Goldcorp reports progress on project pipeline

PRESS RELEASE

(This is an abridged version of the press release. For the full version click here)

VANCOUVER , Sept. 25, 2017 /CNW/ - GOLDCORP INC . (TSX: G, NYSE: GG) ("Goldcorp" or the "Company") is pleased to provide an update of its extensive project pipeline that forms the basis of its five-year 20/20/20 plan that would see the Company increase gold production and gold reserves by 20%, while decreasing all-in sustaining costs per ounce by 20%.

"The significant progress we have made on our development and exploration projects has given us increased confidence in our 20/20/20 objectives and identified new opportunities for outperformance at Cerro Negro, Peñasquito and Coffee," said David Garofalo , President and Chief Executive Officer. "We are also pleased with the substantial progress of our longer-term projects Century, NuevaUnión and Cerro Casale/Caspiche that are poised to provide meaningful long-term gold production and value growth."

Highlights:

• Exploration Discovery at Cerro Negro as New Expansion Study Commenced. High-grade Silica Cap discovery includes drill intercept of 19.66 m at 28.59 g/t gold; 115.75 g/t silver. The Company has commenced a concept study of a low capital cost, 10% to 20% expansion to the nameplate capacity of the 4,000 tonnes per day plant.
• Pyrite Leach Project at Peñasquito Ahead of Schedule and Under Budget. The project has achieved 40% completion on its $420 million investment, which is expected to be commissioned three months ahead of schedule by the fourth quarter of 2018.
• Continued Exploration Success at Coffee Demonstrates Large Scale Geological Potential and Possible Production Profile Increases. Step out drilling expands oxide resource into new AmeriKona zone. Recent results include 22.9 m at 1.93 g/t gold from a depth of 41.2 m. Drilling into new sulphide areas returns an intercept of 30.5 m at 7.24 g/t gold from a depth of 38.1 m.
• Century Base Case Prefeasibility Nears Completion with Initial Gold Reserve Expected; Borden on track for commercial production in 2019. The base case Century prefeasibility study, to be completed in October 2017 , has been based on over 4.5 million ounces of current Indicated resources, mainly from the Dome Century pit. Together with the Borden Project , currently under construction, significant increases in gold production from the Porcupine District are expected.
• NuevaUnión Joint Venture (50/50 Teck) Advancing Towards Feasibility Stage as Prefeasibility Study Nears Completion. The prefeasibility study is expected to be completed early in the first quarter of 2018, at which point Goldcorp expects to enter the feasibility and permitting phase.
• Cerro Casale/Caspiche Joint Venture (50/50 Barrick) Establishes Project Team and Commences Exploration Program. Project team commences prefeasibility study on consolidation of large-scale Caspiche and Cerro Casale deposits into one operating district. An aggressive district-scale exploration program has been commenced on the 20,000 hectare property position.

Cerro Negro Operational Improvements and Exploration Success Drive Potential Expansion

The Cerro Negro operation (100% owned, Argentina ) continues to strengthen operating performance while demonstrating strong exploration potential. Some recent highlights include:

• Mine development has achieved record rates of 25 meters per day and daily production has reached the 3,000 tonnes per day level.
• Cerro Negro delivered $50 million in annual sustainable cost savings in 2016 through its optimization work and is expected to add another $25 million in 2017.
• The exploration program was expanded with successful results, as evidenced by the new Silica Cap discovery.
• A generative exploration program was implemented and is expected to add multiple targets throughout the summer field season on the 269 km² land package.

The Cerro Negro complex has been steadily increasing production from the Eureka and Marianas Central mines to achieve a throughput rate of 3,000 tonnes per day. Production is expected to increase to nameplate capacity of 4,000 tonnes per day when the Marianas Norte and Emelia mines are brought on line.

Accelerated development of an additional mining front is being contemplated that would allow Cerro Negro to potentially increase plant throughput by 10% to 20% beyond nameplate capacity of 4,000 tonnes per day. The Cerro Negro processing plant was designed for future expansion at a relatively low cost due to preconstructed infrastructure, including foundations for additional leaching tanks, that could accommodate higher throughput at low incremental capital investment. An expansion concept study is expected to be completed by the end of 2018.

Exploration programs and target definition in the near and medium term will be key to support expansion opportunties. Current reserves at Cerro Negro are calculated on 9 veins. By comparison, Anglogold Ashanti's Cerro Vanguardia mine, located in the same province with similar host rocks, style and controls on mineralization, has produced over 4 million ounces of gold and had reserves calculated on 100 veins with an accumulated strike length of 190 km over its life of mine. Exploration is still at an early stage in this district where a portfolio of 32 vein targets has been identified. Recent assay results from hole SCDD-17029 at the Silica Cap target returned a true thickness intersection of 30.69 m at 19.10 g/t gold; 76.40 g/t silver (Including I: 19.66 m at 28.59 g/t gold; 115.75 g/t silver and Including II: 4.5 m at 54.15 g/t gold; 125.43 g/t silver) attesting to the prospectivity of the district and supporting the potential for higher production rates beyond the current design capacity of 4,000 tonnes per day. As well as Silica Cap, drilling has commenced on the new Eureka SE target, a 600 meter exposed quartz vein complex at surface with total target length of 4 km. (see appendix 1 for table of drill intercepts)

Peñasquito Expansion Ahead of Schedule and Under Budget

At Peñasquito (100% owned, Mexico ), the Pyrite Leach Project ("PLP") is 40% complete and expected to commence commissioning in the fourth quarter of 2018, three months ahead of schedule. PLP is expected to recover approximately 40% of the gold and 48% of the silver currently reporting to the tailings, and is expected to add production of approximately 1 million ounces of gold and 44 million ounces of silver over the current life of the mine.

In addition, Goldcorp expects to complete the prefeasibility study on Eco-Tails by the first quarter of 2018. The Eco-Tails project has the potential to save in excess of 125 million m³ of water and reduce sustaining capital requirements of the tailings storage facility and additional wellfields during the life of the mine, representing estimated savings of $10 to $15 million annually. The financial benefits of this project are not only significant for Peñasquito but as the technology is developed further, consideration of its application to other large projects, such as the Cerro Casale/Caspiche Joint Venture, could lead to major financial, social and environmental benefits.