Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Corporate Update (November 2004)
70 slides from Barrick Mining's corporate update, Nov 10, 2004
Slide 1: Veladero Mine Tour
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 FORWARD LOOKING STATEMENT Certain statements included herein, including those regarding production, costs, development schedules and other statements that express management’s expectations or estimates of our future performance, constitut
Slide 2: Veladero Project – Agenda
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Veladero Mine Tour Presentations: Veladero Project Permitting Philosophy Financing Philosophy BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 Veladero Project – Agenda Project history Project overview Mining Processing Admin
Slide 3: Veladero Project – History
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Veladero Project – History Early 1990s mineral right boundaries established by San Juan Province In 1994 Vancouver based Argentina Gold acquired exclusive rights to Veladero and was joined by Barrick First drill hole on the property
Slide 4: Reserve and Resource History
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Reserve and Resource History Reserve Resource . Interest Proven Measured Inferred & Probable & Indicated 2000 40% 0 3.9 0 2001 100% 8.4 1.964 1.99 2002 100% 9.4 3.26 1.89 2003 100% 11.1 1.54 1.70 2004 100% ? ? ? BARRICK VELADERO PROJECT T
Slide 5: Veladero Project – History
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 Veladero Project – History Board Approval – April 2003 2002/2003 Summer season was the last major exploration campaign when Amable and Filo tunnels, surface and underground drilling, and m
Slide 6: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 6
Slide 7: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 7
Slide 8: Veladero Plan View
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Veladero Plan View Crushing/ Filo Truckshop 2 open pits Federico Waste Truck shop and crushing located next to Filo Federico open pit Merrill-Crowe Amable Merrill Crowe recovery plant Waste Process Plant adjacent to heap leach pad V
Slide 9: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 9
Slide 10: Where we are Today – Veladero Overview
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Where we are Today – Veladero Overview Gold reserves: 11.1 Moz* Gold resources: 1.5 Moz (Measured & Indicated) 1.7 Moz (Inferred) Average production: 525-550,000 oz/yr (first 10 yrs.) Average cash cost: $155-165 (original est.)** (f
Slide 11: Construction Schedule and Capital
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Construction Schedule Completed EIS review process Nov ‘03 Access road Apr ‘04 Primary & Secondary crusher circuit Jun ‘05 Pad loading Jul ‘05 Heap leach facility Sep ‘05 Process plant Sep ‘05 First gold pour Q4 ‘05 BARRICK VELADERO PROJE
Slide 12: Capital Increase – Major Contributors
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Capital Increase – Major Contributors Winter Operations 20% – Purchase of winter safety equipment Price escalation 40% – Steel, fuel, labor, exchange rates Delays 20% – Potential delays; expanded construction camp Scope changes 20
Slide 13: Capital Increase – Price Escalation and Delays
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Capital Increase – Price Escalation 40% Steel – Industry has seen increases in steel prices in the range of 30-70% over the past 12 months Fuel – Crude oil prices have recently risen above $55 per barrel, a 70% increase from the begin
Slide 14: Pressures on Operating Costs
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Pressures on Operating Costs Higher gold price = higher royalties Fuel Steel Consumable price increases Reserves and resources expanding – higher gold prices = lower cut-off grade BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 Ba
Slide 15: Barrick's Response
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Barrick’s Response Optimizing Pit Design – Finding more ounces - in pit - waste cap – Lowering cut-off grade – Cuatros Esquinas resource – Other resource to reserve conversion BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 Pierina LOM -
Slide 16: Pierina LOM vs Feasibility; Expanding Reserves
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Pierina LOM - Current vs Feasibility Cumulative Operating Cash Flow millions of dollars 1,600 LOM ‘03 1,200 976 741 Feasibility 800 Plan 542 342 570 626 400 511 191 374 172 O 99 00 01 02 03 04 05 06 07 08 09 BARRICK VELADERO PROJECT TOUR
Slide 17: Current Reserves
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Current Reserves thousands of ounces 3,954 1,540 8,416 3,260 9,384 11,115 ? 2001* 2002 2003 2004 * Date of Homestake-Barrick Merger BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 Proven & Probable Reserve Summary OPEN PIT RESERVES Amable F
Slide 18: Reserve Summary and Mining
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Reserve Summary – Proven and Probable Oct. 2002* Dec. 2003 Ore tonnes (M) 231 288 Gold (g/t) 1.265 1.201 Silver (g/t) 15.05 18.2 Contained Gold (Moz) 9,386 11,115 Contained Silver in Gold (Moz) 112 169 Total tonnes mined in-pit (M) 934 1,
Slide 19: Mining
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Mining Mining rates Current: – annually: 80 million tonnes* – daily: 230,000 tonnes – bench height: 15 m Strip ratio: 3:1 Avg. grade mined: 1.08-1.216 g/t* *These numbers are current estimates and subject to change BARRICK VELADERO
Slide 20: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 2006 1 km BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 2009 1 km BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 20
Slide 21: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 2012 1 km BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 2014 1 km BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 21
Slide 22: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 2016 1 km BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 2021 1 km BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 22
Slide 23: Filo Federico Pit, Amable Pit
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 2021 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 Filo Federico Pit Amable Pit BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 23
Slide 24: Processing
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Processing Original plan based on 36,000tpd Targeting increase up to 52,000tpd* Continually optimizing Blend between pits: – 63% Filo Federico – 25% Amable – 12% Cuatro Esquinas Average recovery: – Gold 72% – Silver 6% BARRICK V
Slide 25: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 25
Slide 26: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 26
Slide 27: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 27
Slide 28: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 28
Slide 29: Administration
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Administration Total annual cost LOM: Est. $15.5 million San Juan office: 62 Site Personnel: 506 Camp: 550 person permanent camp Environmental Community Relations Government Relations Communications BARRICK VELADERO PROJEC
Slide 30: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 30
Slide 31: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 31
Slide 32: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 32
Slide 33: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 33
Slide 34: Geologic Summary
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Geologic Summary Resource Enhancement Resource Conversion Drill Program (2004) Mine-Area Exploration Program (2004-05) District Exploration Targets (2004-05) BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 1
Slide 35: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 2
Slide 36: Geologic Database
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Geologic Database Detailed surface & underground mapping 131 diamond drill holes 770 reverse circulation drill holes 231,000 m total drilling 509 m long decline in Amable 638 m long decline in Filo Federico 5,150 m undergrou
Slide 37: Geological Characteristics
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Geological Characteristics Orebody occurs as 750m x 3000m tabular blanket trending ~345°, between ~4050 and 4350m elevation Disseminated Au+Ag mineralization associated with shallow-level high-sulfidation alteration (similarities to P
Slide 38: Distinctive Geologic Features
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Distinctive Geologic Features Tabular morphology of orebody and lack of identified roots or high-grade feeders at depth Strong hypogene (primary) oxidation; low sulfide content (<1% overall) Quartz veins or stockworks are not abunda
Slide 39: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
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Slide 40: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 7
Slide 41: Lithology – Amable Zone
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Lithology – Amable Zone Varieties of felsic to intermediate tuffs as local basement rocks Thick accumulations of pyroclastic rocks (products of diatreme eruptions), varying from crudely-stratified coarse breccias and airfall deposits
Slide 42: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 9
Slide 43: Lithology – Filo Federico
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Lithology – Filo Federico Varieties of felsic tuffs as local basement rocks Large volumes of diatreme breccias as pipes and dikes Porphyry dikes and plugs both pre- and post- date diatreme breccias BARRICK VELADERO PROJECT TOUR – NO
Slide 44: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 11
Slide 45: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 12
Slide 46: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 13
Slide 47: Alteration – Amable and Filo Federico
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Alteration – Amable Silicified core zone Peripheral Advanced Argillic alteration (alunite-quartz and quartz-alunite) Steam Heat alteration overprints inner alteration assemblages Outer Quartz-Illite and Argillic alteration Outer
Slide 48: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 15
Slide 49: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 16
Slide 50: Geologic Summary
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Geologic Summary Resource Enhancement Resource Conversion Drill Program (2004) Mine-Area Exploration Program (2004-05) District Exploration Targets (2004-05) BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 17
Slide 51: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 18
Slide 52: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 19
Slide 53: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 20
Slide 54: Mine Area Exploration – Target Criteria
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Geologic Summary Resource Enhancement Resource Conversion Drill Program (2004) Mine-Area Exploration Program (2004-05) District Exploration Targets (2004-05) BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 Mine Area Exploration – Targ
Slide 55: Mine Area Exploration – Known Targets
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Mine Area Exploration – Known Targets RC 593 Zone: Strong gold intercept in step- out hole, starting ~80m below Amable Pit; other intercepts in nearby widely-spaced holes Cerro Pelado: Large undrilled structural + lithologic target wi
Slide 56: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 23
Slide 57: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 24
Slide 58: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 25
Slide 59: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 26
Slide 60: District Exploration Targets
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 Geologic Summary Resource Enhancement Resource Conversion Drill Program (2004) Mine-Area Exploration Program (2004-05) District Exploration Targets (2004-05) BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 District Exploration Targets
Slide 61: District Exploration
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 District Exploration District targets with favorable geology and significant reconnaissance drill Guanaco Zonzo intercepts Regalito 0 2.5 Area Km BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 200
Slide 62: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK VELADERO PROJECT TOUR – NOVEMBER 2004 29
Slide 63: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK EXPLORACIONES CHILE - ARGENTINA BARRICK EXPLORACIONES CHILE - ARGENTINA 1
Slide 64: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK EXPLORACIONES CHILE - ARGENTINA BARRICK EXPLORACIONES CHILE - ARGENTINA 2
Slide 65: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK EXPLORACIONES CHILE - ARGENTINA BARRICK EXPLORACIONES CHILE - ARGENTINA 3
Slide 66: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK EXPLORACIONES CHILE - ARGENTINA BARRICK EXPLORACIONES CHILE - ARGENTINA 4
Slide 67: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
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Slide 68: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK EXPLORACIONES CHILE - ARGENTINA BARRICK EXPLORACIONES CHILE - ARGENTINA 6
Slide 69: BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK EXPLORACIONES CHILE - ARGENTINA BARRICK EXPLORACIONES CHILE - ARGENTINA 7
Slide 70: Pipeline Status – Frontera Project
BARRICK GOLD CORPORATION Veladero Mine Tour November 10, 2004 BARRICK EXPLORACIONES CHILE - ARGENTINA PIPELINE STATUS – FRONTERA PROJECT Veladero – Pascua Amable Filo Federico Cuatro Esquinas Adv. exploration Amable NE Amable SW Filo Federico SW Filo Federico NE Drill testing Guanaco Zonzo 6 Fabiana