Cortez
The Cortez gold mine is located 100 kilometers southwest of Elko, Nevada in Lander County. Cortez is wholly-owned by Barrick following the acquisition of the 40% joint venture interest (previously owned by Kennecott Explorations (Australia) Ltd., a subsidiary of Rio Tinto plc) in early 2008. The Pipeline property is 11 kilometers northwest and the Cortez Pediment property (which includes the Cortez Hills deposit) is 4 kilometers southeast of the original Cortez milling complex.
The Pipeline and South Pipeline deposits are being mined by conventional open-pit methods. Three different metallurgical processes are employed for the recovery of gold. The process used for a particular ore is determined based on grade and metallurgical character of that ore. Lower-grade oxide ore is heap leached, while higher-grade non-refractory ore is treated in a conventional mill using cyanidation and a carbon-in-leach (“CIL”) process. Heap leach ore is hauled directly to leach pads for gold recovery. Carbonaceous mill ore is mined intermittently during the mining of the Pipeline/South Pipeline deposits.
In 2007, the Company’s share (60% in 2007) of Cortez’s production totaled 323,000 ounces of gold at total cash costs of $376 per ounce1. The company’s share (60%) of proven and probable mineral reserves as of December 31, 2007 is estimated at 6.9 million ounces of gold, including Cortez Hills2. The additional 40% interest has the effect of increasing reserves by 4.6 million ounces to 11.5 million ounces. Barrick is entitled to the production and economic benefit of the 40% addition effective March 1, 2008.
|
Proven and Probable Reserves (at $575 per ounce) |
|
Tons (000's) |
Grade (ounces/ton) |
Contained Ounces (000's) |
|
86,457 |
0.080 |
6,884 |
|
Measured and Indicated Resources (at $650 per ounce) |
|
Tons (000's) |
Grade (ounces/ton) |
Contained Ounces (000's) |
|
45,744 |
0.045 |
2,076 |
Cortez Hills (Development)
Cortez Hills is 60 miles from Goldstrike in Nevada on the Cortez property, which covers 1,080 square miles on one of the world’s most highly prospective mineral trends. Located next to the existing Cortez Pipeline mine on the Battle Mountain trend, Cortez Hills is expected to be a significant contributor to Barrick’s clustered Nevada production base. When in production, the Company’s average annual production from Cortez (including Pipeline) is expected to be about 950,000 to 1 million ounces of gold for the first full five years2. Pre-production capital costs are estimated at about $500 million, including the development of two open pits and twin exploration declines to delineate the underground potential. Ore from the two pits will be conveyed across the valley to be processed at existing facilities.
The Record of Decision is expected to be received in the second half of 2008. Construction is estimated to take 15 months.
1 Click here for more information regarding the calculation of total cash cost.
2 Click here for more information regarding reserve and resource measurements.