Having scoured Latin America and Southeast Asia, American Barrick (TSE) has taken its first major step outside North America by buying a piece of a Peruvian project.
The company has committed US$20 million for a 75% stake in a Peruvian deposit with “potential” reserves of 3 million oz. gold and 1 billion lb. copper.
“Cerro Corona is the first major project identified by our newly formed corporate development group,” said Barrick President Robert Smith. (The news of the Peruvian project preceded Barrick’s takeover bid of Lac Minerals, a report of which appears on Page 1.)
Cerro Corona is one of three projects Barrick is exploring in the South American country. Its average grade is 0.6% copper and 1.2 grams gold per tonne.
Having drilled 178 holes, with a depth of 70 metres, Barrick decided to invest US$20 million, in the belief that Cerro Corona can produce at least 100,000 oz. gold annually, said spokesman Vince Borg.
Peruvian landowners retain the remaining 25% stake in the project. A further US$5 million will be spent this year to determine the feasibility of building a copper-gold mine. Barrick has 18 months to complete the study.
Be the first to comment on "Barrick opts for Peruvian project"