Argentina to Boost Gold Production

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"Canada's private sector invests $850M to develop nation's gold reserves."

In an attempt to develop it's mostly untouched gold reserves and boost production, Argentina introduced an overall plan also aimed to turn around its mineral development and production.

According to country's planning ministry, the strategy has also focused on what industry sees as metals of the future, such as lithium.

The Latin American nation has secured $850 million of Canadian private sector investment in an ambitious plan to develop its gold reserves and turn gold production into a major earner for the country.

Canada's Goldcorp Inc. (TSX:G; NYSE:GG) will bring substantial investment into getting the Cerro Negro gold project in Santa Cruz Province up to speed with plans for stepped up exploration and production through the coming two decades.

GoldCorp said it expects to start producing gold at Cerro Negro in mid-2013, an average of 550,000 ounces a year during the first five years of production.

Goldcorp estimates a mine life of approximately 12 years with total proven and probable gold reserves increase 100% to 4.3 million ounces. Argentine official comments indicate a more optimistic outlook.

Argentina traditionally has been a medium-scale gold producer, compared with Latin America's top producer Peru.

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