GOLDCORP INC. (TSX: G), (NYSE: GG) is pleased to provide an update in advance of an upcoming analyst and investor tour at its Red Lake mine in Ontario. Presentation slides to be used during the tour are available under the 'Investor Resources-Presentations' section at www.goldcorp.com.
During 2012, production at Red Lake has been affected by slower-than-expected de-stressing at the 41 and 45 levels in the High Grade Zone to address increased seismicity. High Grade Zone de-stress work was successfully completed on the 41 level late in the second quarter. De-stress work at the 45 level has now been completed, allowing access to production stopes.
Over the remainder of 2012, the Company will continue to evaluate the impact on Red Lake's long-term production profile of timing issues in accessing High Grade Zone reserves as well as continued grade variability in the Footwall Zone. Until further study of these issues has advanced, the range of production expectations for Red Lake beyond the current year should reflect production similar to the range provided for 2012 of between 460,000 and 510,000 ounces. During the first half of 2012 gold production was 218,200 ounces at cash costs of $568 per ounce and the mine remains on track to achieve 2012 production guidance.
Extending the High Grade Zone
During the second quarter of 2012, successful drilling results continued from Red Lake's 4199 exploration ramp. Numerous intercepts have confirmed the extension of consistent high grade mineralization between levels 52 and 55. Drilling is also indicating the presence of high grade intercepts deeper at the 57 level.
Exploration of New Zone
New drill results in an unexplored area west of the High Grade Zone have outlined a new zone above the 52 level, which remains open vertically and to the west. As a result of the success of this drilling an exploration drift is being developed near the 47 level to access to allow for better drilling of this new structure. This area will be a focus of drilling over the remainder of the year as it has the potential to increase mining flexibility due to proximity to existing infrastructure.
Cochenour - Construction and Development Progressing
A key component of the Company's overall optimization plan to sustain the Red Lake operation is the development of the Cochenour project. Located five kilometers from the Red Lake gold mine, the Cochenour project has continued to advance. Widening of the historical Cochenour shaft has reached 108 metres to a total depth of 342 metres. The five kilometer haulage drift that will transport ore from the Bruce Channel to Red Lake's existing Campbell milling facilities has advanced to 57% completion. Progress has advanced as expected and is on track to be 66% complete by year-end.
A study of the overall project, which will provide updated project costs and timing of first gold, is currently underway and expected to be complete in the third quarter. The study incorporates changes in the mine design and development resulting from exploration results obtained over the past two years.
Red Lake Gold Mines (RLGM) is composed of two operating complexes: the Red Lake and the Campbell Complex. Situated in one of the world's most prolific gold producing regions, RLGM has produced 20 million ounces since 1949 and it continues to be one of the highest-grade gold mines and lowest cost producers in the world. RLGM is also the largest gold mine in Canada. The High Grade Zone alone has averaged more than two ounces of gold per ton.
The Cochenour Project combines the existing workings of the historic Cochenour mine with the Bruce Channel gold discovery. The Cochenour/Bruce Channel deposit is located down dip from the historic Cochenour mine and is a key component of Goldcorp's consolidation plans in the Red Lake district.
Goldcorp is one of the world's fastest growing senior gold producers. Its low-cost gold production is located in safe jurisdictions in the Americas and remains 100% unhedged.
The scientific and technical information concerning Goldcorp's mineral properties contained herein is based upon information prepared by or under the supervision of Maryse Belanger, Vice President, Technical Services of Goldcorp who is a "qualified person" within the meaning of National Instrument 43-101.
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