BALMERTOWN, Ontario A new $85-million shaft is to be sunk at GOLDCORP's Red Lake gold mine, and the contract has been awarded to CEMENTATION SKANSKA CANADA. Cementation was previously awarded the detailed engineering contract for the project.
Sinking is to begin by the end of June 2003. The 7,150-ft shaft will take three years to complete. The new shaft is part of the project to increase production 45% to as much as 740,000 oz/year and reduce costs.
The Red Lake mine, with its High Grade zone testing an average of 2.35 oz/ton Au, is the richest gold mine in the world. It also boasted total operating costs of only US$104/oz for the first quarter of 2003. A complete virtual tour of the Red Lake mine is available at www.goldcorp.com. Click on Operations, then Red Lake, then Virtual Tour.
Goldcorp is having a banner year so far. Its first quarter report highlighted the following: revenue increased to US$47.5 million and earnings hit US$14.4 million; the dividend has been increased by 25% and is now paid six times per year; cash reserves are US$233 million plus US$75 million in gold bullion; and the company remains debt-free.