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Background
Prior to 1990, exploration expenditures at the mine were minimal. An aggregate of $6 million is committed for the 1995-96 exploration program.
The amalgamation of Goldcorp Inc. and Dickenson Mines Limited in March, 1994 resulted in a larger, well financed company that is capable of comfortably funding this substantial exploration effort.
The principal focus of our 1995-96 exploration program will be in the lower, unexplored levels (1,500 vertical feet) of the mine.
Discovery - Main Zones Continue to Depth
In 1994, exploration drilling from the 34 Level revealed the expected continuity of two main zones extending from 30 Level (the lowest working level) to 34 Level, a vertical distance of 600 feet. These zones reveal widths up to 30 feet with fairly uniform mineralization and gold values in the range of 0.25 ounces of gold per ton. Further confirmation of the continuity of these zones was indicated by downholes drilled from 30 Level.
Discovery - New High Grade Structure
For the year to date, continuing exploration drilling from the 34 Level has led to the discovery of new structures, one of which is a well mineralized quartz carbonate structure which has returned very significant gold assays over a 400 foot dip length. All assays are supported by visible coarse and fine gold.
The following table provides assay results for all drill holes to date, intersecting this new quartz carbonate structure:
Footage Gold Assay Hole No. Dip From To Core Length Ounces per Ton (degrees) (feet) (uncut) 34-48 -8 793.8 - 799.2 5.4 7.64 34-51 +7 641.6 - 647.7 6.1 36.03 34-77 +15 615.9 - 626.4 10.5 8.74 34-52 +30 597.1 - 603.1 6.0 6.77 34-78 +30 566.9 - 571.0 4.1 0.22 34-50 +15 672.4 - 686.8 14.4 1.14 34-49 -8 835.9 - 843.2 7.3 6.14 30-851 -25 360.3 - 370.0 9.7 12.97 30-615 -2 288.5 - 293.1 4.6 7.99The weighted average grade for the nine reported drill sections is 9.08 ounces per ton (uncut) over 7.6 feet.
Major Capital Commitment
In February 1995, a $10 million exploration and development program was announced. This will include 200,000 feet of diamond drilling. The main exploration target is the 1,500 vertical feet between 30 and 40 Levels. A total of five drills are currently deployed on Levels 30, 34 and 38.
These encouraging preliminary results have reinforced management's belief that significant potential for increasing reserves exists both in our Red Lake Mine and in our surrounding 21,515 acres.
For further information, please contact:
Robert R. McEwen
Chairman, President and
Chief Executive Officer
(416) 865-0326
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