Barrick Gold plans to invest US$35 million in Chile’s Atacama region and expand production at Veladero mine in Argentina. The El Alto project aims to increase resource potential, while Veladero achieved record output last year. Analysts expect rising gold prices, enhancing Barrick’s prospects in both nations.
Barrick Gold, headquartered in Canada, is set to invest US$35 million in a new exploration initiative in Chile’s Atacama region, adjacent to its previously abandoned Pascua project. The firm has submitted an environmental impact assessment for the El Alto project to review agency SEA, which seeks to enhance resource potential in the Alto del Carmen area. Despite earlier regulatory setbacks, Barrick remains committed to exploring the region’s opportunities, planning to deploy 43 drilling platforms in the Andes if the project receives approval by July 2026.
In Argentina, Barrick made notable progress at the Veladero mine, producing 505,000 ounces of gold last year. This production surge was largely driven by improvements in processing facilities and leaching pads, allowing for cost efficiencies even as royalty payments increased due to rising gold prices. Veladero is a collaborative operation, with Barrick and Shandong Gold sharing ownership.
The analysts predict an ongoing increase in gold prices, potentially spurred by the Federal Reserve’s monetary policy decisions amid global economic uncertainty. According to Antonio Di Giacomo, a financial market analyst, if economic conditions remain unstable, gold may attain unprecedented price levels due to its appeal as a safe-haven asset.
Barrick is dedicated to further boosting production at Veladero, having recently completed a leach pad expansion and now initiating phase 8 of this development, which is projected to cost between US$250 and US$270 million. Concurrently, the company is conducting drilling at two promising targets, Fabiana and Brujas, signaling their commitment to extending the mine’s operational lifespan.
In conclusion, Barrick Gold is strategically investing in exploration and expansion in both Chile and Argentina, amidst record gold prices. The company’s El Alto project in Chile seeks to tap into previously explored areas, while Veladero in Argentina demonstrates successful operational enhancements. Analysts foresee a favorable gold price trajectory, further motivating Barrick’s investments and exploration efforts.
Original Source: www.bnamericas.com
