Goldcorp Inc.-2004 Year End Reserves Up High Grade Zone Reserves: 4.4 Million Ounces At A Grade Of 2.23 Ounces Per Ton.TORONTO -- (All dollar amounts in US$ unless otherwise stated) - GOLDCORP INC inc - /ink/ increment, i.e. increase by one. Especially used by assembly programmers, as many assembly languages have an "inc" mnemonic. Antonym: dec. . (NYSE NYSE See: New York Stock Exchange :GG)(TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :G) announced today that reserve and resource estimations for the year-ended December 31, 2004 continued to grow for the fourth consecutive year! The power of the Red Lake Mine was demonstrated in January 2005 when during the month production was 54,866 ounces of gold, one of the highest monthly production results from the mine to date. The reserve and resource estimations were generated using a gold price of $375 per ounce and were independently audited by Watts, Griffis and McQuat, an internationally recognized geological consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a , based in Toronto, Ontario. SIGNIFICANT HIGHLIGHTS - 2004 GOLDCORP INC. - Goldcorp's proven, probable reserves and measured, indicated resources up to 6.8 million ounces from 6.4 million ounces in 2003; RED LAKE MINE - High Grade Zone reserves: 4.4 million ounces at a grade of 2.23 ounces per ton (opt); in line with 2003 results - Gold content per vertical foot continues to increase at depth from 1900 ounces per vertical ft to 2100 RESERVES & RESOURCES - THE GROWTH STORY CONTINUES GOLDCORP Goldcorp's total proven, probable reserves and measured, indicated resources grew to an estimated 6.8 million ounces of gold up from 6.4 million at year-end, 2003. The Red Lake Mine accounted for 6.6 million ounces or 97% of this total. Including inferred resources, reserves and resources were estimated at 7.8 million ounces. RED LAKE MINE More than 554,000 ounces of gold were extracted from the Red Lake Mine, and net of this production, total reserves and resources increased by 139,000 ounces. This means that 693,000 ounces of gold were discovered during 2004. Production from the High Grade Zone (HGZ) began at Red Lake Mine in mid 2000. Goldcorp has successfully replaced reserves and resources, net of production, in each of the past four years. By year-end, 2004, the total High Grade Zone reserves, resources and past production has grown to 8.4 million ounces. During the past 4.5 years, 2.3 million ounces were mined, 2.2 million ounces have been discovered, net of production, therefore 6.1 millions ounces are remaining. Total reserves and resources, high grade and sulphide sulphide: see sulfide. zones, at the Red Lake Mine grew to 7.5 million ounces (7.0 millions tons) with an average grade of 1.08 ounces per ton (37.0 grams per tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. (gpt)) from 7.4 million ounces (6.8 million tons) at a grade of 1.09 opt (37.4 gpt). HIGH GRADE ZONE (HGZ) Reserves were estimated at 4.4 million ounces (2.0 million tons) at a grade of 2.23 opt (76.4 gpt) compared to a grade of 2.22 opt. in 2003. Total ounces of the HGZ reserves remained consistent with 2003 results. Production of 2004 was 554,000 ounces (247,000 tons) at a grade of 2.25 opt (77.1 gpt) compared to 2.20 opt (75.4 gpt) in 2003. Resources were 1.7 million ounces (1.26 million tons) at a grade of 1.32 opt (45.3 gpt). Total 2004 HGZ reserves and resources were estimated at 6.1 million ounces. OBSERVATIONS ON THE HIGH GRADE ZONE GOLD CONTENT IN HGZ INCREASING AT DEPTH In the first 1,200 vertical ft (366 m) of the HGZ, to a depth of 5,500 ft (1,676 m), where the most intensive exploration efforts has occurred, the average gold content has increased to 3,600 ounces per vertical foot from 3,500 in 2003. The area below this is less explored and, so far, has a lower gold content. In 2004, it increased from 1,900 to 2,100 ounces per vertical foot in 2004. (In addition, the vertical extent of this area lengthened length·en tr. & intr.v. length·ened, length·en·ing, length·ens To make or become longer. length  en·er n. by 100 ft to a depth of 7,800 ft (2,377
m) in 2004. This is exciting as we are increasing both the gold content
per vertical foot and the vertical extent of the mineralization MineralizationThe process by which the body uses minerals to build bone structure. Mentioned in: Rickets mineralization, n the bioprecipitation of an inorganic substance. .) GRADE VARIANCE The HGZ consists of multiple zones of varying grade. The grade of reserves and resources will fluctuate on a yearly basis depending on which particular zones contribute the most new mineralization. The grade of the reserves remains consistent for 2004 compared to 2003. The grade of the resources in 2004 is lower then 2003 as a result of an increased contribution of new mineralization from the Footwall foot·wall n. Geology 1. The mass of rock underlying a mineral deposit in a mine. 2. The underlying block of a fault having an inclined fault plane. (FW) and new Hanging Wall zones The grade of the FW and new Hanging Wall mineralization is approximately 1.00 opt (34.3 gpt). IMPACT OF THE FOOTWALL ZONE - PRODUCTION INCREASING Growth in the size and extent of the Footwall Zone (FW), coupled with an average grade of 1.0 opt has accelerated the production growth curve for the mine! Goldcorp plans to mine sections of the FW Zone, located near existing mining areas between 30 and 37 levels. This is the most efficient time in the mine life to exploit this portion of the HGZ sine all the development, ventilation ventilation, process of supplying fresh air to an enclosed space and removing from it air contaminated by odors, gases, or smoke. Proper ventilation requires also that there be a movement or circulation of the air within the space and that the temperature and and other mining infrastructure is already in place. During the next two years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Red Lake Mine is forecasted to increase production by an additional 150,000 ounces of gold over the original expansion plan forecast. NEW SHAFT WILL ACCELERATE EXPLORATION The highest grade mineralization is located in the Hanging Wall zones (HW5-HWA). These zones have been identified to the greatest depth. The completion of the new shaft will drastically dras·tic adj. 1. Severe or radical in nature; extreme: the drastic measure of amputating the entire leg; drastic social change brought about by the French Revolution. 2. improve underground access and necessary services for exploration and this is expected to accelerate the rate of discovery. SULPHIDE ZONES With the rising gold price this mineralization has the potential to make an important contribution to production from the new shaft. Reserves remained consistent at 554,000 ounces (1.43 million tons) at a grade of 0.39 opt (13.4 gpt). Resources increased to 878,000 (2.32 million tons) at a grade of 0.38 opt (13.0 gpt). This represents increases of 19% in ounces and 9% in tons relative to the year ended December 31, 2003. WHARF WHARF. A space of ground artificially prepared for the reception of merchandise from a ship or vessel, so as to promote the convenient loading and discharge of such vessel. MINE The Mine is scheduled to close early 2007. Reserves at the Wharf Mine declined as anticipated to 229,000 ounces (6.65 million tons) at a grade of 0.033 opt (1.1 gpt). THE RED LAKE MINE JANUARY PRODUCTION 2005 In January this year, the Red Lake Mine produced 54,866 ounces of gold, which is one of the highest monthly productions from the mine to date. The gold was produced from ore with an average grade of 3.11 opt (106.6 gpt) which yielded a mill recovery of 97.2%. 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 ft of diamond drilling Diamond Drilling is a highly specialized industry used for mineral exploration around the world. Most commonly using wireline and core bits with diamond encrusted matrix. To drill holes to max depths of twelve thousand feet, for the recovery of core used in verifying mineral and 3,000 ft of underground development. We will continue to target both high grade and sulphide mineralization with the objective of increasing, significantly, reserves and resources. Primary goals in 2005 will be to test the two new Hanging Wall structures in the west, continuity of known mineralized min·er·al·ize v. min·er·al·ized, min·er·al·iz·ing, min·er·al·iz·es v.tr. 1. To convert to a mineral substance; petrify. 2. To transform a metal into a mineral by oxidation. 3. 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 OIQ Ordre des Ingénieurs du Québec (Quebec Engineer Association) OIQ Organizational Integrated Quality OIQ Output Image Quality ), Vice President, Exploration, who is designated as a Qualified Person with the ability and authority to verify the authenticity The correct attribution of origin such as the authorship of an e-mail message or the correct description of information such as a data field that is properly named. Authenticity is one of the six fundamental components of information security (see Parkerian Hexad). and validity of this data. The estimate has been audited by Watts, Griffis and McQuat, an internationally recognized geological consulting firm, based in Toronto, Canada. All samples were analyzed an·a·lyze tr.v. an·a·lyzed, an·a·lyz·ing, an·a·lyz·es 1. To examine methodically by separating into parts and studying their interrelations. 2. Chemistry To make a chemical analysis of. 3. by either ALS Als (äls), Ger. Alsen, island, 121 sq mi (313 sq km), Sønderjylland co., S Denmark, in the Lille Bælt, separated from the mainland by the narrow Alensund. Chemex Laboratories Ltd. of Mississauga, Ontario For the First Nation, see . Mississauga (pronounced: [ˌmɪsɪˈsɑgə] listen , TSL TSL Texas State Library TSL Transport Layer Security TSL Techsideline.com (website) TSL Teen Second Life (website) TSL The Svedberg Laboratory (Uppsala, Sweden) Laboratories of Saskatoon Saskatoon (săskət  n`), city (1991 pop. 186,058), S central Sask., Canada, on the South Saskatchewan River. , Saskatchewan, or SGS SGS Société Générale de SurveillanceSGS Symantec Gateway Security (appliance) SGS School of Graduate Studies SGS Subgrid Scale SGS Singapore Government Securities SGS Shell Global Solutions XRAL Laboratories of Toronto, Ontario. New Goldcorp is now the world's lowest cost, million ounce producer. The acquisition of Wheaton River Minerals Ltd. has increased gold production, gold reserves and resources and given us one of the fastest growth curves in the industry. It has strengthened our already solid balance sheet and lowered production costs per ounce even further. The Company is in excellent financial condition: has NO DEBT, a LARGE TREASURY, positive Cash Flow and Earnings and pays a DIVIDEND twelve times a year! GOLDCORP is completely UNHEDGED. Goldcorp's shares are listed on the New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and Toronto Stock Exchanges Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. under the trading symbols Trading symbol See: Ticker symbol of GG and G, respectively and its options trade on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. (AMEX AMEX See: American Stock Exchange ), the Chicago Board of Options Exchange (CBOE CBOE See: Chicago Board Options Exchange CBOE See Chicago Board Options Exchange (CBOE). ) and the Pacific Stock Exchange (PCX (1) A bitmapped graphics file format that handles monochrome, 2-bit, 4-bit, 8-bit and 24-bit color and uses RLE to achieve compression ratios of approximately 1.1:1 to 1.5:1. Images with large blocks of solid colors compress best under the RLE method. See PC Paintbrush. ) in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and on the Montreal Exchange Montreal Exchange A Canadian derivatives exchange that facilitates the trading of stock options, interest rate futures and options, as well as index options and futures. Located in Montreal, Quebec, it is the country's main financial derivative market, while the Winnipeg (MX) in Canada. FORWARD-LOOKING STATEMENTS forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release includes certain "Forward-Looking Statements" within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of Goldcorp Inc., are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Goldcorp expectations are disclosed under the heading "Risk Factors" and elsewhere in Goldcorp documents filed from time to time with the Toronto Stock Exchange, The United States Securities and Exchange Commission and other regulatory authorities Noun 1. regulatory authority - a governmental agency that regulates businesses in the public interest regulatory agency administrative body, administrative unit - a unit with administrative responsibilities .
TABLE I (Metric Measurement)
Goldcorp Inc.
Gold Reserves
(Calculated using a gold price of US$375 per ounce)
December 31, 2004 December 31, 2003
----------------- -----------------
Grade Grade
Tonnes (grams Contained Tonnes (grams Contained
of ore per kilos of ore per kilos
(000's) tonne) of gold ( 000's) tonne) of gold
---------------------------------------------------------------------
---------------------------------------------------------------------
Red Lake Mine
High Grade Ore
Proven 815 72.4 59,003 738 78.8 58,226
Probable 994 79.6 79,189 1,060 74.3 78,754
------------- ----- ----- ------ ----- ----- ------
Sub-total 1,809 76.4 138,193 1,799 76.1 136,980
Sulphide Ore
Proven 204 13.3 2,706 242 12.3 2,986
Probable 1,089 13.3 14,525 1,204 11.3 13,654
------------- ----- ----- ------ ----- ----- ------
Sub-total 1,293 13.3 17,231 1,446 11.5 16,640
----- ----- ------ ----- ----- ------
Total 3,102 50.1 155,424 3,245 47.3 153,620
Wharf Mine
Proven 5,685 1.2 6,874 8,200 1.2 9,549
Probable 347 0.7 249 699 0.7 467
----- ----- ------ ----- ----- ------
Total 6,032 1.2 7,123 8,899 1.1 10,015
Total Goldcorp Inc.
Proven 68,583 70,760
Probable 93,964 92,875
------- -------
Total 162,547 163,635
---------------------------------------------------------------------
---------------------------------------------------------------------
Gold Resources
Red Lake Mine
High Grade Ore
Measured,
Indicated 565 49.2 27,807 270 56.4 15,241
Sulphide Ore
Measured,
Indicated 1,745 12.2 21,275 1,780 11.3 20,093
----- ----- ------ ----- ----- ------
Total Measured
and Indicated 2,311 21.2 49,081 2,050 17.2 35,334
High Grade Ore
Inferred 579 41.3 23,919 697 54.9 38,257
Sulphide Ore
Inferred 362 16.7 6,034 156 18.7 2,924
----- ----- ------ ----- ----- ------
Total Inferred
Resource 941 31.8 29,953 853 48.3 41,181
Note: Reserves depletion due to mining in year 2004 is 17,812 kilos
of gold at Red Lake Mine and 3,344 kilos at Wharf Mine.
TABLE I (Imperial Measurement)
Goldcorp Inc.
Gold Reserves
(Calculated using a gold price of US$375 per ounce)
December 31, 2004 December 31, 2003
----------------- -----------------
Tons Grade Contained Tons Grade Contained
of ore (ounces ounces of ore (ounces ounces
(000's) per ton) of gold (000's) per ton) of gold
(000's) (000's)
---------------------------------------------------------------------
---------------------------------------------------------------------
Red Lake Mine
High Grade Ore
Proven 898 2.11 1,897 814 2.30 1,872
Probable 1,096 2.32 2,546 1,169 2.17 2,532
------------- ----- ----- ----- ----- ----- -----
Sub-total 1,994 2.23 4,443 1,983 2.22 4,404
Sulphide Ore
Proven 225 0.39 87 267 0.36 96
Probable 1,200 0.39 467 1,327 0.33 439
------------- ----- ----- ----- ----- ----- -----
Sub-total 1,425 0.39 554 1,594 0.34 535
Total 3,419 1.46 4,997 3,577 1.38 4,939
Wharf Mine
Proven 6,267 0.034 221 9,039 0.034 307
Probable 382 0.02 8 771 0.020 15
----- ----- ----- ----- ----- -----
Total 6,649 0.033 229 9,801 0.033 322
Total Goldcorp
Inc.
Proven 2,205 2,275
Probable 3,021 2,986
----- -----
Total 5,226 5,261
--------------------------------------------------------------------
--------------------------------------------------------------------
Gold Resources
Red Lake Mine
High Grade Ore
Measured,
Indicated 623 1.43 894 298 1.64 490
Sulphide Ore
Measured,
Indicated 1,924 0.36 684 1,962 0.33 646
----- ----- ----- ----- ----- -----
Total Measured
and Indicated 2,547 0.62 1,578 2,260 0.50 1,136
High Grade Ore
Inferred 638 1.21 769 768 1.60 1,230
Sulphide Ore
Inferred 399 0.49 194 172 0.55 94
----- ----- ----- ----- ----- -----
Total Inferred
Resource 1,037 0.93 963 940 1.41 1,324
Note: Reserves depletion due to mining in year 2004 is 554,000 ounces
of gold at Red Lake Mine and 104,000 ounces at Wharf Mine.
Corporate Office
145 King Street West
Suite 2700
Toronto, Ontario
M5H 1J8
Year End Reserves-Resource Presentation graphs are available on CCNMatthews website at: http://www2.ccnmatthews.com/database/fax/2000/gold0221.pdf Goldcorp Inc. (TSX:G) (NYSE:GG) |
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