In a bold move that underscores the key role large copper deposits will play in senior gold producer's growth plans, Goldcorp Inc. (G-T43.470.260.60%) is scuppering rival Barrick Gold Corp.'s (ABX-T42.780.140.33%) $465-million (U.S.) deal to buy control of a major mining project in Chile.

Barrick tabled a last minute $300-million all-cash offer to New Gold Inc. (NGD-T4.710.163.52%) for its 30-per-cent interest in the El Morro project on Wednesday, according to sources close to the situation, but the smaller miner opted instead for a surprise deal with Goldcorp.

Under that arrangement, Goldcorp will buy a 70-per-cent interest in El Morro from Xstrata PLC by lending $463-million to New Gold, which had a right of first refusal to buy the stake. New Gold will then transfer that stake to Goldcorp in exchange for an additional payment of $50-million. New Gold will retain its 30-per-cent interest in El Morro and will have all of its development and construction costs financed by Goldcorp.

The proposed transaction, which cancels Barrick's deal to buy the 70-per-cent stake from Xstrata announced in October, highlights the new breed of projects for which Canada's two largest gold miners are now ferociously competing.

With the world's large pure gold deposits all but exhausted, and with the price of copper (HG-FT341.30-1.40-0.41%)recently hitting 16-month highs of $3.50 per pound, major gold miners like Goldcorp and Barrick are turning to massive copper deposits called porphyries, which also contain significant amounts of gold. El Morro boasts measured and indicated resources of 6.3 billion pounds of copper as well as 8.3 million ounces of gold (GC-FT1,133.60-0.100.00%)