Goldcorp restarts Red Lake mine

After a 4-year production hiatus, the Red Lake mine in northwestern Ontario is once again producing gold.

In early August, Goldcorp (G-T) poured 1,090 oz. from the High Grade zone. Another 63,000 oz. are expected to be poured by year-end.

To date, 28,000 tons of development ore grading 1.86 oz. per ton have been stockpiled on surface. The grade is based on 2,300 samples and is higher than that predicted in the feasibility study.

At full production, which is expected to be achieved in the fourth quarter, the mine is expected to crank out 240,000 oz. gold annually at a cash cost of US$88 per oz., or a total after-tax cost of US$213 per oz.

Reserves in the High Grade zone are pegged at 1.4 million tons grading 1.37 oz., sufficient for 6.5 years of production. The estimate was carried out by Watts Griffis & McOuat and is based on a gold price of US$300 per oz., 22% external dilution and the cutting of higher grades to 10, 5 or 2 oz.

In addition to the High Grade zone, Red Lake contains 1.4 million tons of refractory sulphide material grading 0.36 oz. Such material kept the mine running continuously for 48 years, prior to the onset of a miners’ strike in 1996. The strike was resolved only recently.