Goldcorp Mine to Increase Production

Goldcorp Inc.'s (GC) Red Lake mine is expected to increase production starting in 2009, says RBC Capital Markets analyst Michael Curran. 

"With the completion of the new #3 shaft, coupled with improvements to underground ventilation, the Red Lake mine should see increased production rates in coming quarters, from both improved access to high-grade gold zones and increased hoisting capacity from the new shaft," he said in a note to clients following a visit to Red Lake, Ontario.

"We forecast an increase in gold production, from the 625Koz estimated for 2008, to a sustainable level of 800Koz/yr starting in 2009."

Mr. Curran maintained his "top pick" rating and $47 price target on Goldcorp stock, noting that cash costs at Red Lake could also be positively impacted as the company reduces its reliance on traditional cut&fill mining and moves towards more long-hole mining in 2009. 

As for Red Lake exploration in general, the analyst remains bullish, citing promising future developments such as Rahill-Bonanza, Goldcorp's joint venture with Premier Gold Mines Ltd. and projects from Claude Resources Inc., Rubicon Minerals Corp. and Cypress Development Corp.