unlimited north january 2011

Inside this issue:

Look back at 2010 3

Mines Minister 5

Unlimited Potential 6

Human Resources 7

Hollinger Mine 8

Volume 1 - Issue 1

The UNLIMITED NORTH January 24, 2011

Dedicated to Northern Ontario’s Unlimited Potential

From this point north there is only

Unlimited potential

Historic Hollinger Mine set to reopen some time in 2011

For daily news and up to minute gold prices, visit our website @ Www.UnlimitedNorth.ca

See pg.8

By Frank Roch, Unlimited North Associate Publisher Timmins and Area Someday, local historians will look at the year 2010 as one of the most paradoxical years in the history of Timmins and of the local mining industry. One year after cele-brating the 100th Anniversary of the discov-ery of gold in our area, the community found itself dealing with one of the biggest crisis to hit the local mining industry in decades in the midst of what was otherwise a very good year for mining in the Timmins area. The closing of Xstrata’s Kidd Creek cop-per smelter and refinery was without a doubt the biggest news story of 2010 in Timmins and the surrounding area. Al-though the closure had been announced in early December of 2009, it was not until 2010 that the anticipated impact of the closure started having an effect on the city of Timmins. The loss of jobs and the impact that the closure will have on the tax base quickly became one of the central issues of last October’s municipal election campaign. The incoming Timmins City Council now has the unenviable task of rationalizing core services in a community that has lost mil-lions in taxes as a result of the Xstrata clo-sure. There are rarely any benefits to the clo-sure of a major mining operation in a com-munity so dependent on the mining industry and Xstrata was no different. Careers were ended prematurely, contractors lost jobs and the City of Timmins was left to address the resulting decrease in tax revenue. That being said, the closure of Xstrata did not have the expected negative impact on the community. Sources in several key eco-nomic sectors such as real estate, retail and car dealerships indicated that 2010 was a good year despite the Xstrata closure. In an interesting confluence of circum-stances, the closure of the Xstrata “Met Site” as it was known by locals, came at a time when a number of different mining projects in the Timmins area were reaching the point of development and/or became

operational. These new developments cre-ated new jobs, increased the demand for mining-related supplies and services while also providing some relief for a community that felt like the bubble that had seemingly enveloped it during the international finan-cial crisis had finally burst. Just as the community was beginning to recover from the shock and concern of the Xstrata closure, another challenge to the local mining industry came to the forefront. The passing of Bill 191 by the Government of Ontario quickly became one of the more controversial pieces of legislation in recent memory for the people of Timmins as well as for the rest of Northern Ontario, including many of our Aboriginal communities. Linda Jeffrey, the Minister of Natural Resources stated that Bill 191 represented: “… a vision for the Far North of Ontario that is right for the environment, right for the economy, right for First Nations in the Far North, and right for the people of Ontario.” Negative responses to Bill 191 came quickly and from a number of the groups and communities the legislation was sup-posed to benefit. From a mining stand-point, there were major concerns tabled by several industry leaders over the fact that large areas of land rich in minerals might no longer be accessible for mining activity. The eventual impact of the “Far North Act” on the mining industry remains to be seen - and it is a subject that will continue to be under close scrutiny in 2011 and beyond - not only by leaders in the mining industry but also by local governments and Aborigi-nal communities. In most years, the closure at Xstrata and the passing of Bill 191 would have made seemingly irreparable damage not only to local mining suppliers but also to the local economy which is inextricably linked to the successes and challenges of the mining industry. However, 2010 was filled with a number of developments that had the local mining industry pointed forward as opposed to looking back and scrambling for answers. It could be said that the closure at Xstrata

2010—a year of major ups and downs

Unlimited North—January 2011

“Closure of Xstrata Copper Canada’s

Kidd Smelter complex sparked province-wide

debate about ownership of

Ontario’s Natural Resources

Story con’t on P. 4

even had one positive footnote by serving as a dominant point of reference in discus-sions that led to the provincial govern-ment’s decision to create an industry-specific energy policy. This new policy helped, at least in part, to address one of the major challenges faced by every mining operation in the Timmins area and else-where in Ontario. When there is a global economic crisis, investors often turn to gold as a prime in-vestment option. The result is an increase in the price of gold which not only benefits companies with gold mining operations but it also benefits the communities in the area where these operations are located. As such, there were several companies with operations in the Timmins area that had great years in 2010. At Detour Gold the year was filled with progress in a project that will lead to a min-ing operation that is estimated to produce 8.8 million ounces of gold. The construction of the new mine is projected to be worth over 1 billion dollars and will create 1200 jobs. Among several project milestones reached by Detour Gold in 2010 was the signing of Impact Benefit Agreements with local First Nations groups as well as a Memorandum of Understanding with the Metis Nation of Ontario. Detour Gold also received the necessary approvals from gov-ernment agencies that will allow the com-pany to move forward with construction. In preparation for the construction phase, De-tour Gold signed a series for contracts with local suppliers that will benefit the commu-nity. There is an agreement with Toromont CAT for the purchase of 18 trucks and two shovels as well as an agreement with ATCO Structures and Logistics, the new owners of Woodgreen Homes and Trailer Sales, for the construction of accommodations facilities that will house up to 1000 people. For its part, Lake Shore Gold had good year with each of their three properties in the Timmins area currently in production or

development. Lake Shore Gold’s “Timmins Mine” property was expected to produce 65,000 ounces of gold by the end of 2010 with an estimated 300,000 to 400,000 ounces to be produced by 2013. At the same time, drilling at the Thunder Creek property has officials at Lake Shore Gold excited at the future potential of this site. Lake Shore gold also spent the better part of 2010 drilling and refurbishing the Bell Creek mine and mill. At the end of 2010, Lake Shore announced that the Bell Creek mill was well positioned to meet the company’s target of 10,000 ounces per month. All told, Lake Shore Gold currently has 450 employees which is an increase of 200 over last year. Another 200 jobs are ex-pected to be created in Timmins by 2013. In September, Northgate Minerals broke ground on their Young-Davidson property near Matachewan. This project is ex-pected to start production in 2012 with an estimated 2.5 million ounces of gold being produced over the first 15 years of opera-tion. Over 600 jobs will be created during the construction phase of the project with 275 employees needed once the mine be-gins operating. These are just a handful of examples of the numerous mining-related projects cur-rently in development in Timmins and Northeastern Ontario. In his “2010 State of the City” address, Mayor Tom Laughren stated: “Exploration activity is as plentiful as it was during the Gold Rush of 1909-1910 with 75 to 80 exploration companies ac-tively pursuing opportunities in the Porcu-pine Camp.” With that level of mining activity in the area, there is no doubt that the next few years will be amongst the most exciting in the history of Timmins and the surrounding area which is quite fitting for a community that is in the midst of celebrating a number of anniversaries culminating with the 100th Anniversary of Timmins in 2012.

2010—The good, the bad and the really good


Story con’t from page 3

To stay up to date with the latest company news, visit our web site www.UnlimitedNorth.ca

To remain at the forefront in a highly com-petitive global marketplace, we need to be open — open to change and open for discus-sion. Ontario's Mining Act Modernization is an example of our government's willingness to do both. The Mining Act is introducing effective changes that will help keep our mining in-dustry competitive and responsive. These changes will help strengthen our mining industry while respecting Aboriginal and treaty rights, as well as the rights of individ-ual property owners. And, over the past year, we have been discussing with you how to adopt those changes into government regulations. I can-not emphasize enough how important those discussions have been. Ongoing open dia-logue is vital to the process of developing effective regulations. That's why we have made that a priority. We spent nine months meeting with over 500 members of industry, Aboriginal com-munities, non-governmental organizations, municipal representatives and private land owners. Seeing an opportunity to build on this positive momentum, we also held six tar-geted discussion sessions across the prov-ince this fall. We brought together 200 rep-resentatives from mining companies and associations, First Nations and Métis, and business and environmental organizations. Discussions have covered a number of key topics -- exploration plans and permits, mineral tenure, Aboriginal consultation, dis-

pute resolution, private property rights and the protection of Aboriginal sites of cultural significance. I want to assure you that we are listening. Thanks to these open discussions, we have gained very constructive, practical feedback that will help us ensure we are developing the best regulations possible. I want to thank everyone who participated in the discussions and submitted their feed-back. The willingness of participants to ex-change views in such a positive manner only reiterates my strong belief in the impor-tance of open dialogue. Thanks to your in-put, we are closer to achieving the goals set out in the Act. But we are not finished yet. Ongoing communication is critical to this process. Our schedule of Aboriginal engagement continues. Discussions with First Nations and Métis communities have resulted in a deeper understanding of the mining se-quence among Aboriginal Peoples. I encourage you to regularly visit the Mines and Minerals section of our website to stay updated about how we continue to modernize the Mining Act. These are very exciting times for the miner-als sector. Together, we will continue to stay open to change and build a strong minerals sector that reflects balance, certainty and opportunity for future generations. Hon. Michael Gravelle Ontario Minister Northern Development, Mines & Forestry

Mines Minister says new Mining Act Ushers in era of change


Ontario Minister of Northern Development, Mines and Forestry, the Hon. Michael Gravelle

WELCOME TO THE FIRST EDITION OF UNLIMITED NORTH FOLLOW US AT UNLIMITEDNORTH.CA

WWW.UNLIMITEDNORTH.CA

By Kevin Vincent—Publisher The math is mind-boggling. The contribu-tion of Northern Ontario’s mining industry to the local, provincial and federal economies is beyond the comprehension of most Cana-dians. While observers and politicians outside the province like to think of Ontario as a manufacturing province, the truth is—our resource sector—the one that starts well north of Steeles Avenue—dwarfs the econ-omy of many small nations. The resurgence in the price of metals, gold in particular, has had a remarkable impact on the future of this part of the prov-ince. Try to get a drill rig these days. Go ahead, just try. There are 4-5 major corporate announce-ments every day affecting the exploration landscape in this part of the country. Yes, there are drills spinning away in Que-bec, British Columbia and elsewhere across the country—but nothing compares to the volume of activity north of the Trans-Canada Highway between the western border of Quebec and the eastern border of Mani-toba. Frank Roch and I are pleased to be able to provide you with a fully digital publication and web site devoted entirely to Northern Ontario’s dynamic mining industry. Majors, minors and the staggering num-ber of suppliers and service providers that thrive thanks to this exciting industry de-serve their own publication and in today’s tech-savvy world—their own web site.

I know it will be nearly impossible to cover every producing company and every explo-ration play—but we’re going to give it a shot. I’ve assembled a small team of writers who share a passion for the North and a desire to let the world’s investment commu-nity know that Northern Ontario needs to be high on their priority list. The past century of mining in Ontario may very well look pale in comparison to the next 100 years. Indeed, there are plenty of industry insiders who firmly believe that “the big one” has yet to be discovered. The Ontario government recently modern-ized the Ontario Mining Act which is having a dramatic impact on where the industry is headed. A little over a century ago, fortune-seekers from around the globe began a stampede to this part of Ontario. They came on horseback, they paddled canoes and eventually—they rode the rails. Today’s prospectors have extraordinary tools at their disposal. Government-sponsored airborne geophysical surveys come to mind. Post-secondary institutions such as Laurentian University and Northern College have recognized the incredible gap between supply and demand for skilled workers. The opportunities for personal, corporate, and government wealth are staggering. We’ve also initiated a homegrown indus-try association that you’ll see more about in the coming weeks by visiting our web site, www.UnlimitedNorth.ca. Welcome to The Unlimited NORTH.

2011 and beyond—Another 100 years of prosperity


Unlimited North Publisher Kevin Vincent

As the mining industry in Northern On-tario continues to roll along, there are few bumps in the road to slow it down — with one exception — access to a pool of skilled labour. The surge in base and precious metal prices has led to a flood of develop-ment in Timmins and Northern Ontario in recent years, and thus a perceived growing demand for skilled labour. “There is nothing perceived about it,” says Dominic Rizzuto, Human Resources Manager for Gold Corp. in Timmins. But it’s not just the present that Rizzuto is con-cerned about. “Most of the experienced miners in the industry are the aging baby boomers who are due to leave the work force within the next ten years,” Rizzuto says. “That means one third of our work force is eligible to re-tire by 2020. We are always looking for skilled miners, but top notch miners take years to train and get the needed experi-ence.” Gold Corp is not standing idly by as the work force ages though. The company is aggressively hiring high school and college graduates, especially those with common core training. Along with holding job fairs in schools and colleges and accepting job placement programs, Gold Corp is also hir-ing former summer and co-op students and training them in school stopes onsite in the mine. “We have hired 60 kids in the last two years alone,” Rizzuto says. “We have univer-sity grads coming back to work in the mine and are doing well. We have qualified in-structors on staff doing on-the-job training in common core for our guys.” Meanwhile the Northern College Hailey-bury School of Mining is going flat out trying to meet the demand for skilled labour. The nearly century-old institution has had to deal with a 300 per cent increase in stu-dent demand over the last ten years and an increase in enrolment of 50 per cent over last year, says school coordinator Patricia Hamilton. “With the dramatic increase in base and precious metal prices, the demand on us is

much higher than ever before,” Hamilton says. “Added to the crush of new students is a huge increase in interest from current mining employees looking to move up the ladder by taking part-time courses. These men are very dedicated to their profession.” Also crowding the campus are “mature learners,” men who are starting a second career, while juggling families and added responsibilities. This category alone has risen by 50 per cent over last year. Included in the school mix are long distance students who are learning from their computers in their offsite time. But they still have to at-tend “field school” in the spring to complete their qualifications, Hamilton says. “We have a pretty good grasp on current demand by enrolment alone, “Hamilton says. “But we are in constant contact with all our stakeholders. The goal is to see where the industry and the demand are, month by month.” The stakeholders Hamilton refers to in-cludes some mining companies, mine con-tractors, the Human Resources Council, the provincial Ministry of Training, Colleges and Universities, along with the Federated School of Mines (FSM). The FSM is an asso-ciation of Northern Ontario colleges which assist each other to meet the needs of the mining and minerals industry, Hamilton adds. Hamilton is confident the Haileybury School of Mining is as responsive to the needs of the industry as possible. “Mining education tends to follow the same cycles as the industry,” Hamilton says. “In the ten years I have been here, I’ve seen the teach-ing staff nearly double and we now have several staff dedicated to the mining courses alone. “We have a parallel system of education to suit a mining company’s specific demand where we can educate onsite or we set up a short-term course on campus just for their people,” Hamilton says. “As trends change, so do we, because we now have the infor-mation technology which enables us to be much more flexible.”

Impending gap between “Human” and “Natural” Resources



Mining Engineering Technician (Post–secondary program) • Distance Education program combines lab

courses with field component. • Program offered in modular format. This

allows students to maintain employment while studying in Mining.

Admission Requirements • Ontario Secondary School Diploma (OSSD) • Grade 12 Equivalency • Mature Student Status Employment Opportunities • Graduates work in every aspect of mining.

From Surveyor, to Planner to Mine Manager.

• Graduates work in mineral extraction. This includes: Assayers, Process Controllers and Mill Superintendents.

• Graduates are employed by explosive, chemical and equipment firms as Sales and Technical Service representatives.

• Graduates are well placed to work internationally and rise in the corporate world.

Mining Programs

Contact Us……. at any of our campuses Haileybury Campus 640 Latchford St. Haileybury ON Mining Technician Program Coordinator– (705) 672-3376 Surface Miner Common Core, Mill Process Operator Common Core & NORCAT (705) 672-3376 ext 8828 [email protected] __________________________________ Kirkland Lake Campus 140 Government Rd. East, Kirkland Lake, ON Surface Diamond Driller Common Core (705) 567-9291 ext 665 [email protected] NORCAT (705) 567-9291 ext 624 __________________________________ Porcupine Campus 4715 Highway 101 East, Timmins, Ontario Telephone (705) 235-3211 Basic Underground Hard Rock Miner Common Core 235-7213 [email protected] NORCAT (705) 235—7231

Surface Miner Common Core - SL8810 (Haileybury)

• Three-day course provides mandatory basic training requirements for individuals working at a surface mine operation. (2 day theory + 1 day practical skills demonstration)

• Participants must have valid WHMIS certification prior to starting this program. • Training covers the 3 mandatory Surface Miner Common Core modules (Program #77210): Work Safely in the Job

Environment, Lock out & Tag Out Equipment and Energy and Operate Hand & Power Tools.

Mill Process Operator Common Core - M032 (Haileybury)

• 6-week modular training program covers the basic knowledge and skills required to work competently as a Mill Process Operator.

• Students will receive a general overview of milling processes, training on Basic Mill Process Operations — Mineral Ore Certification Program # 810050, fifteen specialty modules and training on Basic Surface Miner Common Core Program #770210.

Surface Diamond Driller Assistant Common Core - M031 (Kirkland Lake)

• 10-week program provides students with required training to complete the theory portion of nine modules of the Common Core Helper Level Program # 770200 before they take part in practical training.

• Before beginning training, each trainee must undergo a G2 TOWES test. • Graduates will gain knowledge and learn how to safely operate various equipment used in surface mining exploration

operations. They receive health & safety certification training that meets the Ontario industry standards which are recognized nationally.

• This program will assist graduates in attaining employment in a wide range of industrial settings, for example: mining, oil, and other resources.

Basic Underground Hard Rock Miner Common Core - M026 (Porcupine)

• 12-week program features hands on practical training combined with theory training. Students are evaluated using prac-tical skills demonstrations.

• Upon completion, the learner can continue to train under the Apprenticeship Branch of the Ministry of Training, Colleges and Universities to complete their certification.

• Students are provided with the required Personal Protective Equipment (PPE). The cost of the PPE is built into the registration fees.

Admission Requirements • Applicants must submit a high school diploma (OSSD) or equivalent • Applicants must complete a Prior Learning Self– Assessment and mechanical reasoning test/evaluation. • Applicants must attend a mandatory information session • Upon successful completion, the learner can continue to train under the Apprenticeship Branch of the Ministry of Training,

Colleges and Universities to complete their certification.

By Kevin Vincent There are plenty of “old-timers” still around today who remember that fateful day in 1968 when a thriving city was literally rocked to its core. After giving up more than 19 million ounces of gold from generous Mother Earth, the seemingly invincible Holl-inger Mine, one of “The Big Three” which included the Dome and McIntyre Mines, was shut down. Plenty of people blamed mismanage-ment. Others said the mine’s golden cup-boards had simply run bare. But one thing was certain, after nearly six decades of pro-duction—a lot shareholders made some serious money at one of the planet’s most prolific gold producers. Today, Vancouver-based Goldcorp is just months, perhaps weeks away from putting the Hollinger back into production. The com-pany has tentatively budged $50 million to convert the historic underground site to a massive open pit operation. The impending startup of the Hollinger is emblematic of an exploration and produc-tion environment that seems to be running on jet fuel. The Hollinger is one of at least half a dozen “old producers” in the Timmins area alone that are about to get new life. In fact, if you split Timmins in half, and if you had an up to date ownership map that outlined who owns what properties—you’d see that central and east Timmins is domi-nated by Goldcorp, while west Timmins is revolving around the city’s newest gold pro-ducer, Lake Shore Gold. The challenge is getting an up to date map. There are at least 75 and some esti-mates suggest as many as 100 junior min-ing and exploration companies competing for both tested and un-tested property. The same thing is happening in other gold districts throughout Northern Ontario including Kenora, Red Lake, and the Detour Lake region. Goldcorp’s Strategic Development Man-ager Dave Bucar has been the public face of the company’s dash to the finish line—

which they’re about to cross. “Our plan is to have our feasibility study done likely by the end of first quarter (March 31st). Hopefully that's in line with us starting to receive some of our permits which will help make the decision easier for our corporate board to approve the project to move toward construction," Bucar told Timmins City Council in mid-January. Bucar also said that the level of support the company is getting from provincial offi-cials is encouraging as Goldcorp navigates the often tricky and cumbersome permitting process. The company says the open pit operation will employ another 50 workers and the ore will be shipped to the company's nearby Dome (Mine) milling complex in South Por-cupine. Goldcorp already employs about 650 men and women in the Timmins area so the Hollinger project is expected to a welcome addition to the company’s sizable presence in the community. “I know this is important to your company going forward,” said Timmins Mayor Tom Laughren, who, among others, has been working behind the political scenes to make the permitting and government approval processes as smooth as possible. A closure plan, required by the province even before the project gets the final green light, has impressed another member of Timmins council, Gary Scripnick. “We can already see what this is going to look like,” said Scripnick, “It’s like having waterfront property in the middle of the city. Indeed. The Hollinger is 70-80 per cent “land-locked” by various city neighbour-hoods including Schumacher, a private trailer park, and two city parks. With gold sitting well above $1300/oz and a green-light working price of $800/oz., Bucar says the company is anxious to start hauling ore from the historic production site. Timmins residents may be in for similar news as other projects follow in Goldcorp’s footsteps.

Goldcorp targeting 750,000 oz at Hollinger



Goldcorp Strategic Development Manager Dave Bucar

Timmins Councilor Gary Scripnick

It is virtually impossible to keep track of everything that is transpiring on the mining landscape of Northern Ontario. Each month we will give you a snapshot of the hundreds of drill results, property acquisitions, and significant mile-stones for as many companies as we can—along with di-rect links to the stories on our web site, www.unlimitednorth.ca, which is updated daily. Be sure to subscribe to our RSS feed for news as it is posted to our site. Timmins East Region Jan. 19 Hollinger Mine set to resume as open pit Jan. 19 Temex releases details of 10 holes at Whitney Jan. 17 Murgor finalizing with Victoria Jan. 16 Melkior drilling underway at Eldorado Jan. 12 Temex says excellent continuity at Juby Jan. 12 Brigus releases latest Black Fox numbers Jan. 11 Metals Creek results from Ogden Jan. 11 Goldcorp has record year in 2010 Jan. 10 Hollinger to have new life in 2011 Jan. 10 Nebu completes additional financing Jan. 9 Brigus updates forecast for Black Fox Jan. 9 Lateegra increases financing Jan. 7 Fatality at Kidd Creek mine Timmins West Region Jan. 24 United Reef drilling underway at Nixon-Bartleman Jan. 19 Mill City drilling underway at Croxall Jan. 12 Newcastle program underway at Carscallen Jan. 11 More outstanding results for Lake Shore Jan. 9 Canadian Arrow updates from Kelex Jan. 6 Lake Shore Gold into full production Kirkland Lake Region Jan. 12 Northgate predicts lower costs higher output Sudbury Region Jan. 19 Ginguro drilling underway at Griggs/Stobie Jan 13. Northern Superior completes financing Jan. 12 Temex/Goldeye to test Shining Tree targets Jan. 10 Champion Bear updates projects Detour Lake Region Jan 20. Balmoral updates activity at Detour East Jan. 13 Balmoral extends Fenelon Jan 11. Trade Winds Ventures Block A drilling underway Northwestern Ontario Jan 17. Adroit drilling underway at Red Vein Jan 17. Manitou Gold finds historic Kenwest records Jan. 12 Northern Superior gets cash from Rainy River Other News Jan 15. Nishnawbe-Aski supports Mattawa in Ring of Fire Jan. 6 Teamsters union enters debate over Ring of Fire

Unlimited activity across Northern Ontario



Federal Liberals exploring energy, mining and forestry issues across the North

Liberal MP Denis Coderre, the official opposition critic for Natural Resources was in Timmins in Janu-ary to meet with community and industry leaders. The discussions and information exchanges were focused on forestry, energy and mining - three ar-eas of great interest to the community. Mr. Coderre, who was hosted in Timmins by local Liberal candidate Marilyn Wood told Unlimited North: “These sessions are important because they allow me to get a better sense of how issues in the forestry, energy and mining sectors impact commu-nities such as Timmins.” For her part, Mrs. Wood feels that roundtable discussions with community and industry leaders such as the one hosted in Timmins: “…this is an opportunity to showcase all that we have in Tim-mins and to open two-way communication with leaders in Ottawa.”



2010 was an exceptional year for one of Northern Ontario’s premiere gold companies and 2011 is shaping up to be even better. The following is an excerpt (focused on the company’s Northern On-tario operations) from Goldcorp’s January 10, 2011 news release. GOLDCORP INC. announced January 10th, that 2010 gold production and provided production and cash cost guidance for the 2011 year and the five-year period ending 2015. Goldcorp's year-end financial statements are expected to be released on February, 24, 2010. The final calculation of operating costs for 2010 has not yet been com-pleted, but total cash costs (1) are expected to be approximately $285 per ounce of gold on a by-product basis and less than $450 per ounce of gold on a co-product basis, beating guidance on both measures. The Company ended the year with over $530 million in cash. 2011 Forecast Goldcorp also provided production and cash cost guidance for the 2011 year. The Company expects to produce between 2.65 and 2.75 mil-lion ounces of gold, which includes a significant contribution from Penasquito as it ramps up to full production. Total cash costs are expected to be in a range of $280 to $320 per ounce of gold on a by-product basis. On a co-product basis, the Com-pany is forecasting a range of $475 to $500 per ounce of gold, based on an allocation of Penas-quito operating expenses against the four primary metals produced in proportion to assumed reve-nues. Normalizing for metals prices, the Company expects an approximate 6% cost increase based on prices for consumables, labor, fuel and power. The Company continues to evaluate opportuni-ties to contain input costs and minimize foreign exchange risk through the hedging of both oil and currencies. Using current metals prices and for-eign exchange rates, Goldcorp's by-product cash costs for 2011 would be forecast at $170 per ounce.

Canada At Red Lake, the "fill the mills" initiative to utilize excess milling capacity will result in a greater pro-portion of mined material from lower grade zones in addition to ore mined from the High Grade Zone (HGZ). Overall, the mine plan is expected to result in a slight decline in overall gold production to 665,000 ounces of gold at very low cash costs. The completion of the connection drift at the 45 level between the Campbell and Red Lake com-plexes has provided additional flexibility for HGZ development. The construction of the 5-kilometer high speed haulage drift to connect the Cochenour shaft with the Red Lake mine on the 5400 foot level has ad-vanced to a completion level of more than 20%. Upon completion, the drift will enable ore from the Cochenour/Bruce Channel deposit to be hauled directly to the Red Lake mine for processing at the existing mill facilities, thus adding an important source of high grade, low-cost production com-mencing near the end of 2014. At Musselwhite in Ontario, successful explora-tion drilling during 2010 resulted in the discovery of the Lynx zone adjacent to the PQ Deeps under-ground operation. With higher grade ore than his-torically found in this mining area a decision is pending for mid-year 2011 to pursue a new shaft that will increase throughput and production and extend the mine life. Shaft engineering and confir-mation of project economics are currently under-way. The Lynx zone is expected to contribute to increased production as early as late this year. At Porcupine, the underground shaft (winze) project continues to advance, which will allow ac-cess to newly discovered zones at the Hoyle Pond underground operation and a potential increase in the overall gold production profile following its completion in 2014. In 2011, gold production is expected to decline slightly as a result of contin-ued processing of a greater proportion of low-grade stockpiled ore.

Outstanding year in the books and year ahead for Goldcorp

MORE TO EXPLOREDON’T WONDER CALL US!

www.DiscoverAbitibi.com

DON T WONDER, CALL US!1-877-470-TEDC (8332)

Timmins Economic Development Corporation

www.TimminsEDC.com

unlimited north january 2011

Documents

timmins area

closure of xstrata

xstrata closure

city of timmins

local mining industry

people of timmins

history of timmins

incoming timmins city