Zeev's Turnips Patch-No Politics (ZEEV)

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*** Gold related post (GG) ***


Goldcorp to expand Red Lake to 700,000ozpa

Friday, September 26, 2003

CANADIAN gold miner Goldcorp is confident of further expanding its highly profitable Red Lake mine in Ontario.

Fresh drilling has increased the size of a deep, high-grade mineralised zone at the mine which is already producing 500,000 ounces of gold a year at US$80/oz.

Goldcorp chief executive Robert McEwan told Dow Jones Newswires after the Denver Gold Forum that the potential of the lower deposit at Red Lake could be as much as 3.8 million ounces.

He said the company was spending US$94 million on a second deep shaft at the mine. The 7200-foot shaft will help boost production to 700,000oz a year, lower cash costs and provide an alternative access point to the orebody.

The first full year of production from the new shaft if expected in 2007.

McEwan said Goldcorp wanted to expand production to 1 million ounces a year and was looking at potential acquisitions in North America, South America and Europe.

http://www.miningnews.net/storyview.asp?storyid=18867§ionsource=c18