In a bid to boost mine production by 30%, Goldcorp Inc. (TSX:G)(NYSE:GG) has reforecast capital costs at its Penasquito project in Mexico to total $1.49 billion, a 69% increase from a June 2006 forecast.
The expanded operation is expected to produce an average 1.7 million gold equivalent ounces per year, readjusted from the 1.3 million ounces Goldcorp had estimated in its June 2006 feasibility study.
The Vancouver-based gold producer projected daily mill throughput at the mine to rise to 130,000 tonnes from 100,000 tonnes. It also extended the mine's estimated lifespan to 19 year from 17 years.
Goldcorp will fund the mine's expansion with the $485 million in cash it received from Silver Wheaton Corp. (TSX:SLW, NYSE:SLW) as part of a deal announced in April in which Wheaton will receive 25% of the silver production at Penasquito for $3.90 per ounce.
Goldcorp's share price range during the past week: between $32.31 and $34.02; 52-week high: $35.86; 52-week low: $22.40.