Barrick Gold is investing US$35 million in an exploration project in Chile while continuing to expand the Veladero mine in Argentina, having produced 505,000 ounces of gold last year. The company anticipates rising gold prices amid economic uncertainty, prompting strategic investments to enhance production and sustainability in both regions.
Barrick Gold Corporation, based in Canada, has announced a significant investment of US$35 million to initiate an exploration project in Chile’s Atacama region. This project, named El Alto, follows previous attempts to develop the Pascua initiative, now in the closure phase due to environmental violations. The company intends to enhance resource potential in the Alto del Carmen area and has submitted an Environmental Impact Assessment (EIA) for review by local authorities.
In Argentina’s San Juan province, Barrick is focused on expanding the Veladero mine. The company reported production reached 505,000 ounces of gold last year, surpassing its guidance thanks to increased recovery rates facilitated by plant improvements. Notably, costs remained manageable despite rising royalties associated with record gold prices.
Gold prices recently peaked at over US$3,000 per ounce, a level attributed to macroeconomic factors and geopolitical issues. Antonio Di Giacomo, a financial market analyst at XS agency, has noted that continued economic uncertainty could further elevate gold prices. He remarked on the safe-haven demand for gold amid fluctuating economic conditions and monetary policies in the United States.
To bolster production rates at Veladero, Barrick is progressing with a phased expansion of its leach pad, with an investment of US$250-270 million earmarked for the next phase. Concurrently, the firm is conducting drilling activities in two promising targets, Fabiana and Brujas, ahead of the winter season, with the objective of extending the mine’s operational life.
In summary, Barrick Gold is actively pursuing expansion initiatives in both Chile and Argentina by investing significantly in exploration and production enhancement projects. With an understanding of market dynamics, the company aims to leverage increasing gold prices while navigating regulatory challenges. These strategic moves position Barrick to strengthen its gold production capabilities and remain competitive in the mining industry.
Original Source: www.bnamericas.com
