Goldcorp Inc. - Portfolio - Operations

Musselwhite consistently meets expectations, safely producing gold at a low cost.

As of December 31, 2016

Contribution to
Total Production

Source: Annual Report 2016.

Notes

Contribution to
Total Revenue

Source: Annual Report 2016.

Notes

Gold Produced in 2016

(ounces)

261,000

Source: Annual Report 2016.

Notes

All-in Sustaining Cost

(per ounce)

$678

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.

Notes

Quick Facts

Location	Opapamiskan Lake, Ontario
Ownership	100%
Type of Mine	Underground
Processing Method	Carbon in pulp recovery, cyanide certified
Milling/Processing Capacity	4,500 tonnes per day
Power Demand	25 megawatts
Number of Employees & Contractors	749
Production (guidance for 2017)	265,000 ounces
AISC (guidance for 2017)	$715 per ounce
Gold Reserves (proven and probable)	1.69 million ounces
Gold Resources (measured and indicated)	460,000 ounces
Gold Resources (inferred)	1.20 million ounces

A fly-in, fly-out operation located approximately 500 kilometres north of Thunder Bay, Canada, Musselwhite has produced over 4 million ounces of gold since achieving commercial production in April 1997.

Musselwhite’s ore is mined from two main zones below Lake Opapimiskan. Ore is processed onsite using a circuit that includes crushing, grinding, leaching by cyanidation, carbon in pulp recovery and electrowinning. Gold recoveries are 96%.

In 2016, work began on a $90-million materials handling project to improve the movement of ore to the mill. An underground shaft in the heart of the orebody will hoist ore up from the underground crushers, which will cut down on haulage distances, reduce ventilation costs and increase production by 20%. A key part of our plan for increasing overall production by 20% by 2021, we expect the project to be complete in 2019.

What's New

Exploration

The Musselwhite district includes about 17,500 hectares of mine claims and leases in the North Cariboo Greenstone Belt. This underexplored belt has several hallmarks of an Eastern Canadian world-class deposit: geochemical, geophysical, and geological anomalies, big regional folds, and polymetallic occurrences of volcanic massive sulphides.

Musselwhite’s exploration program has the following goals:

converting resources to reserves
expanding the zones that are currently being mined
testing the northern extent of the Musselwhite mineralization
generating a portfolio of district-wide targets.

Communities

100%

of Musselwhite’s mine claims and leases are on First Nations traditional land

Musselwhite has a formal agreement with First Nation communities and councils in the vicinity of the mine: North Caribou Lake First Nation, Cat Lake First Nation, Kingfisher Lake First Nation, Wunnumin Lake First Nation, Shibogama First Nations Council, Windigo First Nations Council. In addition to revenue sharing, the agreement includes targets for employment, training and business development opportunities.

Musselwhite has an additional cooperation agreement with Mishkeegogamang First Nation.

Learn more about our approach to Communities
Every year Musselwhite delivers turkeys to local First Nation communities

People

25%

of the workforce is First Nations and Metis

Musselwhite’s workforce is a committed and dedicated group that makes the operation consistently safe, low-cost and productive. Musselwhite has met its production guidance since 2014.

Safety & Health

148

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

Musselwhite is in a remote location, so a trained and effective team is critical for ensuring worker safety. The operation has successfully integrated a team of mining contractors into its safety culture.

Environment

Musselwhite provides an alternative nesting habitat for the barn swallow, which is at risk in Ontario

Musselwhite’s ore body is under Opapimiskan Lake, so it has a comprehensive water management plan that emphasizes water recycling. Our team works closely with First Nations and their consultants to monitor the waterways beside and downstream the mine, a collaboration that’s been mutually beneficial.

See how we incorporate Aboriginal traditions in our water stewardship
Read more about how we manage our impact on the environment