Nice results from Red Lake explorationGoldcorp provides summary of Red Lake exploration
Goldcorp Inc (2) (:G)
Shares Issued 189,980,188
Last Close 2/21/2005 $16.48
Monday February 21 2005 - News Release
Mr. Gilles Filion reports
POTENTIALLY 2 NEW HANGING WALL STRUCTURES; DEEPER HIGH GRADE INTERSECTIONS; SULPHIDE ZONES GROWING
Goldcorp Inc.'s exploration efforts at the Red Lake mine continue to indicate significant potential for building reserves and resources. Goldcorp's Red Lake is the richest, and one of the lowest cost to produce gold mines in the world today.
Significant highlights -- 2004:
two new potential hangingwall structures similar in nature to the High Grade zone (HGZ) have been discovered;
HGZ reaches record depth: 8,160 feet (2,490 metres). This confirms high-grade mineralization is still present 1,000 feet below the planned bottom of the new shaft;
encouraging results: Sulphide zones, Far East and New West target areas; and
expansion of the footwall zones (FW) has accelerated production plans ahead of the forecasts.
HGZ -- the profit engine of the mine
Confirming high-grade continuity
Delineation drilling in the reserve area between 37 level (5,430 feet) (1,655 metres) and 39 level (5,730 feet) (1,745 metres) confirms the continuity and high-grade nature of the hangingwall reserves. Fifteen of the 17 intercepts graded above one ounce per ton (34.3 grams per tonne (g/t)), with the best drill hole returning 10.46 ounces per ton (358 g/t) over 23.9 feet (7.28 metres). These results continue to reinforce the company's confidence level in the existing reserves. The three most exciting drill holes in this area included:
23.5 ounces per ton (805.8 g/t) over 7.6 feet (2.32 metres): (hole 38L052);
10.46 ounces per ton (358.9 g/t) over 23.9 feet (7.28 metres): (hole 39L034); and
5.23 ounces per ton (179.3 g/t) over 17 feet (5.18 metres): (hole 39L045).
Once again, drill results coming from the resource area of the hangingwall below 6,600 feet (2,010 metres) proved to be very successful in 2004 by confirming the continuity and high-grade nature of this mineralization. The three best drill results generated in this area were:
15.7 ounces per ton (538.3 g/t) over 13 feet (3.96 metres) at a depth of 6,680 feet (2,036 metres): (hole 37L581);
6.24 ounces per ton (213.9 g/t) over 13 feet (3.96 metres) at a depth of 6,810 feet (2,075 metres): (hole 37L605); and
0.96 ounce per ton (32.9 g/t) over 34 feet (10.36 metres) at a depth of 7,050 feet (2,150 metres): (hole 37L589).
How deep does this deposit go?
This is a question that is constantly being tested. Three recent drill results occurred at depths between 7,710 feet (2,350 metres) and 8,160 feet (2,490 metres) below surface, some 1,000 feet below the new shaft bottom:
1.01 ounces per ton (34.6 g/t) over 4.5 feet (1.37 metres): (hole 37L592);
0.5 ounce per ton (17.1 g/t) over three feet (0.91 metre): (hole 37L595AW); and
1.16 ounces per ton (39.8 g/t) over four feet (1.22 metres): (hole 37L595BW).
These are the deepest high-grade intercepts to date and extend the known vertical limit of the zones by at least 500 feet (150 metres). It is noteworthy that the last two intersections are located 350 feet (107 metres) below the outline used to estimate the 2004 resource. These results show the potential to add resources at depth. Exploration will continue to test for even deeper high-grade in 2005.
Emerging footwall zones; accelerating production growth
In 2004, the footwall zone area grew in size and importance. It currently extends from approximately 5,000 feet (1,524 metres) to a vertical depth of 7,170 feet (2,185 metres), which is almost the same depth as the bottom of the new shaft. Current work in this area indicates mineralization over a strike length of more than 800 feet (240 metres), with the zone still open at depth. The average grade is estimated to be about one ounce per ton and currently contains a measured, indicated and inferred resource of 1.1 million ounces of gold. This exploration success has made it possible to accelerate the production growth curve for the mine by 150,000 ounces over the next two years. Some of the most recent drill results in this area include:
4.05 ounces per ton (138.9 g/t) over four feet (1.22 metres): (hole 34L1494AW); and
1.47 ounces per ton (50.4 g/t) over six feet (1.83 metres) at a depth of 7,170 feet (2,185 metres): (hole 34L149AA).
Two new potential hangingwall structures
Exploration to the west of the HGZ continues to excite Goldcorp geologists, as two new potential hangingwall structures have been discovered. Each structure shares similar geology to the HGZ and has the potential to add significant ounces to the resource category.
Area 1: west of hangingwall zones
The company's previous exploration release (in Stockwatch June 16, 2004), reported grades over one ounce per ton in this area located 800 feet (240 metres) west of hangingwall zones. New drill results have returned higher grades. The best drill results were:
2.86 ounces per ton (98.1 g/t) over 3.4 feet (1.04 metres) at a depth of 5,580 feet (1,700 metres): (hole 34L1504);
1.29 ounces per ton (44.2 g/t) over six feet (1.83 metres) at a depth of 5,710 feet (1,740 metres): (hole 34L1498);
one ounce per ton (34.3 g/t) over 8.5 feet (2.59 metres) at a depth of 5,380 feet (1,640 metres): (hole 34L1495); and
0.9 ounce per ton (30.9 g/t) over 2.5 feet (0.76 metres) at a depth of 6,580 feet (2,005 metres): (hole 37L605).
These results align with historic gold intercepts from surface and underground drilling, and point toward a new potential gold structure in the hangingwall of the high-grade and sulphide zones.
Area 2: south of hangingwall zones
This area is the most recent discovery of the company's exploration program, with early results showing more high grade. Located 2,400 feet (730 metres) south of the hangingwall zones, recent drill results included:
0.87 ounce per ton (29.8 g/t) over 3.5 feet (1.07 metres): (hole 37L592);
0.72 ounce per ton (24.7 g/t) over six feet (1.83 metres): (hole 37L594); and
0.72 ounce per ton (24.7 g/t) over four feet (1.22 metres): (hole 37L641).
Both new structures are virtually unexplored and will be further tested in 2005.
Other high-grade intersections
Drilling in the west area of the mine returned gold value associated with the HGZ HW structure. These intercepts are located 1,700 feet (520 metres) west of the current reserve and resource limits of that zone:
6.01 ounces per ton (206.1 g/t) over two feet (0.61 metre): (hole 34L1470); and
0.54 ounce per ton (18.4 g/t) over two feet (0.61 metres): (hole 34L1063A).
Sulphide zone: gearing up for production
When the new shaft is complete in 2007, the Sulphide zone will start to be mined once again. During the year, exploration of the Sulphide zone was focused on two goals: first, upgrading the resources to increase the reserve base and second, exploring new areas for mineralization in order to increase resources. The latest results demonstrate that Goldcorp is continuing to achieve success.
Extensions of previously mined ore
About 29 drill holes were completed within the currently defined resources to confirm the continuity of the Sulphide zone between 4,400 feet (1,340 metres) and 5,700 feet (1,740 metres) below surface. Some of the best drill results in this area were as follows:
3.27 ounces per ton (112.1 g/t) over 7.3 feet (2.23 metres): (hole 34L1466);
0.9 ounce per ton (30.9 g/t) over 5.4 feet (1.65 metres): (hole 37L584); and
0.64 ounce per ton (21.9 g/t) over 19.3 feet (5.88 metres): (hole 34L1444).
Far East zone
To date, approximately 240,000 ounces of sulphide resources have been identified in the Far East zone. Continuing exploration drilling from 34 level is directed toward identifying significant extensions of sulphide mineralization. The following results confirm the continuity of the mineralized structure:
0.77 ounce per ton (26.4 g/t) over four feet (1.22 metres): (hole 34L1462); and
0.42 ounce per ton (14.4 g/t) over 4.3 feet (1.31 metres): (hole 34L1457).
Deep extension of Far East
New intersections at a depth of 7,300 feet (2,225 metres) located between section 69+00E and 72+00E are interpreted as the possible down-dip extension of the Far East zone identified in drill hole 34L1462:
0.78 ounce per ton (26.7 g/t) over four feet (1.22 metres): (hole 34L1499A); and
0.5 ounce per ton (17.1 g/t) over two feet (0.61 metre): (hole 34L1468).
These latest results continue to confirm the validity of the company's exploration model and suggest that the potential for increasing the resources at depth in the Far East zone is excellent.
Exploration in 2005
Goldcorp intends to invest $14-million into exploration at the Red Lake mine in 2005, with a forecast aimed to complete 302,000 feet of diamond drilling and 3,000 feet of underground development. The company will continue to target both high-grade and sulphide mineralization with the objective of replacing reserves and resources for the fifth consecutive year. Primary goals in 2005 will be to test the two new hangingwall structures in the west, continuity of known mineralized trends and developing a pipeline of new exploration targets from surface to below the shaft bottom.
Qualified person
This news release has been prepared under the guidance of Gilles Filion, Eng (OIQ), vice-president, exploration, who is designated as a qualified person with the ability and authority to verify the authenticity and validity of these data. All samples were analyzed by either ALS Chemex Laboratories Ltd. of Mississauga, Ont., TSL Laboratories of Saskatoon, Sask., or SGS XRAL Laboratories of Toronto, Ont.
© 2005 Canjex Publishing Ltd.