Projects
Cerro Casale JV
The feasibility study optimization work at the Cerro Casale joint venture project in Chile has been completed. Cerro Casale is one of the world’s largest undeveloped gold-copper deposits, with gold reserves of 23.2 million ounces (100% basis)1. The project is located in the Maricunga district of Region III in Chile, 130 kilometers north of the Pascua – Lama project. Its proximity to Pascua – Lama is expected to provide opportunities for construction and operating synergies. Pre-production capital is expected to be about $4.2 billion (100% basis) with a construction period of approximately 3 years following the receipt of key permits. The next step is to review additional permit requirements before considering a construction decision.
On March 31, 2010, Barrick acquired an additional 25% interest in the Cerro Casale project in Chile from Kinross Gold Corporation for consideration of $474 million comprised of $454 million cash and the elimination of a $20 million contingent obligation which was payable by Kinross to Barrick on a production decision, thereby increasing the company’s interest in the Cerro Casale to 75%. Barrick’s 75% share of average annual production is anticipated to be 750,000-825,000 ounces of gold and 170-190 million pounds of copper at total cash costs of $240-$260 per ounce2,3 in its first full five years of operation, assuming a copper price of $2.50 per pound.
1 Click here for more information on reserve and resource measurements.
2 Click here for more information regarding the calculation of total cash costs.
3 Based on gold price, copper price and oil price assumptions of $950 per ounce, $2.50 per pound and $75 per barrel, respectively, and assuming a Chilean peso foreign exchange rate of 525:1.