DYNATEC CORP. of Richmond Hill, Ont., has signed a contract extension to continue to operate GOLDCORP INC.'s Red Lake gold mine in Balmertown, Ont., for an additional three years. The Red Lake mine is one of Canada's largest and lowest-cost gold mining operations. Dynatec was first retained to conduct the underground development work at Red Lake in 1999. That was followed by a three-year contract to operate the mine, which expired on December 31, 2003. With the extension, Dynatec will continue to operate the mine until at least the end of 2006.
The company's current workforce at Red Lake totals 300 employees. Under terms of the contract, Dynatec is committed to supplying Goldcorp with 650 tons of gold ore per day from the mine, equating to 500,000 oz Au per year. The base value of the contract is approximately $35 million per year, with incentives in place for achieving predetermined levels of worker safety, ore productivity and quality control of the ore grade delivered to the mill. In 2004, Goldcorp has forecast production at the Red Lake Mine to exceed 500,000 ounces of gold for the fourth consecutive year, with cash costs averaging approximately US$86 per ounce. To learn more about Dynatec visit www.dynatec.ca.