lonore could be Goldcorp’s next gem

In one of the world’s most attractive mining jurisdictions lies Goldcorp‘s (G-T, GG-N) Éléonore gold project in the northeast corner of the Opinaca reservoir in Quebec’s James Bay region. 

The deposit is in what the company reckons to be a “promising new gold district in North America.” Some 320 km northeast of the town of Matagami and 190 km east of the Cree community of Wemindji.

The miner has listed Éléonore as one of the key players in its next generation of gold growth projects, approving a full-scale development at the deposit in late February, and releasing an updated prefeasibility study.

The study outlines a 7,000-tonne-per-day operation starting in 2017, which is more than double the plant throughput stated in the initial prefeasibility study of 3,000 tonnes.

At a daily processing rate of 7,000 tonnes, the updated study estimates Éléonore would produce 600,000 oz. gold per year over a 15-year life at cash costs of below US$400 per oz.

Initial gold production is expected to begin in late 2014. The company is expected to spend about US$1.4 billion to get the project firing on all cylinders.

Éléonore has reserves of more than 3 million oz. contained gold, based on 12.5 million tonnes grading 7.56 grams gold. It has 1.4 million tonnes of 10.95 grams gold in the measured and indicated category, and another 12.2 million tonnes of 10.6 grams in the inferred.

Éléonore remains open at depth, and Goldcorp says the mine plan could be improved based on future exploration results.

To support exploration efforts, the miner is sinking a 725-metre-deep shaft at the project, which was down to 200 metres at the end of March. The shaft would be used to test the deeper portions of the deposit, and is expected to be completed by the second quarter of 2012. 

Also in the first quarter, the company signed a collaboration agreement with the Cree nation of Wemindji, the Cree grand council, and the Cree regional authority. Under the agreement, the company recognizes the rights of the Crees in the area of the Éléonore project and would provide them with employment and business opportunities. 

Goldcorp lists total project expenditures and commitments for Éléonore to be US$427 million at March 31. Of that amount, US$382 has been spent and US$45 million is committed.

Capital expenditures for the first quarter came up to US$36 million (minus capitalized interest).

For 2011, the company expects to produce between 2.65 million and 2.75 million oz. gold from all its projects, at total cash costs of around US$280-US$320 per oz. on a byproduct basis.