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.
Barrick has continued to grow Pueblo Viejo’s reserves since acquiring the project with the Placer Dome acquisition in 2006. Reserves have increased approximately 77% or 10.3 million ounces to 23.7 million ounces (100% basis)1, resulting in an expected mine life of over 25 years. As of December 31, 2010, Barrick’s equity share of proven and probable gold reserves at Pueblo Viejo was 14.2 million ounces1.
A major rainfall event that occurred in May 2011 required remediation of the starter tailings dam and new permits for this facility which have been received. Primarily as a result of the unanticipated remediation work and impact to the schedule, mine construction capital for the project has increased to $3.6-$3.8 billion (100% basis)2 or $2.2-$2.3 billion (Barrick’s 60% share) and first production is now expected to occur in mid-2012. As part of a longer-term, optimized power solution for Pueblo Viejo, the Company is advancing a plan to build a dual-fueled power plant at an estimated incremental capital cost of about $0.3 billion (100% basis) or $180 million (Barrick’s share). The power plant would commence operations utilizing heavy fuel oil (HFO) power, but have the ability to subsequently transition to lower cost liquid natural gas (LNG). The new plant is expected to provide lower cost, long term power to the project.
At the end of the third quarter, overall construction was more than 75% complete and the brick lining of all four autoclaves were completed. Nearly all of the concrete has been poured, about 95% of the steel has been erected and more than 7.6 million tonnes of ore have been stockpiled. Work continues toward achieving key milestones including the connection of power to the site. Barrick’s 60% 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 $275–$300 per ounce2,3.
- Click here for more information regarding reserve and resource measurements. Barrick has a 60% share in the Pueblo Viejo project.
- Based on gold price and oil price assumptions of $1,300 per ounce and $90 per barrel, respectively.
- Click here for more information regarding the calculation of total cash costs.