NGM Complex Expected To Grow Annual Production To 3.7 Million Ounces

LONDON - Barrick Gold Corporation reported improved production at lower costs and confirmed its long term growth forecast. This was an improvement on the previous quarter’s and Q4 is expected to be better. Despite the projected second half improvement, gold production is forecast to be marginally below the low end of annual guidance range. Copper is comfortably on track to meet its guidance for production and costs. Gold production in Q3 was higher than Q2 driven by improved performances at Cortez, Turquoise Ridge and Kibali.

As previously disclosed, the ramp up at Pueblo Viejo is slower than planned. Barrick is engaged with original equipment suppliers to develop permanent solutions for their equipment failures. The 2024 Pueblo Viejo production forecast still exceeds 800,000 ounces (100% basis). The company also confirmed that the Notice of Availability for the Final Environmental Impact Statement for Goldrush has been published.

Barrick’s other key growth projects—the development of the Reko Diq copper and gold mine in Pakistan, and the expansion of the Lumwana copper mine in Zambia—are making steady progress. Construction of Reko Diq is scheduled to start in 2025 targeting first production in 2028, and Lumwana’s expansion is scheduled on the same timetable. Reko Diq will rank among the world’s top 10 copper producers when it reaches full production, while the expanded Lumwana mine is forecast to produce at an annual production rate of 240,000 tonnes of contained copper. Strong drill results at Nevada Gold Mines support the three-year resource and replacement plan and, brownfields exploration is highlighting the potential in the Africa and Middle East region, along with the exploration portfolios of South, Central and North America are being expanded. The Turquoise Ridge has increased production by 14% year on year against the same period in 2022, despite a planned shutdown, on the back of improved throughput and recovery at the Sage autoclave and a better underground performance. The mine is now well on track to achieve its annual guidance.

Nevada Gold Mines (NGM), Managing Directory, Peter Richardson, said, “A new and rejuvenated leadership team had implemented a move from reactive to planned maintenance, achieving a substantial improvement in maintenance compliance. The stabilization of the carbon-in-leach circuit has delivered a 6% improvement in the recovery rate year on year. The now fully operational third shaft has increased the mine’s hoisting capacity, shortened hauling distances and provided additional ventilation. These improvements will increase production and significantly reduce mining unit costs. The lessons learned from the Turquoise Ridge performance achievements will be applied across the Nevada mines. A similar maintenance intervention is already under way at Carlin’s process facilities, with the first focus on the Goldstrike autoclave.”

The feasibility study update for the Reko Diq project, which hosts the copper-gold deposit in Pakistan’s Balochistan province, continues to make good progress towards its scheduled completion by the end of next year. During the past quarter there was a strong focus on delineating water supply for the mine from surrounding aquifers. A seismic survey of aquifers in the surrounding area has indicated significant potential for aquifer water to meet the immediate water supply needs of the mine. Drilling has commenced to confirm the potential of these aquifers to meet the long-term water supply needs of the mine. Reko Diq also is working with Fleet Space Technologies, whose passive seismic geodes are purpose-built to perform in extreme conditions, to map the basin geometry of the groundwater systems.

An investigation of the region’s existing rail network has shown there are no capacity problems on the rail lines planned to be used by the mine during operation. The rail option is an efficient, environmentally friendly, and cost-effective way to transport copper concentrate from the mine to the port in Qasim and consumables and equipment back to the mine. Port Gwadar, in Balochistan, is being studied in parallel with Qasim and is expected to be used in the future once required infrastructure is developed by the Government of Pakistan to connect this port and the Government completes necessary port improvements.

Last quarter Barrick launched its International Graduate Program in Pakistan, designed to cultivate a cadre of future experts and leaders for the country’s fledgling mining industry. Nine young graduates—four of them women—have been selected through a merit-driven process in Balochistan. Their disciplines are electrical engineering, civil engineering, renewable energy and geology. Barrick is also working with other partners to develop vocational and technical training centres to ensure that as the project ramps up, people from the surrounding area will be equipped to participate. Reko Diq’s workforce, which will number more than 4,500 when the mine is fully operational, will be assembled, with priority given to Balochistan locals and Pakistan nationals. Currently the project workforce comprises 120 people with 70% from Balochistan.

In line with its commitment to sharing Reko Diq’s benefits with the people of Balochistan from an early stage, Barrick has already commissioned three primary schools and supplied them with qualified teachers and educational material. The schools have introduced young people, about half of them girls, to formal education. Similarly, it has partnered with the Indus Hospital and Healthcare Network (IHHN) to establish a community health centre in Reko Diq’s nearest neighbouring village. IHHN has donated a state-of-the-art mobile clinic, operationally funded by Reko Diq, to serve the community while the Reko Diq funded Indus hospital is being set up.

Governor General Sir Bob Dabae has granted a special mining lease to New Porgera Limited (NPL), clearing the way for Barrick to restart production at the gold mine, which has been on care and maintenance for three years. This follows the signing of a mining development contract and the conclusion of a fiscal stability agreement for New Porgera between the government and NPL. NPL has commenced engagement with the mine property’s landowners to settle compensation agreements. Subject to agreement on compensation, the mine was positioned to restart before the end of this year. Recruitment was being accelerated to employ the full workforce that will be required when the mine starts ramping up operations as soon as the compensation agreements are in place.

The Loulo-Gounkoto complex is set to maintain its status as one of the world’s top 10 gold producers as it stays on track to meet this year’s guidance and continues to grow reserves above annual mining depletion. Barrick has developed a previously non-existent mining skills base in the region and Loulo-Gounkoto’s entire management team are citizens of Mali. “Mali was the birthplace of Barrick’s philosophy of genuine partnerships with its host governments. Close relationships can over time be stressed by misconceptions but in the past we have always been able to find solutions through open and transparent dialogue. Mutually acceptable solutions can be achieved if there is a genuine commitment to seek outcomes that deliver real and long-term value for Mali and its people.

Exploration teams continue to find new growth opportunities in the very prospective Loulo-Gounkoto region. Updated geological models have already identified new high-priority targets with the potential of delivering the next generation of major discoveries.

The planned third-quarter ramp-up at Kibali, Africa’s largest gold mine, has positioned it strongly to achieve its production guidance for the year, maintaining Barrick’s track record of delivery in the Democratic Republic of Congo. It was also well on its way to again replace the ounces mined during the year, with positive results from both KCD underground and Mengu Hill cut-back and good progress with the development of the KCD 11000 lode decline expected to yield further resource to reserve conversions. Kibali derives most of its energy needs from its three hydropower stations with plans for a 16MW solar farm with a battery energy storage system to augment the hydropower supply during the dry season well under way. Following completion of this project, the mine will run entirely on renewable energy for six months of the year reducing its greenhouse gas emissions by 19.7kt CO2e annually.

Barrick’s Twiga partnership with the government, which equally shares the economic benefits generated by the North Mara and Bulyanhulu mines, is also proving the country’s investability to other international mining companies. Since taking over the two moribund mines in 2019, Barrick has transformed them into a world-class gold mining complex making a substantial contribution to the company’s bottom line. In that time, it has contributed more than $3 billion to the Tanzanian economy, with Twiga this year recognized as the largest dividend payer of all the companies in which the government has an interest. The mines spent 84% of their procurement budgets with local companies, and Tanzanian citizens account for 96% of their workforce. Barrick has begun work with a $30 million investment in improving the country’s education facilities, and we are finalizing the details for a further $40 million roadbuilding program.

Both mines are well on track to achieve their production guidance for 2023 as well as to replace reserves depleted by mining. In the meantime, exploration across Barrick’s licence areas has highlighted new development opportunities across these areas, including a potential new underground mine at North Mara.

The company has continued the transformation of its Lumwana mine into a world-class producer which will revive the country’s copper industry. The expansion project is designed to increase Lumwana’s annual production to an estimated 240,000 tonnes of copper from a 50 million tonne per annum process plant over a 36-year life of mine, elevating this once-unprofitable operation into the front rank of copper producers. The project’s accelerated work program is targeting completion of the full feasibility study by the end of 2024, bringing expected expanded process plant production forward to 2028. With Lumwana’s current performance, it is on track to deliver the production guidance for 2023 and ramping up mining with both the reopening of the Malundwe pit as well as delivery of the new owner mining pre-stripping fleet.

The wholly-owned Fourmile project is a best-in-class development project located in the world’s most prolific gold district adjacent to existing infrastructure, with ongoing drilling demonstrating significant potential to increase in grade and size. Barrick is assessing options for independent exploration decline access in support of a pre-feasibility study, which would later be re-utilised for development and production complementing the current Goldrush development. The results of preliminary economic assessment indicate that this could support a potential production profile of 300,000-400,000 ounces per annum, over and above the existing Cortez profile.

Nevada Gold Mines complex is expected to grow its annual production to 3.7 million ounces (100% basis) towards the end of the decade driven by three Tier One assets and near-mine exploration pointed to the extension of that horizon to 15 years and beyond. In the Carlin District, the current 10-year production profile is expected to be between 1.4-1.6 million ounces per year (100% basis), and has identified an exciting potential high-grade opportunity at Horsham, on the northeast side of the known high-grade controlling structures in the Leeville Complex, that will advance over the next few years, and is expected to extend this profile well past the 10-year window.

The Turquoise Ridge is expected to build on the already significant reserves and resources base with multi-million ounce potential growth opportunities at Cricket Corridor to the east, BBT Corridor to the south, and Getchell Fault zone to the west. This will potentially further add to the existing 10-year production profile of 550,000-750,000 ounces per year (100% basis).2

The Pueblo Viejo expansion project is transforming a Tier One mine headed for closure into a long-life, low-cost producer. While in Papua New Guinea, Barrick is working towards the restart of Porgera by the end of this year, and restarted drilling will target the resource definition of the Wangima Pit, with similar geology to the existing underground and open pit, which has the potential to underpin an approximately 20 year mine life.

The Africa and Middle East region, is the most consistent production and reserve replacement performer, now also presents Barrick with the exciting growth opportunities as it leverages the partnership model in Tanzania and Saudi Arabia.