GoldCorp adds to Red Lake

Exploration drilling by GoldCorp (G-T) has extended the depth of the High Grade zone at the company’s Red Lake mine in northwestern Ontario.

A single hole aimed below the current HGZ reserves cut 8 significant intersections in a 74-metre interval, highlighted by 17.7 metres running 121 grams per tonne. The other intersections include 2.4 metes of 130.5 grams, 3.8 metres of 23.2 grams and 4.7 metres of 10.7 grams.

The hole returned the deepest intersection so far of the HW5 zone averaging 150.9 grams gold over 1.3 metres at a vertical depth of 2,088 metres, 27 metres deeper that the previous deepest intersection.

Infill drilling on the HGZ continues to confirm the zones continuity. So far in 2002, 136 intersections have returned an average of 146.1 grams gold across 1.7 metres. Selected results include 6.4 metres of 652.7 grams and 4.2 metres of 590.1 grams.

Drilling below Red Lake’s current sulphide resources also returned encouraging results. The most significant are a 4-metre interval grading 51.4 grams gold and 3.1 metres of 15 grams gold. The mineralization was encountered 91.4 m below the current sulphide resources.

Sulphide mineralization was the sole source of production at the Red Lake Mine from 1948 to 1996 contributing 3.2 million oz. of gold to a vertical depth of 1,341 metres. The company is looking to identify further sulphide resources beneath previously mined areas to enable an expansion of production at Red Lake.

So far, the 2002 exploration program has outlined an area of mineralization with a vertical extent of 244 metres and a lateral distance of 152 metres.

Underground drilling on the Far East zone from level 16 has extended gold mineralization some 122 metres to the east. Results include up to 38.3 grams gold over 3 metres. The zone has now been traced over a vertical extent of 1,646 metres with a lateral extent of 579 metres.

The drilling is part of a $12-million exploration program, the largest ever at the Red Lake mine. Another $4 million has been budgeted for exploration in the Red Lake area outside the mine.

Goldcorp recently posted record first-quarter earnings of US$16.2 million (or 20 per share), compared with year-ago earnings of US$14.7 million (18 per share). Revenue slipped US$10.3 million to US$38 million. Similarly cash flow from operations decreased to US$20.3 million from $28.4 million. The drop in revenue and cash flow is thanks to a drop in production, which the company planned to allow for the ongoing exploration program.