Barrick Gold plans a US$35 million exploration project in Chile’s Atacama region, while also aiming to expand the Veladero mine in Argentina. The company submitted an environmental impact assessment for its El Alto project, eyeing resources in a previously closed area. Market analysts anticipate gold prices will rise further due to economic uncertainty. Barrick continues to advance its operations and exploration efforts in both regions despite past challenges.
Barrick Gold, based in Canada, is set to invest US$35 million in a new exploration initiative in Chile’s Atacama region. This project, called El Alto, is aimed at enhancing resource potential in the Alto del Carmen area, where previous efforts to develop the Pascua initiative ended in 2020 due to environmental violations. The company submitted an environmental impact assessment (EIA) for review by the local agency, SEA, and seeks approval to operate 43 drilling platforms in the Andes mountains.
The Veladero mine in Argentina’s San Juan province will also see renewed focus, as Barrick aims to optimize operations and explore new targets. Last year, the mine exceeded production guidance, achieving 505,000 ounces of gold, aided by a plant expansion and higher recoveries. The firm, through its joint venture with Shandong Gold, operates Veladero successfully while adhering to cost controls amidst rising royalty expenses attributed to elevated gold prices.
Market analysts predict a sustained increase in gold prices, influenced by U.S. monetary policies and geopolitical dynamics. Financial analyst Antonio Di Giacomo noted that persistent economic uncertainty and potential interest rate cuts could lead to record-breaking gold prices. Recently, gold surpassed US$3,000 per ounce, primarily due to global inflation trends and currency fluctuations, resulting in heightened demand for gold as a safe-haven asset.
Barrick is also advancing its leach pad expansions at Veladero, having invested US$159 million into phase 7B and with plans for phase 8 costing between US$250 million and US$270 million. Concurrently, the company is exploring high-sulfidation gold targets, specifically Fabiana and Brujas, as it prepares for harsher winter conditions ahead. The strategic investments reflect Barrick’s commitment to boosting long-term production and securing regional resources.
In conclusion, Barrick Gold’s planned investments in both Chile and Argentina signify a proactive approach to expanding its mining operations amidst favorable gold market conditions. The company’s strategic focus on resource optimization and exploration aims to not only enhance production at existing mines but also reevaluate previously deferred projects, underlining the continuing importance of gold as a critical asset in today’s volatile economic landscape.
Original Source: www.bnamericas.com
