Barrick Gold CEO sets out plans for LatAm

Barrick Gold CEO Mark Bristow outlined ambitions to lever further value from Latin American assets through a string of optimization and exploration projects.

The company is seeking to extend the life of existing operations while exploring early-stage projects across a number of Latin American jurisdictions, Bristow told the firm's Q2 earnings call.

Barrick ranks among the region’s top gold producers, with the Pueblo Viejo mine in the Dominican Republic, a 60:40 JV with Newmont, and Veladero in Argentina, a 50:50 JV with Shandong Gold.

The company also has the Zaldívar primary copper mine in Chile, a 50:50 JV with Antofagasta.

DOMINICAN REPUBLIC

In the Dominican Republic, the company is advancing its US$1.30bn Pueblo Viejo expansion project, which will extend operations at the region's biggest gold mine into the 2040s.

While a processing plant expansion is on track to be concluded by end-2022, the company has run into local opposition over the proposed siting of a new tailings facility, a key element of the expansion.

In an effort to break the deadlock, Barrick has agreed to an independent, government-led impact assessment on the planned facility, which Bristow said is a big step forward in negotiations, which had been hampered by violent protests earlier in the year.

However, he said there could be some delays.

“Despite the progress that is being made with the expansion project, including our ongoing engagement with local stakeholders to ensure we maintain our social license, there have been some delays to the project timeline,” the CEO told the Q2 call.

“There is, however, a cushion built into our plans, and we need the new storage facility complete and operating by 1Q26.”

The Dominican Republic government has already shortlisted five companies to run the study, the CEO said, which will focus on two options for the tailings facility location put forward by Barrick and the process the company used to select the preferred sites.

The study will be advanced in parallel with Barrick’s own third-party studies, he added.

In addition, the company is continuing exploration work on the Zambrana target, with work to date defining a 1.5km-long target with strongly mineralized rock and soil samples within the mine lease area, the CEO added.

“The target extends beyond the lease boundary, where Barrick owns rights through a JV, and we will drill it out once the necessary drill permitting process has been completed,” he said.

ARGENTINA, CHILE

In Argentina, Barrick commissioned the phase 6 heap leach expansion at the Veladero mine on time in Q2, which has supported higher than forecast production, which is expected to further grow in H2, Bristow told the call.

While the key exploration focus in Argentina is on extending the life of Veladero, the company is also looking at new opportunities located between the mine and the Lama asset, the Argentine element of Barrick’s US$8.5bn Pascua-Lama gold project.

Drilling in this district has confirmed a gold-copper mineralized system between Lama and the Penelope porphyry target near Veladero, the CEO said.

“This is part of a portfolio of identified and very prospective targets which will be the focus of future work, and there is clearly a significant exploration upside in this district,” Bristow told the call.

“In fact we are planning, as we come out of winter, to be able to mobilize a total of around 12 drill rigs in this region,” he added.

Barrick is also about to start exploring the Southern El Indio Belt in Chile.

“We expect to start drilling in the district this quarter now that we have completed the initial phase of mapping, evaluating and prioritizing various targets,” Bristow said.

GUYANA

Barrick has also recently entered into the Guyana Shield as part of a strategy to expand the company’s exploration frontiers, Bristow told the call.

“We have already moved from generative work to consolidating a meaningful land package through a number of exploration earn-in transactions in this country,” he said.

This work will focus initially on the Makapa project, which covers a large part of the prospective Karouni basin, and which bears geological similarities to Barrick’s West African projects.

“We will be applying that expertise as we start to explore in that region,” Bristow said.

Q2 EARNINGS

Barrick produced 1.04Moz gold in Q2, down from 1.15Moz in the same quarter of last year, with copper output falling to 96Mlb (43,500t) from 120Mlb.

Net earnings were US$411mn, up from US$357mn, mainly due to higher gold prices.

All-in sustaining costs were US$1,087/oz, up from US$1,031/oz.