Three years after the formation of the joint venture that created
the world’s largest gold mining complex, Nevada Gold Mines (NGM) is
stepping out on its next growth phase by identifying new
opportunities for discoveries and additions, Barrick president and
chief executive Mark Bristow said here today. Nevada Gold Mines is
61.5% owned and operated by Barrick Gold Corporation (NYSE: GOLD)
(TSX: ABX) with Newmont Corporation owning the rest.
Speaking during a visit by Barrick’s board of
directors to view developments at the complex firsthand, Bristow
said NGM stood out from the rest of the industry not only for its
size but because a wealth of projects and prospects secure its
future as a high-quality, long-life operation for decades to
come.
Over the past three years, NGM has worked
relentlessly to unlock synergies by consolidating mines, teams,
processing facilities and landholdings. In its short life, NGM has
produced 10 million ounces of gold and substantial free cash flow
(on a 100 % basis). Greatly improved knowledge of the orebodies has
supported robust 10-year plans and has increased the pre-merger
life of mine substantially.
At the existing operations, brownfields
exploration is replacing reserves depleted by mining and
identifying new targets while the greenfields team is hunting
further afield for a new Tier One¹ discovery. NGM’s future
flagship development will be the Goldrush project adjacent to
Cortez, which is subject to an environmental review by the Bureau
of Land Management and other cooperating agencies, including public
comment and input. It is a world-class underground deposit with a
life of mine plan² in excess of 20 years and is expected to
employ 500 people during construction and 570 during operation.
NGM and Barrick have positioned themselves as a
key partner to the state of Nevada with NGM’s workforce of 7,000
making it one of the state’s largest employers. When the Covid-19
pandemic struck in 2020, NGM offered to prepay net proceeds from
mineral tax and, more recently, it has worked with the state to
create the mining excise tax, with the funds earmarked for
education starting in 2023. To date, NGM has paid close to $60
million towards this new excise tax.
NGM continues to invest in people, both current
and future employees, through education partnerships and training
programs. It supports the College of Southern Nevada and the Clark
County School District where high school students can obtain
certificates in industrial maintenance or diesel technology and has
renewed its partnership with Discovery Education for the Nevada
Department of Education’s outreach program. The company is also
working with the University of Nevada and the Great Basin College
in Elko to develop mining-centred programs.
Internally, NGM has been developing a unique
talent development program called ‘training mines’ for underground
and surface mining as well as process operations with the aim of
providing the company with well-rounded, safety-focused employees
and maintaining quality control through structured, comprehensive,
competency-based training. In addition to the training mines,
leadership development programs have been rolled out with a focus
on safety.
“We are also continuing our investment in
community infrastructure, including the Elko broadband initiative
which has delivered high-speed internet access to more than 635
homes. We have also established daycare facilities in Elko County
to enable more women to join our workforce,” said Bristow, noting
that women now comprise 16% of Barrick’s staff complement in North
America.
Enquiries:President and CEOMark Bristow+1 647 205
7694+44 788 071 1386 |
Investor and Media RelationsKathy du Plessis+44 20 7557
7738Email: barrick@dpapr.com |
Website: www.barrick.com |
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Endnotes
- A Tier One Gold
Asset is an asset with a reserve potential to deliver a minimum
10-year life, annual production of at least 500,000 ounces of gold
and total cash costs per ounce over the mine life that are in the
lower half of the industry cost curve.
- Refer to the Technical Report on
the Cortez Complex, Lander and Eureka Counties, State of Nevada,
USA, dated December 31, 2021, and filed on SEDAR at www.sedar.com
and EDGAR at www.sec.gov on March 18, 2022.
Cautionary Statement on Forward-Looking
Information
Certain information contained or incorporated by
reference in this press release, including any information as to
Barrick’s and NGM’s strategy, projects, plans or future financial
or operating performance, constitutes “forward-looking statements”.
All statements, other than statements of historical fact, are
forward-looking statements. The words “growth”, “projects”,
“prospects”, “secure”, “future”, “support”, “continue”, “expect”,
“aim”, “potential”, “will”, “could”, “would”, “should”, “may” and
similar expressions identify forward-looking statements. In
particular, this press release contains forward-looking statements
including, without limitation, with respect to: NGM’s plans for its
next growth phase including the potential for new opportunities and
discoveries; the anticipated benefits of NGM’s 10-year life of mine
plans; NGM’s ability to replace reserves depleted by production;
the anticipated mine life and benefits of the Goldrush project,
including local employment during construction and operation;
Barrick’s and NGM’s strategy, plans, targets and goals in respect
of social issues, including local community relations and
investments (including planned prepayment of taxes and investments
in local education, child care, talent development programs and
local broadband internet initiatives); and expectations regarding
future price assumptions, financial performance and other outlook
or guidance.
Forward-looking statements are necessarily based
upon a number of estimates and assumptions including material
estimates and assumptions related to the factors set forth below
that, while considered reasonable by the Company as at the date of
this press release in light of management’s experience and
perception of current conditions and expected developments, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. Known and unknown
factors could cause actual results to differ materially from those
projected in the forward-looking statements and undue reliance
should not be placed on such statements and information. Such
factors include, but are not limited to: fluctuations in the spot
and forward price of gold, copper or certain other commodities
(such as silver, diesel fuel, natural gas and electricity); risks
associated with Goldrush and projects in the early stages of
evaluation and for which additional engineering and other analysis
is required; risks related to the possibility that future
exploration results will not be consistent with the Company’s
expectations, that quantities or grades of reserves will be
diminished, and that NGM’s resources may not be converted to
reserves; risks associated with the fact that certain of the
initiatives described in this press release are still in the early
stages and may not materialize; changes in mineral production
performance, exploitation and exploration successes; risks that
exploration data may be incomplete and considerable additional work
may be required to complete further evaluation, including but not
limited to drilling, engineering and socioeconomic studies and
investment; the speculative nature of mineral exploration and
development; changes in national and local government legislation,
taxation, controls or regulations and/or changes in the
administration of laws, policies and practices; expropriation or
nationalization of property and political or economic developments
in the United States or other countries in which Barrick does or
may carry on business in the future; risks relating to political
instability in certain of the jurisdictions in which Barrick
operates; timing of receipt of, or failure to comply with,
necessary permits and approvals, including for the development of
Goldrush; non-renewal of or failure to obtain key licenses by
governmental authorities; failure to comply with environmental and
health and safety laws and regulations; contests over title to
properties, particularly title to undeveloped properties, or over
access to water, power and other required infrastructure; the
liability associated with risks and hazards in the mining industry,
and the ability to maintain insurance to cover such losses;
increased costs and physical risks, including extreme weather
events and resource shortages, related to climate change; damage to
the Company’s reputation due to the actual or perceived occurrence
of any number of events, including negative publicity with respect
to the Company’s handling of environmental matters or dealings with
community groups, whether true or not; risks related to operations
near communities that may regard Barrick’s operations as being
detrimental to them; litigation and legal and administrative
proceedings; operating or technical difficulties in connection with
mining or development activities, including geotechnical
challenges, tailings dam and storage facilities failures, and
disruptions in the maintenance or provision of required
infrastructure and information technology systems; increased costs,
delays, suspensions and technical challenges associated with the
construction of capital projects; risks associated with working
with partners in jointly controlled assets; risks related to
disruption of supply routes which may cause delays in construction
and mining activities; risk of loss due to acts of war, terrorism,
sabotage and civil disturbances; risks associated with Barrick’s
infrastructure, information technology systems and the
implementation of Barrick’s technological initiatives; global
inflationary pressures driven by supply chain disruptions caused by
the ongoing Covid-19 pandemic and global energy cost increases
following the invasion of Ukraine by Russia; risks related to the
demands placed on the Company’s management, the ability of
management to implement its business strategy and enhanced
political risk in certain jurisdictions; uncertainty whether some
or all of Barrick’s targeted investments and projects will meet the
Company’s capital allocation objectives and internal hurdle rate;
business opportunities that may be presented to, or pursued by, the
Company; our ability to successfully integrate acquisitions or
complete divestitures; risks related to competition in the mining
industry; employee relations including loss of key employees;
availability and increased costs associated with mining inputs and
labor; and risks associated with diseases, epidemics and pandemics,
including the effects and potential effects of the global Covid-19
pandemic. Barrick also cautions that its 2022 guidance may be
impacted by the unprecedented business and social disruption caused
by the spread of Covid-19. In addition, there are risks and hazards
associated with the business of mineral exploration, development
and mining, including environmental hazards, industrial accidents,
unusual or unexpected formations, pressures, cave-ins, flooding and
gold bullion, copper cathode or gold or copper concentrate losses
(and the risk of inadequate insurance, or inability to obtain
insurance, to cover these risks).
Many of these uncertainties and contingencies
can affect our actual results and could cause actual results to
differ materially from those expressed or implied in any
forward-looking statements made by, or on behalf of, us. Readers
are cautioned that forward-looking statements are not guarantees of
future performance. All of the forward-looking statements made in
this press release are qualified by these cautionary statements.
Specific reference is made to the most recent Form 40-F/Annual
Information Form on file with the SEC and Canadian provincial
securities regulatory authorities for a more detailed discussion of
some of the factors underlying forward-looking statements and the
risks that may affect Barrick’s ability to achieve the expectations
set forth in the forward-looking statements contained in this press
release.
We disclaim any intention or obligation to
update or revise any forward-looking statements whether as a result
of new information, future events or otherwise, except as required
by applicable law.
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