El Morro and Relincho Projects Combine in Chile
SANTIAGO, CHILE - Goldcorp Inc. and Teck Resources Limited reported an agreement to combine their respective El Morro and Relincho projects, located approximately 40 kilometers apart in the Huasco Province in the Atacama region of Chile, into a single project. Teck and Goldcorp will contribute their respective project interests into a 50/50 joint venture. The combined project will have the interim name of Project Corridor. "Combining these two neighboring assets is a common sense approach that allows us to consolidate infrastructure to reduce costs, reduce the environmental footprint and provide greater returns over either standalone project," said Don Lindsay, President and CEO of Teck. "Through Project Corridor, we will work to establish meaningful relationships with the community, Indigenous Peoples and other stakeholders that will help guide the project's development and create greater value for all parties." "The combination of El Morro and Relincho is consistent with our focus on maximizing value from our asset portfolio," said Chuck Jeannes, President and CEO of Goldcorp. "We now have an improved development approach that we expect to significantly decrease initial capital requirements and increase financial returns, while ensuring the project is developed in partnership with our neighbors, creating lasting benefits for residents in the region and our shareholders." Based on the results of a Preliminary Economic Assessment (PEA), Project Corridor contemplates a conveyor to transport ore from the El Morro site to a single line mill at the Relincho site. We expect that this approach will provide a number of key benefits. In combination with community consultation, a Pre-Feasibility Study is expected to commence in early 2016 and be completed in 12 - 18 months. Assuming a positive Pre-Feasibility Study, a Feasibility Study would be initiated thereafter. Goldcorp's El Morro project contained proven and probable reserves of 8.9 million ounces of gold and 6.5 billion pounds of copper as at December 31, 2014. Teck's Relincho project contained proven and probable reserves of 10.1 billion pounds of copper and 464 million pounds of molybdenum as at December 31, 2014. Based on the December 31, 2014 mineral reserve figures reported by Goldcorp in respect of El Morro and Teck in respect of Relincho, the proven and probable reserves of Project Corridor would contain approximately 16.6 billion pounds of copper, 8.9 million ounces of gold, and 464 million pounds of molybdenum. Further work on Project Corridor, including updating reserves estimates at December 31, 2015, may lead to revised mineral reserve estimates that could be higher or lower than the combined figure presented.