TORONTO (miningweekly.com) – Goldcorp CEO Chuck Jeannes does not want to lead a sprawling gold mining group, with scores of assets spread across the globe, but will instead focus on building and operating a core set of “cornerstone” assets, he told analysts and investors on Thursday.

“With all due respect to my former colleagues at Placer Dome...we don't want to become the next Placer,” he said.

Before it was acquired by rival Barrick in 2006, Vancouver-based Placer Dome had interests in 16 operations across seven countries, only a handful of which could be seen as “cornerstone” assets, Jeannes said.

“Our strategy is instead to focus on those cornerstones and try and develop these larger, longer-life, high-quality robust deposits.

“So I think you can look for us to move in that direction,” he said, after being asked whether the company was looking for more acquisitions.

Goldcorp has mines in Canada, Argentina, the US, Mexico, Honduras and Guatemala, and said in January it expects output to rise about 50% over the next five years, to some 3,8-million ounces by 2014.

Jeannes pointed out that the 50% figure does not include contributions from a number of good-looking projects that it is moving through the pipeline.

“Our plate is pretty full right now,” he commented.

“I won't say that we don't look at additional acquisitions, of course we always do.

“But we are certainly in no rush to get out there and do something new; we can be very selective and, I think, opportunistic.”

Goldcorp is still ramping up production at the $1,7-billion Penasquito mine, in Mexico, where commercial production is scheduled for the third quarter and construction should be complete by the end of this year.

The company then plans to build a satellite of mines around Penasquito, which will include the Camino Rojo project that Goldcorp acquired earlier this year by taking over junior Canplats, as well as its own Noche Buena discovery.

An internal feasibility study on Noche Buena should be completed by the end of this year, COO Steve Reid said on Thursday.

The company also still plans to be ready for a construction decision by year end at its Eleanore project in Quebec, Canada.

And at the Couchenor project in Red Lake, in Ontario, drilling is ongoing and development work is under way for a five-kilometer high speed haulage drift on the 5400 level that will connect the Cochenour shaft with Goldcorp's Red Lake mine.

Finally, Goldcorp said it has put together a project team for the El Morro project, in Chile, and expects to spend about $10-million on exploration there this year.

Goldcorp bought 70% of the project earlier this year from Xstrata with the help of New Gold, which owns the other 30% and had a right of first refusal on Xstrata's stake.

The company is moving ahead with development plans despite a legal challenge by Barrick, which had agreed in 2009 to buy the project from Xstrata.

Jeannes said earlier this year that both El Morro and Eleanore could start production as soon as 2015.

http://www.miningweekly.com/article/goldcorp-sees-no-pressure-for-acquisitions-2010-04-29