Barrick exercises Tan Range warrants

By way of private placement, Barrick Gold (ABX-T) has acquired 740,741 shares of Tan Range Exploration (TNX-V), whose main asset is the Itetemia project in the Lake Victoria gold district of western Tanzania.

The major also holds an option to earn 60% of Itetemia from Tan Range, plus a further 10% stake held by a state-owned mining entity. Tan Range must use at least 80% of the proceeds from the private placement to finance exploration and development.

Barrick operates the Bulyanhulu gold mine, and controls 7,200 sq. km of exploration ground, in the Lake Victoria gold belt. The 2,500-tonne-per-day underground mine is expected to produce 250,000 oz. gold this year, ramping up to 380,000 oz in 2002 and 400,000 oz. in 2003. In the years ahead, the company plans to boost Buly’s annual production to 500,000 oz. at an average cash cost of US$130 per oz.

Tan Range has other properties in the region, including the wholly owned Luhala project, where recent drilling returned 1 metre grading 29.5 grams gold per tonne, 2 metres of 2.75 grams, 14.4 metres of 5.7 grams (including 4.7 metres of 12.98 grams) and 2 metres of 2.86 grams.