Exploration

Reserves are the cornerstone of our business and, whether by exploration¹ or acquisition, reserve replacement is a critical component of sustainable success. There has been a dearth of exploration discoveries in the industry over the last decade. Nevertheless, Barrick has a track record of consistently replacing reserves every year since the Placer Dome acquisition. Much of Barrick’s success can be attributed to our practice of consistent investment in exploration and in acquisitions of properties with early stage potential. 

Even during the years of low gold prices, when most of the industry retrenched, Barrick maintained its commitment to exploration and discovered Lagunas Norte. It was one of the few major discoveries of the decade, and to date, no larger asset has been discovered and put into production. Barrick has now amassed an extensive portfolio of operating mines and exploration properties in what we believe to be some of the best and most prospective regions in the world. Much of that exploration potential lies near existing infrastructure, where the likelihood of reserve replacement is enhanced and the cost of proving up ounces is reduced.

The $150 - $160 million exploration budget for 2009 is weighted towards near mine resource additions and reserve conversion in our principal focus areas of Nevada, U.S.A., Chile and Papua New Guinea, where we believe there is still excellent potential to make discoveries and to expand reserves and resources at our existing mines.

In addition, the Company expects $180 - $200 million in project related expense which includes the cost of preparing feasibility studies for Cerro Casale, Donlin Creek and Reko Diq and the development costs associated with the extension of the mine life at Golden Sunlight.

¹ Click here for further information about Barrick's exploration programs.