Vancouver — Goldcorp (G-T, GG-N) has closed a deal to sell one-quarter of future silver production from its Penasquito mine, in Mexico’s Zacatecas state, to Silver Wheaton (SLW-T, SLW-N) for US$485 million.
Under the agreement, Silver Wheaton will also pay the lesser of US$3.90 per oz. or the prevailing market price for silver delivered through the contract. Goldcorp owns 49% of Silver Wheaton.
Goldcorp recently upped Penasquito’s reserve tally by 63% to 917.5 million tonnes of 0.18 gram gold per tonne and 18.1 grams silver in the oxide ore (110.4 million tonnes), and 0.48 gram gold and 30.8 grams silver in the sulphide ore (807.1 million tonnes).
Gold in the Mexican deposit is up 31% to about 13 million oz., while the silver inventory has grown 50% to 864 million contained ounces.
With construction well under way, Goldcorp anticipates initial heap leaching of oxide ore in 2008 and a sulphide ore milling and flotation operation by late 2009.
Goldcorp acquired Penasquito in 2006 through its takeover of Glamis Gold.
Silver Wheaton has silver purchase contracts with five mines and expects to sell about 15 million oz. of silver in 2007. The company has agreements with Goldcorp for its mines in Mexico, Lundin Mining’s (LUN-T, LMC-X) Zinkgruvan mine in Sweden, Glencore International’s Yauliyacu mine in Peru, and European Goldfields’ (EGU-T, EGFDF-O) Stratoni mine in Greece.
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