MINERAL PROCESSING: Second Penasquito sulphide line complete ahead of schedule

MEXICO - Vancouver-based Goldcorp says the second sulphide processing line at its Penasquito project in Zacatecas is mechanically complete and commissioning has begun. Commercial production is expected in Q3 2010.

Each of the two lines treating sulphide ore have a nameplate capacity of 50,000 t/d. Construction of a 30,000 t/d high-pressure grinding roll circuit is to be completed in the fourth quarter, bringing total capacity up to 130,000 t/d in early 2011.

The Penasquito project will ramp up to 500,000 oz of gold annually and has a projected 22-year mine life. The mill produced the first lead and zinc concentrates in October 2009.

Millable proven and probable reserves are 1.145 billion tonnes averaging 0.62 g/t Au, 33.1 g/t Ag, 0.75% Zn and 0.35% Pb. Measured and indicated resources were 471.5 million tonnes grading 0.29 g/t Au, 25.7 g/t Ag, 0.87% Zn and 0.26% Pb at the end of 2009.

For a video clip of the full Penasquito processing plant in operation, please visit www.Goldcorp.com.