Red Lake Gold Mines is benefiting from booming gold prices. In 2007, the Balmertown, Ontario-based gold mining firm produced 700,600 ounces of gold and, as the pricing continues to be favorable, the company is on track to surpass that milestone in 2008. Red Lake’s success has been “a combination of becoming more efficient and taking advantage of opportunities in the mine setting like finding new ore bodies,” Mine General Manager Dan Gagnon says.

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In early March, gold prices reached record highs of close to $1,000 per ounce as the result of the weakening U.S. dollar paired with record-high oil prices. For companies such as Red Lake Gold Mines , the rising value of the precious metal means big business.

In 2007, Balmertown, Ontario-based Red Lake produced 700,600 ounces of gold and, as the pricing continues to be favorable, the company is on track to surpass that milestone in 2008, Mine General Manager Dan Gagnon says. Thus far, Red Lake’s success has been “a combination of becoming more efficient and taking advantage of opportunities in the mine setting like finding new ore bodies,” Gagnon says.

As one of 17 operations under Vancouver, British Columbia-based Goldcorp Inc., Red Lake Gold Mines has proven its value through its world-class operations. The mine is Canada’s largest and richest gold mine and is also a low-cost producer, Gagnon asserts.

In 2006, Goldcorp acquired the Placer Dome Canada operations and merged the two mining operations under Red Lake Gold Mines. Since then, Gagnon says, the company has taken advantage of the synergies between the once-separate entities and is combining its efforts to reach one common goal: Produce 1 million ounces of gold by 2011.

“These are very exciting times for this company,” Gagnon notes. “We are the flagship of Goldcorp and we have a great year ahead of us. Things look good.”

Today, two complexes comprise Red Lake Gold Mines: the Red Lake and Campbell facilities. In 2001, as the result of the discovery of a high-grade ore zone and a mining expansion, the Red Lake complex was brought into full production.

The Campbell complex, on the other hand, has been in production since the early 1940s. In early 2005, exploration conducted by Goldcorp’s predecessor Placer Dome discovered Red Lake’s high-grade ore zone extended into the Campbell property, and has since led to targeted drilling in the area.

Because the complexes were previously operated as competing entities, Gagnon says incorporating the two company cultures had been challenging. However, “things are progressing quite well, and we now basically have over 900 employees working together,” he says.
    
All About Techniques
Reaching the aggressive 1 million-ounce goal by 2011 will take substantial effort. Since the acquisition, Gagnon says Red Lake has made significant investment to improve the complexes and its mining techniques.

At the Red Lake complex, Goldcorp implemented the use of new virtual reality technology for mine design and planning purposes, which required the company to build a state-of-the-art virtual reality studio on site.

In 2006, after extensive exploration, Red Lake made a $274 million investment into a shaft-sinking project and mill expansion. The 6,312-foot deep shaft, called the No. 3 shaft, will allow the company to access ore reserves at depth.

It anticipates the mill capacity of these combined assets will allow the milling of up to 2,700 tonnes of gold per day, helping boost gold production.

An underground inter-mine connection between the two complexes will give access to new exploration platforms, resources and reserves, the company says.
    
Safe and Sound
At Red Lake Gold Mines, Gagnon says safe operating procedures are emphasized as much as productivity, if not more. “We really feel like we are leaders in that area,” Gagnon asserts.

Red Lake strives to maintain a Triple Zero rating at its mine sites, meaning that no medical aids, no lost-time injuries and no critical or fatal accidents can occur. Reaching such high standards might seem daunting to some companies, but Red Lake ensures compliance through strict and continuous training initiatives, the company says.

Continued Growth
Holding the top position in Canada’s gold exploration and processing industry will require the company to think outside the box, emphasize exploration and continue investing in capital.

Looking forward, the company has budgeted funds to continue exploration in several areas. These include the deep high-grade and sulfide zones, deep Campbell zone, the under-explored party wall that formerly separated Campbell and Red Lake, and surface targets for a large open-pit concept.