CHILE – Toronto’s Barrick Gold and Vancouver’s Goldcorp have created a 50:50 joint venture that includes the Cerro Casale and Quebrada Seca gold-copper exploration projects in the Maricunga district.
Kinross Gold of Toronto sold its 25% share in the properties to Goldcorp for US$260 million in cash plus US$40 million to be received if the partners make a positive development decision. Kinross will also retain a 1.25% royalty from Goldcorp on 25% of the gross production from any mine(s).
The Cerro Casale project is now a 50:50 joint venture of Barrick and Goldcorp. Credit: Barrick Gold.
Barrick, which had been the 75% owner at Cerro Casale, sold a 25% share of the project to Goldcorp. Goldcorp has agreed to fund up to US$260 million of the project expenditures, bringing its total commitment to US$520 million. Thereafter, the JV partners will share ongoing expenditures equally.
Goldcorp is also contributing the Caspiche project to the JV. The nearby Caspiche gold-copper project formerly belonged to Exeter Resource Corp., which Goldcorp acquired earlier this year. Measured and indicated resources at Caspiche are 1.40 billion tonnes grading 0.51 g/t gold and 0.19% copper. There are also 198.1 million inferred tonnes at 0.29 g/t gold and 0.12% copper.
On a 100% basis the Cerro Casale deposit has proven and probable reserves of 1.20 billion tonnes grading 0.60 g/t gold and 0.22% copper. There are another 296.6 million tonnes of measured and indicated resources at 0.35 g/t gold and 0.16% copper, plus 495.4 million inferred tonnes grading 0.38 g/t gold and 0.19% copper. The deposit contains 23.2 million oz. of gold and 5.8 billion lb. of copper in only the proven and probable reserves.
More information about Cerro Casale is available at www.Barrick.com.