Goldcorp’s development plan for Borden Project revealed

Goldcorp In. has expanded its holdings in the Chapleau area and has created a development plan for its Borden property acquired from Probe Mines Ltd.

The Borden Project, bought for $526 million in 2015, held a “maiden proven mineral reserve of 800,000 ounces declared Dec. 31, 2015.”

The project, located 160 km west of Goldcorp’s Porcupine Gold Mines in Timmins, has the potential to further enhance the long-term economics of the Timmins operations.

A pre-feasibility study is underway to determine the optimization of a combined Borden-Porcupine operation and is expected to be completed during the first quarter of 2017.

An advanced exploration permit is expected to be received by late 2016 or early 2017 to allow for the construction of a ramp into the deposit and the extraction of a 30,000 tonne bulk sample, providing an underground platform for exploration drilling on a deposit that remains open at depth and laterally. 

Exploration for the second quarter of 2016 continued to focus on discovery of additional resources along strike from the known Borden deposit as well as on high potential targets away from the main ore body, both to the east and northwest to look for new zones in the regional land package.

The company says the Borden is “expected to enhance the long-term economics” of its Porcupine Mines, the open pit Hollinger, underground Hoyle Pond and Dome, plus the Dome mill.

At one time, the company said it expected to truck the Borden ore to the Dome mill.

Goldcorp’s Borden development plan for an underground mine has the following objectives, to:

·       Expand/strengthen community partnerships

·       Grow the resource through exploration

·       Obtain provincial Advanced Exploration permit

·       Develop underground exploration access

·       Obtain bulk sample in 2018

·       Commence long-term permitting.

On June 17, 2016 Goldcorp acquired Reliant Gold Corp’s 49% interest in the Borden Lake South mining claims. 

Borden Lake South is comprised of 20 mining claims representing 294 claim units covering approximately 4,704 hectares, located 10 m east of the community of Chapleau.

Probe entered into a Joint Venture Agreement with Reliant dated March 12th, 2014 pursuant to which a 51% Probe – 49% Reliant joint venture was created between the parties with respect to Borden Lake South.

Pursuant to the Agreement to Purchase Interest in Joint Venture entered into by Reliant and Goldcorp on June 14, 2016, Reliant transferred its 49% interest in Borden Lake South to Goldcorp.

Reliant received $250,000 in cash, together with a one per cent royalty on the net smelter returns from the future production and sale of minerals from Borden Lake South (the NSR). 

Goldcorp reserved the right, at any time, to purchase fifty per cent of the NSR from Reliant by making a cash payment of $500,000 (plus any applicable taxes) to it and obtained a right of first refusal in favour of Goldcorp with respect to any future transfers of the NSR by Reliant.

Together with the closing of the Transaction, the 2014 JV Agreement and the Borden Lake South JV were terminated.

Goldcorp has grown from a mid-sized gold company to one of the world’s largest gold producers by employing a broad-based strategy that combines exploration, mergers and acquisitions, joint ventures and organic development.

Goldcorp says “reserves are the backbone of every gold mining company, as of Dec. 31, 2015 our proven and probable gold mineral reserves totaled 40.73 million ounces and those ounces demonstrate strong economics in the current metals market. 

We focus on cost-effective exploration in and around our existing asset portfolio.”

Reliant is a junior mineral exploration company with an experienced management team engaged in the acquisition, exploration and development of properties for the mining of precious and base metals.

Reliant currently holds a 100% interest in the East Bay Property, comprised of 56 mineral claim units totalling 896 hectares in the McVicar Lake area, located approximately 90 km west of Pickle Lake, Ontario, and 130 km southwest of Goldcorp Inc.’s Musselwhite Gold Mine.