Toronto Stock Exchange: G New York Stock Exchange: GG
VANCOUVER, Dec. 13 /CNW/ - GOLDCORP INC. (TSX: G, NYSE: GG) and Andean Resources Limited ("Andean") announced today the approval of the
Environmental Impact Assessment by the Santa Cruz province in Argentina
for the development and production of the Cerro Negro gold project, a
high-grade world-class deposit located on the low-elevation Patagonian
plains of southern Argentina. The permit enables Goldcorp to commence
mine construction immediately following the transfer of ownership on
December 30, 2010.
"The successful permitting of Cerro Negro is a positive first step in
what we expect will be an efficient and straightforward construction
process," said Chuck Jeannes, Goldcorp President and Chief Executive
Officer. "Cerro Negro's ideal physical setting and easily accessible
veins will result in near-term, cash flow-accretive gold production at
a relatively small capital investment. Moreover, recent discoveries of
high grade veins and extensions of existing veins form the basis for
the analysis of a much larger gold production profile than originally
contemplated. We look forward to Cerro Negro's development into
Goldcorp's next cornerstone gold asset."
An update to Andean's July 2010 feasibility study is currently underway
that will reflect recent drilling success. The update, which is
expected to be completed at the end of the first quarter 2011, is
analyzing a doubling of mill capacity to approximately 4,000 tonnes per
day to process ore mined concurrently from the Eureka and Marianas vein
systems. Detailed engineering and subsequent permitting amendment
efforts will follow immediately afterward.
The Cerro Negro site team in Argentina continues to make good progress
in advancing the project. The decline into the high-grade Eureka vein,
which will comprise the first source of mill feed upon initial
production in 2013, has reached over 630 meters in length. Upgrades to
the main access road and camp expansion will commence early in 2011.
Geotechnical work for the mill and associated facilities will commence
shortly. Orders for long lead time items including the mills and
crushers will be placed following the completion of the feasibility
study update at the end of the first quarter of 2011.
Exploration plans for the first half of 2011 include in-fill and
extension drilling of the San Marcos vein discovered in late 2009 and
the two Mariana veins (Central and Norte) discovered in 2010.
Several new prospect areas with known gold mineralization have been
identified within the 215 square kilometer property and testing of
these new vein targets will commence in the second quarter of 2011. An
updated reserve and resource calculation for Cerro Negro will be
available in early February with Goldcorp's annual reserve and resource
update.
Key dates remaining under the timetable as detailed in the transaction
Scheme are as follows:
-
December 16, 2010 - Record date for Andean shareholders determining
election of cash and shares.
-
December 30, 2010 - Scheme implementation; consideration payable
delivered to Andean shareholders.
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.
Cautionary Note Regarding Forward-Looking Statements
This press release contains "forward-looking statements", within the
meaning of the United States Private Securities Litigation Reform Act
of 1995 and applicable Canadian securities legislation, concerning the
business, operations and financial performance and condition of
Goldcorp Inc. Forward-looking statements include, but are not limited
to, statements with respect to the future price of gold, silver,
copper, lead and zinc, the estimation of mineral reserves and
resources, the realization of mineral reserve estimates, the timing and
amount of estimated future production, costs of production, capital
expenditures, costs and timing of the development of new deposits,
success of exploration activities, permitting time lines, hedging
practices, currency exchange rate fluctuations, requirements for
additional capital, government regulation of mining operations,
environmental risks, unanticipated reclamation expenses, timing and
possible outcome of pending litigation, title disputes or claims and
limitations on insurance coverage. Generally, these forward-looking
statements can be identified by the use of forward-looking terminology
such as "plans", "expects" "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", "believes" or the
negative connotation thereof or variations of such words and phrases or
statements that certain actions, events or results "may", "could",
"would", "might" or "will be taken", "occur" or "be achieved" or the
negative connotation thereof. All forward-looking statements are
developed based on assumptions about such risks, uncertainties and
other factors set at herein. Forward-looking statements are subject
to known and unknown risks, uncertainties and other factors that may
cause the actual results, level of activity, performance or
achievements of Goldcorp to be materially different from those
expressed or implied by such forward-looking statements, including but
not limited to: risks related to the integration of acquisitions; risks
related to international operations; risks related to joint venture
operations; actual results of current exploration activities; actual
results of current reclamation activities; conclusions of economic
evaluations; changes in project parameters as plans continue to be
refined; future prices of gold, silver, copper, lead and zinc; possible
variations in ore reserves, grade or recovery rates; failure of plant,
equipment or processes to operate as anticipated; accidents, labour
disputes; delays in obtaining governmental approvals or financing or in
the completion of development or construction activities and other
risks of the mining industry, as well as those factors discussed in the
section entitled "Description of the Business - Risk Factors" in
Goldcorp's annual information form for the year ended December 31, 2009
available at www.sedar.com. Although Goldcorp has attempted to
identify important factors that could cause actual results to differ
materially from those contained in forward-looking statements, there
may be other factors that cause results not to be as anticipated,
estimated or intended. There can be no assurance that such statements
will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements. The forward-looking statements contained in this press release are made
as of the date of this press release and, accordingly, are subject to
change after such date. Except as otherwise indicated by Goldcorp,
these statements do not reflect the potential impact of any
non-recurring or other special items or of any dispositions,
monetizations, mergers, acquisitions, other business combinations or
other transactions that may be announced or that may occur after the
date hereof. Forward-looking statements are provided for the purpose
of providing information about management's current expectations and
plans and allowing investors and others to get a better understanding
of Goldcorp's operating environment. Goldcorp does not undertake to update any forward-looking statements
that are included in this document, except in accordance with
applicable securities laws.