Goldcorp plans to spend $40 million exploring its already rich Red Lake Mine

The cornerstone of Goldcorp Inc.’s Canadian mining operations is the Red Lake Gold Mine in Northwestern Ontario.

Located in one of the world’s most prolific gold districts, Red Lake is Goldcorp’s top producer, yielding 507,500 ounces in 2012. The High Grade Zone is the backbone of the Red Lake operation, with an average grade of more than two ounces of gold per tonne.

Red Lake’s estimated gold production for 2013 is 475,000 - 510,000 oz.

Goldcorp is a leading senior gold producer with low cost operations (11), three mines under construction and four in the feasibility stage located in politically stable jurisdictions throughout the Americas. It also produces silver, copper, lead and zinc.

Goldcorp produced 2.4 million ounces of gold in 2012 and expects to produce 2.55 to 2.8 million ounces this year.

Also in 2012:

• Revenues increased to a record $5.4 billion on gold sales of 2.3 million ounces.

• Operating cash flows before working capital changes totaled $2.4 billion or $2.97 per share.

• Adjusted net earnings totaled $1.6 billion, or $2.03 per share.

• All-in sustaining cash costs totaled $874 per ounce, $300 per ounce on a by-product cash cost basis, and $638 per ounce on a co-product cash cost basis.

• Dividends paid amounted to $438 million.

• Proven and probable gold mineral reserves increased 4% to 67.1 million ounces or 3.5% on a per share basis.

“Excellent quarterly performances at our two largest mines resulted in a strong finish to 2012 and position Goldcorp for a much improved 2013,” said Chuck Jeannes, Goldcorp president and CEO.

“Red Lake in Canada benefited from full access to higher grade gold zones while Peñasquito in Mexico performed well despite commencing mining in a new, lower-grade phase of the pit during the quarter. A full year of gold production at Pueblo Viejo in the Dominican Republic, coupled with production stability throughout our portfolio, will enable a renewed focus on productivity and efficiency at our mines in the year ahead.

Goldcorp’s ‘Operating for Excellence’ initiative is aimed at identifying and implementing best practices to unlock the full cash flow potential within our asset base.

Another key priority in 2013 is the timely advancement of our three gold growth projects currently under construction that are expected to drive forecast 70% production growth in the next five years. Cerro Negro in Argentina remains on track for initial gold production at the end of this year amid successful achievement of key milestones and growing ore stockpiles.

Éléonore in Quebec continues to benefit from a development plan focused on capital efficiency and building a solid production platform beyond expected first production in late 2014. Development of Cochenour in Red Lake is expected to accelerate, bringing a stronger production profile to the Red Lake complex following the start of production in 2015,” he said.

The Red Lake Mine is near the community of Red Lake and has an estimated life of 12 year based on its reserves. It employs 1,280 workers, including contractors.

The Town of Red Lake is located 535 kilometres (332 mi) northwest of Thunder Bay and less than 100 kilometres (62 mi) from the Manitoba border. The municipality consists of six small communities - Balmertown, Cochenour, Madsen, McKenzie Island, Red Lake and Starratt-Olsen - and had a population of 4,670.

Goldcorp has budgeted in 2013 at Red Lake $40 million for a number of exploration projects, including expanding the High Grade Zone reserves from 48 level to 55 level, converting resources from the NXT Zone, continuing exploration in the haulage drift, initiating follow-up of high potential areas, following up on newly discovered structure off of 4699 ramp at the HGZ, exploring the upper mine, and some regional exploration.

Recent investments in infrastructure and development have positioned the renowned Red Lake Mine for many more years of long-term sustainable production.

The Red Lake area will soon play an even more important role in the company’s fortunes as it will have another producer there in 2015.

The Bruce Channel discovery at the nearby Cochenour Project secures control of eight kilometres of strike length in the heart of the Red Lake trend. Development of the Cochenour Project is advancing toward first gold production during the first half of 2015.

The company says the Cochenour/Bruce Channel deposit is the key to plans for future consolidation. Work is underway on enlarging and upgrading the existing Cochenour shaft, and further developing the five-kilometre haulage drift connecting it to the existing Red Lake underground infrastructure. This will enable the efficient hauling of Cochenour/Bruce Channel ore to the Campbell mine for processing at the existing mill.

The drift also opens up exploration of five kilometers of untested ground in one of the world’s richest gold districts.

Goldcorp strives to deliver sustainable prosperity to its stakeholders and remains firmly focused on the elements that continue to drive its success:

Industry leading growth, Low cost production, Maintaining an outstanding balance sheet, Developing operations in low-risk jurisdictions and Commitment to sustainability.