Goldcorp’s Red Lake Canada’s largest gold mine

Move over Golden Giant and Eskay Creek. The new Red Lake mine, owned and operated by Toronto-based Goldcorp (G-T), has become Canada’s largest gold operation, based on this year’s revised production estimate of 440,000 oz. at a cash cost of less than US$70 per oz.

The mine’s stellar performance has also triggered renewed exploration for high-grade gold deposits in one of Ontario’s most prolific mining camps.

Goldcorp revised its 2001 forecast upward, from 400,000 oz. at US$75 per oz., after reviewing the mine’s performance since Jan. 1, when commercial production began. Although mining of high-grade ore began even earlier, during the 2000 development program, by June 8, Red Lake had produced 240,000 oz. gold at a cash cost of US$57 per oz.

Grades came in higher than expected, at 2.57 oz. per ton, compared with the forecast average grade of 2 oz. per ton. The average production rate to the end of May was 650 tons per day.

Goldcorp notes that since mining began, the new High Grade zone has provided more gold from more tons at higher grades than was forecast in the feasibility studies. For example, the material mined to date was budgeted to contain 298,700 oz. gold, based on reserves of 156,800 tons grading 1.9 oz. gold. However, 184,675 tons grading 2.21 oz. gold were extracted, containing a total of 408,175 oz., which represents a 37% increase relative to forecasts. The company is reviewing its ore reserve calculation methodology, particularly with respect to grade, and, by September, expects to release a revised reserve estimate based on its findings.

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

Goldcorp says results from previous exploration near Cochenour are similar to those obtained at its Red Lake mine. 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. The mine itself has been the source of some spectacular mineral specimens on display at the Royal Ontario Museum in Toronto.

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.

In addition to Red Lake, Golcorp operates the Wharf gold mine in South Dakota.