Barrick Gold plans a US$35 million investment in the El Alto exploration project in Chile while expanding the Veladero mine in Argentina. Despite past challenges with the Pascua project, Barrick aims to increase resource potential in Chile. Analysts anticipate continued rising gold prices influenced by geopolitical factors and monetary policies. The company’s focus remains on enhancing production efficiency and exploring promising gold targets.
Barrick Gold, based in Canada, is set to invest US$35 million in a new exploration project named El Alto, located in Chile’s Atacama region. This initiative follows the closure of the Pascua project due to environmental violations and aims to enhance resource potential in the Alto del Carmen area. Barrick had previously spent over US$8 billion on the Pascua-Lama project, which was intended to generate substantial gold, silver, and copper annually before ceasing operations in 2020.
In addition to the venture in Chile, Barrick is focused on expanding its Veladero mine in Argentina’s San Juan province. The company exceeded its production expectations last year, achieving 505,000 ounces of gold primarily due to increased efficiency from plant expansions and improved leaching methods. The costs remained favorable, despite rising royalty expenses tied to record-high gold prices.
Analysts predict that gold prices will sustain an upward trajectory, pending the Federal Reserve’s economic policies and geopolitical developments. Antonio Di Giacomo, a financial market analyst for Latin America at XS agency, noted that ongoing economic uncertainty could propel gold prices to new heights if interest rate cuts occur, as evidenced by recent prices surpassing US$3,000 per ounce amidst various market factors.
To bolster production at Veladero, Barrick is currently overseeing the construction of phase 8 of the leach pad expansion, which carries an investment estimate of US$250-270 million. The company also is conducting exploration around two high-sulfidation gold targets named Fabiana and Brujas, with efforts aimed to extend the mine’s operational lifespan.
Overall, Barrick Gold is strategically pursuing increased gold production through investments in both Chile and Argentina. Its initiatives in El Alto and the expansion at Veladero highlight its commitment to enhancing resource capabilities while navigating market dynamics that influence gold prices.
In summary, Barrick Gold’s significant investment in exploration and expansion projects in Chile and Argentina reflects its commitment to increasing gold production amidst record prices. The company’s strategic focus on resource development, particularly in the El Alto project and Veladero mine, showcases its intent to capitalize on favorable market conditions and ensure sustainable growth in the mining sector.
Original Source: www.bnamericas.com
