https://www.miningweekly.com

Barrick guides for lower output for longer as it works to bolster production profile

22nd February 2018

By: Henry Lazenby

Creamer Media Deputy Editor: North America

     

Font size: - +

VANCOUVER (miningweekly.com) – Major miner Barrick Gold has outlined a lower production profile in the coming years as it focuses on developing four major new projects that are expected to lift output by about one-million ounces from 2021 onwards.

The Toronto-based company expects to produce between 4.2-million and 4.6-million ounces of yellow metal between 2019 and 2022, at an average cost of sales of $850/oz to $980/oz, and average all-in sustaining costs (AISC) of $750/oz to $875/oz.

Between 2023 and 2027, its current plans point towards the potential for average annual gold production above four-million ounces. This includes contributions from projects at Cortez Deep South, Goldrush, Lagunas Norte, Robertson, Pueblo Viejo and Turquoise Ridge. It does not, however, include any contributions from Alturas, Donlin Gold, Norte Abierto (50% interest), or Pascua-Lama, which represent substantial long-term optionality over the production base case, the miner said on Thursday.

Barrick has approved Nevada-based projects including Cortez Deep South, Goldrush and Turquoise Ridge, and work on a project to extend the life of the Lagunas Norte mine, in Peru, is under way.

The company has approved an initial investment of $300-million to $325-million to build a third shaft at its 75%-owned Turquoise Ridge mine, which, when combined with expanded processing capacity, would roughly double output at the mine to more than 500 000 oz/y, at an average AISC of about $630/oz. Initial production from the new shaft is expected to start in 2022.

At the Cortez Deep South mine, Barrick is working to expand to below currently permitted levels of the Cortez Hills underground mine. The permitting process was started in 2016 when it submitted an amendment to the current mine plan of operations to the Bureau of Land Management. The company expects a decision in the second half of 2019.

Assuming the project is approved by the second half of 2019, construction will take about two years after which production will start in 2022. Barrick expects average output of about 300 000 oz/y. Barrick noted that the third shaft is expected to reduce operating costs, boost mining productivity rates and increase total life-of-mine output by allowing for reduced cutoff grades, all while lifting output.

Barrick is also developing an underground mine at Goldrush, its newest mine, where decline construction, engineering and the permit process is expected to progress over the next two years. Barrick has guided for construction and initial production between 2021 and 2022. The first phase of the project involves the construction of an exploration twin decline to provide access to the orebody at depth, which will enable further exploration drilling, as well as to convert existing resources to reserves.

A 2017 feasibility study on Goldrush projects average output of 500 000 oz/y at an AISC of $640/oz. Initial capital has been pegged at about $1-billion. Goldrush currently has proven and probable gold reserves of 1.5-million ounces and measured and indicated gold resources of 9.4-million ounces, with significant potential to identify additional resources once underground access to drill the deposit is established, Barrick said.

Further, Barrick is working to extend the life of the Lagunas Norte mine, in Peru, through a sequenced installation of mill, carbon-in-leach, flotation and autoclave processing facilities. Feasibility studies for two different development phases have forecast average output of 100 000 oz/y and 170 000 oz/y, respectively.

At Pueblo Viejo in the Dominican Republic, Barrick had in 2017 completed an initial scoping-level study for a plant expansion that would increase throughput by 50% a year, allowing the mine, which is owned 60% by Barrick and 40% by Goldcorp, to maintain average output of 800 000 oz/y from 2022 onwards.

Barrick advised that the stalled Pascua-Lama project, on the Argentina/Chile border does not currently meet its investment criteria, and it is seeking a partner to share capital costs and technical expertise, in order to spread risk. It has formed a working group with Shandong Gold, building on its existing joint venture with Shandong at the nearby Veladero mine, in Argentina.

Barrick currently has proven gold reserves of 24.5-million ounces, held in 398-million tonnes grading 1.91 g/t gold, and probable reserves of 40.1-million ounces held in 897-million tonnes grading 1.39 g/t gold. The miner has 88.56-million ounces of gold in the measured and indicated resource categories, including reserves, held in two-billion tonnes grading 1.41 g/t gold on average.

Edited by Creamer Media Reporter

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION