TORONTO and VANCOUVER – New Gold has agreed to sell its 4% gold stream from the El Morro deposit to Goldcorp for $65 million in cash. The El Morro deposit is part of NuevaUnion project, a 50:50 joint venture of Goldcorp and Teck Resources that combines the Relincho and El Morro deposits in Chile.
The project will be one of the largest copper-gold-molybdenum producers in Latin America. The project is in the prefeasibility stage, but carries a hefty price tag of $3.5 billion. Both mines will probably feed a single mill at the Relincho site. Annual production could be 190,000 tonnes of copper and 315,000 oz. of gold for the first 10 years of mining.
More information about NuevaUnion is available in Spanish at www.NuevaUnion.cl.