lonore glitters for Goldcorp

Goldcorp (G-T, GG-N) considers the Éléonore gold project in Quebec’s James Bay region as a cornerstone of its next generation of gold growth projects. 

Situated in one of the world’s most desirable mining jurisdictions in the northeast corner of Opinaca reservoir, some 320 km northeast of the town of Matagami and 190 km east of the Cree community of Wemindji, the Éléonore project’s key Roberto deposit is in a promising but relatively unexplored greenstone/meta-sedimentary belt. 

Earlier this year, the miner approved full-scale development of the project and released an updated prefeasibility study. 

The study envisions Éléonore as a 7,000-tonne-per-day operation starting up in 2017, which is more than double the 3,000-tonne daily throughput rate used in the initial prefeasibility study.

At the 7,000-tonne rate, Goldcorp estimates Éléonore would produce 600,000 oz. gold per year over a 15-year life at average cash costs below US$400 per oz. gold

Initial gold production is expected to begin in late 2014. The company plans to spend about US$1.4 billion to get the project to full throttle.

Material in the “reserve” category at Éléonore equals more than 3 million oz. contained gold, based on 12.5 million tonnes grading 7.56 grams gold. In addition there are 1.4 million tonnes of 10.95 grams gold for 500,000 oz. in the measured and indicated category, and another 12.2 million tonnes of 10.6 grams for 4.2 million oz. in the inferred.

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

During the first quarter, Goldcorp completed more than 12,000 metres of diamond drilling at the deposit to better define the mineralized zones lying 400 metres to 650 metres below surface, and to upgrade inferred resources into the measured and indicated category.

The miner is now sinking a 725-metre shaft, which had reached 200 metres depth at the end of March. The shaft is expected to be finished by the second quarter of 2012, and will be used to test the deposit’s deeper portions.

First, though, the company expects to get its environmental and social impact assessment permits for the project in the third quarter of this year. 

It recently signed a collaboration agreement with the Cree nation of Wemindji, the Cree grand council, and the Cree regional authority. Under the agreement, the company would provide the Cree near the project with employment and business opportunities, among other things.

Goldcorp lists total project expenditures and commitments for Éléonore to be US$427 million at March 31. Of that amount, US$382 million has been spent and US$45 million is committed. Capital expenditures for the first quarter came to US$36 million (minus capitalized interest).

For 2011, the company aims to pour 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., after byproduct credits.

Apart from its Canadian assets, Goldcorp owns gold deposits, advanced projects and mines in Argentina, the Dominican Republic, Mexico, Chile and Guatemala.