Goldcorp buys back gold stream on giant Chile project

World number four gold producer Goldcorp (NYSE:GG) announced on Wednesday it's acquiring New Gold’s (NYSE:NGD) 4% gold stream on its El Morro project in Chile for $65 million in cash.

El Morro is part of a joint venture between Goldcorp and Teck Resources. The Vancouver-based companies merged the El Morro and Relincho deposits in  2015 to create NuevoUnion in the Atacama region of Chile. Goldcorp bought New Gold's 30% share in El Morro for $90 million cash plus the stream at the same time the merger was announced.

The partners hope to complete a pre-feasiblity study on the giant project in the second half of this year. NuevoUnion is expected to cost around $3.5 billion to bring into production. Ore would be transported from the El Morro to a mill and concentrator facility at Relincho with an initial capacity of 90kt – 110kt a day.

NuevaUnion will have a 32-year lifespan and produce an average of 190kt copper and 315koz gold a year, over the first decade. NuevaUnion is located 4,000m above sea level and the underground operation, like many in Chile, will rely on desalinated water.

The post Goldcorp buys back gold stream on giant Chile project appeared first on MINING.com.

from MINING.com http://ift.tt/2kUs3Tt