GoldCorp finds more gold at Red Lake

GoldCorp (G-T) has released the results of its 2002 exploration program at the Red Lake mine in northwestern Ontario.

This year exploration focused on testing for depth extensions to the mine’s High Grade zone (HGZ) and Sulphide zone. The program also tested the Far East zone and west of the HGZ in the Western Complex Area.

The latest work on the HGZ focussed on the Hanging Wall 5 zone, and returned two intersections 56 and 122 metres below the previous deepest HGZ intersection.

Hole 34AW cut four zones. The best intersection — 4.27 metres grading 251.7 grams gold per tonne — came at a depth of 2,144 metres below surface. A wider 59-metre section of the hole includes 4.11 metres running 109 grams gold, and 6.55 metres of 33.6 grams.

Hole 34 returned three zones, the deepest at 2,210 metres. Results include 1.22 metres averaging 31.1 grams and 1.83 metres running 41.5 grams. GoldCorp believes the hole cut the HGZ’s thinner and lower grade margins.

Hole 34 also returned 2.32 metres averaging 58.9 grams gold at a depth of 2,286 metres — the deepest mineralized intersection ever obtained in the Red Lake mine.

GoldCorp believes the intersection may indicate the presence of a larger structure that hosts other areas of high-grade gold mineralization, which have been encountered by previous surface drilling.

In all, drilling on the HW5 and Hanging Wall A zones, below 1,692 metres below surface, yielded 26 high-grade intersections averaging 389.2 grams gold over an average thickness 2.79 metres. Previous drilling vertically above this area averaged 286 grams over an average thickness of 1.86 metres.

Drilling on depth extensions on the HGZ’s Footwall 3 and 4 zones to the east increased the continuity and confirmed the grades of these zones. A total of 39 intersections average 33.3 grams over 1.46 metres.

Meanwhile, at the Far East zone, drilling from the 732-metre and 1,525-metre levels returned several high-grade intersections, including 1.22 metres of 577.4 grams and 122.7 grams over 0.61 metre.

GoldCorp says the results suggest that the mineralization there is controlled by two parallel linear structures. One is considered to be the upward projection of the same structure that hosts the High Grade zone; the other lies to the east.

Drilling to test for depth extension to the Sulphide zone cut intersections as deep as 2,134 metres below surface, and included narrow, high-grade intervals up to 79.5 grams over 0.55 metre. Wider, lower-grade zones run up to 11.1 grams over 5.12 metre.

GoldCorp expects to table an updated reserve and resource estimate at Red Lake by mid-February. The company figures an engineering study considering options to expand the mine should wrap up by early 2003.

At last count, the High Grade zone hosted a reserve of 1.68 million tonnes grading 70.3 grams per tonne and a resource of 439,036 tonnes grading 97.4 grams. The estimates are based on gold price of US$275 per oz. and exclude results from the 2002 drill program.

Red Lake is on schedule to meet previous 2002 production forecasts of 525,000 oz. at a cash cost of US$65 per oz.