Goldcorp extends High Grade zone

Exploration drilling at Goldcorp‘s (G-T) Red Lake mine gold mine in northwestern Ontario, continues to generate good news.

On the heels of a 25% increase in reserves at the mine, Goldcorp now says that drilling has:

• extended the High Grade zone (HGZ) an additional 300 ft. vertically below the recently released audited gold reserve and resource estimates (the company says it is now about two thirds towards its goal of doubling the vertical extent of the zone);
• indicated good potential to expand the HGZ about 300 ft. to the east;
• cut new quartz carbonate (HGZ-type) mineralization some 1,200 ft. to the west of the HGZ; and
• cut high-grade, sulphide-style mineralization in the Far East zone, 2,300 ft. east of the HGZ, the most easterly intersection so far at the mine.

Recent drilling on the HGZ focused on the Hanging Wall 5 (HW5) zone, which accounts for almost 25% of the high-grade reserves.

Two of four holes to test the HW5 zone cut quartz carbonate mineralization typical of the high grade zone. The holes returned 14.4 ft. grading 4.87 oz. gold and 2.8 ft. of 1.03 oz. gold per ton, respectively, and have extended the zone 400 ft. down-dip or 300 ft. vertically below the current limit of the estimated resources. The other two holes failed to cut significant mineralization.

High grade mineralization now descends some 2,100 ft. to a vertical depth of 6,600 feet. Goldcorp aims to extend the vertical extent of the high grade mineralization to a depth of 7,000 ft. Drilling on the zone will wrap up by year-end.

Goldcorp’s recent, audited estimate of the HGZ pegged reserves at 1.7 million tonnes grading 69.3 grams gold per tonne, excluding production of 336,000 oz. mined in the first seven months of 2001. That’s up from 1.6 million tonnes grading 57.5 grams at the beginning of the year. Resources are up as well, to 430,000 tonnes grading 92.6 grams. In both cases, the increase reflects an increase in the grade of mineralization.

To the east of the HGZ, on the Footwall 4 zone (FW4) four holes cut typical HGZ-type quartz carbonate and sulphide mineralization and returned:

• 2.4 ft. grading 2.83 oz. gold per ton;
• 3 ft. of 4.43 oz. gold;
• 2 ft. of 2.27 oz. gold; and
• 3 ft. of 3.32 oz. gold.

The FW4 zone currently comprises a series of isolated lenses at the eastern margin of the HGZ. The holes were collared up to 300 ft. east of the current limits of the HGZ.

Some 1,200 ft. west of the western limits of the HGZ, hole 34L911 returned 1 ft. grading 2.72 oz. gold and 3 ft. of 3.43 oz. gold from a previously untested area. The quartz carbonate mineralization is again typical of the HGZ. Underground access to the area is available via an underground drift on the mine’s 34 Level, which has been driven another 800 ft. to the west. Drills are currently on their way to conduct follow-up diamond drilling.

In the Far East zone, 2,300 ft. east of HGZ, an exploratory hole drilled ahead of the Level 34 drift cut 0.9 ft. grading 2.15 oz. gold in sulphide mineralization. The intersection is about 1,000 ft. east of any previous drilling on the level. The result does not represent a true width of mineralization. Limited previous drilling from levels 26 and 34 and from surface returned up to 6.2 ft. grading 1.28 oz. gold, near level 16. Intersections have been obtained over a the vertical extent similar to that seen at the Red Lake mine.

Drilling continues on level 16, which has been extended 850 ft. to the east. The company also continues to extend the level 34 drift to the east.

The success at Red Lake has prompted Goldcorp to intensify exploration in the region, which boasts a nearby producing mine, Campbell, operated by Placer Dome (PDG-T), as well as dormant mines, such as Cochenour. Its two main targets are the Cochenour mine area, 5 miles northwest of the Red Lake, and the Abino prospect, 6 miles north of Cochenour.

Goldcorp says results from previous exploration near Cochenour are similar to those obtained at Red Lake. Some of the better results include: 22.66 oz. over 12.5 ft., 9.68 oz. across 23.8 ft., and 30.89 oz. across 10.7 ft. Four surface diamond drills currently running onsite.

The Abino project covers a shallow shaft and ramp but has not been explored since 1986. Goldcorp views it as “an exciting target,” and notes that past work returned assays of 6.2 oz. across 1.52 ft. and 2.95 oz. over 3.4 ft.