news-details

Barrick and Xstrata Announce Significant Developments at Kabanga Nickel Project

February 15, 2007
XSTRATA NICKEL COMMITS US$95 MILLION, UPDATES RESOURCE ESTIMATE AND
COMMENCES PRE-FEASIBILITY STUDY AT KABANGA JOINT VENTURE NICKEL
PROJECT, TANZANIA

Toronto, February 15, 2007 – Xstrata Nickel announces further investment of US$95 million
and the commencement of a pre-feasibility study to advance the Kabanga nickel project
located in western Tanzania.

An update to the preliminary resource estimate has also been announced for the project, a
50/50 owned joint venture of Barrick Gold Corporation and Xstrata Nickel, operated by
Xstrata through a subsidiary. This confirms the Kabanga nickel project as among the
world’s most attractive undeveloped nickel sulphide deposits, with a total estimated
indicated resource of 9.7 million tonnes grading 2.37% nickel and a total estimated
inferred resource of 36.3 million tonnes grading 2.8% nickel. The revised estimate
represents a notable increase from the project’s previous estimate (inferred) of 26.4 million
tonnes at 2.6% nickel.

Xstrata Nickel has completed over US$50 million in expenditures to update the resource
model for the Kabanga project and preparation of an extensive scoping study.
“We are very pleased with the progress occurring at Kabanga, which is among the world’s
most attractive nickel projects,” said Ian Pearce, Chief Executive Officer of Xstrata Nickel.
“We anticipated good results from our resource estimate update and we received them.
We have taken the logical next step of moving this project to the pre-feasibility stage and
we look forward to the continued development of Kabanga.”

“Kabanga has the potential to become a world class nickel sulphide deposit. The most
recent resource has a compelling combination of size with high grades," said Greg Wilkins,
Barrick President and Chief Executive Officer.

Diamond drilling is ongoing with ten drills with the objectives to:

• Continue to upgrade the resource to measured and indicated categories in North
Zone to provide sufficient quality data to support a feasibility study on the project.
• Further expand and upgrade the inferred resource at Tembo Zone, a new zone
discovered in June 2006 located 2 km north along strike of North Zone.
• Progress the systematic exploration of the under-explored Kabanga licences and
evaluate select regional targets for new discoveries in the proximity of the Kabanga
deposits
• Undertake geotechnical investigations for potential infrastructure sites.

The most recent (December, 2006) Kabanga Nickel Project resource estimate is as follows:

Category  Tonnes Ni
%
Cu
%
Co
%
Au
gpt
Pt
gpt
Pd
gpt
Ag
gpt
Main Indicated 2,420,000 1.68 0.25 0.13 0.02 0.04 0.07 0.31
North Indicated 7,280,000 2.59 0.35 0.21 0.04 0.08 0.09 1.28
Total Indicated 9,700,000 2.37 0.32 0.19 0.04 0.07 0.09 1.04
North Inferred 26,300,000 3.0 0.4 0.2 0.1 0.4 0.3 1.6
Tembo Inferred 9,300,000 2.4 0.3 0.2 0.1 0.2 0.2 1.2
MNB Inferred 700,000 1.5 0.2 0.1 0.1 0.1 0.1 0.7
Total Inferred 36,300,000 2.8 0.4 0.2 0.1 0.3 0.3 1.5

The extensive exploration program on these promising properties is being conducted by the
Companies with Xstrata Nickel acting as the operator.

The Main Zone resource is based on 54 diamond drill holes, totaling 18,508 metres, with
spacing between pierce points ranging from 30 to 50 metres. The North Zone is based on
167 diamond drill holes, totaling 114,864 metres with pierce point spacing ranging from 20
to 50 metres for the Indicated estimate and 50 to 150 metres for the Inferred estimate. The
Tembo Zone resource is based on 40 diamond drill holes, totaling 19,628 metres, with
pierce point spacing averaging 100 metres. The MNB zone is based on 6 diamond drill
holes, totaling 4,298 metres, with hole spacing ranging from 50 to 100 metres.

The resource estimate was prepared by Xstrata Nickel geologist Bruce Churchill, P. Geo.,
Senior Resource Geologist, under the supervision of Christine Petch, P. Geo., Regional
Geologist and Mike Welch, P. Geo., Project Manager. The North Zone drilling is supervised
by Senior Project Geologist Ray Kohlsmith, P. Geo., and the Tembo Zone drilling and
regional geophysical program are supervised by Nic Fenner, P. Geo., Senior Geologist. All
are Qualified Persons as defined under National Instrument 43-101.

Quality Control
Xstrata Nickel employs a QA/QC protocol on all aspects of the analytical procedures. Core
samples are split and one half of the NQ core is restored to the core box for future
reference and one quarter of the core is sent for analysis. Samples are taken in 2.0-metre
intervals or less. Sample preparation is completed at the ALS-Chemex preparation lab at
Mwanza, Tanzania and assayed at ALS-Chemex lab in Perth, Australia using 4-acid digest/
ICP-AES technique. A blank sample is inserted every 60th sample and standard samples
representing a range of grades are inserted at intervals of 1 in 30 samples. Five percent of
pulps are re-analyzed at Genalysis Laboratory Services in Perth, Australia. Historical QA/QC
data from previous operators has been examined and found to be within acceptable
parameters.

The Quality Control for the project is supervised by Xstrata Nickel geologist Ray Kohlsmith,
P.Geo., Senior Project Geologist who is a Qualified Person as defined under National
Instrument 43-101.

Background
Xstrata Plc is a major global diversified mining group, listed on the London and Swiss stock
exchanges. Headquartered in Zug, Switzerland, Xstrata maintains a meaningful position in seven
major international commodity markets: copper, coking coal, thermal coal, ferrochrome, nickel,
vanadium and zinc, with a smaller but profitable aluminium business, recycling facilities, additional
exposures to gold, lead and silver and a suite of global technologies, many of which are industry
leaders. The Group's operations and projects span 18 countries: Argentina, Australia, Brazil, Canada, Chile, Colombia, the Dominican Republic, Germany, Jamaica, New Caledonia, Norway, Papua New Guinea, Peru, South Africa, Spain, Tanzania, the USA and the UK.

Xstrata Nickel, headquartered in Toronto, Canada, is one of the one of the group’s global
commodity businesses, comprising five mines and processing facilities in Ontario and Quebec,
Canada; a ferronickel mine and processing facility in Bonao, Dominican Republic; and a refinery in
Nikkelverk, Norway. Xstrata Nickel has a significant portfolio of growth projects, including Nickel Rim South in Canada, Kabanga in Tanzania, and Koniambo in New Caledonia.

Xstrata Nickel is the world’s fourth largest nickel producer, with annual managed production of more than 110,000 tonnes of refined nickel.

Barrick is a leading international gold mining company with quality assets, an unrivalled pipeline of
projects and over 20,000 dedicated employees working on four continents to deliver value.

Xstrata Nickel Contacts

Ian Hamilton, Director Corporate Affairs
Office +1 416 982-7161
Mobile + 1 416 902 0986
Email ihamilton@xstratanickel.ca

Barrick Gold Corporation Contacts

INVESTOR RELATIONS
James Mavor, Vice President, Investor Relations
Office +1 416 307-7463
Email jmavor@barrick.com

MEDIA
Vincent Borg, Senior Vice President, Corporate Communications
Office + 1 416 307-7477
 Email vborg@barrick.com

Email Alerts

Email Address *
Mailing Lists *


 
Enter the code shown above.

By providing your e-mail address, you are consenting to receive press releases, quarterly and annual reports, presentations and other information concerning Barrick Gold Corporation and its affiliates and partners. You may withdraw your consent at any time using the unsubscribe link below.

Unsubscribe

Email Address:  *
Gold  $ 1,247.98 -1.12 -0.09% Volume: December 11, 2017
ABX NYSE  $ 13.75 +0.10 +0.73% Volume: 1,678,671 December 11, 2017
ABX TSX  $ 17.77 +0.20 +1.14% Volume: 330,573 December 11, 2017
Gold  $ 1,247.98 -1.12 -0.09% Volume: December 11, 2017

Our vision is the generation of wealth through responsible mining — wealth for our owners, our people, and the countries and communities with which we partner.

World Gold Council MemberMember of ICMM

En Español