Gold-hungry Barrick spreads wings

Taking a decidedly aggressive approach to mine-finding, Barrick Gold (TSE) has announced plans to spend US$30 million within several underexplored areas of West Africa and China.

In Mali, drilling will be carried out on geochemical anomalies within the Misseni concession, while in neighboring Niger, the Sibra concession will be explored.

The Paishanlou project in China is already being drilled, and the nearby Changkeng project will be worked later this year.

Barrick’s team of 50 explorationists is carrying out exploration programs around the world, most of which involve gold and gold-copper deposits.

The company has optioned several properties in Brazil and will drill its Mestizo project in Bolivia. Drilling is also planned for projects in the Argentine provinces of San Juan and Santa Cruz, while in Peru, exploration will be focused on an area surrounding the Cerro Corona deposit and on the 155,000-acre Yanacocha property, the latter being a joint-venture with Solitario Resources (TSE).

Barrick will also attempt to expand reserves at the so-called “Nevada” project in Chile, where feasibility studies are nearing completion. A production decision is expected by year-end.

Meanwhile, at the Meikle mine in Nevada, the ventilation shaft has reached a depth of 1,080 ft. and startup is projected for the second half of 1996. Annual production is estimated at 400,000 oz. at an average cost of US$125 per oz.

The gold mining giant is well on the way to meeting its production goal of 3 million oz. in 1995. In the first half of the year, more than 1.5 million oz. were cranked out at an operating cost of US$176 per oz.

Much of this is attributable to a stronger performance from the Betze-Poste mine in Nevada, combined with new production from the Bousquet complex in Quebec.

Most of Barrick’s production for the half-year, almost 985,000 oz., came from the Betze-Post mine. The operation yielded 127,000 oz. more than it did a year ago.

For the 6-month period, Barrick’s net income rose by 19% to US$146.5 million (or US41 cents a share) on revenue of US$626.4 million. This compares with US$122.8 million (or 42 cents a share) on revenue of US$401.7 million for the same period

in 1994.