Lots of acid coming - Pueblo Viejo $2.7B mineBarrick, Goldcorp submit study for $2,7bn Dominican Republic gold mine
By: Liezel Hill
Published: 27 Feb 08 - 21:44
Canadian gold majors Barrick Gold and Goldcorp have submitted a feasibility study for their $2,7-billion Pueblo Viejo project to the government of the Dominican Republic, the firms announced on Wednesday.
Barrick, the world's largest producer of the yellow metal, owns 60% of the project, which would be the largest foreign investment in the Latin American country, and Goldcorp holds the balance.
The capital cost of the project has increased from the $2,1-billion to $2,3-billion estimate published by the companies a year ago, mainly because of a decision to increase the throughput rate to 24 000 t/d, from a previous rate of 18 000 t/d, Barrick said in a statement.
Pueblo Viejo is expected to produce almost one million ounces of gold a year during its first five years of full production.
Construction will take about three and a half years, Barrick said.
The mine, located about 100 km northwest of Santo Domingo, in the Sanchez Ramirez province, is expected to have a production life of about 25 years.
As of December 31, the project had proven and probable reserves of 20,4-million ounces of gold, with 423,6-million pounds of copper and 117,3-million ounces of silver contained within the gold reserves.
"While a project of this scope and scale will bring many challenges along the way, we are confident that meaningful progress can continue to be made,” said Barrick president and CEO Greg Wilkins.
The project had received “broad support from all key stakeholders” in the Dominican Republic, he added.
Barrick, Goldcorp and other gold-miners around the world are scrambling to firm up gold reserves and accelerate mine development to take advantage of record prices for the yellow metal.
Barrick is also planning new mines in Tanzania, Alaska and Argentina, and Goldcorp has said that it plans to spend more than $3,9-billion on new and existing mines over the next five years, not including capital for Pueblo Viejo.