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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (30613)	1/23/2007 9:49:57 AM
From: LoneClone	Read Replies (1) \| Respond to of 78419

Goldcorp Wins Permits for Penasquito Mine By Craig Wong 22 Jan 2007 at 11:54 AM EST resourceinvestor.com VANCOUVER (CP) -- Goldcorp Inc. [TSX:G; NYSE:GG] has received all the construction and operating permits required for its massive Penasquito project in Mexico ahead of schedule, the company said Monday. 'The earlier-than-expected receipt of construction and operating permits is a great milestone in the development of this world-class project,' stated Kevin McArthur, CEO of Goldcorp, which had planned on completion of permits by mid-year. 'Combined with the anticipated second-quarter start of commercial production at Los Filos mine in Guerrero State, 2007 will be an important and exciting year for our Luismin division in Mexico.' The project is on schedule to begin production from heap leaching by the middle of next year, with full operation of the mill by late 2009. Electric power and water supplies have been established, an airstrip has been built and foundations have been poured for construction camp facilities. Goldcorp acquired Penasquito in its takeover of Glamis Gold Ltd. The company plans to spend US$20 million in 2007 on exploration at Penasquito with six core drill rigs as it works to complete in-fill drilling to convert resources into reserves. Proven and probable reserves at the site in Zacatecas, in central Mexico, stand at 10 million ounces of gold, 575 million ounces of silver and 3.62 million tonnes of zinc. Capital spending at the project is expected to be US$315 million at Penasquito out of a capital budget of US$750 million this year. The Penasquito feasibility study estimated average annual production of 388,000 ounces of gold, 23 million ounces of silver, 303 million pounds of zinc and 156 million pounds of lead over the mine's 17-year life. The feasibility study estimates co-product cash costs to average US$125 per ounce of gold, US$4.91 an ounce of silver and 44 cents per pound of zinc, with lead revenue taken as a credit to production costs. Once it is completed, Merrill Lynch analyst Michael Jalonen suggested Penasquito is expected to play an integral part of Goldcorp and its value. 'Penasquito is an important asset to Goldcorp, accounting for 16 per cent of the company net asset value,' Jalonen wrote in a note to clients. 'The potential higher reserves at Penasquito would likely increase the importance to Penasquito to Goldcorp. Goldcorp expects to produce 2.8 million ounces of gold in 2007 at a total cash cost of US$150 per ounce. Silver production is estimated at 18.3 million ounces, along with 163 million pounds of copper. Silver Wheaton Corp. [TSX:SLW; NYSE:SLW] holds a right of first refusal on future silver production the project. Goldcorp shares were down eight cents at C$29.87 in trading on the Toronto Stock Exchange. © The Canadian Press 2007