Barrick Veladero mine strikes gold

19 Sep '05

3 min read

Leading international gold mining company Barrick Gold Corporation announced that its Veladero Mine in San Juan province, Argentina, has poured its first gold earlier than previously forecast. Gold production for 2005 is expected to be 50,000 to 55,000 ounces, and is expected to average approximately 700,000 ounces per year over the first three full years of operation.

'They are very excited about this event as Veladero will be a significant contributor to Barrick's growing production profile,' said Greg Wilkins, President and Chief Executive Officer. 'With three projects in production this year and a fourth expected to come on-stream in the first quarter of 2006, Barrick has demonstrated that development expertise is a core competency of the Company.'

The mine is in the final stages of commissioning and is expected to commence operations in early October. Veladero's construction costs are expected to be in line with the company's estimate of $540 million.

The mine has proven and probable gold reserves of 12.8 million ounces(1), and is located in the Frontera District that straddles the border of Argentina and Chile. Barrick's 3,000 square-kilometer land position in that district has over 30 million ounces of gold in proven and probable reserves.

Barrick is bringing into production a new generation of mines around the globe and has the lowest total cash costs per ounce among the major gold producers. Its vision is to be the world's best gold company by finding, developing and producing quality reserves in a profitable and socially responsible manner. Barrick shares are traded on the Toronto, New York, London and Swiss stock exchanges and Euronext Paris.

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