Barrick Outlines Plans To Hike Future Gold Production
(Kitco News) -Barrick Gold Corp. (NYSE, TSX: ABX) Thursday outlined thecompany’s plans to develop a number of projects that are expected to addanother 1 million ounces or more of annual production starting in 20212.
Nevada projects at Cortez Deep South, Goldrush and TurquoiseRidge have been approved, while work on a project to extend the life of theLagunas Norte Mine in Peru is under way, said the world’s largest gold producer.
The company has approved an initial investment of $300million to $325 million to build a third shaft at 75%-owned Turquoise Ridge inNevada. When combined with additional processing capacity, this should roughlydouble annual production at the mine to more than 500,000 ounces per year ataverage all-in sustaining costs of around $630 per ounce, Barrick said. Initialproduction from the new shaft is expected to begin in 2022.
“In addition to increasing annual production, the thirdshaft is expected to reduce operating costs, boost mining productivity rates,and increase total life of mine production by allowing for reduced cutoffgrades,” Barrick said.
Meanwhile, Barrick is developing an underground mine atGoldrush in Nevada. Decline construction, engineering and the permit processwill occur over the next two years, with construction and initial productionexpected between 2021 and 2022. A 2017 feasibility study projects averageannual production of 500,000 ounces and AISC of $640. Initial capitalexpenditures are estimated at around $1 billion.
“Goldrush currently has proven and probable gold reserves of1.5 million ounces and measured and indicated gold resources of 9.4 millionounces, with significant potential to identify additional resources onceunderground access to drill the deposit is established,” Barrick said. “Inaddition, the company is drilling the nearby Fourmile target, located one tothree kilometers north of the Goldrush discovery.”
Also in Nevada, the company aims to expand mining at CortezSeep South below currently permitted levels of the Cortez Hills undergroundmine. The permitting process began in 2016. The company expects a decision bythe government in the second half of 2019. Assuming the project is approved,two years of construction would be followed by production in 2022. Averageannual production is estimated at 300,000 ounces.
Meanwhile, in Peru, Barrick is working to extend the life ofthe Lagunas Norte Mine through sequenced installation of mill, carbon-in-leach,flotation, and autoclave processing facilities. Feasibility studies for twodifferent steps project average annual production of 100,000 and 170,000ounces.
At Pueblo Viejo in the Dominican Republic, Barrick last yearcompleted an initial study for a plant expansion aimed at increasing throughputby 50 percent annually, ultimately allowing the mine to maintain average annualproduction of 800,000 ounces after 2022. The mine is 60% owned by Barrick and40% owned by GoldcorpInc. (TSX: G, NYSE: GG).
By Allen SykoraFor Kitco News
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