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, including in the years following the Homestake and Placer Dome acquisitions. Much of our 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, we maintained our program – and found 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. We have 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. As a result we hold the world’s largest gold reserves. 

Barrick’s exploration team plans to spend about $200 million on exploration in 2008. The Company’s exploration budget continues to be weighted towards resource additions and conversion at and around the mine sites but has had considerable success generating quality projects for the future. In addition, the Company is exploring earlier stage projects and evaluating exploration opportunities in emerging districts around the world.

¹ Barrick’s exploration programs are designed and conducted under the supervision of Robert Krcmarov, Vice President, Global Exploration of Barrick. For information on the geology, exploration activities generally, and drilling and analysis procedures on Barrick’s material properties, see Barrick’s most recent Annual Information Form/Form 40-F on file with Canadian provincial securities regulatory authorities and the U.S. Securities and Exchange Commission.