From the Barrick site
Background
The Bulyanhulu Project is located south of Lake Victoria on the Victorian Greenstone Belt in Tanzania, East Africa. In March 1999 Barrick acquired Sutton Resources Ltd. for $280 million. The two principal assets involved were Bulyanhulu (Buly) and a nickel property known as Kabanga. At the time of acquisition, gold reserves at "Buly" were 3.6 million ounces. The Company owns 100% of Bulyanhulu.
Upon acquisition, the primary objectives for the property were to expand the reserve and resource base and to begin construction of the mine. By the end of 1999, Buly had 7.5 million ounces of gold reserves and 2.9 million ounces of resources, based on 68,000 metres of drilling. Drill results to date indicate that grades improve at depth. The number of known reefs has increased from five to potentially nine since acquisition. Production growth will come from those other reefs.
Construction of the $280-million mine began in the third quarter of 1999. The mine is scheduled to enter production in the second quarter of 2001, with an average annual production rate of 400,000 ounces of gold at an average total cash cost of $130 per ounce over its 19 years of mine life.
Bulyanhulu is the hub of the Company?s district development program in Tanzania. In addition to continuing the exploration program at Buly itself, Barrick has entered into several joint ventures on properties within trucking distance of the Buly processing facilities. Any discoveries made on these other properties would benefit from the infrastructure at Buly. For example, the Golden Ridge Property, which has 1.6 million ounces of resources, is located 30 kilometres from Bulyanhulu. Barrick can increase its interest in this property from 50% to 65% by producing a bankable feasibility study by September 2001.
The reserve is now 2.2 million oz, with new estimates due soon. The target date for bankable feasibility study is Sept 14, 2000 and not 2001 (as per PGD annual report). |
