Whitehorse Daily Star

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Photo by Chuck Tobin

COMPANY’S PLANS SUMMARIZED – Mine manager Buddy Crill says Goldcorp’s approach to the development of the four open pit targets will essentially mirror Kaminak Gold’s original plan for the property south of Dawson City.

Only the unexpected would foil a mine: Goldcorp

Goldcorp’s Buddy Crill isn’t shy about saying the likelihood of the company making money from the Coffee gold project it purchased last summer isn’t high.

By Chuck Tobin on November 23, 2016

Goldcorp’s Buddy Crill isn’t shy about saying the likelihood of the company making money from the Coffee gold project it purchased last summer isn’t high.

After all, it’s what the company has been saying, the mine manager pointed out in a candid interview during Goldcorp’s open house held last Friday at The Old Fire Hall to share the company’s vision of its future in the Yukon.

During his presentation at this week’s 44th annual Yukon Geoscience Forum, he said the same thing to scores of industry folk gathered in the room.

After spending $520 million to buy the project from Kaminak Gold, along with the $400 million the company expects to spend bringing the property into production over the next four years, Crill says, it’s possible Goldcorp might even end up on the bottom side of the investment.

Goldcorp, says Crill, bought the Coffee project last July not for what it is, but for what the company thinks it can make it.

It bought the project as a stepping stone into a region it believes has great potential, he says.

Crill says Goldcorp sees its future at the Coffee project as a means of showing the Yukon it is a good company that stands by the commitments it makes to the community.

“We think there is a lot of potential in the project,” he says, noting the land package that came with the purchase.

Crill says unless something completely unexpected comes along, Goldcorp will build the mine.

It doesn’t need to raise the money because it has its own financing, he points out.

The mine manager modestly sidesteps any discussion about Goldcorp’s elevated status among gold companies in the world.

Yukoners in the industry, on the other hand, are quick to emphasize the company is the real deal, the fourth-largest producer globally, with more than 15,000 employees worldwide.

One share of Goldcorp was trading this morning on the Toronto Stock Exchange for $17.39.

It’s been as high as $26.56 over the past year, and as low as $13.55.

When the company announced the proposal last May to buy out shareholders of Kaminak through a share swap, its shares were trading for $24.08.

Crill says Kaminak was very disciplined, and did a good job of focusing its energy and money on the Coffee project as it stands today.

It didn’t spend a lot of money looking around the entire property, but instead wanted to shore up the value of the project before it, and it did just that, he says.

Crill says Goldcorp’s approach to development of the four open pit targets – aptly named Supremo, Latte, Double Double and Kona – will be pretty much in line with Kaminak’s original plan.

The company, however, will be spending a little more money upfront to see if it can capture greater efficiencies in the operating and maintenance costs, he says.

Crill says Goldcorp has also already started a new drill program to begin exploring ground that Kaminak may have only drilled one two holes in.

The company plans to access the property using the placer mining road leading south from Dawson City, which will require upgrading the existing roads and building a couple of new sections.

It plans to use barges to cross the Yukon River in the summer and ice roads in the winter, just as Kaminak was planning.

Crill says a road users group to establish a management plan is already under development to gather input from all users, such as placer miners, trappers....

Those attending last Friday’s open house heard from Goldcorp staff how they are well-positioned to enter the permitting phase of the project because Kaminak was diligent in compiling baseline information on water quality, wildlife and such from the very beginning of its involvement in the Coffee project in 2010.

Crill says while Kaminak was hoping to have its project proposal in for review this year, Goldcorp expects it will be April when it delivers it to the Yukon Environmental and Socio-economic Assessment Board.

If permitting goes well, the company could begin road construction in the second half of 2018 and mine construction in 2019, he says.

Crill says Goldcorp CEO David Garofalo has told the markets the company expects initial production by the end of 2020.

It’s an aggressive schedule, Crill readily acknowledges.

As for the recent downward trend in the price of gold, the mine manager simply says if the price of gold fell to a point where the Coffee project was not viable, there would be a lot of gold mines closing down all over the world.

“We bought it because we think this mine will lead to significant opportunities,” says Crill.

“We really are dedicated to developing this project and the mine that will provide long-term benefits to the communities and First Nations. It is not just about this mine, it’s about the mines in the future.”

Crill and his team assured the crowd at The Old Fire Hall and those at the geoscience forum that community involvement, community well-being is at the core of Goldcorp’s value structure.

The company, they insisted, is all about “together creating sustainable development:

• Robust collaboration and partnering with our First Nations hosts;

• Training, development, and hiring of Yukon-based employees;

• Utilization and capacity-building of Yukon based businesses;

• Diversity in our employees and business providers;

• Minimize our environmental impacts, including GHG emissions.”

The Coffee project is as much about demonstrating the company’s commitment to the community as it is about mining, says Crill, who has relocated his family to Whitehorse.

Comments (8)

Up 3 Down 2

getoffit on Nov 28, 2016 at 6:12 pm

Jargon and name calling is not a substitute for facts. Your opinion provides none to substantiate your claim pro-greenie. Let's start with the Yukon. I've noticed you spend so much time airing your views one has to wonder if you are under-employed? I do detect a potential case of tunnel vision. I worked in four mines, three in Yukon 1968-82. Tell me greenie, was I in uniform when you were in fluid form?

Up 9 Down 2

ProScience Greenie on Nov 28, 2016 at 1:17 pm

Actually that's not true about the vast majority of Canadian mining companies getoffit. They do however irritate deep green and far left first world overly-idealist urban activists that think locals living at the poverty line is quaint.

Up 5 Down 7

Stu Winter on Nov 26, 2016 at 2:33 pm

The current City council and former YP territorial government are famous for ignoring First Nations.

It has to catch up with them sooner or later.

Up 4 Down 14

getoffit on Nov 25, 2016 at 6:03 pm

Canadian mining companies are notorious the world over for environmental devastation and disturbing indigenous land owners/dwellers.

Up 18 Down 8

Alphaminer on Nov 24, 2016 at 4:14 pm

BB, the coffee creek area is huge. Much of it has yet to be explored.

Jc, All Mine projects have risks. F.N., getting approval, funding for the startup costs, price of gold, act of Trump etc.
Goldcorp is a great company. I'm glad they took over from Kaminak. There is a lot of opportunity for everyone to make money once that road is punched through, and with the loss of high paying oilfield jobs in the south this will be a boost to Canada's economy.

Up 5 Down 4

BB on Nov 23, 2016 at 5:09 pm

“We think there is a lot of potential in the project,” he says, noting the land package that came with the purchase."

What 'land package'? Does anyone know what this sentence refers to?

Up 25 Down 16

jc on Nov 23, 2016 at 4:16 pm

"Something unexpected"? FN, Environmentalists?

Up 41 Down 7

ProScience Greenie on Nov 23, 2016 at 3:23 pm

Good news. And a mostly Canadian company makes it even better.

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