Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) (Barrick or the
“Company”) today outlined plans to maximize long-term value from
the Company’s portfolio of high-quality, long-life gold operations
and projects. These assets are clustered in core districts
throughout the Americas, and support a sustainable long-term
production profile with significant optionality and upside.
Barrick’s core objective remains to grow free cash flow per share
over the long term, with an uncompromising commitment to safety and
environmental sustainability, working in partnership with our host
governments and communities.
The Company provided updates on four
feasibility-level projects that have the potential to contribute
more than one million ounces of annual production to Barrick with
initial contributions beginning in 2021. Nevada projects at Cortez
Deep South, Goldrush, and Turquoise Ridge (75 percent interest)
have been approved, and are in execution. Optimization work on a
sequenced project to extend the life of the Lagunas Norte mine in
Peru remains underway.
Barrick is designating Turquoise Ridge as a core
mine in recognition of the exceptional growth potential of the
operation, facilitated by the construction of a third shaft,
productivity improvements, and an increase in processing
capacity.
Barrick also reported preliminary results of a
scoping-level study to expand throughput at the Pueblo Viejo mine
(60 percent interest), and provided updates on greenfield projects
including Alturas, Donlin Gold (50 percent interest), Norte Abierto
(50 percent interest), and Pascua-Lama.
All projects undergo rigorous scrutiny by our
Investment Committee at every stage of evaluation and development,
prioritizing free cash flow generation, risk-adjusted returns, and
capital efficiency. Each project is benchmarked against a 15
percent hurdle rate using a long-term gold price assumption of
$1,200 per ounce and ranked accordingly.
In addition, Barrick provided an update on
leadership changes within the Company’s Operations group.
Please visit www.barrick.com today at 2 p.m.
Eastern Time for a webcast and presentations covering 2018
strategic priorities, financial review, investment criteria,
operations, projects, exploration, reserves and resources,
innovation, and sustainability performance and priorities.
MAXIMIZING VALUE FROM A SUSTAINABLE,
LONG-TERM PRODUCTION PROFILE
Based on our current asset mix, between 2019 and
2022, we continue to expect average annual gold production to be
between 4.2-4.6 million ounces, at an average cost of
sales1 of $850-$980 per ounce, and average all-in sustaining
costs2 of $750-$875 per ounce. Between 2023 and 2027, our
current plans indicate 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 include
any contributions from Alturas, Donlin Gold, Norte Abierto (50
percent interest), or Pascua-Lama, which represent substantial
long-term optionality over our production base case. In the near
term, we aim to strengthen our production profile through
disciplined investment in our brownfield projects and mine
exploration drilling, supporting reserve replacement and the
identification of new resources which, in many cases, can be
quickly incorporated into mine plans, driving improvements in
production and cash flow.
Our core gold business is complemented by a
substantial portfolio of copper assets, representing an additional
source of cash flow and value. Barrick has 11.2 billion pounds3 of
proven and probable copper reserves (including copper within proven
and probable gold reserves), and 11.7 billion pounds3 of measured
and indicated copper resources (including copper within measured
and indicated gold resources). Our three copper mines—Jabal Sayid
(50 percent interest), Lumwana, and Zaldivar (50 percent
interest)—are located in some of the world’s most attractive and
prospective copper districts. We continue to expect our portfolio
to produce 385-450 million pounds of copper in 2018, at a cost of
sales1 of $1.80-$2.10 per pound, and all-in sustaining costs4 of
$2.30-$2.60 per pound.
Operational Leadership
Transition
Over the past two and a half years, Richard
Williams has led the transformation of Barrick’s operating system,
delivering significant improvements in safety, environmental
management, and operating efficiency. He drove the implementation
of our decentralized operating model, underpinned by the Business
Plan Review, our Best-in-Class Optimization Processes, and Crisis
Management systems. During this period, he was also responsible for
the reinvigoration of our innovation process, the initial phases of
our digital transformation, and the start-up of our integrated
supply chain and maintenance system.
Concurrent with this, Mr. Williams has also been
leading ongoing discussions with the Government of Tanzania that
aim to resolve outstanding issues facing Acacia Mining plc. This is
a matter of strategic importance to Barrick. In order to ensure
those discussions are concluded expeditiously, Mr. Williams is
taking on a new role as the Chairman’s Executive Envoy to Tanzania,
and will focus exclusively on this challenge.
In keeping with our increased emphasis on
operational improvement and technical excellence, we are assigning
responsibility for Barrick’s Operations group to Greg Walker,
Senior Vice President, Operational and Technical Excellence. Mr.
Walker is a seasoned operational leader with 30 years of
international mining industry experience. He has a proven track
record of delivering business improvement, with an emphasis on
disciplined execution. Mr. Walker joined Barrick in 2003 and has
held a series of senior operational leadership roles in complex and
challenging environments, including General Manager of the
Bulyanhulu and Tulawaka mines in Tanzania, and Executive General
Manager of the Porgera Joint Venture in Papua New Guinea. He was
most recently Executive General Manager of the Pueblo Viejo mine in
the Dominican Republic.
PROJECTS IN EXECUTION
Turquoise Ridge Expansion, Nevada,
U.S.A. (75 percent Barrick / 25 percent Newmont)
Project Overview: Double annual production
through construction of a third shaft.
The construction of a third shaft at Turquoise
Ridge, with an estimated initial capital investment of $300-$325
million (100 percent basis) has been approved by the Company.
Combined with additional processing capacity, this is expected to
enable the mine to roughly double annual production to more than
500,000 ounces per year (100 percent basis), at an average cost of
sales1 of around $720 per ounce, and average all-in sustaining
costs2 of roughly $630 per ounce. In addition to increasing annual
production, the third shaft is expected to reduce operating costs,
boost mining productivity rates, and increase total life of mine
production by allowing for reduced cutoff grades. In January 2017,
Barrick and Newmont Mining Corporation ("Newmont") reached a new,
seven-year toll milling agreement for ore processing at Newmont’s
Twin Creeks facility, which will support the mine expansion. The
agreement increases contractual annual throughput from 730,000 tons
in 2017, to 850,000 tons in 2018 and 2019, and 1.2 million tons per
year between 2020 and 2024.
Permits for the construction of a third shaft
are in hand. Surface works and shaft sinking are expected to take
place in 2018 and 2019, followed by equipping of the shaft in 2020
and 2021, with initial production from the new shaft expected to
begin in 2022, and sustained production expected to begin 2023.
Barrick is designating Turquoise Ridge as a core
mine in recognition of the exceptional growth potential of the
operation, which will be facilitated by the construction of a third
shaft, productivity improvements, and an expansion of processing
capacity, as noted above. Located in the heart of northern
Nevada—one of the world’s premier jurisdictions for gold
mining—Turquoise Ridge has 5.9 million ounces3 of proven and
probable gold reserves (Barrick’s 75 percent share) at an average
grade of 15.56 grams per tonne—the
highest reserve grade in the Company’s operating
portfolio, and among the highest in the gold industry.
The mine added 2.1 million ounces of proven and probable gold
reserves in 2017 through drilling (Barrick’s 75 percent share), and
the deposit remains open in multiple directions, including at
depth. We are confident that Turquoise Ridge has significant
potential to add additional resources in the future, as the third
shaft opens up access to new areas of the deposit, in particular
the North zone, where 80 percent of existing proven and probable
reserves are located.
Cortez Deep South, Nevada, U.S.A.
Project Overview: Expand mining into the Deep
South area below currently permitted levels of the Cortez Hills
underground mine, bringing forward production.
The Deep South project will utilize
infrastructure which has already been approved under current plans
to expand mining in the Lower Zone of the Cortez underground mine,
including the new Rangefront twin declines and other underground
infrastructure already under construction.
Permitting for Deep South was initiated in 2016
with the submission of an amendment to the current Mine Plan of
Operations to the Bureau of Land Management, and is expected to
take approximately three to four years, including the preparation
of an Environmental Impact Statement. A record of decision is
expected in the second half of 2019, followed by two years of
construction, with initial production from Deep South in 2022.
|
|
|
|
Prefeasibility |
Feasibility (2017) |
Internal approval status |
Under
review |
Approved |
Mining method(s) |
Longhole
stoping |
Longhole
stoping |
Orebody type |
85% oxide
/ 15% refractory |
60% oxide
/ 40% refractory |
Access |
Cortez
Rangefront Declines |
Cortez
Rangefront Declines |
Ore transport |
Conveyor |
Autonomous loading with smart conveyor |
Processing |
Primarily
Cortez Leach |
60%
Cortez mill, 40% Goldstrike Roaster |
Throughput |
4,500
tonnes per day |
4,500
tonnes per day |
Estimated initial capital expenditure |
~$155
million |
~$105
million |
Average annual production |
~300,000 |
~300,000 |
Cost of sales per ounce1 |
~$840 |
~$650 |
All-in sustaining costs per ounce2 |
~$580 |
~$580 |
Estimated first production |
2022 |
2022 |
|
|
|
Goldrush, Nevada, U.S.A.
Project Overview: Development of an underground
mine at Goldrush.
Goldrush is on track to become Barrick’s newest
mining operation in the Company’s core district of Nevada. Decline
construction, detailed engineering, and permitting (Environmental
Impact Statement) are expected to take place between 2018 and 2020,
with construction and initial production expected between 2021 and
2022, and sustained production expected from 2023. 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 the conversion of
existing resources to reserves. The exploration declines are
permitted and can be converted into production declines in the
future.
Goldrush currently has proven and probable gold
reserves of 1.5 million ounces3 and measured and indicated gold
resources of 9.4 million ounces3, with significant potential to
identify additional resources once underground access to drill the
deposit is established. In addition, the company is drilling the
nearby Fourmile target, located one to three kilometers north of
the Goldrush discovery. This area is geologically similar to the
high grade Deep-Post and Deep-Star deposits in the Goldstrike area.
Early drilling has intersected mineralization well above the
average grade of the measured and indicated resources at Goldrush.
Drilling to date suggests Fourmile and Goldrush may be part of a
continuous, seven-kilometer-long mineralized system encompassing
both deposits.
|
|
|
|
Prefeasibility |
Feasibility (2017) |
Internal approval status |
Under
review |
Approved* |
Mining method(s) |
Underground |
Underground |
Orebody type |
Refractory |
Refractory |
Access |
Declines |
Declines |
Ore transport |
Trucking |
Trucking |
Processing |
Goldstrike Roaster |
Goldstrike Roaster |
Estimated initial capital expenditure |
~$1
billion |
~$1
billion |
Average annual production |
~440,000
ounces |
~500,000
ounces |
Cost of sales per ounce1 |
~$800 |
~$750 |
All-in sustaining costs per ounce2 |
~$665 |
~$640 |
Estimated first production |
2021 |
2021 |
Sustained production |
2023 |
2023 |
*Final Board
approval pending start of major construction |
|
|
BROWNFIELD EVALUATION
Lagunas Norte Mine Life Extension, La
Libertad, Peru
Project Overview: Extension of the mine life
through sequenced installation of mill, carbon-in-leach, flotation,
and autoclave processing facilities.
The first component of the project contemplates
the construction of a grinding and carbon-in-leach processing
circuit that would treat remaining carbonaceous oxide material at
Lagunas Norte. Environmental permits for these facilities are
already in hand, while construction permits are pending. We expect
to complete detailed engineering in 2018 and 2019. If approved,
construction and commissioning are anticipated to take place in
2019 and 2020, followed by initial production in 2021.
The second component of the project contemplates
the construction of a flotation and autoclave processing circuit
that would treat refractory material. If approved, detailed
engineering and environmental permitting for these facilities is
expected to take place between 2021 and 2023, with construction and
commissioning between 2024 and 2026, followed by first production
in 2027.
|
|
|
|
|
Prefeasibility |
Feasibility Part 1 (2017) |
Feasibility Part 2 (2017) |
Internal approval status |
Optimization required |
Under
review |
Under
review |
Mining method(s) |
Open
Pit |
Stockpile
rehandling |
Open
Pit |
Orebody type |
Refractory |
Carbonaceous Oxides |
Refractory |
Processing |
Mill/Carbon-in-Leach +Flotation/Autoclave |
Mill/Carbon-in-Leach |
Flotation/Autoclave |
Estimated initial capital expenditure |
~$640
million |
~$310
million |
~$405
million |
Average annual production |
~240,000
ounces |
~100,000
ounces |
~170,000 |
Estimated first production |
2021 |
2021 |
2027 |
Mine life extension |
2021-2030 |
2021-2026 |
2027-2037 |
Cost of sales per ounce1 |
~$1,080 |
~$1,015 |
~$875 |
All-in sustaining costs per ounce2 |
~$625 |
~$420 |
~$640 |
|
|
|
|
Pueblo Viejo, Sanchez Ramirez, Dominican
Republic (60 percent Barrick / 40 percent Goldcorp)
In 2017, Barrick completed an initial
scoping-level study for a plant expansion at the Pueblo Viejo mine
that would increase throughput by 50 percent to 12 million tonnes
per year, allowing the mine to maintain average annual production
of 800,000 ounces after 2022 (100 percent basis).
The project involves the addition of a
pre-oxidation heap leach pad with a capacity of eight million
tonnes per year, a new mill and flotation concentrator with a
capacity of four million tonnes per year, and additional tailings
capacity. Higher-grade ore would be processed through the mill
before moving through the flotation and autoclave circuits.
Lower-grade ore would be treated on the pre-oxidation pad before
moving through the mill and autoclave circuits.
This project has the potential to convert
roughly seven million ounces3 of measured and indicated resources
to proven and probable reserves (100 percent basis). Prefeasibility
level studies have now been initiated, along with the construction
of on-site proof of concept facilities for pre-oxidation and
flotation.
Robertson Property, Nevada,
U.S.A.
In June 2017, Barrick completed the acquisition
of the Robertson property and other claims in Nevada from Coral
Gold Resources. The Robertson property is adjacent to Cortez,
located just six kilometers north of the Pipeline mill. If
successfully brought into production, material from the project
would provide an additional feed for the Cortez mill, with the
potential to extend open pit operations in the Cortez District.
Robertson also has processing synergies with the Deep South
underground expansion project at Cortez. In addition, the land
package contains a number of promising near-mine exploration
opportunities, as well potential new exploration targets in this
highly prospective and prolific district.
LONG-TERM OPTIONALITY IN GREENFIELD
PROJECTS
Donlin Gold, Alaska, U.S.A. (50 percent
Barrick / 50 percent NOVAGOLD)Donlin Gold, located in
Alaska, contains 19.5 million ounces3 of measured and indicated
gold resources (Barrick’s 50 percent share). The project
represents one of the world’s largest undeveloped gold deposits, at
an advanced stage of permitting in a stable jurisdiction,
underscoring its unique potential. We continue to work in
collaboration with our partners at NOVAGOLD to optimize the
project, including the potential for staged development, while
reducing upfront capital and mitigating development risk. In
support of this process, we completed a drill program of 7,040
meters in 2017 designed to further strengthen our understanding of
target mineralized zones. Initial drilling results are
encouraging and will form part of an overall geological review.
|
2017 drilling campaign: Top five drill
intercepts5 |
DC17-1821 |
130.5
meters grading 5.93 g/t gold, starting at 205 meters depth |
DC17-1821 |
39.0
meters grading 9.34 g/t gold, starting at 342 meters depth |
DC17-1827 |
43.85
meters grading 7.60 g/t gold, starting at 453.15 meters depth |
DC17-1832 |
64.0
meters grading 5.09 g/t gold, starting at 547 meters depth |
DC17-1824 |
30.43
meters grading 10.30 g/t gold, starting at 208.57 meters depth |
|
|
Permitting for the project remains underway. We
expect the final Environmental Impact Statement to be published by
the U.S. Army Corps of Engineers in early 2018, with a Record of
Decision expected in the second half of the year.
Norte Abierto, Atacama Region, Chile (50
percent Barrick / 50 percent Goldcorp)Norte Abierto, our
new joint venture with Goldcorp in Chile, contains 11.6 million
ounces3 of proven and probable gold reserves, and 13.3 million
ounces3 of measured and indicated gold resources (Barrick’s 50
percent share). The joint venture is now advancing an optimized
project design, including an updated geological model for the Cerro
Casale, Caspiche, and Luciano deposits. Work in 2018 will include
trade-off and engineering studies on power, water, mining methods,
and metallurgy, as well as ongoing stakeholder engagement and
environmental baseline monitoring.
Pascua-Lama, San Juan Province,
Argentina / Atacama Region, ChilePascua-Lama, located on
the border between Argentina and Chile, contains 21.3 million
ounces3 of measured and indicated gold resources. We continue to
evaluate a block cave underground operation at Pascua-Lama with an
initial processing capacity of 13,000-15,000 tonnes per day, with
the potential to expand to 30,000 tonnes per day in the future. The
project would utilize the existing process plant and tailings
facility on the Argentinean side of the border, construction of
which is already well advanced. A switch to underground mining
addresses a number of community concerns by significantly reducing
the overall environmental footprint of the project, as compared to
an open pit operation.
We initiated a targeted drill program in
November 2017 to improve ore body knowledge on the Argentinean side
of the deposit, where further data was required to validate
underground development plans and metallurgy. Ten of 12 holes have
been completed thus far.
At present, the Pascua-Lama project does not
meet Barrick’s investment criteria. Our intention is to seek a
partner for Pascua-Lama, allowing us to share capital costs and
technical expertise, thereby reducing risk. We have formed a
working group with Shandong Gold to study a potential partnership.
Preparations for permitting an underground operation are underway
in Argentina and Chile, including closure of existing surface
facilities in Chile.
Alturas, Coquimbo Region,
ChileThe Alturas project, located in Chile on the El Indio
Belt, is a Barrick greenfield discovery with 6.8 million ounces3 of
inferred gold resources as of December 31, 2017. In 2017, we
completed a scoping-level study for a conventional open pit heap
leach operation at Alturas which fell just short of the Company’s
hurdle rate. In support of project optimization efforts, we are now
undertaking additional drilling focused on increasing grades,
adding and better-defining shallow near surface mineralization, and
increasing potential mine resource tonnage.
QUALIFIED PERSONS
The following qualified persons, as that term is
defined in National Instrument 43-101 – Standards of Disclosure for
Mineral Projects, have prepared or supervised the preparation of
their relevant portions of the technical information described in
this press release:
- Patrick Garretson, Registered Member SME, Senior Director, Life
of Mine Planning of Barrick
- Steven Haggarty, P.Eng., Senior Director, Metallurgy of
Barrick
- Robert Krcmarov, FAusIMM, Executive Vice President, Exploration
and Growth of Barrick
- Rick Sims, Registered Member SME, Vice President, Resources and
Reserves of Barrick
INVESTOR CONTACTDeni
NicoskiSenior Vice PresidentInvestor RelationsTelephone:
+1 416 307-7474Email: dnicoski@barrick.com
MEDIA CONTACTAndy
Lloyd Senior Vice PresidentCommunicationsTelephone: +1 416
307-7414Email: alloyd@barrick.com
ENDNOTE 1
Cost of sales related to gold per ounce is
calculated using cost of sales related to gold on an attributable
basis (removing the non-controlling interest of 40% Pueblo Viejo
and 36.1% Acacia from cost of sales), divided by attributable gold
ounces. Cost of sales related to copper per pound is calculated
using cost of sales related to copper including our proportionate
share of cost of sales attributable to equity method investments
(Zaldívar and Jabal Sayid), divided by consolidated copper pounds
(including our proportionate share of copper pounds from our equity
method investments).
ENDNOTE 2
“All-in sustaining costs” per ounce is a
non-GAAP financial performance measures. “All-in sustaining costs”
per ounce begin with “Cash costs” per ounce and adds further costs
which reflect the additional costs of operating a mine, primarily
sustaining capital expenditures, general & administrative
costs, minesite exploration and evaluation costs, and reclamation
cost accretion and amortization. Barrick believes that the use of
“all-in sustaining costs” per ounce will assist investors, analysts
and other stakeholders in understanding the costs associated with
producing gold, understanding the economics of gold mining,
assessing our operating performance and also our ability to
generate free cash flow from current operations and to generate
free cash flow on an overall Company basis. “All-in sustaining
costs” per ounce is intended to provide additional information
only, and does not have any standardized meaning under IFRS.
Although a standardized definition of all-in sustaining costs was
published in 2013 by the World Gold Council (a market development
organization for the gold industry comprised of and funded by 23
gold mining companies from around the world, including Barrick), it
is not a regulatory organization, and other companies may calculate
this measure differently. This measure should not be considered in
isolation or as a substitute for measures prepared in accordance
with IFRS. Further details on these non-GAAP measures are provided
in the MD&A accompanying Barrick’s financial statements filed
from time to time on SEDAR at www.sedar.com and on EDGAR at
www.sec.gov.
ENDNOTE 3
Estimated in accordance with National Instrument
43-101 as required by Canadian securities regulatory authorities.
Estimates are as of December 31, 2017, unless otherwise noted.
Proven reserves of 170.7 million tonnes grading 0.556%,
representing 2.095 billion pounds of copper. Probable reserves of
456.7 million tonnes grading 0.592%, representing 5.956 billion
pounds of copper. Measured resources of 90.9 million tonnes grading
0.401%, representing 803.1 million pounds of copper. Indicated
resources of 581.2 million tonnes grading 0.506%, representing
6.484 billion pounds of copper. Turquoise Ridge proven reserves of
7.2 million tonnes grading 15.61 g/t, representing 3.6 million
ounces of gold, and probable reserves of 4.7 million tonnes grading
15.48 g/t, representing 2.3 million ounces of gold. Pueblo Viejo
measured resources of 7.8 million tonnes grading 2.39 g/t (60%
basis), representing 598,000 ounces of gold, and indicated
resources of 94 million tonnes, grading 2.47 g/t (60% basis),
representing 7.5 million ounces of gold. Donlin Gold measured
resources of 3.9 million tonnes grading 2.52 g/t (50% basis),
representing 0.3 million ounces of gold (50% basis), and indicated
resources of 266.8 million tonnes grading 2.24 g/t (50% basis),
representing 19.2 million ounces of gold (50% basis). Norte Abierto
(formerly known as the Cerro Casale project, comprised of the Cerro
Casale, Caspiche and Luciano deposits) proven reserves of 114.9
million tonnes grading 0.65 g/t (50% basis) representing 2.4
million ounces of gold (50% basis), and probable reserves of 484.0
million tonnes grading 0.59 g/t (50% basis), representing 9.2
million ounces of gold (50% basis). Norte Abierto (Caspiche)
measured resources of 310.1 million tonnes grading 0.57 g/t (50%
basis) representing 5.7 million ounces of gold (50% basis),
indicated resources of 391.8 million tonnes grading 0.47 g/t (50%
basis) representing 6.0 million ounces of gold (50% basis), and
inferred resources of 99.1 million tonnes grading 0.29 g/t (50%
basis) representing 0.9 million ounces of gold (50% basis). Norte
Abierto (Cerro Casale) measured resources of 11.5 million tonnes
grading 0.30 g/t (50% basis) representing 0.1 million ounces of
gold (50% basis), indicated resources of 136.8 million tonnes
grading 0.36 g/t (50% basis) representing 1.6 million ounces of
gold (50% basis), and inferred resources of 247.7 million tonnes
grading 0.38 g/t (50% basis) representing 3.0 million ounces of
gold (50% basis). Pascua-Lama measured resources of 42.8 million
tonnes grading 1.86 g/t representing 2.6 million ounces of gold,
and indicated resources of 391.7 million tonnes grading 1.49 g/t,
representing 18.8 million ounces of gold. Alturas inferred
resources of 211 million tonnes grading 1.0 g/t, representing 6.8
million ounces of gold. Goldrush probable reserves of 5.7 million
tonnes grading 8.12 g/t, representing 1.5 million ounces of gold.
Goldrush measured resources of 140,000 tonnes grading 10.44 g/t,
representing 47,000 ounces of gold, and indicated resources 31.4
million tonnes grading 9.27 g/t, representing 9.4 million ounces of
gold. Complete mineral reserve and mineral resource data for all
mines and projects referenced in this press release, including
tonnes, grades, and ounces, can be found on pages 87-92 of
Barrick’s Fourth Quarter and Year-End 2017 Report.
ENDNOTE 4
“All-in sustaining costs” per pound is a
non-GAAP financial performance measures. “All-in sustaining costs”
per pound begins with “C1 cash costs” per pound and adds further
costs which reflect the additional costs of operating a mine,
primarily sustaining capital expenditures, general &
administrative costs and royalties. Barrick believes that the use
of “all-in sustaining costs” per pound will assist investors,
analysts, and other stakeholders in understanding the costs
associated with producing copper, understanding the economics of
copper mining, assessing our operating performance, and also our
ability to generate free cash flow from current operations and to
generate free cash flow on an overall Company basis. “All-in
sustaining costs” per pound is intended to provide additional
information only, does not have any standardized meaning under
IFRS, and may not be comparable to similar measures of performance
presented by other companies. This measure should not be considered
in isolation or as a substitute for measures of performance
prepared in accordance with IFRS. Further details on these non-GAAP
measures are provided in the MD&A accompanying Barrick’s
financial statements filed from time to time on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov.
ENDNOTE 5
|
Core Drill Hole |
Hole Azimuth (°) |
Hole Dip (°) |
Interval (from m) |
Interval (to m) |
Length (m) |
Au (g/t) |
DC17-1821 |
254 |
-64 |
205.0 |
335.5 |
130.5 |
5.93 |
DC17-1821 |
254 |
-64 |
342.0 |
381.0 |
39.0 |
9.34 |
DC17-1827 |
244 |
-45 |
453.2 |
497.0 |
43.9 |
7.60 |
DC17-1832 |
237 |
-56 |
547.0 |
611.0 |
64.0 |
5.09 |
DC17-1824 |
25 |
-84 |
208.6 |
239.0 |
30.4 |
10.30 |
|
|
|
|
|
|
|
Significant intervals represent drilled
intervals and not necessarily true thickness of mineralization.
Mineralized intervals meet or exceed 3 meters in length above 1
g/t. A maximum of 4 meters of continuous dilution (< 1 g/t) is
permitted. This is not an all-inclusive list of significant
intervals from the 2017 Donlin Gold drill program. The Quality
Assurance/Quality Control procedures for the 2017 Donlin Gold drill
program and sampling protocol were developed and managed by Donlin
Gold and overseen by NOVAGOLD and Barrick. The chain of custody
from the drill site to the sample preparation facility was
continuously monitored. All samples are HQ-diameter core, with the
exception of the last 165 meters of hole DC17-1833, which was
reduced to NQ-diameter. Approximately 95% core recovery was
achieved. Core was logged at site and transported to ALS Limited’s
Fairbanks, Alaska sample preparation facilities. At the ALS
Fairbanks facility, core was cut by ALS employees and sampled by
Northern Associates, Inc., which was contracted by Donlin Gold.
Samples were primarily collected on two-meter lengths, with a
minimum length of 0.5 meters and maximum length of three meters.
Sampled half-core was crushed in the Fairbanks ALS facility and
pulverized in either Fairbanks or the ALS lab in Reno, Nevada. Pulp
samples were sent to the ALS labs in Reno or Vancouver, British
Columbia for gold assays and multi-element analysis. At least nine
quality control samples (three blanks, three standards, and three
field duplicates) were inserted into each batch of 69 samples. The
review of the quality control samples did not indicate any bias or
error.
CAUTIONARY STATEMENT ON FORWARD-LOOKING
INFORMATION
Certain information contained or incorporated by
reference in this press release, including any information as to
our strategy, projects, plans or future financial or operating
performance constitutes “forward-looking statements”. All
statements, other than statements of historical fact, are
forward-looking statements. The words “believe”, “expect”,
“anticipate”, “contemplate”, “target”, “plan”, “objective”, “aim”,
“intend”, “project”, “goal”, “continue”, “budget”, “estimate”,
“potential”, “may”, “will”, “can”, “could” and similar expressions
identify forward-looking statements. In particular, this press
release contains forward-looking statements including, without
limitation, with respect to: (i) Barrick's forward-looking
production guidance; (ii) estimates of future cost of sales per
ounce for gold and per pound for copper, all-in-sustaining costs
per ounce/pound, cash costs per ounce, and C1 cash costs per pound;
(iii) cash flow forecasts; (iv) the ability of feasibility-level
projects to contribute to Barrick’s annual production beginning in
2020; (v) the long-term optionality to Barrick’s production base
case from Alturas, Donlin Gold, Norte Abierto and Pascua-Lama; (vi)
the ability of the Robertson property to provide additional feed
for the Cortez mill; (vii) the ability of investments in
infrastructure and mine exploration drilling to strengthen the
quality of Barrick’s production profile; (viii) the potential
impacts of capital, infrastructure and operational improvements and
investments; (ix) mine life and production rates; (x) potential
mineralization and metal or mineral recoveries; (xi) Barrick’s
ability to add additional resources and to convert existing
resources into reserves; (xii) the timing of receipt of permits and
other approvals; (xiii) our ongoing exploration efforts; (xiv) the
expected timing of further studies, including prefeasibility
studies.
Forward-looking statements are necessarily based
upon a number of estimates and assumptions including material
estimates and assumptions related to the factors set forth below
that, while considered reasonable by the Company as at the date of
this press release in light of management’s experience and
perception of current conditions and expected developments, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements and undue reliance
should not be placed on such statements and information. Such
factors include, but are not limited to: fluctuations in the spot
and forward price of gold, copper or certain other commodities
(such as silver, diesel fuel, natural gas and electricity); the
speculative nature of mineral exploration and development; changes
in mineral production performance, exploitation and exploration
successes; risks associated with the fact that certain
Best-in-Class initiatives are still in the early stages of
evaluation, and additional engineering and other analysis is
required to fully assess their impact; risks associated with the
ongoing implementation of Barrick’s digital transformation
initiative, and the ability of the projects under this initiative
to meet the Company’s capital allocation objectives; diminishing
quantities or grades of reserves; increased costs, delays,
suspensions and technical challenges associated with the
construction of capital projects; operating or technical
difficulties in connection with mining or development activities,
including geotechnical challenges and disruptions in the
maintenance or provision of required infrastructure and information
technology systems; failure to comply with environmental and health
and safety laws and regulations; timing of receipt of, or failure
to comply with, necessary permits and approvals; uncertainty
whether some or all of the Best-in-Class initiatives, targeted
investments and projects will meet the Company’s capital allocation
objectives and internal hurdle rate; the impact of global liquidity
and credit availability on the timing of cash flows and the values
of assets and liabilities based on projected future cash flows;
adverse changes in our credit ratings; the impact of inflation;
fluctuations in the currency markets; changes in U.S. dollar
interest rates; changes in national and local government
legislation, taxation, controls or regulations and/or changes in
the administration of laws, policies and practices, expropriation
or nationalization of property and political or economic
developments in Canada, the United States and other jurisdictions
in which the Company or its affiliates do or may carry on business
in the future; lack of certainty with respect to foreign legal
systems, corruption and other factors that are inconsistent with
the rule of law; the outcome of the appeal of the decision of
Chile’s Superintendencia del Medio Ambiente; damage to the
Company’s reputation due to the actual or perceived occurrence of
any number of events, including negative publicity with respect to
the Company’s handling of environmental matters or dealings with
community groups, whether true or not; the possibility that future
exploration results will not be consistent with the Company’s
expectations; risks that exploration data may be incomplete and
considerable additional work may be required to complete further
evaluation, including but not limited to drilling, engineering and
socioeconomic studies and investment; risk of loss due to acts of
war, terrorism, sabotage and civil disturbances; litigation;
contests over title to properties, particularly title to
undeveloped properties, or over access to water, power and other
required infrastructure; risks associated with the fact that
certain of the initiatives described in this press release are
still in the early stages and may not materialize; risks associated
with working with partners in jointly controlled assets; employee
relations including loss of key employees; increased costs and
physical risks, including extreme weather events and resource
shortages, related to climate change; and availability and
increased costs associated with mining inputs and labor. In
addition, there are risks and hazards associated with the business
of mineral exploration, development and mining, including
environmental hazards, industrial accidents, unusual or unexpected
formations, pressures, cave-ins, flooding and gold bullion or gold
concentrate losses (and the risk of inadequate insurance, or
inability to obtain insurance, to cover these risks).
Many of these uncertainties and contingencies
can affect our actual results and could cause actual results to
differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, us.
Viewers are cautioned that forward-looking statements are not
guarantees of future performance. All of the forward-looking
statements made in this press release are qualified by these
cautionary statements. Specific reference is made to the most
recent Form 40-F/Annual Information Form on file with the SEC and
Canadian provincial securities regulatory authorities for a more
detailed discussion of some of the factors underlying
forward-looking statements and the risks that may affect Barrick’s
ability to achieve the expectations set forth in the
forward-looking statements contained in this press
release.
Barrick disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise, except as required
by applicable law.
Photos accompanying this announcement are available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/e111671f-4b00-429f-b51e-e436745f65c6
http://www.globenewswire.com/NewsRoom/AttachmentNg/96a514b2-e304-4f24-84ac-5461ac7aa718
http://www.globenewswire.com/NewsRoom/AttachmentNg/35c2a038-a13d-49a9-ba2e-0abff83f06c2
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