Goldcorp has reported the results of a feasibility study update for the company's recently acquired Cerro Negro project in the Santa Cruz province of Argentina.

The new development plan details more than doubling the plant throughput to 4,000 tonnes per day, contributing to an average of 550,000 ounces of gold production per year over the first five full years.

Average cash costs during the first five years of production are expected to be less than $200 per ounce of gold.

Over the full 12 year mine life, based only on existing reserves, annual production is expected to average 340,000 ounces per year at cash costs of approximately $290 per ounce.

The increase in throughput and production from the original feasibility study is facilitated by the simultaneous mining of multiple, near-surface veins.

The six currently identified sources of gold reserves (Eureka, Mariana Central, Mariana Norte, San Marcos, Bajo Negro and Vein Zone) are in some cases physically separated by several kilometers.

Total capital expenditures to first production in mid-2013 are expected to be approximately $750m million, including $130m in 2011.

On 9 February 2011, Goldcorp announced a near-doubling of total gold resources at Cerro Negro.

Following the results of the feasibility study, the total proven and probable reserves have grown by more than 100% to 4.3 million ounces.