The life of the Veladero gold mine in Argentina has been extended
to at least 10 years following a comprehensive review of its
strategy and business plan, Barrick president and chief executive
officer Mark Bristow said today.
Bristow was briefing an Argentinian audience of
local media, government authorities and local business and
community leaders on the mine’s progress from Barrick’s offices in
Chile, via a video conference to comply with the Covid-19 related
travel restrictions imposed by Argentina.
“Our review included the reinterpretation of the
mine’s geology and an ongoing infill drilling campaign. We
established exploration and resource management teams to identify
satellite orebodies with the potential to deliver an increase in
resources and reserves. Our aim is to extend Veladero’s life of
mine beyond 2030 and elevate it to a Tier One asset,” he said.
Barrick defines a Tier One mine as one that produces in excess of
500,000 ounces of gold per annum and has a life of at least 10
years.
Bristow said the next step in Veladero’s
transformation would be to connect the mine to cleaner, cheaper
power from the grid in neighboring Chile. Once commissioned in the
second half of this year, this could halve the mine’s carbon
footprint and potentially reduce its cut-off grade, creating an
opportunity to further increase the mineable reserves.
Projects related to revitalizing Veladero, such as
the leach pad expansion, have created new employment opportunities,
with the number of direct employees and contractors rising by 1,400
to almost 5,000 since January 2019, and the number of local
suppliers increasing almost threefold1. In line with Barrick’s
local employment policy, 99% of Barrick’s workforce are
Argentinian.
Since 2005 Veladero has contributed some $9.5
billion to the Argentinian economy through taxes, royalties,
salaries and payments to local suppliers. The mine has established
a new community fund which, depending on production, is expected to
generate more than $88 million for local infrastructure development
over the next decade.
“Argentina has the potential to rebuild its economy
for its people and Veladero can make a significant contribution to
that process. Realizing that potential requires the government and
the industry to work together towards long-term goals and to guard
against short-term fiscal measures which could destroy this
opportunity,” Bristow said.
Enquiries:
Mark BristowPresident and CEO+1 647 205 7694+44
788 071 1386
Mark HillChief Operating Officer LATAM and Asia
Pacific+1 416 307 7429+1 416 358 4667
Marcelo AlvarezDirector EjecutivoArgentina &
Chile+54 11 3188 9957
Kathy du PlessisInvestor and Media Relations+44
20 7557 7738Email: barrick@dpapr.com
Website: www.barrick.com
Endnote 1
The number of local suppliers participating in
Veladero’s supply chain tendering processes has increased by 279%,
as reported by the San Juan Chamber of Mining Services.
Cautionary Statement on Forward-Looking
Information
Certain information contained in this news release, including
any information as to Barrick’s strategy, plans, or future
operating or environmental performance, constitutes
“forward-looking statements”. All statements, other than statements
of historical fact, are forward-looking statements. The words
“extension”, ”future”, “will”, “benefits”, “proposed”, “would”,
“potential”, “plan”, “estimated” and similar expressions identify
forward-looking statements. In particular, this news release
contains forward-looking statements including, without limitation,
with respect to expected benefits of the extension of Veladero’s
life of mine to 2030 and other potential benefits including green
power from Chile and the creation of new jobs generating benefits
for the Argentine economy.
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 news
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 projects in the early stages of evaluation,
and for which additional engineering and other analysis is required
to fully assess their impact; 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
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; 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 Argentina, 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; 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 and
legal and administrative proceedings; contests over title to
properties, particularly title to undeveloped properties, or over
access to water, power and other required infrastructure; business
opportunities that may be presented to, or pursued by, the Company;
our ability to successfully integrate acquisitions or complete
divestitures; 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;
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, copper
cathode or gold or copper 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. Readers are cautioned that
forward-looking statements are not guarantees of future
performance. All of the forward-looking statements made in this
news 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 news
release.
The Company 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.
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