Barrick Gold has flagged a significant gold discovery that could deliver at least one more Tier 1 gold mine at its Goldrush-Fourmile project in Nevada.
The gold giant stated it could bring the Fourmile project into the Nevada Gold Mines joint venture (JV) with Newmont Goldcorp, provided agreed investment criteria is met.
The intercept is a new orebody located a kilometre north of Fourmile, which increases the strike length of the mineralised Goldrush-Fourmile trend to greater than six kilometres.
Mineralisation is open in all directions and Barrick expects significant resources growth from continuing the drilling program.
“Discovery is fundamental to value creation and the latest results from Fourmile confirm the potential for further high-value discoveries in the greater Cortez – Carlin region, which has been a prolific source of gold discovery and production for 150 years, and still holds an untapped wealth of geological endowment,” Barrick president and chief executive Mark Bristow, speaking at the Denver Gold Forum Americas, said.
Diligent exploration and detailed geological modelling had led to effective targeting at Fourmile, he added.
The announcement coincides with Barrick’s performance update, showing it is well positioned to achieve its targets for the year.
Company production is trending towards the top end of the 5.1–5.6 million ounces guidance range, while costs are likely to be at the lower end of the cost forecasts.
Bristow expects to release Barrick’s five-year plan and third quarter results in November.
“The market is starting to recognise and reward this performance, and it’s worth noting that the Barrick share price has increased by 90 per cent since the Randgold deal announcement a year ago,” Bristow said.
“Our aim is to make the Barrick brand synonymous with value creation. That value will be generated by its existing top tier operational base of long-life mines, located within world-class geological provinces and run by management teams that can unlock and bring to account opportunities where others have failed.”
Barrick has also successfully acquired Acacia Mining’s minority shareholding, paving the way for it to “proceed unfettered” to address the issues plaguing the company.
A Barrick team was already on the ground to fix Acacia’s assets operationally, restore the company’s social license and repair its relationship with the government and local stakeholders.