Wheaton River’s record year-end

Wheaton River Minerals (WRM-T) posted record earnings of US$142 million, as well as record gold, silver and copper reserves and resources from its operations for the year ended Dec. 31, 2004.

The fourth quarter saw an increase in net earnings to US$56 million, twice the earnings achieved in the same quarter a year earlier.

Wheaton River sold 606,500 gold-equivalent oz. last year, 156,400 oz. more than in 2003. The total cash cost (net of by-product copper sales) for 2004 equalled minus US$30 per oz. gold.

A large part of this cost can be attributed to Wheaton’s 37.5%-interest in the Alumbrera copper-gold mine in Argentina. Alumbrera is 50%-owned, and operated by, Xstrata (XSRAF-O); Northern Orion Resources (NNO-T) holds the remaining 12.5%.

Wheaton reported that its 2004-share of production at Alumbrera had a total cash cost of minus US$371 per oz. gold. Wheaton’s share of production totalled 237,700 oz. gold and 145.9 million lbs. copper.

If copper was treated as a co-product, the company reported that the total cash cost at the mine would have been US$167 per oz. gold and US50 per lb. copper.

Xstrata reported preliminary 2004-production from Alumbrera, focussing on copper production. Xstrata calculated a cash-cost (post-by-product credits) of US6 per lb. of copper.

At June, the Alumbrera mine increased reserves by 20%, equivalent to 2.5 years mine-life at the current mining rate.

At Dec. 31, 2004, Wheaton River’s share of Alumbrera’s proven and probable reserves totalled 140 million tonnes grading 0.52 gram gold per tonne and 0.48% copper. The reserves were calculated using a gold price of US$350 per oz. gold and US90 per lb. of copper.

Wheaton’s share of Alumbrera’s measured and indicated resource is 11.25 million tonnes grading 0.39 gram gold per tonne and 0.4% copper. Resources were calculated within an optimization shell defined by a gold price of US$400 per oz. gold and US$1 per lb. of copper.

Wheaton’s 100%-owned Peak mine in Australia also had cash costs offset by copper revenue. At the end of last year, Peak had proven and probable reserves of 2.1 million tonnes grading 6 grams gold and 0.56% copper. The measured and indicated resource stood at 1.7 million tonnes grading 4.1 grams gold and 1.26% copper. A gold price of US$375 per oz. gold and a copper price of US95 per lb. were used in the calculations.

During 2004, the Peak mine produced 142,700 oz. gold and 6.7 million lbs. copper. Total cash costs were US$192 per oz gold (net of by product copper). Net sales of gold were up 44% and copper sales were up 115% compared with a year earlier. The average realized price of gold was US$413 per oz. gold and uS$1.38 per lb. copper.

Last year, the Luismin silver mine in Mexico produced 132,500 oz. gold, and 6.7 million oz. silver. Total cash costs were US$162 per gold-equivalent oz. The average realized price for gold was up 12% at US$410 per oz. and the realized price for silver rose 22% to US$5.93 per oz.

Production was up 9% at Luismin and sales increased 28%; sales revenue increased 38% to US$91.5 million.

At Dec. 31, Luismin had proven and probable reserves of 4.7 million tonnes grading 5.5 grams gold per tonne and 3.5 million tonnes grading 355 grams silver per tonne. The measured and indicated resources were estimated at 10.5 million tonnes grading 1.76 grams gold per tonne.

Luismin reserves were contained in three principal areas: San Dimas, San Martin and Nukay. A tunnel is advancing on high-grade veins found at depth in the San Dimas camp. Last year, the San Martin operation began producing ore from the Cuerpo 31 deposit.

The Amapari deposit in Brazil was acquired in Jan. 2004. Production is set to commence in the third quarter of this year.

At year-end Amapari had proven and probable reserves of 20.65 million tonnes grading 2.3 grams gold. In addition, there was a measured and indicated resource of 3.3 million tonnes grading 1.9 grams gold per tonne.

Wheaton’s Los Filos deposit in Mexico had measured and indicated resources of 88.2 million tonnes grading 0.89 gram gold per tonne at Dec. 31, 2004. This estimate used an optimized pit shell indicated by a gold price of US$400 per oz. The crush/leach resource included in this total was 51 million tonnes grading 1.28 grams gold per tonne.

In October, Wheaton River spun off its silver assets into a new company, Silver Wheaton (SLW-T). Chap Mercantile (which changed its name to Silver Wheaton) agreed to buy all of the silver produced at its Luismin operations for a set price. Wheaton River owns 65% of this new silver company.

Yacimientos Mineros de Agua de Dionisio, is the Argentinian statutory owner of the Alumbrera deposit, and will earn 20% of the net (before tax) proceeds of the project, once project capital, plus interest, has been recovered.

Wheaton River Minerals is in the process of merging with Goldcorp (G-T).