news-details

Pueblo Viejo Project Moves Forward-Represents Largest Foreign Investment in the Dominican Republic

February 27, 2008

SANTO DOMINGO, DOMINICAN REPUBLIC and TORONTO, ONTARIO--(Marketwire - Feb. 27, 2008) - Barrick Gold Corporation (TSX:ABX)(NYSE:ABX) -

Expressed in US dollars

Pueblo Viejo Dominicana Corporation (PVDC), a company jointly owned by Barrick Gold Corporation (60%) and Goldcorp Inc. (40%), announced today that it has submitted a feasibility study and the project notice to the Government of the Dominican Republic in order to proceed with the Pueblo Viejo project. Pueblo Viejo is a $2.7 billion gold mining project located about 100 kilometers northwest of Santo Domingo in the Sanchez Ramirez province and would represent the largest foreign investment in the country. Currently, there are several hundred Dominicans working at the project site who have already contributed to the success of the project.

"We are very pleased with the progress made by our employees, our partner Goldcorp Inc., and importantly, the Government of the Dominican Republic," said Greg Wilkins, Barrick President and Chief Executive Officer. "We look forward to continuing the constructive discussions that are expected to lead to the significant generation of jobs, economic and social development, and environmental protection measures."

The Pueblo Viejo feasibility study includes the following estimates:

- 3,500 jobs are expected to be created during a construction period of about three and a half years, and over 1,000 jobs are expected to be created during the subsequent period of the mine's operation - currently estimated to be about 25 years;

- Construction capital is expected to be approximately $2.7 billion which represents an increase from the $2.1-$2.3 billion estimate of February 2007 - this primarily reflects a throughput rate increase to 24,000 tonnes per day (tpd) from 18,000 tpd; and

- Production is projected to be almost one million ounces of gold per year during the first full five years of production.

It is anticipated that Pueblo Viejo will generate substantial additional revenues for the Dominican Republic, and Dominican companies will also benefit from becoming suppliers. The project also envisions plans to clean up historic environmental damage from a previous operation and a comprehensive environmental management plan to address future operations in a responsible fashion and in accord with high environmental standards.

Mr. Wilkins added: "While a project of this scope and scale will bring many challenges along the way, we are confident that meaningful progress can continue to be made. Our responsible mining approach will include significant local, regional and national initiatives in areas such as skills development and education training and the development of improved infrastructure. We are very pleased that Pueblo Viejo has received broad support from all key stakeholders in the Dominican Republic - particularly in the province of Sanchez Ramirez."

Total proven and probable reserves for Pueblo Viejo at December 31, 2007 were estimated to be 20.4 million ounces1 of gold with 423.6 million pounds of copper and 117.3 million ounces of silver contained within the gold reserves (100 per cent basis)(1).

PVDC is a joint venture between Barrick Gold Corporation, the pre-eminent gold producer with operations and development projects on five continents, and Goldcorp Inc., another leading gold producer. Barrick's vision is to be the world's best gold company by finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner.

CAUTIONARY STATEMENT ON FORWARD-LOOKING INFORMATION

Certain information contained in this Press Release, including any information as to our future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "believe", "expect", "will", "anticipate", "contemplate", "target", "plan", "continue', "budget", "may", "intend", "estimate" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Barrick to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to: changes in the worldwide price of gold or certain other commodities (such as silver, fuel and electricity); fluctuations in currency markets; changes in U.S. dollar interest rates or gold lease rates; risks arising from holding derivative instruments; legislative, political or economic developments in the jurisdictions in which the Company carries on business; operating or technical difficulties in connection with mining or development activities; employee relations; availability and increasing costs associated with mining inputs and labor; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves; adverse changes in our credit rating, contests over title to properties, particularly title to undeveloped properties; and the risks involved in the exploration, development and mining business. These factors are discussed in greater detail in the Company's most recent Form 40-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

(1) Proven gold reserves contain 12.055 million tons of ore at 0.105 oz/ton for 1.262 million ounces. Probable gold reserves contain 203.153 million tons of ore at 0.094 oz/ton for 19.168 million ounces. Contained silver within reported proven gold reserves are 8.047 million ounces at a grade of 0.67 oz/ton and contained silver within reported probable gold reserves are 109.252 million ounces at a grade of 0.54 oz/ton. Contained copper within reported proven gold reserves are 30.052 million pounds at a grade of 0.125% and contained copper within reported probable gold reserves are 393.548 million pounds at a grade of 0.097%. Mineral reserves have been calculated as at December 31, 2007 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, Pueblo Viejo is classified as mineralized material. Calculations have been prepared by employees of Barrick, its joint venture partners or its joint venture operating companies, as applicable, under the supervision of Jacques McMullen, Senior Vice President, Technical Services of Barrick, Rick Allan, Senior Director, Mining of Barrick, and Rick Sims, Senior Director, Resources and Reserves of Barrick. For a breakdown of reserves and resources by category and additional information relating to reserves and resources, see pages 100-105 of Barrick's 2007 Year-End Release dated February 21, 2008.

FOR FURTHER INFORMATION PLEASE CONTACT:

Barrick Gold Corporation

INVESTOR CONTACT:
Deni Nicoski
Vice President, Investor Relations
(416) 307-7410
Email: dnicoski@barrick.com

MEDIA CONTACT:
Vincent Borg
Senior Vice President, Corporate Communications
(416) 307-7477
Email: vborg@barrick.com


Source: Barrick Gold Corporation

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  $ 1,242.90 -2.25 -0.18% Volume: December 13, 2017
ABX NYSE  $ 13.64 -0.01 -0.07% Volume: 8,130,588 December 12, 2017
ABX TSX  $ 17.55 +0.01 +0.06% Volume: 3,859,188 December 12, 2017
Gold  $ 1,242.90 -2.25 -0.18% Volume: December 13, 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