Barrick, Newmont discuss Post deal

Major North American gold producers and Carlin Trend neighbors Newmont Mining (NYSE) and American Barrick Resources (TSE) are talking again, but not about a corporate merger.

Newmont Chairman Gordon Parker said at a recent seminar in New York City that the two companies are negotiating a contractual arrangement on exploiting the Deep Post deposit, part of Barrick’s Goldstrike mine project along the Carlin Trend in Nevada which extends on to Newmont ground. The Deep Post deposit is one of two mineralized areas sitting along the Barrick-Newmont boundary; there is a surface Post oxide pit and the Deep Post deposit sitting below the pit.

The Post surface reserves are being developed by Barrick in conjunction with its adjacent Betze sulphide reserves, under the company’s Betze Development Plan.

A merger proposed last year involving the companies, which would have created a gold-mining company of South African size, did not come to fruition. According to Parker, the merger “does not now seem appropriate” for Newmont. “American Barrick was and is a good company. That’s why we discussed merger with them last year,” Parker told his seminar audience. “But, other than optimum development of our joint Post orebody, there didn’t seem to be any other great synergies possible in any merger. Just bigness.”