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Cerro Negro

One of our newest mines, Cerro Negro is a cornerstone of our portfolio.

As of December 31, 2016
Contribution to
Total Production
Contribution to
Total Revenue
Gold Produced in 2016
(ounces)
363,000
All-in Sustaining Cost
(per ounce)
$705

All-in sustaining costs (“AISC”) include total production cash costs incurred at Goldcorp’s (the “Company”) mining operations, which forms the basis of the Company’s by-product cash costs. Additionally, the Company includes sustaining capital expenditures, corporate administrative expense, exploration and evaluation costs, and reclamation cost accretion and amortization. The measure seeks to reflect the full cost of gold production from current operations, therefore growth capital is excluded. Certain other cash expenditures, including tax payments, dividends and financing costs are also excluded.

AISC is a non-GAAP performance measures that the Company believes more fully defines the total costs associated with producing gold; however, this performance measure has no standardized meaning. Accordingly, it is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The Company reports this measure on a gold ounces sold basis. The Company’s all-in sustaining cost definition conforms to the guidance note released by the World Gold Council, which became effective January 1, 2014. The World Gold Council is a non-regulatory market development organization for the gold industry whose members comprise global senior gold mining companies.

Quick Facts
Location Argentina
Ownership 100%
Type of Mine Underground
Processing Method Crushing and grinding. Cyanide certified
Milling/Processing Capacity 4,000 tonnes per day
Power Demand 10 megawatts
Number of Employees & Contractors 1,670
Production (guidance for 2017) 410,000 ounces
AISC (guidance for 2017) $685 per ounce
Gold Reserves (proven and probable) 4.85 million ounces
Gold Resources (measured and indicated) 1.37 million ounces
Gold Resources (inferred) 280,000 ounces

Our most remote mine site, Cerro Negro sits 600 metres above sea level on the low Patagonian plains in southern Argentina. It’s a six hour drive southwest from Comodoro Rivadavia, itself a two and a half hour flight south of Buenos Aires. The closest town is Perito Moreno. The area is a UNESCO World Heritage Site and a National Historic Landmark because of the Cueva de las Manos caves that feature paintings of hands that are at least 9,000 years old.

Cerro Negro’s first gold pour was on July 25, 2014, and it achieved commercial production on January 1, 2015. The extensive complex includes five high grade underground mines (Eureka, Mariana Central, Mariana Norte, San Marcos, Bajo Negro), one open pit mine (Vein Zone) and one cyanide leach processing facility that yields gold recoveries of 92%. Ore is mined from Eureka and Mariana Central. Development is ramping up at Mariana Norte and Emilia – a key part of our plan to increase production by 20% by 2021.

What's New

Exploration

Cerro Negro consists of low-sulphidation, epithermal gold-silver deposits on a large, underexplored 250-square-kilometre land package. It’s located near the northwestern margin of the 60,000-square-kilometre Deseado Massif, a rigid crustal block bounded by Rio Deseado, Rio Chico, the Atlantic coast and the Atlantic Cordillera.

Cerro Negro’s exploration program has the following goals:

  • converting resources to reserves
  • expanding the known limits of the high-grade veins
  • testing a portfolio of 32 regional targets
  • evaluating ways to explore in areas marked by extensive cover.

Read more about our exploration program.

Communities

1
Percentage of earnings committed to funding infrastructure, education and social development in Perito Moreno County

Cerro Negro has voluntary collaboration agreements with local communities, which emphasize workforce training and the development of local suppliers and business partnerships. It has also committed $1.5 million to build a school, and invests in public health improvements in Santa Cruz Province.

Read more about how we manage our stakeholder relationships

People

Cerro Negro has a heavy equipment operator training program that teaches women how to haul ore. It’s one of the ways Goldcorp helps women overcome barriers and build skills in a traditionally male dominated industry.

Read more about Creating Choices and Growing Choices programs
Read about how we’re working to increase diversity

Safety & Health

60
members of the workforce are members of the mine rescue, response or advance first aid teams

Members of the Cerro Negro workforce have an average of three years of experience in mining, so the mine is focused on training and establishing systems that emphasize safety. Two rescue brigades, one at Eureka and one at Vein Zone, run weekly drills and refine their approach after each drill.

Read more about our approach to safety

Environment

10
megawatts of power used at Cerro Negro

Goldcorp is looking at building a wind farm at Cerro Negro as part of our efforts to reduce energy consumption and greenhouse gas (GHG) emissions, improve efficiency and reduce costs.

Read more about our investment in renewable energy
Read more about how we manage our impact on the environment

Virtual and Augmented Reality: Transforming Mine Planning, Training and Safety

It takes at least 20 hours to get to Cerro Negro from head office, so we need to find ways to collaborate easily with the operation and our other remote sites. One approach is to use virtual and augmented reality, and we’re working with Microsoft and Trimble to test a new system that combines holographic technology and imaging software.

The world’s first untethered, holographic computer, Microsoft’s HoloLens is a self-contained headset that allows users to view, control and interact with high-definition holograms that are projected over the user’s physical environment. When integrated with Trimble’s Connected Mine Visual intelligence software, users study holographic images of mine designs, geologic information and even stopes that are currently being mined. Multiple users in multiple places could access the same holograms at the same time, and work together to make real-time decisions.

There are several possible applications for the system:

  • Mine engineers at different operations could study the same virtual 3D image and solve problems or identify areas for improvement
  • Geologists and engineers could use holographic spatial mapping to confirm and field test models
  • Engineers could address issues in high risk areas without having to go underground.

Virtual and augmented reality could make it possible for teams from remote mine sites to work together in real time to study and manipulate holographic images. Collaborating more effectively means that teams can make faster, more informed decisions to improve efficiency and increase productivity.

Read more about virtual and augmented reality

Vern Baker
Mine General Manager

Cerro Negro Contact

communications-ARG@goldcorp.com

Santa Cruz
Av. San Martin 1207-Z9040 Perito Moreno, Santa Cruz Argentina
t: +54 2963 432464
f: +54 2963 432696

Buenos Aires
Av. Leonardo N. Alem 855-Piso 27 C1001 AAD, Buenos Aires Argentina
t: +54 11 42337000

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