Barrick Mining Corporation · TSX:ABX
Barrick Mining — Barrick Gold — Corporate Update (September 2004)
38 slides from Barrick Mining's corporate update, September 2004
Slide 1: Welcome to Barrick Goldstrike
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Welcome to Barrick Goldstrike BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 1
Slide 2: North America – Production Contribution
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 North America Eskay Creek CANADA Hemlo 5 operating mines Goldstrike Round Mtn Marigold Strengths U.S.A. – Cash-flow engine that drives the company today – Low-cost infrastructure in world-renowned mining camps – Reserve replacement/expans
Slide 3: North America – Strategy
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 North America – Strategy Sustain 2004 production level Replace and expand reserve base Capture regional synergies to contain costs Leverage existing world class infrastructure Corporate responsibility BARRICK GOLDSTRIKE MINE TOUR –
Slide 4: Background – Historical Costs; Nevada Power Plant Justification
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Background – Historical Costs $80 $40 Annual Electricity Cost (left axis; US$ mm) $70 $35 Electricity cost per ounce (right axis; $ per ounce) $60 $30 $50 $25 $40 $20 $30 $15 $20 $10 $10 $5 $0 $0 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 E Neva
Slide 5: Nevada Power Plant Location
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 OREGON IDAHO Nevada Power Plant Location Goldstrike ELKO Marigold NEVADA RENO Power Plant Site Round Mountain CALIFORNIA UTAH BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 5
Slide 6: Nevada Power Plant Project – Specifications
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Nevada Power Plant Project – Specifications 115 Megawatts (14- 8.3 MW reciprocating, natural gas engines) Excellent load following capability Heat rate less than 8,700 Btu/kWh Low water usage - 200 gallons per week $100 million capi
Slide 7: Goldstrike Property
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 Goldstrike Property Autoclave Betze-Post Betze-Post Roaster Rodeo Rodeo Meikle Meikle BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 7
Slide 8: Goldstrike's History
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Goldstrike’s History Purchased property in 1986 for $62 million Oxide heap-leach operation Increased property significantly: – 600,000 ounces reserves in 1986 – discovered Meikle in 1989 – 25.6 million ounces produced through 2003 – 19.
Slide 9: Goldstrike's Production Contribution
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Goldstrike’s Production Contribution 2004 estimates Open pit Production: 1,340,000 – 1,360,000 ounces Total cash cost: $250 – 260 per ounce Underground Production: 590,000 – 610,000 ounces Total cash cost: $245 – 255 per ounce BARRICK
Slide 10: The Outlook for Goldstrike
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 The Outlook for Goldstrike The Next Chapter Extend mine life – reserve additions – leverage existing infrastructure Cost containment Enhancement initiatives BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 Extend Mine Life – Reserve Additi
Slide 11: Extend Mine Life – Leverage Infrastructure
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Extend Mine Life – Leverage Infrastructure Toll milling opportunities Newmont – Nevada Cortez – Nevada Junior producers – North America BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 Cost Containment Carlin synergies with neighboring m
Slide 12: Enhancement Initiatives
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Enhancement Initiatives Improve underground performance Recovery enhancement at Autoclave Processing throughput enhancements Underground mining technologies Continuous improvement Betze Drift BARRICK GOLDSTRIKE MINE TOUR – SEPTEMB
Slide 13: Productivity Improvement
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Productivity Improvement Grades – 24% Power price +23% Tons milled per day Propane price +52% per employee Cash costs ~ $70/oz 31%= Cash costs ~ $10/oz 22.0 Cash costs ~ $60/oz 16.8 2001 2004E BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 20
Slide 14: Open-Pit – Current Dimensions; Mining Rates
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Open-Pit – Current Dimensions 9900’ 9900’ 7500’ 7500’ 1500’ 1500’ BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 Open-Pit – Mining Rates (000’s) 2001 2002 2003 2004E Tons mined 154,233 142,898 141,693 141,625 Tons per day 433 401 398 395 Tons
Slide 15: Open-Pit – Reducing Costs / Improving Productivity
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Open-Pit – Reducing Costs / Improving Productivity Increasing employee involvement Operating practices Increasing revenue Technology Controlling major costs BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 BARRICK GOLDSTRIKE MINE TOUR
Slide 16: BARRICK GOLD CORPORATION Goldstrike Tour – September 2004
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 16
Slide 17: Open-Pit – Unit Mining Costs
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Open-Pit – Unit Mining Costs Tons Mined Per Manshift (thousands) $1.20 $1.18 260 $1.15 250 249 $1.11 245 236 $1.10 $1.01 $1.02 220 $1.00 194 211 $0.94 190 $0.90 181 $0.88 180 165 $0.79 $0.80 $0.78 $0.70 140 1996 1997 1998 1999 2000 2001 2002
Slide 18: Underground Operations – Meikle
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Underground Operations – Meikle roaster roaster Rodeo Meikle BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 Underground – Mining Rates (000’s) 2001 2002 2003 2004E Tons hoisted 1,372,431 1,634,875 1,630,648 1,700,310 Tons per day 3,770 4,504 4
Slide 19: Underground – Reducing Costs / Improving Productivity
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Underground – Reducing Costs / Improving Productivity Increase employee involvement Improve approach to maintenance Alternative mining methods Operational Improvements BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 BARRICK GOLDSTRIKE M
Slide 20: Underground – Reducing Costs / Improving Productivity
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Underground – Reducing Costs / Improving Productivity Tire Cost Reduction: Average Tire Cost Per Hour by Quarter $3.00 $2.57 $2.50 $2.24 $2.00 2003 $1.50 2004 $1.04 $1.00 $0.90 $0.78 $0.77 $0.73 $0.50 $0.00 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr BAR
Slide 21: Underground – Unit Mining Costs (per ton)
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 Underground – Unit Mining Costs (per ton) $65 $60 $58.39 $55 $57.69 $50 $46.60 $50.08 $44.98 $45 $43.07 $39.46 $40 $35.53 $38.12 $35 1996 1997 1998 1999 2000 2001 2002 2003 2004E Does not include
Slide 22: BARRICK GOLD CORPORATION Goldstrike Tour – September 2004
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 22
Slide 23: Processing – 2004 Estimated Throughput
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Processing BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 Processing – 2004 Estimated Throughput Tons per Day Autoclave Roaster Average Open Pit 18,523 10,656 29,179 Custom Ore 58 1,867 1,925 Underground 92 4,544 4,636 Average 18,673 17,067 35
Slide 24: Processing – Throughput Rates
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Processing – Throughput Rates $17.61 $16.59 $16.38 $16.08 Processing $15.19 Cost/Ton 15,000 13,081 12,301 12,218 Tons per year (million) 10,563 10,000 8,679 5,846 5,888 6,236 Roaster 4,711 3,105 5,000 6,455 6,330 6,845 5,574 5,852 Autoclave 0
Slide 25: Processing – Reagent Optimization
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Processing – Reagent Optimization Propane Consumption – gallons per ton 3.00 Autoclave 2.50 2.00 1.50 Linear (Autoclave) 1.00 Roaster 0.50 Jan 01 Apr 01 Jul 01 Jan 02 Jul 02 Jan 03 Jul 03 Jan 04 Oct 01 Apr 02 Oct 02 Apr 03 Oct 03 Apr 04 BARRI
Slide 26: Reserves and Exploration
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Reserves and Exploration BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 26
Slide 27: BARRICK GOLD CORPORATION Goldstrike Tour – September 2004
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 27
Slide 28: Goldstrike – Reserves and Production
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Goldstrike – Reserves and Production Open Pit – thousands of ounces 30,000 3,882 25,000 2,132 5,538 6,824 Cumulative 8,684 10,506 12,200 14,095 Depletion 20,000 15,000 23,603 24,058 21,213 20,709 10,000 18,001 Mineable 16,434 16,051 15,685 Re
Slide 29: Goldstrike 2004 Exploration Program
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Goldstrike 2004 Exploration Program 116 hole – 169,000 foot drill program completed at the end of Q2 Additional 95,000 foot drill program approved for Q3-Q4 Focus on North and South Pit resource/reserve development Significant open-pi
Slide 30: BARRICK GOLD CORPORATION Goldstrike Tour – September 2004
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 30
Slide 31: Goldstrike 2004 Exploration Program – Other Targets
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 Goldstrike 2004 Exploration Program Other Targets Generate and drill test new targets northwest of Meikle Evaluate target potential southeast of Meikle (east of the Post fault) Refine Goldst
Slide 32: Goldstrike Property 2005 Exploration
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Goldstrike Property 2005 Exploration Preliminary budget of over $10 million Over 200,000 feet of drilling currently planned Testing for high grade material along the Post Fault and east of it Confident that Goldstrike property will co
Slide 33: Storm 2004 Program; REN JV Exploration Targets
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Storm 2004 Program End Zone drift completed on schedule and budget with drilling now in progress 16,500 feet of Core drilling in 49er, Deep North and End Zones completed YTD Test mining completed at 49er Zone with 1,000 st extracted for
Slide 34: BARRICK GOLD CORPORATION Goldstrike Tour – September 2004
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 34
Slide 35: Gold Hill 2004 Program
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 Gold Hill 2004 Program 66 RC/Core holes totaling 56,000 feet completed YTD Metallurgical testing has been completed and is in progress Permitting in progress BARRICK GOLDSTRIKE MINE TOUR – S
Slide 36: Marigold JV 2004 Program
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 Marigold JV 2004 Program 2004 Exploration/Development drilling totals 226,000’ in 367 RC holes YTD Focus on Target 3 Pit Area that was discovered in early 2004 Exploration drilling ongoing
Slide 37: Summary – Nevada Exploration
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 BARRICK GOLDSTRIKE MINE TOUR – SEPTEMBER 2004 Summary – Nevada Exploration 2004 exploration programs continue to add significant reserves/resources at Goldstrike, Storm, Gold Hill and Marigold Encouraging results have been obtained at the
Slide 38: Summary – Goldstrike
BARRICK GOLD CORPORATION Goldstrike Tour – September 2004 Summary – Goldstrike Reliable mine generating strong earnings and cash flow Management team focused on maximizing the value of assets Excellent potential to expand reserves particularly in a strong gold price environment BARRICK GOLDSTR