Antilles Gold’s gold and copper projects in Cuba are underpinned by a strong partnership with a Cuban Government-owned mining company that effectively fast-tracks and de-risks its promising projects, offering a strategic value proposition for investors.
Antilles Gold (ASX:AAU,OTCQB:ANTMF) is an Australian mining company focused on gold and copper projects in Cuba through a joint venture with the Cuban Government’s mining company, GeoMinera. This partnership has resulted in rapid project permitting and access to several new development opportunities for the Australian company.
Antilles Gold offers strong growth potential through two near‐term development projects, Nueva Sabana and La Demajagua, and two exploration projects, the El Pilar porphyry system and Sierra Maestra copper concessions.
Joint venture projects in Cuba
Nueva Sabana is a near‐term, gold‐copper mine development within the joint venture with GeoMinera, and is expected to initially produce around 70 grams per tonne (g/t) gold in a concentrate from a high‐grade gold cap followed by ~27 percent copper concentrate with gold credits. The project development strategy includes the completion of a feasibility study in September 2024, and the commencement of construction soon after.
The second proposed development is the La Demajagua open-pit mine, which is likely to produce ~50,000 tonnes per annum (tpa) of gold arsenopyrite concentrate (32 g/t gold, 27 percent arsenic), and ~10,000 tpa of gold antimony concentrate (28.8 g/t gold, 48 percent antimony, 1,200 g/t silver) for nine years. According to the plans, construction will commence in late 2025, with commissioning in mid‐2027. La Demajagua will also include the construction of a concentrate processing facility to treat La Demajagua’s gold arsenopyrite concentrate, with the capacity to produce 50,000 oz gold per year in dore, which will further increase JV profit and cashflow.
The joint venture’s two exploration projects comprise the 720‐hectare El Pilar Concession in Central Cuba covering a cluster of three copper‐gold porphyry deposits (El Pilar, Gaspar and San Nicholas), the adjacent 17,000 hectare San Nicholas concession with porphyry style mineralisation, and two concessions totaling 52,600 hectares within the producing Sierra Maestra copper belt in southeast Cuba (La Cristina and Vega Grande), with both indicating of porphyry deposits highly prospective for copper, gold and molybdenum.
Surface mineralisation at El Pilar
Antilles Gold has completed a technical evaluation of the El Pilar porphyry system which was advised to ASX on 15 February 2024.
The joint venture intends to invest part of the surplus cash flow from the Nueva Sabana mine to fund the exploration of major copper targets, including the El Pilar copper‐gold porphyry system, and those in the Sierra Maestra copper belt.
Prominer Mining Technology will supply Nueva Sabana concentrator
Nueva Sabana is the company’s near‐term, gold‐copper mine development project. The project is held in the 50:50 joint venture with GeoMinera. It will be an open-pit mine developed on the oxide zone overlaying the El Pilar porphyry copper deposit in central Cuba.
Results from 24,000 metres of historical drilling, 1,800 metres drilled in 2022, and the 10,000 metres drilled in 2023 have established a mineral resource estimate (MRE). Results of a scoping study were advised to ASX on 7 May 2024, and a feasibility study is in progress for the proposed development which will be followed by a 12‐month construction phase.
Drilling has shown outstanding grades for gold and copper, and increasing lateral and vertical boundaries of the copper domain.
The proposed mining rate for the project will be 500,000 tpa of ore with a low waste‐to‐ore ratio. The anticipated initial production of 70 g/t gold concentrate will be followed by a ~27 percent copper concentrate with gold credits.
The estimated project cost is approximately US$33 million, of which approximately US$6 million is shareholders equity with the balance of $27 million expected to be funded through an advance on purchases of the concentrates by an international commodities trader.
Chinese engineering group, Prominer Mining Technology, which has extensive experience in designing and constructing gold and copper concentrators, is expected to supply the crushing and flotation circuits for the Nueva Sabana mine.
La Demajagua involves the development of a gold‐antimony‐silver deposit as an open-pit mine by the joint venture company, Minera La Victoria.The project is located within a 900 hectare mining concession on the Isle of Youth, 60 nautical miles from mainland Cuba. The project site is 35 kilometres from the port city of Nueva Gerona and enjoys excellent infrastructure in terms of accessibility by highway, and availability of water, electricity and fiber optic cable.The project has an MRE of 905,000 oz gold equivalent for the open-pit operation. The MRE was calculated from 29,000 metres of drilling undertaken by the JV, and selective results from about 50,000 metres of historic drilling and revised after the receipt of additional antimony assays. The project expects mining of about 815,000 tpa of ore to produce two concentrates: 50,000 tpa of gold‐arsenopyrite and 10,000 tpa of gold‐antimony‐silver for nine years.
The project will also include a concentrate processing facility to produce gold doré from the gold-arsenopyrite concentrate. The facility will comprise a 50,000‐tpa two‐stage fluidized‐bed roaster, a carbon-in-leach (CIL) circuit, and an antimony recovery circuit. The overall production target is 75,000 oz gold equivalent per year. Chinese engineering firm BGRIMM Technology Group, which has extensive experience in designing and constructing roasters, is expected to supply the process plant on a turnkey basis.
The total development cost is estimated at US$165 million, expected to be funded by US$75 million of equity, which includes contributions by a third shareholder in the project, and the balance of US$90 million in debt. The life‐of‐mine cash surplus is estimated at ~US$600 million, with an NPV of ~US$330 million based on US$1,800/oz gold, and US$13,000/t antimony.
A revised scoping study including the concentrate processing facility is expected in December 2024, and construction is anticipated to commence in late 2025, with commissioning targeted for mid‐2027.
El Pilar is an exploration project of a cluster of three copper‐gold porphyry deposits: El Pilar, Gaspar and Camilo. The project comprises a 752 hectare exploration license and an adjacent 17,000 hectare reconnaissance permit covering the San Nicholas copper targets.
The project site benefits from established infrastructure with close access to a major highway, high‐tension power, and a 60 kilometre rail link to Palo Alto port.
Previous mapping, soil sampling, ground magnetics, an aeromagnetic survey and 24,000 metres of shallow drilling confirmed the existence of copper‐gold mineralization and identified the exposures as a potentially large, leached porphyry system. The surface exposures at El Pilar are leached phyllic caps to a cluster of copper‐gold porphyry cores. The extent of surficial hydrothermal alteration indicates the porphyry intrusions have large dimensions, and potential depths greater than 1,000 metres.
Ground magnetics and induced polarization surveys in early 2023 have confirmed a cluster of three potentially large porphyry intrusives – El Pilar, Gaspar and Camilo. A 10‐hole initial program has demonstrated positive results with good copper intercepts in porphyry‐style veining and has indicated the proximity of drilling to the core of El Pilar porphyry intrusive. In particular, drill hole PDH‐004A assayed 1.23 percent copper over its length of 134 metres from 49 metres.
The project is an exploration project covering two highly prospective concessions for copper, gold and molybdenum in the Sierra Maestra copper belt in southeast Cuba. It includes a 3,600-hectare geological investigation license in La Cristina, and the adjoining 49,000‐hectare Vega Grande reconnaissance license.
The copper belt spans more than 200 kilometres of Cretaceous‐age geology intruded by Eocene stocks, which are the source of widespread gold and base‐metals mineralization. The project is near the El Cobre mine which is the oldest operating copper mine in the Americas. The concessions incorporate a series of copper‐gold‐molybdenum zones that display significant footprints of hydrothermal alteration normally associated with potentially large porphyry systems.
An extensive, two‐year prospecting program will be carried out on the two concessions, commencing in Q4 2024, to identify drill targets.
Brian Johnson is a graduate of civil engineering from the University of Western Australia and a member of the Institute of Engineers, Australia. He has rich experience in the construction and mining industries in Australia, Southeast Asia and North America. He was instrumental in establishing successful companies in the iron ore and coal sectors. Previously, he has served as a director of two listed gold producers, and of companies with stock exchange listings in London, New York, Vancouver and Australia.
James Tyers is a member of the AusIMM and has more than 30 years of experience in the mining industry, holding senior management roles in gold and iron ore operations. He has been associated with the Palm Springs Gold Mine in the Kimberley region of Western Australia, and the Cornishman Project, a JV between Troy Resources and Sons of Gwalia. He has experience developing and operating iron ore projects in the mid‐west of Western Australia. He was responsible for developing the Las Lagunas Project and is the project director for the La Demajagua gold mine in Cuba.
Ugo Carlo has more than 30 years of experience in the Australian mining industry. Throughout his career, he has served in several senior leadership roles at Rocklands Richfield, Austral Coal and Conzinc Rio Tinto Australia Group. He is also a former director of the Port Kembla Coal Terminal, the New South Wales Joint Coal Board, and interim chairman of the New South Wales Minerals Council.
Angela Pankhurst has more than 20 years of experience as an executive and non‐executive director, primarily in the mining industry. She has been a senior executive for companies with projects in Kazakhstan, Nigeria, Vietnam, South Africa and Australia. She has held senior leadership positions at Antilles Gold and Central Asia Resources. She is currently a director of Consolidated Zinc and a director of Imritec.
Tracey Aitkin is a professional member of CPA Australia and has more than 30 years of rich experience in finance, administration and staff management across a range of industries, including mining, manufacturing, retail, transport and agriculture. She joined the company in 2009 and was named CFO in 2010.
Dr. Jinxing Ji is a seasoned metallurgist with six years of research experience in universities and 26 years of practical experience in the mining industry related to gold, silver, copper, zinc and lead. His broad experience includes due diligence, metallurgical test work, pre‐feasibility study, feasibility study, detailed design, plant commissioning support, and operational support for projects in Turkey, Greece, Canada, China, Romania, Brazil and Papua New Guinea.
Steve Mertens is a mining engineer with more than 20 years of industry experience across a range of commodities, including nine years based in Latin America. He has been associated with the Goro Nickel Project in New Caledonia and the Mina de Cobre Project in Panama. Prior to his current role as general manager for the Minera La Victoria JV company, he was the mining manager for Antilles Gold’s Las Lagunas operation in the Dominican Republic.
Chris Grainger holds a PhD in economic geology from the University of Western Australia. He is an Australian geologist with more than 25 years of international experience with involvement in grassroots and brownfield exploration, as well as resource definition and development, with a focus on precious and base metals in South and Central America and the Caribbean. He has been associated with Continental Gold’s Buritica gold‐silver project, and Cordoba Minerals’ Alacran copper‐gold project.
Highlights
SNX Executive Chairman Peter Moore said: “These new prospects near the Blackhawk Project in Nevada, have returned exciting high-grade results from the initial mapping and sampling work. Results demonstrate potential for high-grade silver, gold, copper and antimony mineralisation with results up to 1,880g/t silver with associated copper and antimony at Crystal Peak and up to 31.2g/t gold at G Mine. We are excited to be the first explorer to implement modern exploration techniques across this ground, and we are planning additional exploration to follow up these initial results. Preparations for the upcoming RC drilling program at the Endowment high-grade silver mine located 10kms east of Crystal Peak continue with drilling expected to commence in early October”.
At Crystal Peak, SNX identified a high-grade silver-copper-antimony quartz stockwork zone outcropping over an area of 60m x 30m. The stockwork zone forms a prominent ridge with outbound dispersed quartz float zones suggesting potential for extensions to currently mapped zone.
SNX’s initial mapping and sampling at Crystal Peak returned peak silver assays of up to 1,880g/t Ag, 752g/t Ag, 485g/t Ag and 427g/t Ag, all with strong copper and antimony association.
Figure 1: Plan view of newly staked Crystal Peak and G Mine prospects located 10km west of SNX’s large- scale Blackhawk Porphyry and Epithermal Projects.
Figure 2: Plan view of the newly staked Crystal Peak and G Mine showing structure, alteration and main prospect areas and G Mine rock chips locations.
Crystal Peak
The Crystal Peak stockwork zone is hosted within a coarse-grained quartz monzonite which in turn forms part of a larger composite intrusion complex ranging in composition of granodiorite to quartz monzonite. Locally, minor diorite intrusions are observed although account for only a small portion of the composite intrusion.
Alteration about the stockwork zone and along through-going structures is characterised as proximal quartz- sericite-pyrite within a larger argillic alteration halo (see figure 2). Typically, the quartz stockwork is made up of continuous to semi-continuous linear veins up to 10cm wide at various attitudes to each other (see photo 1). While there are some prominent low angle veins many of the veins are sub-vertical, suggesting good potential at depth. Within the stockwork, vein density ranges from 3 veins per meter up to 15 veins per meter where veins account for up to 85% of the rock by volume. Within the larger stockwork area some consistently more sheeted quartz vein zones are observed.
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This article includes content from Sierra Nevada Gold, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
A high-resolution UAV (drone) magnetic survey has been completed over the majority of Leinster South tenement E36/1068, which includes the Siberian Tiger gold prospect. Recent rock chip sampling at Siberian Tiger identified high grade gold in quartz veining (see ASX announcement 5 August 2024). The detailed magnetic data and imagery (shown in Figure 1) is assisting the Company with geological and structural interpretation leading up to the maiden campaign of RC drilling at Leinster South. These features are now being investigated and field checked by Metal Hawk geologists. Detailed UAV photogrammetry and LIDAR data were also collected to assist in outlining new areas for exploration.
The Siberian Tiger gold discovery is located along the eastern limb of the Lawlers Anticline and only 15km from the Lawlers mining centre (Figure 1). Past production from the Agnew - Lawlers deposits is > 5 million oz @ 5gt Au1.
Figure 1. Leinster South airborne magnetics
Metal Hawk’s Managing Director Will Belbin commented: “The level of detail shown from the geophysical drone survey is excellent. The data clearly maps out the prospective southeastern trending stratigraphy along strike from Siberian Tiger and also highlights a number of key structural features. It is great to see additional high-grade gold rock chip samples in new areas and we will continue to develop more prospects with effective boots-on- ground exploration.”
Following the initial high-grade rock chip results from Siberian Tiger, the second field campaign of mapping and geochemical sampling was carried out in August 2024. Assay results from this second round of rock chip sampling show a number of new gold anomalies at untested locations along the belt, along strike to the southeast from Siberian Tiger (“Tiger Tail”) and also on the other (southwestern) side of the prominent southeast trending mafic and ultramafic belt (“Tiger Stripes”; see Figure 2). There is a subtle magnetic association with the Siberian Tiger as it is currently mapped, suggesting the presence of some pyrrhotite or magnetite below the depth of weathering. Only rarely have sulphides been observed at surface due to surface oxidation. The assay data are also firming the pathfinder elements, with bismuth, tungsten, copper and zinc aligning well with gold-bearing quartz veins in the area.
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This article includes content from Metal Hawk Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
A large, underexplored land package with potential for district-scale gold deposit makes Zodiac Gold a compelling opportunity amid a positive macroeconomic backdrop for the precious metal sector.
Zodiac Gold (TSX.V:ZAU) is a gold exploration company focused on its West African flagship Todi project situated in Liberia — an underexplored, politically stable, mining-friendly jurisdiction hosting several large-scale gold deposits. Strategically positioned along the fertile Todi Shear Zone, Zodiac Gold is developing a district-scale gold opportunity covering a vast 2,316 sq km land package. The project has undergone de-risking, showcasing proven gold occurrences at both surface and depth, with five drill-ready targets and high-grade gold intercepts.
Liberia is considered a favorable jurisdiction for metals and mining for several reasons: 1) the government has shown a long commitment to developing the mining sector (the mining code is based on Australian legislation), 2) the country has a well-defined regulatory framework (minimal 3 percent royalty rate and a 25 percent basic rate of tax on earnings), and 3) transparent permitting process.
As Africa’s oldest republic, Liberia has had a politically stable democracy since 2003 after signing the Accra Peace Agreement. Additionally, the country has had four successful democratic elections since 2005.
The country is well-endowed with mineral resources that largely remain underexplored. The West African craton hosts numerous world-class deposits with a gold endowment of over 450 Moz. The craton is largely underexplored (~90 percent) with most recent exploration having occurred in the previous 30 years.
Just this year, US iron ore conglomerate High Power Exploration (HPX), founded by mining billionaire Robert Friedland, announced plans to develop the Liberty Corridor – a brand-new multi-user infrastructure corridor connecting Guinea and Liberia.
The Liberty Corridor would comprise a brand-new, world-class rail system connecting the Nimba district of Guinea to a new Liberian deep-water port. The Liberty Corridor is expected to be a leading African example of multi-user, independently operated, and open-access infrastructure that will support the economic opening of the West African region to world markets.
These newly announced Liberian initiatives, coupled with a US-dollar-denominated economy, a majority English speaking population and heavy US presence, makes Liberia a top-tier investment jurisdiction in Africa.
Zodiac Gold’s 2,316 sq km, 100 percent owned land package in Liberia includes its flagship Todi property (418 sq km) and other license areas (1,898 sq km) overlying prospective geology and structures known to host gold mineralization. The land package is also strategically located 20 km southeast of Avesoro’s New Liberty Gold Mine (1.8 Moz resource) that produced 360 koz of gold in 2023.
The target boasts more than 4 km of soil anomalies with the discovery of a mineralized gold trend along 1.5 km of strike. Highlight intercepts include 9.6 meters at 7.5 g/t gold and 10.6 meters at 6.6 g/t gold. The company recently completed 3,700 meters or trenching and 3,500 meters of drilling at the property and the Phase 2 drill program defined the strike and depth extents of the target.
Target highlights include: 1) a 2.4 km long x 250 meter wide soil anomaly with artisanal workings, 2) rock chip samples up to 107 g/t gold, and 3) drilling intercepts with grades above 6 g/t over just under 20 meters.
Target highlights include: 1) a 4.5 km long soil anomaly with artisanal workings, and 2) rock chip samples up to 255 g/t gold.
Youth Camp
Target highlights include: 1) a 4 km long soil anomaly with artisanal workings and 2) best historical trenching results of 1 g/t gold over 30 meters.
Characterized by a 1 km long soil anomaly with artisanal workings
Zodiac Gold is developing these five exploration targets that would form the basis for satellite pits that support a hub-and-spoke strategy with material feeding a centralized facility that would process ore.
David Kol is a highly experienced international business and startup executive with over 20 years of experience in finance, marketing, business development, M&A and executive management, primarily in the resource sector, media/entertainment, real estate and technology industries. Prior to Zodiac, Kol held senior management roles in Gem Rocks Mining Resources, Global Media Group Holdings, The Players Network and Interactive Enterprises, where he worked on projects for Sony, Wink Communications, Netcom, US West (now Qwest Communications), BskyB and JskyB. He currently serves on the board of directors of BluEarth Carbon Development and Global Wholesome Network 501. Kol attended the University of California, Davis, where he studied managerial economics, and has an A.A. (criminal justice) from Diablo Valley College.
Tom Dowrick is a seasoned chartered geologist with 17 years of experience in the mining and exploration industry. Since 2011, he has been a driving force at ACA Howe International, where he serves as managing director. In this role, he manages a range of geological and mining consultancy projects around the globe, including serving as a consultant on Zodiac Gold’s Todi project in the Republic of Liberia, West Africa. Dowrick has substantial experience in West Africa, having completed field and desk-based reviews of the exploration activities of both public and private companies in Liberia, Mali, Guinea, Mauritania, Sierra Leone, South Sudan and Mozambique, in addition to projects in Argentina, Brazil, Costa Rica, Ecuador, Kazakhstan and Australia.
Peter Granata has more than 18 years of experience in finance and operations management within global organizations. He is a dynamic, results-oriented professional with executive positions in TSXV companies and, prior to these, served as an audit manager for PricewaterhouseCoopers. Granata has prepared financial statements, MD&A, news releases, mine permitting applications and project cash flows. With PricewaterhouseCoopers, he performed audits for Canadian IFRS, US GAAP reconciliations, special purpose financial statements and has executed group reporting under Canadian GAAP. His experience includes CFO for TSXV entities, capital raising, international corporate structures, client engagement, C-suite and directors’ engagement, M&A, financing, investor relations, related party transactions, and finance transformation. Granata has a B. Bus and is a chartered accountant.
Sherry Siu has over 30 years of experience working as a paralegal for a boutique law firm in Vancouver, specializing in securities, commercial and corporate matters, and has been corporate secretary of various junior resource companies since 2011. She has worked on a variety of securities-related and corporate transactions, including M&A, spinouts and business combinations, reorganizations, and going-public filings. Siu is a paralegal certified with the BC Paralegal Association.
Doug Cater is a professional geologist who has worked extensively across Canada and internationally for more than 35 years, with a particular focus on the Abitibi gold belt located in northeastern Ontario. He has held positions with both senior and intermediate gold producers, including Barrick Gold, Placer Dome and Kinross Gold. His African exploration experience was obtained while serving as an exploration consultant for Barrick Gold in Tanzania, where he was responsible for the project management of an exploration diamond drill program in the Lake Victoria greenstone belt. His most recent executive position was as vice-president, exploration (Canada) with Kirkland Lake Gold. Cater is also a director of Sierra Metals, Mayfair Gold, Exploits Discovery and Gowest Gold. He is a graduate of the ICD-Rotman Directors Education Program.
Renaud Adams has over 30 years of global mining experience in senior executive positions and operations. Currently, Adams serves as the president and chief executive officer of IAMGOLD (NYSE:IAG) (TSE:IMG), a mid-tier Canadian gold company with a US$1.4 billion market cap. From 2018 to 2022, he served as the president and chief executive officer of New Gold, where he led the strategic repositioning of the company and turnaround of its operations. Prior to New Gold. Adams served as the president and chief executive officer of Richmont Mines from 2014 until the company was sold to Alamos Gold in November 2017. During his time at Richmont Mines, the primary mine of the company experienced a two-fold increase in production, the mineral reserves were multiplied by more than three, and the costs were reduced significantly, leading to the Island Gold Mine in Ontario becoming one of the most cost-efficient underground mines in the Americas. From 2011 to 2014, Adams served as chief operating officer at Primero Mining Corporation, and prior to that he served as general manager of IAMGOLD’s Rosebel mine in Suriname before being appointed senior vice-president, Americas Operations. Adams holds a Bachelor of Engineering degree in mining and mineral processing from Laval University in Quebec, Canada.
Michael Demeter is a highly experienced executive with a track record spanning over 30 years in financial services, including the past 22 years in capital markets, advising both companies and buy-side investors as well as raising growth capital for a wide range of companies. Michael has worked with boutique investment dealers, Canadian banks, and global investment banks, providing him with diverse exposure to companies of all sizes. Michael is a Partner with Fort Capital, one of Canada’s leading independent investment banking advisory firms. Mr. Demeter is the former Managing Director and Head of Institutional Sales at Haywood Securities and has held senior management roles at Macquarie Group, Dundee Securities, Royal Bank of Canada, and Scotiabank. Mr. Demeter earned a BA (Economics) from Huron College at the University of Western Ontario, and an MBA from the Rotman School of Management at the University of Toronto. His work in financial services has led him to attain his Chartered Financial Analyst (CFA) designation, Chartered Market Technician (CMT) designation, Chartered Alternative Investment Analyst (CAIA) designation, and Certified Financial Planner (CFP) designation. He is a member of the Rotman Dean’s Global Advisory Board (GAB), and the Loan Review Committee for Rise Asset Management, a charity dedicated to helping people with mental health and addiction challenges achieve financial independence through self-employment or small business ownership.
Ryan Hanley is currently the CEO of Springburn Capital, a private investment and consulting company. Before founding Springburn, he was the director and mining analyst at Laurentian Bank Securities in Toronto, where he worked from March 2017 to May 2024. Before joining LBS, Hanley was an equity research analyst specializing in mining and mining services at Research Capital from 2012 to 2017. His career at Research Capital also included roles as a mining research associate from 2009 to 2012, and an investment banking analyst in 2008.
Hanley has been ranked as a top analyst by Bloomberg, Thomson Reuters and Refinitiv, including as the third-ranked "Top Stock Picker (All Sectors)" in Canada in the 2017 Thomson Reuters Analyst Awards. He holds a BA from McMaster University in Hamilton, Ontario.
All amounts expressed in US dollars
Barrick Gold Corporation (NYSE:GOLD) (TSX:ABX) Barrick is projecting a 30% growth in the production of gold-equivalent ounces from its existing assets by the end of this decade 1 while it continues to unlock the value embedded in its portfolio, says president and chief executive Mark Bristow.
Speaking at the Gold Forum Americas , Bristow said while Barrick was alert to potentially value-accretive opportunities generated by the consolidation of the industry, it had the rare luxury of doing so from an asset base that would support organic growth well into the future.
"Five years ago, we set out to build a sustainably profitable gold and copper business focused on world-class assets. We did not have to buy them at a premium: they were embedded in the merged portfolio of Barrick and Randgold and we just had to unlock their value," he said.
"We have six Tier One 2 gold mines with more in the making and our long-term plans are based on quality orebodies with industry-leading grades that drive improving cost profiles. Alongside our peerless gold portfolio, we are also building a substantial copper business, both to feed the rising demand for this strategic metal and because it enhances our growth optionality to include copper-gold porphyries."
Bristow listed three world-class gold opportunities, all in Nevada, which he described as the world's premier mining jurisdiction. The recently commissioned Goldrush is ramping up to a targeted 400,000 ounces per annum by 2028. 3 Bordering on Goldrush is the 100% Barrick-owned Fourmile, which is returning grades double those of Goldrush and is another Tier One mine in the making. 4 Still in Nevada, the 14-million-ounce Leeville project is developing into a major growth driver that could double or triple Carlin's reserves, extending its life beyond 2045. 5
On the copper side of the business, two transformative projects are on track for first production in 2028. The Reko Diq copper-gold project in Pakistan is designed to produce 400,000 tonnes of copper and 500,000 ounces of gold per year in the second phase of its development. 4 The Lumwana Super Pit project in Zambia will double the mine's production over a +30-year life. 4
"Mining is a consumptive industry which requires constant replacement of the ounces it depletes. Barrick leads the industry in orebody expansion and has more than replaced the gold reserves it has mined over the past five years. 6 Even more significantly, the ounces that have been added are at the same or better grade than the reserves that were mined," Bristow said.
He noted that since 2019, Barrick had also built an industry-leading balance sheet, reducing net debt by $3.5 billion, investing $11.2 billion in +10 year life-of-mine plans for its key mines and returning more than $5 billion to shareholders. Its strong operating cash flows would provide the financial flexibility to fund its growth projects.
"Considering all this, it's extraordinary how undervalued Barrick's shares are. Based on analysts' consensus net asset value calculations, the value of just our interest in Nevada Gold Mines and our copper portfolio almost exceeds our current market capitalization. 7 This means that the rest of our business is only valued at $3.3 billion, and that includes our interest in three Tier One gold mines outside Nevada, the world-class Fourmile project, and the development projects in the pipeline. 7 It also does not take into account our exploration teams' unparallelled success in discovering new ounces. At our current share price, the case for investing in Barrick should be compelling," he said.
Barrick enquiries
Investor and media relations
Kathy du Plessis
+44 20 7557 7738
Email: barrick@dpapr.com
Website: www.barrick.com
Technical Information
The scientific and technical information contained in this presentation has been reviewed and approved by Craig Fiddes, SME-RM, Lead, Resource Modeling, Nevada Gold Mines; Richard Peattie, MPhil, FAusIMM, Mineral Resources Manager: Africa and Middle East; Simon Bottoms, CGeol, MGeol, FGS, FAusIMM, Mineral Resource Management and Evaluation Executive (in this capacity Mr. Bottoms is also responsible on an interim basis for scientific and technical information relating to the Latin America and Asia Pacific region); John Steele, CIM, Metallurgy, Engineering and Capital Projects Executive; and Joel Holliday, FAusIMM, Executive Vice-President, Exploration—each a "Qualified Person" as defined in National Instrument 43-101 - Standards of Disclosure for Mineral Projects .
All mineral reserve and mineral resource estimates are estimated in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects . Unless otherwise noted, such mineral reserve and mineral resource estimates are as of December 31, 2023.
Endnotes
1 Scenario assumes an indicative production profile for Reko Diq and Lumwana, both of which are conceptual in nature. Does not include Fourmile. Refer to the below table for the complete list of Barrick's outlook assumptions.
| Key Outlook Assumptions | 2024 | 2025 | 2026+ |
| Gold Price ($/oz) | 1,900 | 1,300 | 1,300 |
| Copper Price ($/lb) | 3.50 | 3.00 | 3.00 |
| Oil Price (WTI) ($/barrel) | 80 | 70 | 70 |
| AUD Exchange Rate (AUD:USD) | 0.75 | 0.75 | 0.75 |
| ARS Exchange Rate (USD:ARS) | 800 | 800 | 800 |
| CAD Exchange Rate (USD:CAD) | 1.30 | 1.30 | 1.30 |
| CLP Exchange Rate (USD:CLP) | 900 | 900 | 900 |
| EUR Exchange Rate (EUR:USD) | 1.10 | 1.20 | 1.20 |
Gold equivalent ounces calculated from our copper assets are calculated using a gold price of $1,300/oz and copper price of $3.00/lb. Barrick's ten-year indicative production profile for gold equivalent ounces is based on the following assumptions:
Barrick's five-year indicative outlook is based on our current operating asset portfolio, sustaining projects in progress and exploration/mineral resource management initiatives in execution. This outlook is based on our current reserves and resources and assumes that we will continue to be able to convert resources into reserves. Additional asset optimization, further exploration growth, new project initiatives and divestitures are not included. For the company's gold and copper segments, and where applicable for a specific region, this indicative outlook is subject to change and assumes the following: new open pit production permitted and commencing at Hemlo in the second half of 2025, allowing three years for permitting and two years for pre-stripping prior to first ore production in 2027; Tongon will enter care and maintenance by 2027; and production from the Zaldívar CuproChlor® Chloride Leach Project (Antofagasta is the operator of Zaldívar).
Our five-year indicative outlook excludes: production from Fourmile; Pierina, and Golden Sunlight, both of which are currently in care and maintenance; and production from long-term greenfield optionality from Donlin, Pascua-Lama, Norte Abierto and Alturas.
Barrick's ten-year indicative production profile is subject to change and is based on the same assumptions as the current five-year outlook detailed above, except that the subsequent five years of the ten-year outlook assumes attributable production from Fourmile as well as exploration and mineral resource management projects in execution at Nevada Gold Mines and Hemlo.
Barrick's five-year and ten-year production profile in this presentation also assumes an indicative gold and copper production profile for Reko Diq and an indicative copper production profile for the Lumwana Super Pit expansion, both of which are conceptual in nature.
2 A Tier One Gold Asset is an asset with a $1,300/oz reserve with potential for 5 million ounces to support a minimum 10-year life, annual production of at least 500,000 ounces of gold and with all-in sustaining costs per ounce in the lower half of the industry cost curve. Tier One Assets must be located in a world class geological district with potential for organic reserve growth and long-term geologically driven addition.
3 Refer to the Technical Report on the Cortez Complex, Lander and Eureka Counties, State of Nevada, USA, dated December 31, 2021, and filed on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov on March 18, 2022.
4 Indicative production profiles from Fourmile and Lumwana and recovered production profiles from Reko Diq are conceptual in nature and subject to change following completion of Fourmile's pre-feasibility study, Lumwana's feasibility study and Reko Diq's updated feasibility study, respectively. Fourmile is currently 100% owned by Barrick. As previously disclosed, Barrick anticipates Fourmile being contributed to the Nevada Gold Mines joint venture, at fair market value, if certain criteria are met.
5 "14 million ounce Leeville project" refers to total historical gold production of the Leeville Complex from 2005 to 2023 of 8.5 million ounces (100% basis) plus estimated year-end 2023 probable mineral reserves of the Leeville Complex of 5.4 million ounces of gold (100% basis).
Estimates of Leeville Complex mineral reserves as of December 31, 2023 on a 100% basis: Probable mineral reserves of 20 million tonnes grading 8.48g/t, representing 5.4 million ounces of gold. Currently, no proven mineral reserves are reported for Leeville Complex. Leeville Complex comprises:
6 Proven and probable reserve gains calculated from cumulative net change in reserves from year end 2019 to 2023. Reserve replacement percentage is calculated from the cumulative net change in reserves from year end 2019 to 2023 divided by the cumulative depletion in reserves from year end 2019 to 2023 as shown in the table below.
| Year | Attributable P&P Gold (Moz) | Attributable Gold Acquisition & Divestments (Moz) | Attributable Gold Depletion (Moz) | Attributable Gold Net Change (Moz) |
| 2019 a | 71 | - | - | - |
| 2020 b | 68 | (2.2) | (5.5) | 4.2 |
| 2021 c | 69 | (0.91) | (5.4) | 8.1 |
| 2022 d | 76 | - | (4.8) | 12 |
| 2023 e | 77 | - | (4.6) | 5 |
| 2019-2023 Total | N/A | (3.1) | (20) | 29 |
| Totals may not appear to sum correctly due to rounding. | ||||
Attributable acquisitions and divestments includes the following: a decrease of 2.2 Moz in proven and probable gold reserves from December 31, 2019 to December 31, 2020, as a result of the divestiture of Barrick's Massawa gold project effective March 4, 2020; and a decrease of 0.91 Moz in proven and probable gold reserves from December 31, 2020 to December 31, 2021, as a result of the change in Barrick's ownership interest in Porgera from 47.5% to 24.5% and the net impact of the asset exchange of Lone Tree to i-80 Gold for the remaining 50% of South Arturo that Nevada Gold Mines did not already own.
All estimates are estimated in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects as required by Canadian securities regulatory authorities.
| Barrick Market Cap i | | | $36.5bn |
| | Analyst Consensus NAV ii | Market Based P/NAV Multiple | Implied Value iv |
| Nevada Gold Mines (61.5% share) | $13.1bn | 1.86x iii | $24.4bn |
| Barrick Copper Assets (including Reko Diq 50% share & Lumwana expansion) | $8.0bn | At Least 1.1x v | At least $8.8bn |
| Combined Implied Value of NGM & Copper Assets | | At least $33.2bn | |
| Implied Value of Rest of Barrick | | 0.21x | $3.3bn |
i. Per CIBC Mining Comps as of September 13, 2024.
ii. Per CIBC Mining Comps as of September 13, 2024, corporate adjustments apportioned across assets proportional to NAV.
iii. Based on Agnico's P/NAV multiple, per CIBC Mining Comps as of September 13, 2024.
iv. Implied value equal to analyst NAV times the market based P/NAV multiple.
v. In line with the copper peer average of 1.1x, per CIBC Mining Comps as of September 13, 2024.
Data sources: Company Disclosure, Fraser Institute and S&P CapitalIQ.
Cautionary Statement on Forward-Looking Information
Certain information contained or incorporated by reference in this presentation, including any information as to our strategy, projects, plans or future financial or operating performance, constitutes "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "expect", "strategy", "target", "guidance", "ramp up", "design", "project", "continue", "additional", "growth", "potential", "future", "focus", "on track", "developing", "scheduled", "in the making", "will", "can", "could" and similar expressions identify forward-looking statements. In particular, this presentation contains forward-looking statements including, without limitation, with respect to: Barrick's forward-looking production guidance, including our five and ten year outlooks, and anticipated production growth from Barrick's organic project pipeline and reserve replacement; the estimated net asset value of our portfolio, including Reko Diq and the Lumwana Super Pit expansion, and the market based P/NAV multiples at which these assets would trade and implied value; the financial performance of the Lumwana Super Pit expansion; the potential to increase reserves at Carlin two to three times from exploration and the ability to extend its life of mine; estimates of future costs and projected future cash flows, capital, operating and exploration expenditures and mine life and production rates; material increases in production volumes at Pueblo Viejo, Porgera and Lumwana; our ability to convert resources into reserves and replace reserves net of depletion from production; mine life and production rates; our plans and expected completion and benefits of our growth projects, including the ramp up at Goldrush, timing for the pre-feasibility study decision and anticipated gold production at Fourmile, anticipated annual production, targeted first production and completion of the feasibility study at Reko Diq, the Pueblo Viejo plant expansion and the anticipated timeline for the completion of a feasibility study and first production for the Lumwana Super Pit and its ability to extend its life of mine; estimated copper production at Reko Diq and from the Lumwana Super Pit expansion, including projected mining rates; estimates of future costs and projected future cash flows, capital, operating and exploration expenditures and mine life and production rates; the potential for Reko Diq, Lumwana and Fourmile to become Tier One assets and the potential for Lumwana to become a top 25 copper asset; Barrick's global exploration strategy and planned exploration activities; Barrick's copper strategy; our pipeline of high confidence projects at or near existing operations; potential mineralization and metal or mineral recoveries; joint ventures and partnerships; Barrick's strategy, plans, targets and goals in respect of environmental and social governance issues; and expectations regarding future price assumptions, financial performance and other outlook or guidance.
Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this presentation in light of management's experience and perception of current conditions and expected developments, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: the potential to convert all or part of the mineral resource for the Super Pit expansion into a mineral reserve following the completion of the feasibility study; risks related to competition in the mining industry; fluctuations in the spot and forward price of gold, copper or certain other commodities (such as silver, diesel fuel, natural gas and electricity); risks associated with projects in the early stages of evaluation and for which additional engineering and other analysis is required; risks related to the possibility that future exploration results will not be consistent with the Company's expectations, that quantities or grades of reserves will be diminished, and that resources may not be converted to reserves; risks associated with the fact that certain of the initiatives described in this presentation are still in the early stages and may not materialize; changes in mineral production performance, exploitation and exploration successes; risks that exploration data may be incomplete and considerable additional work may be required to complete further evaluation, including but not limited to drilling, engineering and socioeconomic studies and investment; the speculative nature of mineral exploration and development; lack of certainty with respect to foreign legal systems, corruption and other factors that are inconsistent with the rule of law; disruption of supply routes which may cause delays in construction and mining activities, including disruptions in the supply of key mining inputs due to the invasion of Ukraine by Russia and conflicts in the Middle East; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; risks associated with artisanal and illegal mining; changes in national and local government legislation, taxation, controls or regulations and/or changes in the administration of laws, policies and practices; expropriation or nationalization of property and political or economic developments in Canada, the United States or other countries in which Barrick does or may carry on business in the future; risks relating to political instability in certain of the jurisdictions in which Barrick operates; timing of receipt of, or failure to comply with, necessary permits and approvals; non-renewal of or failure to obtain key licenses by governmental authorities; failure to comply with environmental and health and safety laws and regulations; increased costs and physical and transition risks related to climate change, including extreme weather events, resource shortages, emerging policies and increased regulations relating to greenhouse gas emission levels, energy efficiency and reporting of risks; Barrick's ability to achieve its sustainability goals, including its climate-related goals and greenhouse gas emissions reduction targets; the liability associated with risks and hazards in the mining industry, and the ability to maintain insurance to cover such losses; damage to the Company's reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to the Company's handling of environmental matters or dealings with community groups, whether true or not; risks related to operations near communities that may regard Barrick's operations as being detrimental to them; litigation and legal and administrative proceedings; operating or technical difficulties in connection with mining or development activities, including geotechnical challenges, tailings dam and storage facilities failures, and disruptions in the maintenance or provision of required infrastructure and information technology systems; increased costs, delays, suspensions and technical challenges associated with the construction of capital projects; risks associated with working with partners in jointly controlled assets; risks related to disruption of supply routes which may cause delays in construction and mining activities; risks associated with Barrick's infrastructure, information technology systems and the implementation of Barrick's technological initiatives, including risks related to cybersecurity incidents, including those caused by computer viruses, malware, ransomware and other cyberattacks, or similar information technology system failures, delays and/or disruptions; employee relations including loss of key employees; availability and increased costs associated with mining inputs and labor; and risks associated with diseases, epidemics and pandemics. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion, copper cathode or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks).
Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this presentation are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect Barrick's ability to achieve the expectations set forth in the forward-looking statements contained in this presentation.
We disclaim any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
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HIGHLIGHTS
Astral Resources’ Managing Director Marc Ducler said: “The exceptional metallurgical results for Hestia, Eos and Iris continue to highlight the outstanding metallurgical characteristics of the Mandilla Gold Project. Typically, gold project studies in the Eastern Goldfields report initial metallurgical results based on 1,000ppm cyanide concentrations and 75µm grind sizes. The confidence in the Mandilla Gold Project gained from prior studies allowed us to successfully test much lower cyanide levels at much coarser grind sizes that would deliver very low processing costs yet still achieve sector-leading gold recoveries.
“To date, we have conducted 20 gravity and leach tests at Mandilla, with the gold remaining in the assayed tail averaging 0.02g/t Au. This demonstrates that the 95.7% gold recovery assumption used in the Scoping Study, while considered high by industry standards, is potentially conservative when considering the excellent metallurgical properties being demonstrated at Mandilla.
“These new results significantly de-risk Mandilla, confirming the ability to generate high gold recoveries in easily achievable, real-world processing plant conditions.
“This will positively impact the metrics and economics of the Mandilla Gold Project Pre-Feasibility Study which is expected to be completed in the June quarter 2025.
“I note that, in the Scoping Study announced on 21 September 2023, no contribution was included for Iris where a Mineral Resource of 115koz is currently mapped. However, in light of these metallurgical results as well as the increase in gold price since the Study was released, it is anticipated that ore from Iris may be included as part of the Pre-Feasibility Study.
“Turning to exploration, drilling activities are progressing well, with the latest phase of in-fill RC drilling at Theia completed. The drill rig has since been relocated to Feysville to complete further extensional and in-fill drilling at Kamperman with seven holes already completed. Importantly, step-out holes up to 200 metres further north of the current known extents of gold mineralisation have intersected significant quartz and sulphide mineralisation which is similar in characteristic to the lithologies which host gold mineralisation at Kamperman.
“With Mineral Resource Estimation work currently underway at Feysville, the team has also taken the opportunity to refine the geological models for the Hestia and Eos deposits. Updated MRE’s are now expected later this month for Think Big, Rogan Josh and Kamperman at Feysville, with Hestia and Eos to follow later in the December Quarter.”
Figure 1 - Map illustrating location of Mandilla and Feysville Gold Projects.
MANDILLA GOLD PROJECT
The Mandilla Gold Project is situated in the northern Widgiemooltha greenstone belt, approximately 70 kilometres south of the significant mining centre of Kalgoorlie, Western Australia.
The area hosts world-class deposits such as the Golden Mile Super Pit in Kalgoorlie owned by Northern Star Resources Limited (ASX:NST) and the St Ives Gold Mine south of Kambalda owned by Gold Fields Limited, as well as the substantial Beta Hunt Gold Mine owned by Westgold Resources Limited (ASX:WGX).
Mandilla is covered by existing Mining Leases which are not subject to any third‐party royalties other than the standard WA Government gold royalty.
The Mandilla Gold Project includes the Theia, Iris, Eos and Hestia deposits.
Gold mineralisation at Theia and Iris is comprised of structurally controlled quartz vein arrays and hydrothermal alteration close to the western margin of the Emu Rocks Granite and locally in contact with sediments of the Spargoville Group.
Significant NW to WNW-trending structures along the western flank of the project are interpreted from aeromagnetic data to cut through the granitic intrusion. These structures are considered important in localising gold mineralisation at Theia, which has a mineralised footprint extending over a strike length of more than 1.6km.
A second sub-parallel structure hosts gold mineralisation at the Iris deposit. The mineralised footprint at Iris extends over a strike length of approximately 600 metres, combining with Theia to form a mineralised zone extending over a strike length of more than 2.2 kilometres.
At Eos, located further to the south-east, a relatively shallow high-grade mineralised palaeochannel deposit has been identified and which extends over a length of approximately 600 metres. A primary gold source is also present with further drilling required to determine both the nature and structural controls on mineralisation and its extent.
Mineralisation delineated over approximately 800 metres of strike at the Hestia deposit, located approximately 500 metres west of Theia, is associated with a shear zone adjacent to a mafic/sediment contact, interpreted to be part of the major north-south trending group of thrust faults known as the Spargoville Shear Corridor.
Locally, the Spargoville Shear Corridor hosts the historically mined Wattle Dam gold mine (266koz at 10.6g/t Au) and, further to the north, the Ghost Crab/Mt Marion mine (>1Moz).
The mineralisation at Hestia, which is present in a different geological setting to bedrock mineralisation at Theia and Iris, remains open both down-dip and along strike.
In July 2023, Astral announced a Mineral Resource Estimate (MRE) of 37Mt at 1.1 g/t Au for 1.27Moz of contained gold1 for the Mandilla Gold Project.
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