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Canadian company will develop gold mine project in Argentine Patagonia

Saturday, April 16th 2011 - 02:00 UTC
Full article 6 comments
Planning Minister Julio De Vido made the announcement involving 850 million USD Planning Minister Julio De Vido made the announcement involving 850 million USD

Argentina's Planning Ministry said Thursday that Canadian mining company Goldcorp Inc. (GG) will invest 850 million US dollars to put into production its Cerro Negro gold project in Santa Cruz Province.

“This announcement consolidates Argentina as a destination for long term investment as the Cerro Negro project has a useful life of 20 years,” Planning Minister Julio De Vido said in a statement.

De Vido met with GoldCorp's vice president for Central and South America, Eduardo Villacorta, in Mexico City on Thursday, according to the statement.

Vancouver-based GoldCorp said on April 5 it expects to start producing gold at Cerro Negro in mid-2013 and the mine will produce an average of 550,000 ounces a year during the first five years of production. The company said it expects to make capital expenditures of 750 million US dollars to reach first production in 2013.

Goldcorp estimates a mine life of approximately 12 years with total proven and probable gold reserves increase 100% to 4.3 million ounces.

Goldcorp operates mines in Canada, Mexico, Guatemala, the U.S. and Argentina, with a pipeline of projects four countries in the Americas.

From Vancouver Chuck Jeannes Goldcorp president and CEO said that “the positive results in the feasibility study confirm our expectations that Cerro Negro will contribute tremendous value for shareholders as Goldcorp’s next cornerstone gold mine”.

“This is an extremely robust project as now configured; however, with all of the identified veins remaining open and numerous additional veins already identified, we are excited by the potential for future expansion of gold reserves and near-term upside to the production profile. Cerro Negro will be a key driver of Goldcorp’s peer-leading low cash cost profile and 60% gold production growth over the next five years”, added CEO Jeannes.

Goldcorp operates mines in Canada, Mexico, Guatemala, the U.S. and Argentina, with a pipeline of projects four countries in the Americas.
 

Categories: Economy, Investments, Argentina.
Financial Tags: G.

Top Comments

Disclaimer & comment rules
  • GeoffWard

    With Venezuela in bed with Argentina and Brasil next door (Vale), can we expect the Canadian company Goldcorp to develop the industry in Argentina, only for the President to declare it a national asset and nationalise it without compensation.

    Apr 16th, 2011 - 09:12 pm 0
  • Pirat-Hunter

    #1 yes geo Canadian mining company pollute, they being melting the Glaciars in San Juan Argentina border with Chile and right now are polluting the waters that use to supply the province with the water needed to irrigate the whine industry, if Argentina doesn't nationalize it, many provinces will become ghst town with dangerous levels of arcenics in any body of water, making much of Argentina unproductive and in many cases toxic ground for farming.

    Apr 17th, 2011 - 12:12 pm 0
  • GeoffWard

    It's necessary to have good ministerial management of industrial H&S, human health & safety, and environmental health protocols in place to ensure that this does not happen.

    Surely Argentina has the appropriate ministries doing the necassary, otherwise your country is permanently at risk from such activities.

    Do you have these controls in place?

    Apr 17th, 2011 - 03:34 pm 0
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