Goldcorp eyes Mexico mining partnership with Fresnillo

Wed Sep 19, 2012 6:47pm EDT
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By Jean Luis Arce

PENASQUITO, Mexico (Reuters) - Canadian miner Goldcorp, one of the world's largest gold producers, is considering teaming up with Mexico's Fresnillo to develop a new precious metals venture in the central Mexican state of Zacatecas.

Goldcorp Mexico's business development director, Federico Villasenor, told Reuters that Goldcorp (G.TO: Quote) and Fresnillo (FRES.L: Quote) are looking to jointly develop the Canadian miner's Camino Rojo gold and silver deposits, adding that a feasibility study is expected to be completed by early next year.

Villasenor said both companies had already worked together on geological exploration of the property, but he declined to quantify reserves or expected production.

Camino Rojo is just 31 miles southeast of Goldcorp's massive open pit mine at Penasquito.

"As neighbors, it's possible that we can create a synergy between the two companies," said Villasenor.

In addition to gold and silver deposits, Camino Rojo is believed to contain significant deposits of lead and zinc.

Fresnillo is the world's largest primary producer of silver, and is controlled by Mexican mining company Industrias Penoles (PENOLES.MX: Quote). Fresnillo is also Mexico's second-largest gold producer.

Villasenor added that the Camino Rojo property is believed to feature a geological profile similar to that of Penasquito, expected to be Goldcorp's top gold-producing mine in Mexico this year.   Continued...