Goldcorp bounces back in third quarter
Goldcorp Inc. reported record quarterly revenue of $1.5 billion, generating adjusted net earnings of $441 million for the third quarter of 2012.
Gold sales in the third quarter totalled 617,800 ounces and the average realized gold price was $1,685 per ounce.
At its flagship Red Lake operation in Ontario, gold production for the third quarter was 121,200 ounces at a total cash cost of $535 per ounce.
The increase in production was driven by the completion of de-stressing work on the 45 level in September which, combined with the completion of the 41 level in the second quarter, increased the available number of mine headings in the High Grade Zone.
The completion of the 2012 de-stress program provides increased production flexibility for the remainder of the year, leaving the operation on track for achieving guidance of between 460,000 and 510,000 ounces.
During the third quarter, drilling continued from the 4199 exploration ramp.
New results continue to confirm the extension of the High Grade Zone at depth, as well as the existence of additional high-grade intercepts down to the 57 level.
A new zone has been discovered above the 52 level and west of the High Grade Zone.
Additional drilling continues to test and extend the zone between the 47 and 52 levels, extending the structure up- ip and along strike.
An exploration drift has been collared on the 47 level to provide closer drill access to develop this new structure.
At its Porcupine operation in Timmins, gold production in the third quarter decreased to 53,100 ounces at a total cash cost of $929 per ounce, impacted by mine sequencing and lower grades in the VAZ Zone.
The Hoyle Pond Deep project continued to advance to access both depth extensions of current orebodies and newly discovered zones and to enhance operational flexibility and efficiencies throughout the Hoyle Pond operation.
At the Hollinger open pit project, development has focused on construction of the haul road between the Hollinger site and the Dome mill. Pending receipt of final permits, Hollinger is expected to begin production in the fourth quarter of 2012, providing supplementary gold production and the remediation of historical subsidence areas.
Underground exploration at Hoyle Pond in the third quarter of 2012 focused on the growth and delineation of the TVZ Bulk Zone. Surface drilling continued to follow up on mineralization intersected north of the Dome Mine, as well as nearer to Hoyle Pond with tighter spaced drilling around higher-grade intersections in the sediments.
Gold production at Musselwhite in northwestern Ontario totalled 65,500 ounces at a total cash cost of $699 per ounce, driven by a 13per cent increase in mill throughput.
Exploration in the third quarter continued to focus on the northern extension of the Lynx Zone from surface and underground, drilling of the West Limb and the underground extension of the PQ Deeps and T-Antiform.
Surface drilling returned encouraging results on the Lynx Zone both on the North Shore and from barge drilling. Additional mineralized shear zones were intersected on the West Limb.
Underground drilling in the PQ Deeps continues to return positive results north of the 2011 resource boundary.
At the Cochenour project in Ontario, widening of the historical Cochenour shaft continued to advance, with 80 metres completed to a total depth of 423 metres. The Cochenour-Red Lake haulage drift that will transport ore from Cochenour to existing Red Lake processing facilities advanced to 60 per cent of completion.
Exploration drilling from the haulage drift is continuing with two drills in operation. Diamond drilling with two drills at surface is underway to define the top portion of the Bruce Channel deposit and additional resources at Cochenour.