Exploration Review Alex Davidson - barrick.q4cdn.com · ALUMBRE URURUPA Huamachuco Otuzco...
Transcript of Exploration Review Alex Davidson - barrick.q4cdn.com · ALUMBRE URURUPA Huamachuco Otuzco...
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Barrick Gold Corporation – Building Mines, Building Value2004 Annual and Special Shareholders Meeting
Exploration ReviewAlex Davidson
Executive Vice President, Exploration
What are we exploring for?What are we exploring for?> 2 million ounce, low cost gold deposit
Carlin-type deposits (50 million ounce Goldstrike mine)
High Sulphidation deposits (28 M oz at Pascua and Veladero 8 million ounces Pierina and Alto Chicama deposit)
Greenstone gold deposits (>50 million ounce KCGM, 15 million ounce Bulyanhulu or >5 million ounce Plutonic)
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Barrick Gold Corporation – Building Mines, Building Value2004 Annual and Special Shareholders Meeting
Canada$4M
U.S.A.$17M
Peru$7M
Chile/ Argentina
$4.5M
FSU$5M
Australia$6M
Tanzania$9M
2004 Regional Exploration2004 Regional Exploration
Reserve Replacement and GrowthReserve Replacement and Growth
Overall finding cost $11/oz
On-property finding cost $3/oz
1990
Total Mined
Acquisitions
Divestitures
Exploration
2003
86
76
4652
20
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RESERVE GROWTH THROUGH ACQUISITION AND EXPLORATIONproven and probable – millions of ounces
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Barrick Gold Corporation – Building Mines, Building Value2004 Annual and Special Shareholders Meeting
97 98 99 00 01 02 03250
300
350
400
04E
Exploration InvestmentExploration InvestmentBarrick’s exploration spending has been consistent
US$ millions
79
69
56
69 6759
66 65
Spot Gold Price
Increasing the Chances for DiscoveryIncreasing the Chances for DiscoveryMaintaining a Sustained Exploration Budget
Barrick Exploration System
Objective ranking of worldwide projects
Removal of regional biases
Move the best projects up the pipeline faster
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Barrick Gold Corporation – Building Mines, Building Value2004 Annual and Special Shareholders Meeting
Highlights from 2003Highlights from 2003Added reserves and resources at Goldstrike, Storm, Gold Hill
Regional work in the Alto Chicama district identified targets for 2004
Positive metallurgical testwork at Chocolate Reef in Tanzania
Added new Australian advanced projects
Focus for 2004Focus for 2004High priority targets
Goldstrike District, Nevada
East Archimedes, Nevada
Chocolate Reef Area, Tanzania
Alto Chicama District , Peru
Yeneena Basin, Australia
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Barrick Gold Corporation – Building Mines, Building Value2004 Annual and Special Shareholders Meeting
Storm
Dee
MeikleMeikle
Betze-PostBetze-Post
2 CN. Arturo
Arturo
S. Button HillRen
N.W. Meikle
S.E. Meikle
North Pit
South Pit
Goldstrike DistrictNevada
Goldstrike DistrictNevada
East Archimedes, NevadaEast Archimedes, Nevada
EastArchimedes
Layback
RubyDeepsTarget
Deep East
ArchimedesSulfideTarget
4000
6000
5000
0 500meters
1000
West Archimedes
EastArchimedes
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Barrick Gold Corporation – Building Mines, Building Value2004 Annual and Special Shareholders Meeting
L a k e V i c t o r i a
Shinyanga
Mwanza
Kahama
Isaka
LAKE VICTORIA GREENSTONE BELT
BulyanhuluTulawaka
Rail Link
Chocolate Reef
0 50kilometres
100
Chocolate Reef, Tanzania
LagunasNorte
Piedra Grande
LagunasSur
La Capilla
Genusa
LagunasWest
Tres Cruces
0 10kilometres
20
LAGUNAS
LAGUNASNW
GOITOS
ALUMBRE
URURUPA
Huamachuco
Otuzco
Quiruvilca
C A J A M A R C A
L A L I B E R T A D
ANCASH
78° 30’ 78°
8°
1,350 sq. km
Alto Chicama District, Peru
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Barrick Gold Corporation – Building Mines, Building Value2004 Annual and Special Shareholders Meeting
Yeneena Basin, AustraliaYeneena Basin, AustraliaFavourable setting
2 projects acquired in 2003
900 square kilometreland position
Robust and Balanced PipelineRobust and Balanced Pipeline
Dee,Rossi,
Goldstrike,E. Arch,
Chocolate Reef
Goldstrike S. Pit,Ruby Hill, Ren
+4 other projects
La Paloma, Mount Gibson,Woolgar +27 other projects
Alto Chicama DistrictBulyanhulu district +33 other projects
Northern Peru, Southern Peru,Australia + 22 other projects
BUDGETSTAGE
Grassroots
Target Delineation
19%
21%
15%
Drill Testing
Advanced Drilling
19%
26%Reserve Development
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Barrick Gold Corporation – Building Mines, Building Value2004 Annual and Special Shareholders Meeting
SummarySummaryMore than 95 projects in 9 countries
> 2 million ounce gold deposits
6 high priority countries (Peru, Chile, Argentina, USA, Tanzania, Australia)
Optimize chancesof near-termsuccess
EXPLORATION & BUSINESS DEVELOPMENT2004E = $110M
Minesite
BusinessDevelopment Regional
Alto Chicama
55%
10%
12%
23%
FORWARD LOOKING STATEMENT
Certain statements included herein, including those regarding production, costs, development schedules and other statements 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. The words “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “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. We caution you 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 our estimated future results, performance or achievements expressed or implied by those forward-looking statements and our 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, copper, diesel fuel and electricity) and currencies; changes in interest rates or gold lease rates that could impact realized prices under our forward sales program; 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 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.