TORONTO--(BUSINESS WIRE)--June 16, 2005--
All amounts in United States dollar
Barrick Gold Corporation
(NYSE:ABX)(TSX:ABX)(LSE:BGD)(SWX:ABX)(BOURSE:ABX) announced today that
the new Lagunas Norte mine in Peru achieved start-up ahead of the
original third-quarter schedule and within its $340 million budget.
The mine is the second of Barrick's new generation of mines and will
be a significant contributor to the Company's gold production for the
second half of 2005 and in the years to come. The Company expects that
Lagunas Norte will produce approximately 545,000 - 550,000 ounces of
gold at total cash costs of about $110-$120 per ounce over the
remainder of 2005.
"We are very pleased with the strong capital cost management of
this project and early start-up of the mine, as it is a unique
accomplishment in light of the current cost pressures and regulatory
environment facing the industry," said Greg Wilkins, President and
Chief Executive Officer. "This is Barrick's second mine in Peru, and
is very similar to our successful Pierina operation. The start up of
Lagunas Norte represents a significant milestone, as it is the largest
greenfields discovery for the gold industry in the last decade. Our
COO, Peter Kinver, and I extend our congratulations to Vice President
Igor Gonzales and his Peruvian team on their achievement of bringing
the discovery to production in three years - a testimony to their
dedication and expertise."
Two of Barrick's four new mines have now entered production.
Tulawaka in Tanzania commenced operations in the first quarter of 2005
and Lagunas Norte in Peru in the second quarter. The third mine,
Veladero in Argentina, is targeted to pour its first gold in the
fourth quarter of this year and the fourth mine, Cowal in Australia,
is expected to commence operations in the first quarter of 2006. For
2005, Barrick expects to produce between 5.4 - 5.5 million ounces of
gold at total cash costs around the top end of its original guidance
of $220 - $230 per ounce.
Barrick is building a new generation of mines around the globe and
has the lowest total cash costs among the major gold producers. Its
vision is to be the world's best gold company by finding, developing
and producing quality reserves in a profitable and socially
responsible manner. Barrick shares are traded on the Toronto, New
York, London and Swiss stock exchanges and the Paris Bourse.
Certain statements included herein, including those regarding
amount and timing of production, costs and other statements that
express management's expectations or estimates of future performance,
constitute "forward-looking statements" within the meaning of the
United States Private Securities Litigation Reform Act of 1995. The
words "expect", "will", "schedule", 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 fuel and electricity) and currencies;
legislative, political or economic developments in the jurisdictions
in which Barrick carries on business; operating or technical
difficulties in connection with mining or development activities; the
speculative nature of gold exploration and development, including the
risks of diminishing quantities or grades of reserves; and the risks
involved in the exploration, development and mining business. These
factors are discussed in greater detail in Barrick's Management's
Discussion and Analysis contained in its 2004 Year End Report and its
most recent Form 40-F/Annual Information Form on file with the US
Securities and Exchange Commission and Canadian provincial securities
regulatory authorities.
Barrick Gold Corporation (PARIS:ABX) (NYSE:ABX) (TSX:ABX)
(Swiss:ABX) (LSE:BGD)
CONTACT: Barrick Gold Corporation
Vincent Borg
Vice President, Corporate Communications
(416) 307-7477
Fax: (416) 861-1509
media@barrick.com
SOURCE: Barrick Gold Corporation