Goldcorp deepens High Grade zone again

Two recent holes drilled at the Red Lake mine in northwestern Ontario have extended the producing High Grade zone another 122 metres at depth, reports Goldcorp (G-T).

Hole 34, drilled from the 37 level, returned two notable intervals from a vertical depth of 2,210 metres. One averaged 31.1 grams per tonne over 1.22 metres, and the other, 41.5 grams over 1.83 metres.

Hole 34AW, also collared on level 37, cut three particularly rich intervals about 66 metres vertically above those intersected in hole 34. The richest averaged 251.7 grams over 4.27 metres; the others, 109 grams over 4.11 metres and 33.6 grams over 6.55 metres.

In all, the company reported 26 new mineralized intervals at the so-called Hanging Wall 5 and Hanging Wall A zones, below the 37 level. The average grade for the whole lot is 389.2 grams, and the average thickness, 2.79 metres. Among the more spectacular individual results are 2,689 grams over 4.94 metres, and 807 grams over 3.41 metres.

Also, to the east, in the Footwall 3 and 4 zones, results from several new holes have increased the confidence levels in each zone’s continuity and grade. A total of 39 intersections averaged 33.3 grams over an average 1.46 metres.

Hole 34 also yielded the deepest interval yet ecountered at the mine — 2.32 metres running 58.9 grams at a vertical depth of 2,286 metres. Goldcorp says the zone may represent the hanging wall of the Hanging Wall zone itself and possibly connect with shallower intervals, such as 2.96 metres, at a depth of 73 metres, averaging 61.4 grams, cut in earlier surface drilling.

The 37 level occurs at a vertical depth of 1,692 metres below surface and is the deepest level in the mine.

Meanwhile, at the Far East zone, recent drilling from the 732- and 1,525-metre levels returned several more high-grade intervals, including 577.4 grams over 1.22 metres and 122.7 grams over 0.61 metre. The results lend additional support to the belief that mineralization there is controlled by two parallel linear structures, one being the upward projection of the structure that hosts the High Grade zone and the other, a separate but possible look-alike to the east.

More refractory mineralization also has been cut below the previously known depth of the Sulphide zone. Grades between 11.1 grams, over 5.12 metres, and 79.5 grams, over 0.55 metre, were intersected at vertical depths of 2,134 metres.

The Sulphide zone fed the mine between 1948 and 1996, when high costs and the onset of a strike forced its shutdown. The High Grade zone was discovered a year before the mine’s closure and prompted the erection of a new mine on top of the old one a few years later.

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. Reserves in the Sulphide zone stand at roughly 1.2 million tonnes grading 12.7 grams, and resources are pegged at 810,000 tonnes grading 11.7 grams.

The estimates are based on gold price of US$275 per oz. and exclude results from the 2002 drill program. An update will be released in mid-February.

Red Lake is on schedule to meet its 2002 production forecast of 525,000 oz. at a cash cost of US$65 per oz. An engineering study on a possible expansion to annual production is scheduled for completion in the coming weeks.