Resource World Magazine

F E B R U A R Y / M A R C H 2 0 1 5 www.resourceworld.com 39 ation on stream, on time was a notable one. The operation will be connected to the Argentinian national grid by the time of pub- lication, helping to lower its cost base. Wilhoit also reports that the mill is working well and has occasionally been operated above nameplate capacity. "This bodes well for the future," he said. However, 2014 was not all plain sailing: Goldcorp's adjusted net earnings for Q3 2014 stood at $70 million, or $0.09 per share, which compares with $190 million, or $0.23 per share in Q3 2013. However, adjusted operating cash flow was higher at $399 million in Q3 compared with $375 million in Q3 2013. Overall gold produc- tion for 2014 has been estimated at 2.95-3.1 million ounces, which compares with 2.67 million ounces produced in 2013. There was also disappointment that the company had to withdraw its environ- mental impact study for the El Morro gold-copper project in Chile, in October. Goldcorp holds a 70% stake in the project. The decision followed a final ruling by Chile's Supreme Court and the company has decided to now look at the project afresh. "Obviously we were disappointed to have the ruling go against us, but we respect the decision of the courts and we'll go back to the drawing board," Wilhoit said. "We'll be looking at every oppor- tunity to enhance the economics of what we feel is one of the best undeveloped copper-gold porphyries in the world. So stay tuned." EXPLORE, EXPAND Goldcorp has operations across the Americas and Peñasquito, in Mexico, is one of the jewels in its crown. Full-year gold pro- duction for 2014 is expected to be between 530,000 to 560,000 ounces; production of silver between 22 million and 25 million ounces; zinc between 315 million and 325 million lbs; and lead between 135 million and 145 million lbs. There are also oppor- tunities for further expansion, while work is underway on a concentrate enrichment process and a pyrite leach project, both of which have the potential to improve the operation's returns. "When dealing with concentrates you get paid on the basis of quality. Our technical services team has come up with new tech- nology that has the potential to make our lead concentrate much more valuable to our smelter partners," Wilhoit said. "It could be a meaningful and significant enhancement of Peñasquito's econom- ics, which is already one of our cash-generating powerhouses." Around 50 km away from Peñasquito's mill is the Camino Rojo development project, which is expected to be completed during Q1 2016. The project area comprises the Represa deposit that con- tains, effective December 31, 2013, proven and probable reserves of 1.63 million gold ounces and 32.07 million ounces silver. "It's a significant deposit and the focus will be on how best to develop it," Wilhoit said. "We have a couple of different options and we'll report to the market in 2015 on the direction that will be taken." Back in Canada, in the Red Lake region of northwest Ontario, exploration will centre on the HG Young target, which is located around 1.5 km from the company's Campbell complex. "It's still early days here, although our senior vice president exploration, Charlie Ronkos, is excited by what the team is finding. We look forward to an aggressive drilling program at HG Young in 2015," Wilhoit said. "Indeed, the potential exists for this to be a signifi- cant part of Red Lake's future." Another cornerstone project for Goldcorp is Cochenour, which lies close to Red Lake. Work is going well there, Wilhoit said. "And we've built a haulage drift that will transport the ore underground for processing at the existing processing facility [at Red lake]." The haulage drift will eventually handle up to 1,500 tonnes of ore per day, while the operation is expected to have an output of 225,000- 250,000 ounces gold per year once fully on stream. The company will also continue looking for mergers and acqui- sitions (M&A) opportunities with a view to replace and build gold reserves. "At any given time we have open files on a number of potential M&A projects and certainly that continues to be the case," Wilhoit said. "But remember that M&A also includes oppor- tunities to further streamline business through the divestment of non-core assets. Surfacing the value hidden in portfolios has been one of things Goldcorp has been a leader in." n Goldcorp's underground Cerro Negro Mine in Argentina poured first gold on July 25, 2014 with commercial production achieved on January 1, 2015. Gold production for 2014 totaled 152,100 ounces and for 2015 is expected to be between 425,000 and 475,000 ounces. Photo courtesy Goldcorp Inc.

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