Pueblo Viejo Achieves Commercial Production
January 15 2013 - 8:25AM
Marketwired
All amounts expressed in U.S. dollars unless otherwise
indicated.
Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) today announced it
has achieved commercial production at its 60 percent owned Pueblo
Viejo mine in the Dominican Republic.
"This is another major milestone at this truly world-class
mine," said Jamie Sokalsky, President and Chief Executive Officer
of Barrick. "We are pleased to have successfully completed Pueblo
Viejo last year, in line with guidance, and now also to have
reached commercial production."
Pueblo Viejo was completed at a capital cost of $3.7 billion and
created more than 11,000 direct jobs during the construction phase
of the project. The operation is expected to support about 2,000
direct jobs plus nearly 10,000 indirect jobs over its +25 year mine
life, with Dominicans accounting for nearly 90 percent of the
full-time workforce.
Since 2008, Pueblo Viejo Dominicana Corporation (PVDC) has
invested over $7 million in projects to improve healthcare, housing
and literacy and allocated a further $75 million to remediate
environmental impacts from a former mining operation on the
site.
Pueblo Viejo Highlights
(all figures are Barrick's 60 percent share unless noted)
-- Ramp-up to full capacity is expected to occur in the second half of 2013
and production for the year is anticipated to be 500,000-650,000
ounces(1)
-- Barrick's share of annual production in the first full five years of
operation is expected to average 625,000-675,000 ounces
-- 25.3 million ounces of reserves (100 percent basis) as of year-end
2011(2)
CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION
Certain information contained or incorporated by reference in
this press release, including any information as to our 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 "expect", "anticipate", "will" and similar expressions
identify forward-looking statements. Forward-looking statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by the company, 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. Such factors include, but are not limited to:
fluctuations in the spot and future price of gold and copper or
certain other commodities (such as silver, diesel fuel and
electricity); diminishing quantities or grades of reserves; the
impact of inflation; changes in national and local government
legislation, taxation, controls, regulations, expropriation or
nationalization of property and political or economic developments;
the impact of global liquidity and credit availability on the
timing of cash flows and the values of assets and liabilities based
on projected future cash flows; fluctuations in the currency
markets; changes in U.S. dollar interest rates; risks arising from
holding derivative instruments; risk of loss due to acts of war,
terrorism, sabotage and civil disturbances; operating or technical
difficulties in connection with mining or development activities;
employee relations; availability and increased costs associated
with mining inputs and labor; increased costs and technical
challenges associated with the construction of capital projects;
litigation; the speculative nature of mineral exploration and
development, including the risks of obtaining necessary licenses
and permits; adverse changes in our credit rating; contests over
title to properties.
In addition, there are risks and hazards associated with the
business of mining, including environmental hazards, industrial
accidents, unusual or unexpected formations, pressures, cave-ins,
flooding and gold bullion 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
discussion of some of the factors underlying forward-looking
statements.
The company disclaims 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.
(1) Actual results will vary depending on the how the ramp-up
progresses.
(2) Calculated in accordance with National Instrument 43-101 as
required by Canadian securities regulatory authorities. For U.S.
reporting purposes, Industry Guide 7 (under the Securities Exchange
Act of 1934), as interpreted by the Staff of the SEC, applies
different standards in order to classify mineralization as a
reserve. Accordingly, for U.S. reporting purposes, approximately
2.15 million ounces of reserves at Pueblo Viejo (Barrick's 60
percent interest) is classified as mineralized material. For a
breakdown of reserves and resources by category and additional
information relating to reserves and resources, see pages 161-166
of Barrick's 2011 Year-End Report.
Contacts: INVESTOR CONTACT: Greg Panagos Senior Vice President
Investor Relations and Communications (416)
309-2943gpanagos@barrick.com MEDIA CONTACT: Andy Lloyd Director,
Media Relations (416) 307-7414alloyd@barrick.com
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