Barrick Gold plans to invest USD 35 million in Chile’s Atacama region’s El Alto exploration project and expand the Veladero mine in Argentina. Recent upticks in gold prices fuel optimism for production increases. The company also maintains a royalties agreement linked to the Pascua project, which continues to impact its operational strategies.
Barrick Gold, a Canadian mining company, intends to invest USD 35 million in exploration in Chile’s Atacama region, specifically targeting the El Alto project. This follows the closure phase of the Pascua initiative, which was previously developed in this region. The environmental impact assessment for El Alto has been submitted to the environmental regulatory body, SEA, aiming to enhance resource potential in the Alto del Carmen area.
Furthermore, Barrick is set to expand the Veladero mine located in Argentina’s San Juan province. This will involve optimization works along with exploring new targets. The Veladero mine has recently exceeded production expectations, reaching 505,000 ounces of gold in a year, aided by plant expansion and improved processes. The investment in increased production capacity is supported by the rising gold prices in the market.
Gold prices are anticipated to follow an upward trajectory, influenced by Federal Reserve policies and global geopolitical situations. Antonio Di Giacomo, a financial market analyst, noted that persistence in economic uncertainty and potential interest rate reductions could lead to new highs for gold. Recently, gold prices briefly exceeded USD 3,000 per ounce, reflecting demand for gold as a safe-haven asset.
To further bolster production at Veladero, Barrick has initiated phase 8 of its leach pad expansion, involving an investment of USD 250-270 million. Currently, the company is actively drilling at two high-sulfidation gold targets, Fabiana and Brujas, before the onset of the winter season. The strategic focus on long-term operations and investments underlines Barrick’s commitment to maximizing its output in both Chile and Argentina.
In addition to these efforts, Barrick holds a sales and royalty payment agreement with Wheaton Precious Metals pertaining to the Pascua project, which will remain in effect until 2039. Despite the challenges faced at Pascua, the company has not dismissed the potential of the area for future development.
Barrick Gold is strategically investing in exploration and expansion projects in Chile and Argentina, notably targeting the El Alto project in Chile and enhancing production at the Veladero mine in Argentina. The firm remains optimistic about gold prices and their upward momentum, prompting significant investments to capitalize on market conditions. Barrick’s approach reflects a long-term commitment to both enhancing operational efficiency and ensuring sustainability in its mining practices.
Original Source: www.bnamericas.com
