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A positive feasibility study has been completed on the High Grade Zone.

A positive feasibility study has been completed on the High Grade Zone at Goldcorp's Red Lake mine in Ontario's Red Lake District. Based on a gold price of $300/oz and a recovery rate of 83%, the study suggests a payback period of 17 mo with an internal rate of return of 49%. A mining rate of 600 st/d will yield an average production of 240K-oz/yr Au. Another 35K oz/yr can be recovered by installation of a refractory treatment process. The projected cash production cost over a 6.5-yr mine life is $88/oz, and the total operating cost is projected at $137/oz.

Capex for the High Grade Zone project is estimated at $56.2M; $23.8M for underground development, $15.5M for process plant, $3.4M for surface facilities, $8.2M for overhead and construction management, and $5.3M as a contingency.

The underground operation will employ cut-and-fill mining for close grade control and minimum dilution. Other mining methods will be investigated during mine development. The average mining width, including a 22% dilution at zero grade, is planned at 11.2 ft. Internal ore and waste passes will deliver broken rock to a new rail-haulage system on the mine's 37 level.

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Publication:E&MJ - Engineering & Mining Journal
Article Type:Brief Article
Geographic Code:1CANA
Date:Mar 1, 2000
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