Canadian Mining Journal

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GOLD DEVELOPMENT NEWS Barrick Banks on Four New Producers

NEW YORK, New York Toronto's BARRICK GOLD is banking on four new mines to provide a 40% boost to its annual gold...



NEW YORK, New York Toronto’s BARRICK GOLD is banking on four new mines to provide a 40% boost to its annual gold output, the company told the investment community here. When the Veladero (Argentina), Alto Chicama (Peru), Cowal (Australia), and Tulawaka (Tanzania) projects are all up and running by 2007, Barrick’s worldwide production will reach 6.8-7.0 million oz of gold, compared to 4.9-5.0 million oz anticipated in 2004.

Construction is already underway on the US$460-million Veladero project, and the first gold pour is expected in the fourth quarter of 2005. This is an open pit, heap leach operation with Merrill-Crowe gold recovery and a planned output of 525,000-550,000 oz per year. Proven and probable reserves are estimated to contain 11.1 million oz of gold and 169 million oz of silver.

The environmental impact statement and hearings are complete for the Alto Chicama project. Barrick hopes to have approval for the US$340-million development by the second quarter of 2004. The 7.2 million oz of gold in proven and probable reserves will be mined and processed using the same methods as Veladero at a rate of 535,000-560,000 oz/year.

The Cowal mine is underpinned by proven and probable reserves of 2.5 million oz of gold. Following an expected capital cost of US$270 million, an open pit mine and CIL plant should be producing 220,000-230,000 oz annually. The initial pour is expected in the first quarter of 2006.

Construction is already underway at Tulawaka with the first gold pour expected in the first quarter of 2005 after a $49 million expenditure. Proven and probable open pit reserves contain about 526,000 oz of gold, and the mine will produce about 100,000 oz of gold annually. Through its subsidiary PANGEA GOLDFIELDS, Barrick owns 70% of the Tulawaka project. The remaining 30% is held by NORTHERN MINING EXPLORATIONS.

For more details about these and all of Barrick’s global operations, visit www.barrick.com.