NuevaUnión on track for 2023 start

Ore production at the NuevaUnión project in northern Chile is on track for a possible 2023 start, Goldcorp COO Todd White said.

The copper-gold-molybdenum asset, a 50:50 JV with Teck Resources, combines the Relincho and La Fortuna (formerly El Morro) deposits in Atacama region.

The project is expected to produce 206,000t/y copper, 5,000t/y molybdenum and 395,000oz/y gold over a 36-year mine life, according to details of a PFS released by Teck.

The JV partners plan to submit an environmental permit application in H2, with a feasibility study expected around 12 months later and a construction decision in 2020, according to Goldcorp's Q1 earnings presentation.

"Based on the current timeline we could expect first ore in 1H23," White told a conference call.

OPTIMIZATIONS

Goldcorp and Teck are evaluating opportunities to enhance the project's economics ahead of the launch of the feasibility study.

One of the main areas of focus is the capex requirement, White said. Initial capex was estimated at US$3.4-3.5bn in the PFS, followed by phase 2 capex of US$2.6-2.7bn and US$1.0bn for a phase 3 expansion.

Other possible improvements include bringing 200Mt of inferred material into the mine plan and boosting recoveries, White added.

RESULTS

Goldcorp's Q1 net earnings slumped to US$67mn from US$170mn in the same period last year, partly reflecting US$87mn in non-recurring gains in the 2017 period, CEO David Garofalo told the call.

Gold output fell to 590,000oz from 655,000oz, with sales of 585,000oz, down from 646,000oz. All-in sustaining costs (AISCs) rose US$10 to US$810/oz.

LATAM MINES

The Vancouver-based miner produced 310,000oz of gold at its trio of Latin American mines, a decline from 327,000oz in the same period last year.

The biggest drop was at Peñasquito in Mexico to 98,000oz from 137,000oz, due to lower grades and ore processed, partly offset by higher recoveries.

The mine also produced 5.17Moz silver, up from 4.84Moz, 27Mlb (12,247t) lead, down from 32.4Mlb, and 88.7Mlb zinc, up from 80.7Mlb. AISCs dropped to US$132/oz gold from US$391/oz, with higher byproduct credits partly offset by lower gold output.

Cerro Negro in Argentina produced 118,000oz gold and 1.07Moz silver, up from 95,000oz and 0.71Moz, respectively, on higher grades and throughput, with AISCs down US$51 to US$600/oz.

At Pueblo Viejo in the Dominican Republic, a 40:60 JV with Barrick Gold, attributable gold production was 94,000oz, down 1,000oz, with AISCs at US$591/oz, up from US$541/oz.

PROJECTS

At Peñasquito, the US$420mn pyrites leach project is ahead of schedule, at 86% completion at end-Q1.

At Norte Abierto in Chile, a 50:50 JV with Barrick combining the Cerro Casale and Caspiche deposits, key aims for 2018 include stakeholder engagement, an update of geological models, exploration and engineering studies.