DD:
Pangea has a good map of where its properties are in Tanzania in its 1998 Annual Report to stockholders. I don't know where Barrick is on other properties but Golden Ridge is the only Pangea property in Tanzania currently JV'd with Barrick. Golden Ridge is 18 miles southeast of Barrick's (formerly Sutton) Bulyanhulu property. Barrick has started construction of the mill at Bulyanhulu and it is expected to start opertations in late 2000. IMO this will make the Golden Ridge property very attractive to Barrick. The ore can easily be trucked to their mill at Bulyanhulu, thereby keeping their production costs at Golden Ridge very, very low. The mineralized ore is not deep; it will be easy to dig, and the only other costs are transportation cost since Barrick already has the processing mill at Bulyanhulu. I've been told that Barrick is building that mill in a manner that will allow it to be easily expanded to handle more ore than will be mined from Barrick's Bulyanhulu property.
Bulyanhulu South is 100% owned by Pangea and is adjacent to Barrick's Bulyanhulu property. On Pangea's map, it's right next to it. Gold mineralization has been found their and it is located along the strike of Barrick's (Sutton's) Bulyanhulu find of 8.8 million ozs (so far). Since it is right next door and along the same strike, one can assume there is gold there. How much is anyones guess. That property is JV'd with Ashanti. Ashanti can earn 60% by spending $4 million in drilling, completing a feasibility study, and arranging development funding; i.e., mine financing, by October 1, 2000. IMO, their is no way Ashanti will make that deadline. If not, the property is 100% Pangeas again and they are free to JV it with someone else or drill it themselves. Obviously, Barrick would jump at the chance to earn control of that property; its right next to their mine at Bulyanhulu.
Siga Hills is another property that Pangea owns in the area and is just west of Golden Ridge. It is slightly closer to Bulyanhulu than Golden Ridge is. It's another property that high grade ore (21 g/t & 7.7 g/t) has been found but, I believe, only via trenching thus far. I don't know that Siga Hills has been JV'd with anyone.
The Barrick press release regarding Golden Ridge was identical to the one put out by Pangea on Wednesday.
Hope this helps.
Terry |
