Barrick Mining Corporation · TSX:ABX
Barrick Mining — Corporate Update (January 2019)
37 slides from Barrick Mining's corporate update, Jan 22, 2019
Slide 1: Mali media presentation Jan 2019
Mali Mali media presentation…Jan 2019
Slide 2: A leading African gold miner
A leading African gold miner… Jabal Sayid (50%) Loulo-Gounkoto Morila (40%) Massawa Kibali (45%) Tongon North Mara Lumwana (63.7%) Bulyanhulu Buzwagi Gold production Projects Acacia (63.9% Barrick) Copper production
Slide 3: Loulo – Gounkoto… 2 decades of delivery
Loulo – Gounkoto… 2 decades of delivery 6.3 million ounces produced to date LOULO Yalea discovered 1997 1st gold in 2005 Mali 4.2Moz Senegal produced GOUNKOTO Discovered 2009 1st gold in 2011 2.1Moz produced Côte d’Ivoire
Slide 4: Loulo – Gounkoto management and employees
Loulo – Gounkoto…. Management and Employees CEO Dr DM Bristow COO MEA Willem Jacobs COO West Africa Executive Chiaka Berthe Committee MEA Bamako Regional Office N’golo Sanogo GM Loulo-Gounkoto Complex Tahirou Ballo Direct Operations Mine Employees Total Contractors Total Employees Expats Nat Expats
Slide 5: Loulo-Gounkoto development of local skills
Loulo - Gounkoto… development of local skills Total Employees: 4 393 Contractors Nationals: 4 214 (96%) Expats Expats: 179 (4%) 62 (1%) Mine Expats Mine 117 (3%) Nationals Perm. 1 724 (39%) Contractors Temporary Nationals Nationals 2 247 (51%) 243 (6%)
Slide 6: Loulo-Gounkoto health and safety
Loulo-Gounkoto…health and safety Loulo Complex Lost time injury frequency rate / Malaria incidence rate - % million manhours worked 1.4 70 1.2 60 1 50 0.8 40 0.6 30 0.4 20 0.2 10 0 0 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018
Slide 7: Loulo-Gounkoto and Morila environment
Loulo-Gounkoto and Morila… environment No major environmental incidents recorded during Q4 2018 Mines remain ISO14001 certified Mine residual biodiversity impact evaluated and turned into national park conservation program Environmental permit for TSF extension obtained Improved water management con
Slide 8: Loulo-Gounkoto Complex Q3 update
Loulo-Gounkoto Complex… Q3 update Combined production from Loulo and Gounkoto increased 16% quarter on quarter to 174 018oz due to 21% improvement in grade Total cash cost per ounce of $577/oz was 16% lower on the back of increased gold production Profit from mining increased 19% quarter on quarter
Slide 9: Loulo-Gounkoto Complex Q3 operating results
Loulo-Gounkoto Complex… Q3 operating results Quarter 9 months 30 Sep 30 Jun 30 Sep 30 Sep 30 Sep 2018 2018 2017 2018 2017 Mining Tonnes mined (000) 10 228 9 326 9 780 29 359 25 836 Ore tonnes mined (000) 1 978 1 583 976 5 039 3 898 Milling Tonnes processed (000) 1 290 1 317 1 265 3 881 3 651 Head gr
Slide 10: Loulo standalone Q3 update
Loulo standalone…Q3 update Development metres Gold production increased 5% quarter on quarter to Metres 000 Gara, 106 022oz with total cash cost per ounce down 10% at 1.210 Gara $595/oz Yalea, Increase in production a result of a 29% increase in head 1.359 grade milled to 5.3g/t Yalea Ore developmen
Slide 11: Loulo standalone operating results
Loulo standalone…operating results Quarter 9 months 30 Sep 30 Jun 30 Sep 30 Sep 30 Sep 2018 2018 2017 2018 2017 Mining Tonnes mined (000) 737 1 132 682 2 866 2 003 Ore tonnes mined (000) 729 878 674 2 353 1 976 Milling Tonnes processed (000) 673 821 678 2 133 1 920 Head grade milled (g/t) 5.3 4.1 5.
Slide 12: Yalea 460koz @ +11g/t added to the mine plan
Yalea…460koz @ +11g/t added to the mine plan Yalea Transfer Zone YDH282 YaDH68 Long-section with extra ounces 11.4m @ 6.39g/t TW 2 8m @ 10.01g/t TW 3 Q3 drilling YaDH86 N 17.3m @ 25.2g/t TW 1 YaDH92 Yalea Central Deep 12.3m @ 15.88g/t TW 1 extra ounces YaDH80 4.3m @ 32.21g/t TW 1 Purple Patch YDH280
Slide 13: Gara major system remains open in all directions
Gara…major system remains open in all directions OP Fold Target Gara Folds Warp Major Fold extn. Gara Folds L0CP293 N (Steep Plunge) Fold Long-section (Shallow Plunge) Stopped short Gara Pit Albitite is folded Albitite out of section Dyke Gap Target Drill Gaps Faleme Target 600m Gara North Target Ga
Slide 14: Loulo 3 scoping study
Loulo 3…scoping study L3DH156 L3DH154 Preliminary economic assessment 19.8m @ 4.39g/t 4 Long-section with 9.4m @ 20.49g/t 4 completed with potential for expanded Q3 drilling pit and underground project N Current depletion Open pit pushback forms part of MZ1 US$ 1000/oz pit shell existing Loulo ore r
Slide 15: Loulo 3 preliminary economic assessment
Loulo 3… preliminary economic assessment Preliminary economic assessment run on material within $1000/oz whittle pit shell combined with underground Open pit ore mined 1.6Mt at 5.5g/t for 290koz Open pit waste tonnes 42Mt Strip ratio 25:1 Underground ore tonnes 2.1Mt at 7.5g/t for 510koz Recovery 85
Slide 16: Gounkoto standalone Q3 update
Gounkoto standalone…Q3 update Gold production increased by 39% quarter on quarter to 67 997oz as a result of higher grade and improved throughput Total cash cost per ounce decreased 26% quarter on quarter to $549/oz on the back of higher production and lower strip ratio Profit from mining increased
Slide 17: Gounkoto standalone operating results
Gounkoto standalone…operating results Quarter 9 months 30 Sep 30 Jun 30 Sep 30 Sep 30 Sep 2018 2018 2017 2018 2017 Mining Tonnes mined (000) 9 491 8 193 9 098 26 493 23 833 Ore tonnes mined (000) 1 248 705 302 2 686 1 922 Milling Tonnes processed (000) 617 497 587 1 748 1 731 Head grade milled (g/t)
Slide 18: Loulo District exciting geology
Loulo District…exciting geology Regolith Map N Deposit Loulo Exploration Target permit Depositional Erosional Mali Low laterite Senegal Gounkoto Mid-high laterite Transported laterite permit Erosional slopes Bena permit Colluvium Boulandissou structure - shallow drilling will Residual test remaining
Slide 19: Loulo-Gounkoto actual plant performance
Loulo-Gounkoto… actual plant performance Tonnes (kt) Grade (g/t) ‘00 Recovery 1400 95.0% 1200 92.5% 1000 90.0% 800 87.5% 600 85.0% 400 82.5% 200 80.0% Q1-2018 Q2-2018 Q3-2018 Q4-2018 Tonnes processed (kt) Grade (g/t) '00 Recovery (%)
Slide 20: Loulo-Gounkoto Complex combined gold produced
Loulo-Gounkoto Complex… combined gold produced Oz 000 Grade g/t 800 6 700 5 600 4 500 400 3 300 2 200 1 100 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Loulo (standalone) koz Gounkoto koz Loulo (standalone) g/t Gounkoto g/t
Slide 21: Community development
BARRICK Community development...
Slide 22: Loulo-Gounkoto CSR governance and stakeholder engagement
Loulo-Gounkoto CSR…governance and stakeholder engagement Education Potable water 78 local students benefiting from 57 boreholes and 4 water supply the Excellence bursaries program systems constructed 19 schools built Regular water quality analysis with School enrolment >5,000 students annual feedbac
Slide 23: Loulo-Gounkoto community development
Loulo-Gounkoto community development… >$6.4m invested to date; $21m patent levy invested in communities Health 10% Education Economic 18% Projects 50% Potable Water 7% Agriculture 15%
Slide 24: Morila CSR governance and stakeholder engagement
Morila CSR…governance and stakeholder engagement Monthly community committee meetings Zero unresolved grievances Quarterly mass meeting with employees Two grievances recorded in 2018 Site visit by the Morila closure committee Health Impact assessment feedback session in the community by INRSP Feedba
Slide 25: Morila N'tiola community projects
Morila…N’tiola community projects 3 new schools built 8 water points built 10 public light towers built
Slide 26: Morila community development project
Morila…community development project Partnership signed with FAFPA to improve socio- Domba women - food (crops) economics – training for 500 people in the community processing technology 3 GIEs in community engaged to Handover of ambulance to Domba CSCOM patrol crossing of the haul road with 150 you
Slide 27: Agribusiness to mitigate the socio-economic impact of closure
Agribusiness to mitigate the socio-economic impact of closure
Slide 28: Morila Agripole leaving a commercial legacy
Morila Agripole… leaving a commercial legacy Agribusiness, as part of mine closure, officially endorsed by Government as launch is attended by Prime Minister and seven other ministers Songhai on site to guide and progress existing and new agricultural initiatives Opportunity for national and local b
Slide 29: Morila after closure current projects
Morila after closure…current projects > $2m spent in developing Morila into a commercial agricultural hub Poultry farming Mango farming Fish farming Honey farming
Slide 30: Challenges
BARRICK Challenges
Slide 31: Illegal mining
Illegal mining… Issues Invasion of permits and mining areas Use of excavators and trucks Dredging the river Shortfall for the company and State Major environmental damage: siltation and contamination of water Use of dangerous chemicals (cyanide, mercury, ...etc.) Security issues School abandonment /
Slide 32: Disclaimer
Disclaimer… Cautionary Statement on Forward-Looking Information Certain information contained in this presentation, including any information as to Barrick’s strategy, plans, or future financial or operating performance, constitutes “forward- looking statements”. All statements, other than statement
Slide 33: Appendix B – Yalea Drill Results
Appendix B – Yalea Drill Results Significant Intercepts 1 1. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; minimum Yalea 2018 Drill Results intercept width is 1 m; internal dilution is equal to or less than 25% total width Hole ID Azimuth Dip Interval Width(m) TW(m) Au (g/t)
Slide 34: Appendix B – Yalea Drill Results
Appendix B – Yalea Drill Results Significant Intercepts 2 1. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; minimum Yalea 2018 Drill Results intercept width is 1 m; internal dilution is equal to or less than 25% total width Hole ID Azimuth Dip Interval Width(m) TW(m) Au (g/t)
Slide 35: Appendix B – Yalea Drill Results
Appendix B – Yalea Drill Results Significant Intercepts 3 1. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; minimum intercept width is 1 m; internal dilution is equal to or less than 25% total width 2. Loulo drill hole nomenclature: prospect initial Ya (Yalea) followed by the
Slide 36: Appendix A – Loulo 3 Drill Results
Appendix A – Loulo 3 Drill Results Significant Intercepts 4 1. All intercepts calculated using a 0.5 g/t Au cutoff and are uncapped; minimum Loulo 3 2018 Drill Results intercept width is 1 m; internal dilution is equal to or less than 25% total width Hole ID Azimuth Dip Interval Width(m) Au (g/t) Pe
Slide 37: Appendix A – Loulo Drill Results
Appendix A – Loulo 3 Drill Results Significant Intercepts 5 Loulo 3 2018 Drill Results Hole ID Azimuth Dip Interval Width(m) Au (g/t) Period Target L3DH160 249 -61 no significant intercepts Au > 0.5g/t L3DH161 L3DH164 249 264.5 -60 -56 342.50 353.00 10.5 4.46 1. All intercepts calculated using a 0.5