Goldcorp Commences Commercial Production at Cerro Negro Mine in Argentina

Goldcorp Inc. has announced production at its Cerro Negro Mine in Argentina is officially underway.

"We are very pleased to have first production on schedule and within our current capital cost guidance range from this world class mine," said Chuck Jeannes, Goldcorp President and Chief Executive Officer.

He added, “This milestone signals not only the start of Cerro Negro's mine life, but also a period of sustained growth for Goldcorp.”

On July 25, the world’s largest gold miner by market capitalization poured its first gold bar from the mine, containing 317 ounces of gold and weighing 100 kilograms.

With an estimated lifecycle of nine years, the Cerro Negro mine in Argentina is expected to produce over half a million ounces per year for the first five years, and 250,000 ounces per year afterwards.

Goldcorp has the potential of extending the mine’s life and increasing the number of years the site produces high grade ore.

Production guidance for the Cerro Negro mine in 2014 is expected between 130,000 and 180,000 ounces of gold.

“The team at Cerro Negro has done an outstanding job amid occasionally challenging circumstances and I congratulate them for this outstanding effort. We look forward to strong contributions from Cerro Negro to Goldcorp's overall performance for many years to come," said Jeannes.

“Very importantly, this achievement was reached safely, with Cerro Negro in the midst of a run of over 4.1 million man hours without a lost time accident.”

Capital costs for the Cerro Negro mine in Argentina’s Santa Cruz providence are expected to be between $1.6 and $1.7 billion.