AUSTRALIA - Barrick Gold of Toronto is selling its Osborne copper-gold project in Queensland to the Australian subsidiary of Vancouver's Ivanhoe Mines. The Osborne mine and mill is located 195 km southeast of Mount Isa.
The Osborne complex includes open pit and underground mines and a 2-million-t/y concentrator. In 2009, production totalled 43,000 oz of gold and 91 million lb of copper.
Ivanhoe has agreed to pay A$17.4 million for the assets plus a 2% net smelter royalty, capped at A$15 million. The buyer will also assume environmental obligations of A$18.4 million.
Ivanhoe said in a press release that the acquisition is expected to reduce the preproduction capital cost of its Merlin deposit, to begin production in 2012, by about A$100 million. Moreover, the purchase will facilitate production from the Little Wizard deposit by 2011. The two properties form part of the Cloncurry project which will be a producer of copper, zinc, gold, lead, cobalt, molybdenum and rhenium.
Additional information is available at www.IvanhoeAustralia.com.