BARRICK GOLD CORP
Updates Project Pipeline and Demonstrates Valuation Opportunity
Barrick Gold Corporation announced today it has begun to harvest opportunities from a project pipeline unparalleled in the gold mining industry. The Company considerably advanced technical reviews and updated the investment community on its extensive pipeline of gold projects, advanced exploration properties, as well as additional joint venture projects for platinum group metals and nickel.
"The combination of our quality assets, depth of our project pipeline and exploration portfolio, demonstrated development expertise and financial strength positions Barrick to deliver significant value in the years ahead. At a time when discoveries are scarce and new projects rare within the gold industry, no other gold company has a comparable pipeline," said Greg Wilkins, President and CEO, at a special presentation at the Company's 'Investor Day' in Toronto.
Barrick has a balanced geo-political risk profile and a development strategy focused on generating value in highly prospective regions. Many of the Company's projects are located near existing operations where they can benefit from infrastructure and synergies related to processing, personnel and community development programs.
Barrick's new projects will build upon the new generation of mines that the Company successfully brought into production in the past two years (Tulawaka, Tanzania, Q1 2005; Lagunas Norte, Peru, Q2 2005; Veladero, Argentina, Q3 2005; and Cowal, Australia, Q2 2006). The Company announced on February 20, 2007, that gold was poured at its newest mine, Ruby Hill in Nevada. It is expected to produce about 120,000 ounces in 2007 at total cash costs in the range of $240 to $250 per ounce for 2007. Construction cost at Ruby Hill was below its estimate.
Barrick's new pipeline of projects includes the following:
Buzwagi, Tanzania
- A 10-Year-Plus Producer Close to Infrastructure (100% owned)
Buzwagi has proven and probable reserves of 2.64 million ounces of gold and contains 118 million pounds of copper within the gold reserves;(3) the estimated mine life is 10 years. Its close proximity to Barrick's Bulyanhulu and Tulawaka operations brings significant synergies, including shared infrastructure, personnel, training and equipment.
Buzwagi's average annual production is expected to be 240,000-250,000 ounces of gold at total cash costs of $280-290 per ounce of gold. Capital costs are expected to be approximately $400 million (excluding capitalized interest).
- In 2006, Barrick completed a positive feasibility study for Buzwagi, along with 40 per cent of the project's detailed engineering plans. It conducted 200,000 meters of exploration drilling on the property, and identified further targets.
- Barrick announced today that the Mineral Development Agreement was recently approved and expects approval from the Republic of Tanzania of the project's Environmental Impact Assessment shortly. All outstanding permits, along with detailed engineering are expected to be completed by mid-2007.
Construction is targeted to occur over approximately two years.
Kabanga, Tanzania
- A World Class Nickel Sulphide Deposit with High Tonnage and Grade (Barrick 50%; Xstrata 50%)
Kabanga is located in northwest Tanzania and is a world class nickel sulfide deposit - reminiscent of Voisey's Bay. Updated estimates of measured and indicated resources stand at 9.7 million tonnes of indicated resources at a nickel grade of 2.37 per cent and 36.3 million tonnes of inferred resources at a nickel equivalent grade of 2.8 per cent (100% basis.)(9)
Barrick acquired the Kabanga nickel exploration property with its acquisition of Sutton Resources in 1999. It has since proved up a significant mineral resource and through an equal joint venture partnership (Falconbridge and now Xstrata as the operator) has further increased the value of this deposit with a compelling combination of high tonnage and very good grade. Xstrata recently committed $95 million to advance the development engineering through completion of the project's feasibility study. A full feasibility study is expected to be
completed by the latter part of 2008.
(For further information on 2006 results or Investor Day slide presentation, please go to: www.barrick.com.)
Updates Project Pipeline and Demonstrates Valuation Opportunity
Barrick Gold Corporation announced today it has begun to harvest opportunities from a project pipeline unparalleled in the gold mining industry. The Company considerably advanced technical reviews and updated the investment community on its extensive pipeline of gold projects, advanced exploration properties, as well as additional joint venture projects for platinum group metals and nickel.
"The combination of our quality assets, depth of our project pipeline and exploration portfolio, demonstrated development expertise and financial strength positions Barrick to deliver significant value in the years ahead. At a time when discoveries are scarce and new projects rare within the gold industry, no other gold company has a comparable pipeline," said Greg Wilkins, President and CEO, at a special presentation at the Company's 'Investor Day' in Toronto.
Barrick has a balanced geo-political risk profile and a development strategy focused on generating value in highly prospective regions. Many of the Company's projects are located near existing operations where they can benefit from infrastructure and synergies related to processing, personnel and community development programs.
Barrick's new projects will build upon the new generation of mines that the Company successfully brought into production in the past two years (Tulawaka, Tanzania, Q1 2005; Lagunas Norte, Peru, Q2 2005; Veladero, Argentina, Q3 2005; and Cowal, Australia, Q2 2006). The Company announced on February 20, 2007, that gold was poured at its newest mine, Ruby Hill in Nevada. It is expected to produce about 120,000 ounces in 2007 at total cash costs in the range of $240 to $250 per ounce for 2007. Construction cost at Ruby Hill was below its estimate.
Barrick's new pipeline of projects includes the following:
Buzwagi, Tanzania
- A 10-Year-Plus Producer Close to Infrastructure (100% owned)
Buzwagi has proven and probable reserves of 2.64 million ounces of gold and contains 118 million pounds of copper within the gold reserves;(3) the estimated mine life is 10 years. Its close proximity to Barrick's Bulyanhulu and Tulawaka operations brings significant synergies, including shared infrastructure, personnel, training and equipment.
Buzwagi's average annual production is expected to be 240,000-250,000 ounces of gold at total cash costs of $280-290 per ounce of gold. Capital costs are expected to be approximately $400 million (excluding capitalized interest).
- In 2006, Barrick completed a positive feasibility study for Buzwagi, along with 40 per cent of the project's detailed engineering plans. It conducted 200,000 meters of exploration drilling on the property, and identified further targets.
- Barrick announced today that the Mineral Development Agreement was recently approved and expects approval from the Republic of Tanzania of the project's Environmental Impact Assessment shortly. All outstanding permits, along with detailed engineering are expected to be completed by mid-2007.
Construction is targeted to occur over approximately two years.
Kabanga, Tanzania
- A World Class Nickel Sulphide Deposit with High Tonnage and Grade (Barrick 50%; Xstrata 50%)
Kabanga is located in northwest Tanzania and is a world class nickel sulfide deposit - reminiscent of Voisey's Bay. Updated estimates of measured and indicated resources stand at 9.7 million tonnes of indicated resources at a nickel grade of 2.37 per cent and 36.3 million tonnes of inferred resources at a nickel equivalent grade of 2.8 per cent (100% basis.)(9)
Barrick acquired the Kabanga nickel exploration property with its acquisition of Sutton Resources in 1999. It has since proved up a significant mineral resource and through an equal joint venture partnership (Falconbridge and now Xstrata as the operator) has further increased the value of this deposit with a compelling combination of high tonnage and very good grade. Xstrata recently committed $95 million to advance the development engineering through completion of the project's feasibility study. A full feasibility study is expected to be
completed by the latter part of 2008.
(For further information on 2006 results or Investor Day slide presentation, please go to: www.barrick.com.)