Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) – The development of
a Super Pit at Barrick’s Lumwana copper mine was officially
launched today by the Zambian President, His Excellency Hakainde
Hichilema, accompanied by members of his cabinet.
The feasibility study for the Super Pit
Expansion is expected by the end of the year, paving the way for
construction to start in 2025. Once completed, the $2 billion
project1,4 unlocks the potential to transform Lumwana into a
long-life, high-yielding, top 25 copper producer1 and a Tier One2
copper mine.
The expansion involves first doubling throughput
of the existing process circuit and then significantly increasing
mining volumes. Plant throughput will grow from the current 27Mt to
52Mt, doubling the mine’s annual copper production from 120kt to a
life-of-mine average of 240kt a year3,4. The process plant
expansion is supported by a ramp-up of total mining volumes, which
are planned to increase incrementally year-on-year, from 150Mt in
2025 to approximately 240Mt in 2028 and then to an average rate of
290t per annum from 2030 onwards3,4.
Speaking at the groundbreaking ceremony also
attended by the Barrick board of directors, Barrick president and
chief executive Mark Bristow said a critical element of the Super
Pit Expansion was its focus on creating a sustainable legacy
through the development of local capacity within the region, which
would benefit both local communities and businesses throughout the
construction and operational phases. The expansion will need around
550 additional workers over the next five years to support the ramp
up and an additional 2,500 construction workers for a three-year
period to 2028.
“We are also planning to build critical
infrastructure, including an airstrip and an industrial supplier
park. This will enable key suppliers to establish themselves in the
area, creating an economic hub that will further fuel growth and
development in the wider region,” Bristow said.
“Mining plays a key role in Zambia’s economic
structure and our partnership with Barrick is creating one team
with a shared vision to develop a new economic frontier in the
North-Western Province of the country and beyond,” said President
Hakainde Hichilema.
Barrick enquiries
Investor and media
relations Kathy du
Plessis +44
20 7557
7738 Email:
barrick@dpapr.com
Zambia Country ManagerAnthony Malenga+260 977
730 513 Website: www.barrick.com
Technical Information
The scientific and technical information
contained in this press release has been reviewed and approved by
Richard Peattie, MPhil, FAusIMM, Mineral Resources Manager: Africa
and Middle East; Simon Bottoms, CGeol, MGeol, FGS, FAusIMM, Mineral
Resource Management and Evaluation Executive; John Steele, CIM,
Metallurgy, Engineering and Capital Projects Executive; and Joel
Holliday, FAusIMM, Executive Vice-President, Exploration—each a
“Qualified Person” as defined in National Instrument 43-101 -
Standards of Disclosure for Mineral Projects.
Endnotes
- Financial metrics and production
metrics are based upon Barrick's internal pre-feasibility study
which is conceptual in nature because it includes mineral resources
that are not yet categorized as mineral reserves, and there is no
certainty that the pre-feasibility assessment will be realized.
These metrics are subject to change upon completion of the
feasibility study. The assumptions outlined within the
pre-feasibility study assessment have formed the basis for the
ongoing study and were made by a Qualified Person. The Qualified
Person will evaluate the results of the completed feasibility study
before determining whether all or a part of the mineral resource
for the Super Pit Expansion Project may be converted to a mineral
reserve.
- A Tier One Copper Asset is an asset
with a $3.00/lb reserve with potential for 5 million tonnes or more
of contained copper to support a minimum 20-year life, annual
production of at least 200ktpa, with all-in sustaining costs per
pound in the lower half of the industry cost curve. Tier One Assets
must be located in a world class geological district with potential
for organic reserve growth and long-term geologically driven
addition.
- Life of Mine Plan mined tonnes,
grade and ounces and financials are based on the pre-feasibility
study but are conceptual in nature due to using mineral resources
and are subject to change with completion of the feasibility study
which is anticipated for Q4 2024.
- The results in this press release
represent forward-looking information and are based on Barrick’s
internal pre-feasibility study for the Super Pit. These results are
based on mineral resources only and depend on inputs that are
subject to a number of known and unknown risks, uncertainties and
other factors that may cause actual results to differ materially
from those presented here. Barrick is in the process of completing
a feasibility study in respect of the Super Pit, the results of
which may differ from the figures disclosed in this press release.
Barrick does not currently identify Lumwana as a material
property. Barrick expects to re-evaluate Lumwana’s status as
a potential material property following the completion of the
feasibility study for the Super Pit Expansion Project and the
preparation of updated mineral reserves and resources estimates for
Lumwana as of December 31, 2024. A Technical Report will be
prepared in accordance with Form 43-101F1 and filed on SEDAR+
within 45 days of the disclosure of the results of the feasibility
study if Lumwana is classified as a material property.
Cautionary Statement on Forward-Looking
Information
Certain information contained in this press
release, including any information as to our strategy, projects,
plans or future financial or operating performance, constitutes
“forward-looking statements”. All statements, other than statements
of historical fact, are forward-looking statements. The words
“would”, “will”, “projected”, “estimated”, “starting”, “plan”,
“ramp up”, “enable”, “anticipated”, “potential”, “future”, “focus”,
“ongoing” “expect” “growth”, and similar expressions identify
forward-looking statements. In particular, this press release
contains forward-looking statements including, without limitation,
with respect to: Barrick’s Lumwana Super Pit expansion project and
its ability to extend Lumwana’s life of mine; global projected
copper production and demand profiles; the potential for Lumwana to
become a Tier One asset, and the potential for Lumwana to become a
top 25 copper asset; estimated copper production and throughput
from the Lumwana Super Pit expansion, including projected mining
rates; the estimated capital budget for the Lumwana Super Pit
expansion; anticipated timelines for delivery of the feasibility
study and project construction; Barrick’s strategy, plans, targets
and goals in respect of environmental and social governance issues,
including local community development; and expectations regarding
future price assumptions, financial performance and other outlooks
or guidance.
Forward-looking statements are necessarily based
upon a number of estimates and assumptions including material
estimates and assumptions related to the factors set forth below
that, while considered reasonable by the Company as at the date of
this press release in light of management’s experience and
perception of current conditions and expected developments, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements and undue reliance
should not be placed on such statements and information. Such
factors include, but are not limited to: fluctuations in the spot
and forward price of gold, copper or certain other commodities
(such as silver, diesel fuel, natural gas and electricity); the
potential to convert all or part of the mineral resource for the
Super Pit expansion into a mineral reserve following the completion
of the feasibility study; risks associated with projects in the
early stages of evaluation and for which additional engineering and
other analysis is required; risks related to the possibility that
future exploration results will not be consistent with the
Company’s expectations, that quantities or grades of reserves will
be diminished, and that resources may not be converted to reserves;
risks associated with the fact that certain of the initiatives
described in this press release are still in the early stages and
may not materialize; changes in mineral production performance,
exploitation and exploration successes; risks that exploration data
may be incomplete and considerable additional work may be required
to complete further evaluation, including but not limited to
drilling, engineering and socioeconomic studies and investment; the
speculative nature of mineral exploration and development; lack of
certainty with respect to foreign legal systems, corruption and
other factors that are inconsistent with the rule of law;
disruption of supply routes which may cause delays in construction
and mining activities, including disruptions in the supply of key
mining inputs due to the invasion of Ukraine by Russia and
conflicts in the Middle East; risk of loss due to acts of war,
terrorism, sabotage and civil disturbances; risks associated with
artisanal and illegal mining; changes in national and local
government legislation, taxation, controls or regulations and/or
changes in the administration of laws, policies and practices;
expropriation or nationalization of property and political or
economic developments in Zambia or other countries in which Barrick
does or may carry on business in the future; risks relating to
political instability in certain of the jurisdictions in which
Barrick operates; timing of receipt of, or failure to comply with,
necessary permits and approvals; non-renewal of or failure to
obtain key licenses by governmental authorities; failure to comply
with environmental and health and safety laws and regulations;
increased costs and physical and transition risks related to
climate change, including extreme weather events, resource
shortages, emerging policies and increased regulations relating to
greenhouse gas emission levels, energy efficiency and reporting of
risks; Barrick’s ability to achieve its sustainability goals;
contests over title to properties, particularly title to
undeveloped properties, or over access to water, power and other
required infrastructure; the liability associated with risks and
hazards in the mining industry, and the ability to maintain
insurance to cover such losses; damage to the Company’s reputation
due to the actual or perceived occurrence of any number of events,
including negative publicity with respect to the Company’s handling
of environmental matters or dealings with community groups, whether
true or not; risks related to operations near communities that may
regard Barrick’s operations as being detrimental to them;
litigation and legal and administrative proceedings; operating or
technical difficulties in connection with mining or development
activities, including geotechnical challenges, tailings dam and
storage facilities failures, and disruptions in the maintenance or
provision of required infrastructure and information technology
systems; increased costs, delays, suspensions and technical
challenges associated with the construction of capital projects;
risks associated with working with partners in jointly controlled
assets; risks related to disruption of supply routes which may
cause delays in construction and mining activities; risks
associated with Barrick’s infrastructure, information technology
systems and the implementation of Barrick’s technological
initiatives, including risks related to cybersecurity incidents,
including those caused by computer viruses, malware, ransomware and
other cyberattacks, or similar information technology system
failures, delays and/or disruptions; risks related to competition
in the mining industry; employee relations including loss of key
employees; availability and increased costs associated with mining
inputs and labor; and risks associated with diseases, epidemics and
pandemics. In addition, there are risks and hazards associated with
the business of mineral exploration, development and mining,
including environmental hazards, industrial accidents, unusual or
unexpected formations, pressures, cave-ins, flooding and gold
bullion, copper cathode or gold or copper concentrate losses (and
the risk of inadequate insurance, or inability to obtain insurance,
to cover these risks).
Many of these uncertainties and contingencies
can affect our actual results and could cause actual results to
differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, us. Readers
are cautioned that forward-looking statements are not guarantees of
future performance. All of the forward-looking statements made in
this press release are qualified by these cautionary statements.
Specific reference is made to the most recent Form 40-F/Annual
Information Form on file with the SEC and Canadian provincial
securities regulatory authorities for a more detailed discussion of
some of the factors underlying forward-looking statements and the
risks that may affect Barrick’s ability to achieve the expectations
set forth in the forward-looking statements contained in this press
release.
Barrick disclaims any intention or obligation to
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise, except as required
by applicable law.
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