Outstanding Performance at Red Lake - 1st Quarter Gold Production Surpasses Forecast - 146,500 ounces at $60/ounce (all numbers in US$)

Apr 05, 2001, 01:00 ET from Goldcorp Inc.

    TORONTO, April 5 /PRNewswire/ - GOLDCORP INC. (NYSE:   GG; TSE: G) is
 pleased to announce that for the first Quarter, 2001 gold production exceeded
 all previous forecasts. Our Red Lake Mine has delivered an outstanding start
 to commercial production with 146,512 ounces of gold being produced at a total
 cash cost of less than $60 per ounce. We now project that the full year 2001
 production from Red Lake will be greater than 400,000 ounces of gold at a
 total cash cost of less than $75 per ounce.
 
     Annual Production over 500,000 ounces
     Corporately (including production from the Wharf Mine) we project total
 2001 production will be more than 500,000 ounces of gold (compared to 179,000
 ounces in 2000) at a total cash cost of approximately $100 per ounce.
 
     Cash Flow, Earnings and Paying a Dividend at $260 Gold!
     Goldcorp is delivering the promised increase in earnings and cash flow to
 its share owners despite the prevailing low gold price. With our revised
 production and cost forecasts at Red Lake, and at a gold price of $260 per
 ounce we are forecasting cash flow of $70.3 million or $0.86 per share and
 corporate earnings of $34.1 million or $0.42 per share.
 
     Dividend Declared, 1.5% yield
     We are also rewarding our share owners through our newly declared
 dividend. On 26/2/2001 we declared an annual dividend of 10 cents per share to
 be paid semi-annually in March and September, providing Goldcorp with a
 dividend yield of 1.5%. The first dividend payment was made on March 12, 2001.
 
     Spectacular Gold Values at the Red Lake Mine!
     During the quarter, the gold was produced as a result of processing
 (milling) 57,182 tons at an average head grade of 2.78 ounces of gold per ton
 (opt) (95.33 grams per tonne or gpt) with a recovery of 90%. This grade
 includes the positive effect of the 9,000 ounce inventory adjustment from the
 electrowinning circuit, which we have discussed in previous press releases.
 Excluding this adjustment, the grade was 2.62 opt (89.84 gpt) compared to a
 predicted reserve grade of 2.10 opt (72 gpt).
 
     Forecast First Half
     As a result of the stronger than anticipated Q1 results we have upwardly
 revised our production forecast for the Red Lake Mine in the first 6 months of
 2001 to approximately 220,000 ounces of gold at a cash production cost of
 below $75 per ounce. This forecast is based on processing 111,000 tons with an
 average gold grade of 2.20 opt (75.44 gpt) and a weighted average recovery
 rate of 89%. Previously (26/2/2001) we had forecast production of 200,000
 ounces of gold at a cash production cost of below $80 per ounce. The forecast
 increase in production is the result of two principal factors. Firstly, we
 continue to realize grades through the mill which are higher than those
 indicated by the reserves. Secondly, the higher grade ore has provided more
 tonnage than anticipated from the reserves.
 
     Forecast Second Half
     During the second half of 2001 we anticipate an improvement from our most
 recent forecast (26/2/2001) as we now expect to be mining slightly above
 reserve grade to produce greater than 180,000 ounces at a cash production cost
 of below $75 per ounce. Previously we had anticipated production in the second
 half of the year to be 150,000 ounces at a cash cost of below $100 per ounce.
 This reduction in cash cost is in part related to the higher grade and in part
 related to projected reductions in direct operating costs.
 
     Wharf Mine
     The Wharf Mine continued to make a solid contribution to the Company.
 During Q1, 2001 a total of 26,000 ounces of gold were produced at a total cash
 cost of $206 per ounce. Some 1.07 million tons of ore were processed at an
 average grade of 0.034 ounces gold per ton. Full year production forecasts
 remain at approximately 100,000 ounces at a total cash cost of $220 per ounce.
 
     No Debt, Unhedged, Cash in the Treasury
     At March 31, 2001, Goldcorp had no debt, remained unhedged and had $38
 million in cash, up from $17 million at year end.
 
     Goldcorp is a North American based gold producer. In addition to its
 rich, high-grade Red Lake Mine, Goldcorp owns a gold mine located in South
 Dakota and one industrial mineral operation in Saskatchewan.
 
     Forward-Looking Statements
     This press release includes certain "Forward-Looking Statements" within
 the meaning of section 21E of the United States Securities Exchange Act of
 1934, as amended. All statements, other than statements of historical fact,
 included herein, including without limitation, statements regarding potential
 mineralization and reserves, exploration results and future plans and
 objectives of Goldcorp Inc., are forward-looking statements that involve
 various risks and uncertainties. There can be no assurance that such
 statements will prove to be accurate, and actual results and future events
 could differ materially from those anticipated in such statements. Important
 factors that could cause actual results to differ materially from Goldcorp
 expectations are disclosed under the heading "Risk Factors" and elsewhere in
 Goldcorp documents filed from time to time with the Toronto Stock Exchange,
 The United States Securities and Exchange Commission and other regulatory
 authorities.
 
 
 

SOURCE Goldcorp Inc.
    TORONTO, April 5 /PRNewswire/ - GOLDCORP INC. (NYSE:   GG; TSE: G) is
 pleased to announce that for the first Quarter, 2001 gold production exceeded
 all previous forecasts. Our Red Lake Mine has delivered an outstanding start
 to commercial production with 146,512 ounces of gold being produced at a total
 cash cost of less than $60 per ounce. We now project that the full year 2001
 production from Red Lake will be greater than 400,000 ounces of gold at a
 total cash cost of less than $75 per ounce.
 
     Annual Production over 500,000 ounces
     Corporately (including production from the Wharf Mine) we project total
 2001 production will be more than 500,000 ounces of gold (compared to 179,000
 ounces in 2000) at a total cash cost of approximately $100 per ounce.
 
     Cash Flow, Earnings and Paying a Dividend at $260 Gold!
     Goldcorp is delivering the promised increase in earnings and cash flow to
 its share owners despite the prevailing low gold price. With our revised
 production and cost forecasts at Red Lake, and at a gold price of $260 per
 ounce we are forecasting cash flow of $70.3 million or $0.86 per share and
 corporate earnings of $34.1 million or $0.42 per share.
 
     Dividend Declared, 1.5% yield
     We are also rewarding our share owners through our newly declared
 dividend. On 26/2/2001 we declared an annual dividend of 10 cents per share to
 be paid semi-annually in March and September, providing Goldcorp with a
 dividend yield of 1.5%. The first dividend payment was made on March 12, 2001.
 
     Spectacular Gold Values at the Red Lake Mine!
     During the quarter, the gold was produced as a result of processing
 (milling) 57,182 tons at an average head grade of 2.78 ounces of gold per ton
 (opt) (95.33 grams per tonne or gpt) with a recovery of 90%. This grade
 includes the positive effect of the 9,000 ounce inventory adjustment from the
 electrowinning circuit, which we have discussed in previous press releases.
 Excluding this adjustment, the grade was 2.62 opt (89.84 gpt) compared to a
 predicted reserve grade of 2.10 opt (72 gpt).
 
     Forecast First Half
     As a result of the stronger than anticipated Q1 results we have upwardly
 revised our production forecast for the Red Lake Mine in the first 6 months of
 2001 to approximately 220,000 ounces of gold at a cash production cost of
 below $75 per ounce. This forecast is based on processing 111,000 tons with an
 average gold grade of 2.20 opt (75.44 gpt) and a weighted average recovery
 rate of 89%. Previously (26/2/2001) we had forecast production of 200,000
 ounces of gold at a cash production cost of below $80 per ounce. The forecast
 increase in production is the result of two principal factors. Firstly, we
 continue to realize grades through the mill which are higher than those
 indicated by the reserves. Secondly, the higher grade ore has provided more
 tonnage than anticipated from the reserves.
 
     Forecast Second Half
     During the second half of 2001 we anticipate an improvement from our most
 recent forecast (26/2/2001) as we now expect to be mining slightly above
 reserve grade to produce greater than 180,000 ounces at a cash production cost
 of below $75 per ounce. Previously we had anticipated production in the second
 half of the year to be 150,000 ounces at a cash cost of below $100 per ounce.
 This reduction in cash cost is in part related to the higher grade and in part
 related to projected reductions in direct operating costs.
 
     Wharf Mine
     The Wharf Mine continued to make a solid contribution to the Company.
 During Q1, 2001 a total of 26,000 ounces of gold were produced at a total cash
 cost of $206 per ounce. Some 1.07 million tons of ore were processed at an
 average grade of 0.034 ounces gold per ton. Full year production forecasts
 remain at approximately 100,000 ounces at a total cash cost of $220 per ounce.
 
     No Debt, Unhedged, Cash in the Treasury
     At March 31, 2001, Goldcorp had no debt, remained unhedged and had $38
 million in cash, up from $17 million at year end.
 
     Goldcorp is a North American based gold producer. In addition to its
 rich, high-grade Red Lake Mine, Goldcorp owns a gold mine located in South
 Dakota and one industrial mineral operation in Saskatchewan.
 
     Forward-Looking Statements
     This press release includes certain "Forward-Looking Statements" within
 the meaning of section 21E of the United States Securities Exchange Act of
 1934, as amended. All statements, other than statements of historical fact,
 included herein, including without limitation, statements regarding potential
 mineralization and reserves, exploration results and future plans and
 objectives of Goldcorp Inc., are forward-looking statements that involve
 various risks and uncertainties. There can be no assurance that such
 statements will prove to be accurate, and actual results and future events
 could differ materially from those anticipated in such statements. Important
 factors that could cause actual results to differ materially from Goldcorp
 expectations are disclosed under the heading "Risk Factors" and elsewhere in
 Goldcorp documents filed from time to time with the Toronto Stock Exchange,
 The United States Securities and Exchange Commission and other regulatory
 authorities.
 
 
 SOURCE Goldcorp Inc.