ALUMBRERA

PROJECT SUMMARY

History | Employees

Aeriel of Alumbrera Open Pit

Goldcorp's 37.5% interest in the Alumbrera mine produced a total of 230,600 gold ounces in 2007, with copper production at 149,000,000 pounds. 

Construction of the molybdenum recovery plant was completed during 2007 with positive initial results from the flotation circuit. 

The mine consists of five facilities with support offices:

• An open cut mine, processing facilities and central administration offices at Alumbrera, Catamarca province
• A 316 kilometre concentrate slurry pipeline through Catamarca and Tucuman provinces
• A 202 kilometre, 220kv power line from the project’s substation at El Bracho, Tucuman
• A filter plant and rail loading facilities at Cruz del Norte, Tucuman
• Port, handling facilities and train maintenance facilities at San Martin near Rosario, Santa Fe.

History

All mining prospects in the Farallón Negro district, the region including Alumbrera, are enclosed by a 344 square kilometre national mineral reserve and are owned and administrated by Yacimientos Mineros de Agua de Dionisio (“YMAD”), a quasi government mining company.  MAA has the rights to explore and exploit the Alumbrera Mine pursuant to an agreement between MAA and YMAD (the “UTE Agreement”) signed in April 1994.

The Alumbrera area has been known for its veins of copper and gold since at least the 19^th century.  Small-scale mining activity took place at the end of the 19^th century and during the early 20^th century at the southern edges of the present mine area.  In 1950, the Alto la Alumbrera veins were sampled by the government for copper and gold.  In 1963, a mapping and geochemical survey defining a deposit of disseminated/scattered copper was conducted.  In 1969, YMAD carried out a thorough geological geochemical prospecting program and completed four short drill holes.

From 1973 to 1976, the government carried out a geophysical study (induced polarization and magnetism) and commenced a drilling program. Drilling was completed over several years with 6,000 metres drilled from 1974 to 1976.  YMAD carried out resource mapping and evaluation from available drill holes.  From 1975 to 1982, there was intermittent drilling to complete a total of 18,970 metres and 71 drill holes for the period 1968 to 1981.

From 1985 to 1988, YMAD investigated open pit mining and heap leaching of ore from the central gold-rich oxidized zone.  An additional 1,283 metres of drilling, averaging 50 metres per hole, was completed.  Feasibility studies were prepared in 1986 and 1988.

From 1992 to 1993, another feasibility study was conducted.  Geological exploration activity included geotechnical investigations, a core relogging program, a diamond drilling program, mineralogical assessments and a complete reinterpretation of the deposit geology.  A geology and metal grade block model of the deposit was generated.

In October 1994, Alumbrera completed a 20-hole, 8,000-metre diamond drillhole program.  Drilling was concentrated in the southern flank of the orebody and within the area to be mined during the first five years of the open pit life. In 1995, Alumbrera commenced mining activities in the mine area.  In August 1997, project commissioning commenced with the processing of the first ore from the mine. In December 1999, the mine achieved production and performance tests under terms of project financing.

Developed by MIM Holdings (an Australian company) and its partners over two years at a cost of US$1.2 billion, the mine commenced production in February 1998. The operation repaid its capital cost in the first half of 2004.

In 2003 Xstrata acquired MIM Holdings, and Goldcorp increased its shareholding in the project, resulting in the current ownership structure:

• Xstrata (operator)          50.0%
• Goldcorp Inc                 37.5%
• Northern Orion              12.5%  

As of December 31, 2007, Xstrata indirectly holds a 50% interest in MAA, Goldcorp indirectly holds a 37.5% interest and Yamana Gold Inc. indirectly holds a 12.5% interest in MAA.

 Employees

Alumbrera mine employs approximately 1,145 permanent staff and 630 operational and service contractors.  Argentina is a highly unionized country with industry-based unions and very prescriptive labour agreements.  The current labour agreement was renegotiated in 2007 and is in effect for a four year period.

Alumbrera is pursuing its policy and commitment to provide job opportunities to people from the local communities. It is proactive in identifying potential local candidates in order to progressively increase the percentage of personnel from Catamarca within MAL’s permanent employee establishments.

Employees working at the open pit at Alumbrera

Employees at Alumbrera