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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (7737)	2/13/2002 3:59:32 PM
From: re3	Respond to of 36161

there was an article in the nationalpost.com about increased resources in africa...

To: Crimson Ghost who wrote (7737)	2/13/2002 6:39:14 PM
From: Frank Pembleton	Read Replies (1) \| Respond to of 36161

Barrick hikes estimates for Bulyanhulu 'No surprise': Tanzanian gold mine dogged with controversy Drew Hasselback Financial Post with Bloomberg Barrick Gold Corp. is poised to announce additional reserves at its Bulyanhulu gold mine in Tanzania. The company would not give further details about the expanded reserve estimate for the Bulyanhulu project, which at last report was said to contain 10.5 million ounces gold. The new figure will be announced at a presentation to analysts in Toronto on Friday. "I think this is no surprise. Barrick has been successful in raising its estimates in the past," said Michael Fowler, analyst with Harris Partners in Toronto. "This has been pretty well telegraphed to the street." In October, 2000, Barrick raised its estimates 40% to 10.5 million ounces from 7.5 million. The estimate is three times higher than when Barrick acquired the property through its purchase of Sutton Resources Inc. in March, 1999. Barrick said the total cash costs for the mine are estimated at US$130 an ounce. Bulyanhulu is the second-biggest mine in Tanzania and Barrick's only mine in Africa. It is expected to produce 400,000 ounces of gold annually. Alan Hill, Barrick's vice-president of development, told a mining conference in Cape Town, South Africa, that the reserve estimate will be unveiled in Toronto on Friday. "Bulyanhulu provides Barrick with an exciting platform for growth within the region," Mr. Hill said. He declined to give further details. Bulyanhulu has attracted controversy. Critics, including MiningWatch Canada and the Council of Canadians, claim the Tanzanian government and the Barrick subsidiary that operates the mine killed more than 50 illegal miners during an eviction raid in 1996. Barrick says the allegations have been repeatedly investigated and found to be unsubstantiated. Human rights agency Amnesty International included the allegations in its 1997 annual report, but backed down after further investigation. By 2000, the agency said it could not substantiate the allegations. Meanwhile, Tanzania has sought to promote its mining business with the promise of tax breaks to investors. Johannesburg-based AngloGold Ltd. also operates in the country. It has a drilling program underway at Nyamulilima Hill in the Geita district of Tanzania. Barrick, which took over San Francisco-based Homestake Mining Co. last December, produces about 6 million ounces of gold a year. The company releases fourth quarter results Friday. Analysts surveyed by IEBS International Inc. expect the company to report profit of US14¢ a share. Due to the merger with Homestake, Barrick has also begun restating prior earnings to bring the company in line with U.S. accounting rules. nationalpost.com