North America - 

Pueblo Viejo

Pueblo Viejo is located in the Dominican Republic, approximately 100 kilometres northwest of the capital city of Santo Domingo. Barrick holds a 60% interest and is the operator, with Goldcorp owning the remaining interest.

As at December 31, 2011, Pueblo Viejo had proven and probable reserves of 25.3 (100% basis) million ounces of gold reserves¹.

Pueblo Viejo’s first production continues to be expected in mid-2012.  At the end of Q1 2012, overall construction was about 93% complete and approximately 90% of the mine construction capital of $3.6-$3.8 billion² (100 percent basis) or $2.2-$2.3 billion (Barrick’s 60% share) had been committed.

 

 

 

 

About 15 million tonnes of ore, representing approximately 1.7 million contained gold ounces, have been stockpiled. The tailings facility has received all necessary approvals to permit construction of the starter dam to its full design height. With power being connected to the site in the first quarter of 2012, the first two autoclaves are undergoing pre-commissioning testing and along with the oxygen plant are expected to be commissioned in the second quarter.  As part of a longer-term, optimized power solution for Pueblo Viejo, the company has started construction of a 215 MW dual fuel power plant at an estimated incremental cost of approximately $300 million (100% basis) or $180 million (Barrick’s 60% share). The power plant would commence operations utilizing heavy fuel oil, but have the ability to subsequently transition to liquid natural gas. The new plant is expected to provide lower cost, long term power to the mine.

Pueblo Viejo is expected to contribute approximately 100,000-125,000 ounces of gold to Barrick at total cash costs of $400-$500 per ounce³ starting in 2012 as it ramps up to full production in 2013. Barrick’s 60 percent share of annual gold production in the first full five years of operation is expected to average 625,000-675,000 ounces at total cash costs of $300-$350 per ounce⁴.

1. Calculated in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities.  For United States 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% 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 25-36 of Barrick’s 2011 Form 40-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.
    
2. Based on gold and oil price assumptions of $1,300/oz and $100/bbl, respectively.
    
3. Total cash costs per ounce is a non-GAAP financial measure.  See pages 37-41 of Barrick’s First Quarter Report 2012. Based on gold and oil price assumptions of $1,700/oz and $100/bbl, respectively. The 2012 total cash cost estimate is dependent on the rate at which production ramps up after commercial levels of production are achieved.  A change in the efficiency of the ramp up could have a significant impact on this estimate.
    
4. Total cash costs per ounce is a non-GAAP financial measure.  See pages 37-41 of Barrick’s First Quarter Report 2012. Based on gold and oil price assumptions of $1300/oz and $100/bbl, respectively.  Does not include escalation for inflation.