GUATEMALA - Vancouver-based Goldcorp, through its subsidiaries, has agreed to sell its Escobal silver deposit to Tahoe Resources, also of Vancouver. Goldcorp will receive total consideration of US$505 million. The share portion will give Goldcorp a 40% interest in Tahoe following Tahoe's proposed initial public offering. The balance, at least US$230 million, will be paid in cash depending on the results of the offering.
The Escobal silver discovery is located in southern Guatemala, approximately 120 km east of Goldcorp's Marlin mine, and approximately 70 km west of its Cerro Blanco development project. Following an initial discovery of high-grade silver in mid-2007, 47,300 meters of diamond drilling outlined a high-grade silver deposit consisting of an indicated resource of 130.1 million oz, with a further 187.5 million oz of inferred resource as of Dec. 31, 2009. Average grades of 580 g/t Ag for the indicated resource and 443 g/t for the inferred resource compare favourably with major silver deposits globally. In addition to silver, Escobal contains minor gold as well as moderate grades of lead and zinc. (Assay results are posted at www.Goldcorp.com.)
Tahoe anticipates its IPO will close on or about June 8, 2010. For more information contact Tahoe business director Ira M. Gostin at [email protected] or 775-825-8574 ext. 225 or 775-771-1461 (mobile).