-479-07 1,006 1,016 0.73 457.5 0.94 8.9 10 9.0
GP-479-07 1,026 1,032 0.08 106.9 0.34 19.3 6 5.4
GP-501-07 902 924 5.4 191.7 6.1 8.8 22 19.8
GP-501-07 1050 1062 1.0 355 4.1 14.0 12 10.8
A drilling campaign is under way to further test the extent of this new high-grade zone and to define a resource which may be minable by underground methods concurrent to open-pit operations. Both exploration and condemnation drilling will continue for the balance of the year, with an emphasis on further infill and extensional drilling of the Penasco, Chile Colorado, Brecha Azul and El Sotol zones. A regional exploration program with one core drill rig will be initiated during the third quarter to test targets at concession areas such as Nochebuena, Saltillito and Los Lobos.
Eleonore
Goldcorp's next Canadian gold mine
Eleonore gold resources include 1,834,900 ounces of indicated resources and 929,100 ounces of inferred resources, using a cut-off grade of 3.5 grams of gold per tonne.
The mineral resource statement is presented in the table, "Mineral resource statement (i) for the Eleonore gold deposit."
MINERAL RESOURCE STATEMENT(I) FOR THE ELEONORE GOLD DEPOSIT
April 4, 2007 Tonnage Grade Contained ounces
resource category (tonne) (g/t Au)
Indicated 7,709,500 7.40 1,834,900
Inferred 4,059,000 7.12 929,100
(i) Reported at a cut-off of 3.5 g/t gold, all figures rounded to reflect
the relative accuracy of the mineral resource estimate. The preparation of
the initial resource estimate for the Eleonore project was a joint effort
between Goldcorp personnel, G.N. Lustik Consulting Ltd. and SRK Consulting
Canada Inc. The mineral resources were estimated by SRK using a
geostatistical block modelling approach. Capped gold grades were
interpolated into a block model constrained by wire frames by ordinary
kriging with estimation parameters determined by variography. Mineral
resources were classified using variography ranges and geology by Yan
Bourassa, PGeo, of SRK, a qualified person as defined under National
Instrument 43-101 in accordance with CIM standards. Mr. Bourassa has
reviewed and approved the contents of this news release relating to mineral
resources at Eleonore. Mineral resources are not mineral reserves and
do not have demonstrated economic viability.
The deposit has proven to be very consistent in mineralization and continuous within the ore shoots determined to date. The average minable width of all zones is 4.7 metres and the arithmetic mean of the intercept grades amounts to 8.4 grams of gold per tonne (5.7 metres width and 11 g/t for the main Roberto zone).
Only drill holes that were finalized by April 4, 2007, were used in the resource estimation, a total of 511 drill holes for approximately 178,500 metres. Since then, 81 drill holes amounting to 27,800 metres have been completed, of which 45 holes totalling 10,300 metres are now finalized. Highlights of these intercepts are included in the table, "Eleonore postresource drilling highlights." The complete database of drill hole results at Eleonore and supporting data can be found on the company's website.
ELEONORE POSTRESOURCE DRILLING HIGHLIGHTS
Estimated
true
Hole ID From To Au Ag Pb Zn Interval width
(m) (m) (g/t) (g/t) (%) (%) (m) (m)
ELE-07-392 619.35 625.43 36.50 6.08 5.21
ELE-07-396 47.00 50.00 41.56 3.00 2.57
ELE-07-402 332.80 344.10 14.61 11.30 9.37
ELE-07-403 705.40 711.00 16.00 5.60 4.90
ELE-07-405 369.53 381.67 13.23 12.14 10.82
ELE-07-428 146.25 147.00 73.10 0.75 0.64
ELE-07-428 722.00 723.00 494.00 1.00 0.93
ELE-07-431 225.00 228.00 144.57 3.00 2.67
ELE-07-434 199.00 201.00 481.12 2.00 1.78
These results indicate better-than-expected gold mineralization associated with quartz veining has been intersected at the north extension of the deposit (see holes ELE-07-428, ELE-07-429 and ELE-07-434 in the table, Penasquito proven and probable reserves summary data). This style of mineralization is being followed up with current drilling and is expected to increase the project resource base in the future.
Other exploration is focusing on defining gold mineralization at a vertical depth between 700 and 1,000 metres and testing the northern and southern extensions of the deposit. Additional testing of open-pit targets and targets identified by property-scale mapping will continue into the fall.
Significant progress has been made on project development at Eleonore, including completion of engineering work on an access road and air strip. Additional data will support analysis of depth and breadth of deposit mineralization in order to properly scope shaft dimension, mill size and equipment selection. Prefeasibility work has been initiated and will continue for the remainder of 2007 and a feasibility study is expected to be completed by 2008. Production is expected by late 2010.
Geotechnical drilling in the outcrop area and condemnation drilling of key infrastructure sites are also continuing. The access road and air strip permit, which includes a full environmental and social impact assessment, has been submitted to regulatory authorities for approval.
Los Filos: the newest Goldcorp mine
The Los Filos team was pleased to announce successful testing of gold processing and recovery circuits, leading to an initial pour on June 15 consisting of 380 ounces of gold and 80 ounces of silver. Run-of-mine ore continues to be stacked on the heap-leach pad and processing of this ore is continuing on a continuous basis. Final installation of conveyors at the crushing and agglomeration plant has been finished, and system commissioning is under way.
Infill drilling continues at Los Filos in an effort to convert resources into reserves. Regional exploration is advancing with geophysical and geochemistry studies to identify new drilling targets. Exploration at the nearby Nukay underground project continued throughout the first half of 2007 and drilling indicates that economic mineralization remains open at depth. Future exploration drilling will seek to identify an extension of the gold skarn deposit both laterally and at depth.
"We are quite excited by the drilling results we are seeing at Los Filos. In addition to adding high-quality reserves and resources, Goldcorp's core competency is permitting, financing and building mines in the Americas," continued Mr. McArthur. "Eleonore, Penasquito and Los Filos, comprise three important elements of the best growth profile in the industry."
PENASQUITO PROVEN AND PROBABLE RESERVES SUMMARY DATA (1), (2), (3)
Prior update New update
June 25, 2007 June, 2006 June, 2007
Proven reserves
Ore tonnes (millions)
Oxide (heap leach) 68.2 42.1
Sulphide (flotation) 267.9 426.9
----- -----
Total ore tonnes (millions) 336.1 469.0
Oxide ore grade
Gold (grams per tonne) 0.27 0.21
Silver (grams per tonne) 24.2 20.9
Sulphide ore grade
Gold (grams per tonne) 0.60 0.57
Silver (grams per tonne) 35.4 34.0
Lead (per cent) 0.38 0.36
Zinc (per cent) 0.81 0.78
Contained metals
Gold (millions of troy ounces) 5.8 8.2
Silver (millions of troy ounces) 358 495
Lead (millions of tonnes) 1.03 1.56
Zinc (millions of tonnes) 2.16 3.34
Probable reserves
Ore tonnes (millions)
Oxide (heap leach) 18.8 68.3
Sulphide (flotation) 209.0 380.2
----- -----
Total ore tonnes (millions) 277.8 448.6
Oxide ore grade
Gold (grams per tonne) 0.33 0.17
Silver (grams per tonne) 22.4 16.4
Sulphide ore grade
Gold (grams per tonne) 0.60 0.37
Silver (grams per tonne) 30.2 27.2
Lead (per cent) 0.31 0.29
Zinc (per cent) 0.70 0.65
Contained metals
Gold (millions of troy ounces) 4.2 4.9
Silver (millions of troy ounces) 216 368
Lead (millions of tonnes) 0.64 1.11
Zinc (millions of tonnes) 1.46 2.47
(1) Cut-off grades for Penasquito reserves are as follows: $4.55
NSR for breccia and intrusive; $5.18 NSR for sediments; $1.30
NSR for south oxides and $1.18 for north oxides using reserves
metals prices.
(2) Metals prices used in the pit design were: $525 per ounce
gold, $10 per ounce silver, 40 cents per pound lead and 80 cents
per pound zinc.
(3) The mineral resources and mineral reserves for Penasquito
have been estimated under Canadian Institute of Mining,
Metallurgy & Petroleum standards (CIM standards) in accordance
with National Instrument 43-101 of the Canadian Securities
Administrators. These resource and reserve estimates have been
prepared under the supervision of Robert Bryson, vice-president,
engineering, for Goldcorp, a qualified person as defined under
National Instrument 43-101. Mr. Bryson has reviewed and approved
the contents of this news release.
) 2007 Canjex Publishing Ltd. |
