"Teck also will not pay a full premium on anything that has not been proven, it doesnt work like that. ''

Oh Really ?

Goldcorp trumps Eldorado's bid for Andean recources

Sept. 3 (Bloomberg) -- Goldcorp Inc., the second-biggest Canadian gold producer by market value, agreed to buy Andean Resources Ltd. for about C$3.6 billion ($3.4 billion) in cash and stock, trumping an all-share bid from Eldorado Gold Corp.

Cerro Negro has reported indicated resources of 2.54 million ounces of gold and 23.56 million ounces of silver, according to Goldcorp. This indicates Goldcorp is paying $1,339 an ounce for the asset, higher than the $1,250.95 price that gold closed at yesterday.

“Goldcorp is betting on the exploration potential of Cerro Negro,” said UBS AG analyst Jo Battershill. “I believe there are 10 million ounces there.”

“It goes to show that good deposits are hard to find and there’s a premium to be paid,” David Baker, managing partner at Sydney-based Baker Steel Capital Managers with $1.2 billion in funds, said by phone. “There’s more consolidation to come.”