TORONTO, Apr 19, 2005 (BUSINESS WIRE) -- All currency amounts in United States dollars
Barrick Gold Corporation
(NYSE:ABX)(TSX:ABX)(LSE:BGD)(SWX:ABX)(BOURSE:ABX) and Falconbridge
Limited (TSX:FL) announced today that they have finalized a
joint-venture agreement regarding the Kabanga nickel deposit in
Tanzania and related concessions. Under the terms of the agreement,
Falconbridge has acquired a 50% indirect joint venture interest in
respect of the Kabanga Project for $15 million and will be the
operator of the joint venture.
Over the next several years, Falconbridge will fund and conduct a
further $50-million work plan that will include additional exploration
and infill drilling, and technical work to update the resource model
for Kabanga. Falconbridge will draw upon its nickel processing,
project development and engineering expertise to bring the project
towards feasibility. It will establish a dedicated team in Tanzania to
coordinate and advance the work plan. Upon conclusion of the work
plan, Falconbridge will fund the next $95 million of any project
development expenditures to advance the Kabanga project. Thereafter,
Falconbridge and Barrick will share equally joint-venture revenues and
expenditures.
Since acquiring the Kabanga Nickel Project as part of the
acquisition of Sutton Resources in 1999, Barrick has significantly
enhanced the value of Kabanga by increasing the known resource
estimate. The current estimated inferred resource is 26.4 (1) million
tonnes grading 2.6% nickel. The Project is located in northwestern
Tanzania, west of Barrick's Bulyanhulu gold mine and northwest of its
Tulawaka gold mine, which commenced production in March 2005. Barrick
and Falconbridge contemplate that the Kabanga project, when put into
production, would comprise an underground mining operation and
associated surface infrastructure and concentrator. Contingent upon
the results of the Falconbridge drilling program, the partners expect
that the operation would mine approximately two million tonnes of ore
per year, capable of producing approximately 30 thousand to 35
thousand tonnes of nickel in concentrates per year. The nickel
concentrates would be marketed by Falconbridge and at least 50% of the
nickel concentrates would be processed at Falconbridge's Sudbury
nickel smelter and Norwegian nickel refinery on behalf of the joint
venture.
Greg Wilkins, Barrick's President and Chief Executive Officer,
said: "We are pleased to enter into this turn-key partnership
agreement with Falconbridge - a fully-integrated nickel company and
the world's third-largest refined nickel producer. Falconbridge's
nickel experience, together with its ability to treat a significant
part of the nickel concentrates, will add considerable value to the
Kabanga project."
Aaron Regent, Falconbridge's President and Chief Executive
Officer, said: "Kabanga is an important nickel sulphide development
project and will fit in exceptionally well with our strategic growth
initiatives. We look forward to working with Barrick and benefiting
from its significant project development experience in Tanzania."
Barrick's vision is to be the world's best gold mining 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.
Falconbridge Limited is a leading producer of nickel, copper,
cobalt and platinum group metals. Its common shares are listed on the
Toronto Stock Exchange under the symbol FL. Falconbridge is owned by
Noranda Inc. of Toronto (58.8%) and by other investors (41.2%).
(1) Resource calculations were prepared by employees of Barrick
under the supervision of Alexander J. Davidson, P. Geo., Executive
Vice President, Exploration and Corporate Development of Barrick.
Certain statements included herein that express management's
expectations or estimates of our future performance, constitute
"forward-looking statements" within the meaning of the United States
Private Securities Litigation Reform Act of 1995. 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. We caution you that such
forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause actual performance or
achievements to be materially different from estimated future
performance or achievements expressed or implied by those
forward-looking statements and 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 commodities (such as nickel , diesel fuel and electricity)
and currencies; legislative, political or economic developments in
Tanzania or other jurisdictions in which the joint venture may carry
on business; operating or technical difficulties in connection with
mining or development activities; the speculative nature of mineral
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 most recent Form 40-F/Annual
Information on file with the U.S. Securities and Exchange Commission
and Canadian provincial securities regulatory authorities.
Barrick expressly disclaims any intention or obligation to update
or revise any forward-looking statements whether as a result of new
information, events or otherwise.
Barrick Gold Corporation (PARIS:ABX) (NYSE:ABX) (TSX:ABX)
(Swiss:ABX) (LSE:BGD)
Falconbridge Limited (TSX:FL)
SOURCE: Barrick Gold Corporation
Investor Contacts: Barrick Gold Corporation
Darren Blasutti
Vice President, Investor Relations
(416) 307-7341
dblasutti@barrick.com
OR
Noranda/Falconbridge
Denis Couture
Vice-President, Investor Relations,
Communications and Public Affairs
(416) 982-7020
denis.couture@toronto.norfalc.com
OR
Media Contacts: Barrick Gold Corporation
Vincent Borg
Vice President, Corporate Communications
(416) 307-7477
vborg@barrick.com
OR
Noranda/Falconbridge
Ian Hamilton
Director, Communications and Public Affairs
(416) 982-7161
ian.hamilton@toronto.norfalc.com