Thursday, September 2, 2010

Goldcorp (NYSE:GG) Close to Commerical Production at Penasquito

Goldcorp Inc. (NYSE:GG) is close to completing the construction phase of its Penasquito mine in Mexico, and president and chief executive officer, Chuck Jeannes, said he anticipates, in the near future, announcing commercial production has launched.

“We’re just completing construction and, hopefully within just a matter of days, of declaring commercial production at Penasquito,” Jeannes said.

Jeannes added, the project remains on schedule, and is within the projected budget of $1.7 billion.

The Penasquito mine project is the major impetus behind the strategy by Goldcorp of increasing their production by 50 percent over above, over the next five years.

The first year of the mine should produce 180,000 ounces of gold, increasing to an average of about 500,000 ounces a year, topping off at about 800,000 ounces of gold produced by 2014.

Gold reserves at estimated at 17.8 million ounces, and silver reserves at 30 million ounces. There is also zinc and lead in the mine.

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