Partners unveil reserves at Veladero

Homestake Mining (HM-N) and Barrick Gold (ABX-T) have announced reserves of 4.8 million oz. gold and 65.7 million oz. silver at their 60-40-held Veladero property in northwestern Argentina.

The property hosts proven and probable reserves of 83.9 million tonnes grading 1.78 grams gold and 24.34 grams silver per tonne.

The reserves are divided into two categories: ore to be milled and ore to be heap-leached. The milled portion contains 16.7 million tonnes grading 4.97 grams gold and 48 grams silver, while the heap-leachable portion holds 67.1 million tonnes of 0.99 gram gold and 18.51 grams silver.

The reserves are part of a previously announced mineralized inventory of 200 million tonnes grading 1.2 grams gold and 22.9 grams silver, or 7.8 million contained oz. gold and 147.4 million contained oz. silver.

Homestake Chairman Jack Thompson says his company, which is operator of the Veladero project, is “just starting to learn about the geological controls on the orebody and [we] believe that there is a lot more gold to be found on this highly prospective property.”

The capital cost at the Veladero project is estimated at US$370 million, with production expected to begin in 2003.

Homestake expects to produce 2.4 million gold-equivalent ounces this year at an average cash cost of US$189 per oz. In 1999, Homestake produced a record 2.4 million gold-equivalent ounces at an average cash cost of US$192 per oz.

This year, Homestake plans to spend about US$70 million on its share of capital expenditures and US$30 million on exploration.

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