Major NEWS BARRICK, WTHeck: Whew, say Fundys and TA have crossed:
Barrick Gold Corp - News Release
Barrick doubles gold estimate at Alto Chicama
Barrick Gold Corp ABX
Shares issued 537,813,627 Jul 9 2002 close $ 29.50
Wednesday July 10 2002 News Release
Mr. Vincent Borg reports
BARRICK DOUBLES GOLD ESTIMATE AT RECENT GRASSROOTS DISCOVERY ...
All dollar amounts in United States dollars unless stated otherwise.
Barrick Gold Corporation has doubled the gold resource at its new grassroots exploration discovery on the Alto Chicama property in north-central Peru. As a result of an intensified drilling program at the property's Lagunas Norte deposit during the last 11 weeks, the company calculates an inferred resource of 135 million tonnes, grading 0.054 ounce per ton, for a total of 7.3 million ounces of gold. This compares with an inferred resource announced in Stockwatch on April 23, 2002, of 3.5 million ounces of gold. The resource remains open to the south and southeast.
Barrick also announced today it was further increasing the 2002 exploration program for the property by $15-million to $35-million to begin drill testing targets located around Lagunas Norte. This is in addition to the increase to $20-million from $5-million announced in Stockwatch on April 23. The company expects these costs to be expensed in 2002.
"Our intensive exploration efforts are paying off. The drill program is progressing well and we plan to double the number of drill holes by year-end. We expect the resource to continue to expand and, in the meantime, mine development planning is under way," said Randall Oliphant, president and chief executive officer. "These results further enhance Barrick's unrivaled organic growth pipeline."
Intensified drilling program at Lagunas Norte
During the second quarter, 112 drill holes were completed and assayed, bringing the total to date to 172. The company plans an additional 200 drill holes on the discovery, to bring drill spacing to reserve status density by year-end.
"What we are seeing at Lagunas Norte looks very similar to our Pierina Mine in Peru, with similar grades and gold-rich surface outcroppings," said Alex Davidson, senior vice-president of exploration.
Resource expected to continue to expand
Step-out drilling during the second half of this year at Lagunas Norte should continue to expand the resource mainly to the south and southeast, where the deposit remains open. Beyond that, an additional exploration drill program, due to commence in the third quarter, is targeted on gold showings identified during fieldwork within a 15-kilometre radius of the deposit.
Mine development planning under way
In addition to an expanded drill program, objectives for the balance of the year include: metallurgical test work; mine and process planning for completion of a feasibility study in 2003; as well as beginning the permitting process of the Lagunas Norte discovery.
Discovery further enhances Barrick's organic growth pipeline
The Lagunas Norte discovery on the Alto Chicama property should add new low-cost production to Barrick's growth pipeline, which also includes:
the 25-million-ounce Pascua-Lama/Veladero district in Chile and Argentina, where the company is taking a unified approach to development, starting with Veladero;
the three-million-ounce Cowal project in Australia; and
the growing reserve and resource base in Tanzania.
Barrick plans to report the results of the Veladero feasibility study, as well as provide updates on Cowal and the Bulyanhulu optimization plan within the next few months, further confirming and quantifying the extent of the company's new growth outlook.
In total, Barrick has exploration programs on 35 properties on a global basis, apart from those at its existing operating properties. "We are looking at high-quality targets -- capable of generating double-digit rates of return -- at $300 gold prices. From what we have seen so far, Lagunas Norte fits that profile," said Mr. Oliphant. "We are pleased that our strategic decision to increase our grassroots exploration program is meeting with success."
WARNING: The company relies upon litigation protection for "forward-looking" statements.
(c) Copyright 2002 Canjex Publishing Ltd. stockwatch.com
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