CERRO BLANCO (GoldCorp)

Construction of two declines to access the ore body from different directions is underway and is expected to reach the ore body early in 2009. Bulk samples will be obtained for metallurgical testing to assist with design optimization of the plant and definition drilling from underground is planned for next year. The declines will also serve as mine access ramps during the operation of the underground mine.

Progress is underway with underground development of the Cerro Blanco project. Early work is designed to confirm quartz vein geometry and to test underground conditions while feasibility work is completed for the mine and for development of the adjacent geothermal power opportunity. Drilling continues at the nearby Escobal discovery, and continued good results support a growing expectation for synergies with the Cerro Blanco project.

Due to delays in retaining the drilling contractor and obtaining the required permits, the company now expects the Cerro Blanco feasibility study to be delayed until late 2007. Exploration efforts at Cerro Blanco have focused on extensional and infill drilling to convert a portion of the inferred resource to the measured and indicated category.