Barrick looks to boost its gold production

The assets of North America’s biggest gold producer, Barrick Gold (ABX-T), continue to grow.

Additional reserves at the Pascua mine, in Chile, and the Pierina project, in Peru, will boost Barrick’s production figures significantly over the next few years, senior executives told an audience at the Denver Gold Show.

Gold reserves at the Pascua mine, in the northern portion of the company’s Indio property, have increased by 18% (or 1.2 million oz.) to 7.7 million oz.

With this latest increase, reserves have more than doubled since the end of 1995, when they stood at 3.4 million oz. Initial production is projected at 400,000 oz. per year.

The deposit is open at depth, as well as to the east and south, said Alan Hill, executive vice-president of development. “Drilling will resume in October [springtime in Chile], and we fully expect to see Pascua’s reserves rise substantially as a result.”

Turning to the Peruvian project, Hill said Barrick is “more confident than ever that the decision to purchase [former Pierina owner] Arequipa Resources was well-justified.

“We based our acquisition on a minimum 4.5 million oz. gold at Pierina, but recent drill results make this number look conservative. By year-end, we plan to include Pierina in reserves and elevate the property to the development stage.”

Initial production at Pierina is estimated at 500,000 oz. gold per year, beginning in 1999. Costs are projected to remain below $100 per oz., due in part to a substantial silver byproduct credit.

Hill also stressed the importance of the more than 50 Peruvian properties included in the acquisition of Arequipa, adding: “We expect these properties have the potential to host other Pierinas.”

Barrick has 11 producing mines, including major producers in Nevada’s Carlin trend, Chile’s El Indio belt and the Abitibi belt of northern Quebec.