Barrick options properties in Peru

Exploration potential along the 100-km-long Pierina trend in the northern Ancash district of Peru is being eyed by Barrick Gold (ABX-T).

The major has reached a preliminary option agreement with Vancouver-based Queenstake Resources to earn a 51% interest in 63 separate properties comprising 53,800 ha along the northern Pierina trend. Barrick is required to spend US$4.5 million on exploration over four years.

Barrick already has substantial holdings along the regional trend, including the Pierina gold project, which contains an estimated 6.5 million oz. gold Barrick is developing Pierina as an open-pit, heap-leach operation, with startup earmarked for late 1998. Output in the following year is expected to be 750,000 oz. at a cost of US$50 per oz. Construction costs are estimated at US$260 million.

Pierina contains a proven and probable reserve of 61.4 million tonnes grading 3.29 grams gold, as well as an additional 12.4 million tonnes of mineralized material grading 1.92 grams. Leach recoveries from four test pads averaged 80%.