Barrick increases Nevada gold holdings Extract
TORONTO – Barrick Gold Corp, the world's largest gold miner, will pay $24-million to buy the Mill Canyon property in Nevada from Victoria Gold Corp, extending the property it owns in the vicinity of its prolific Cortez mine by about 7 000 acres.
The acquisition fits well with Barrick's stated goal of focusing on developing its own pipeline of projects, rather than turning its attention toward major acquisitions, which typically carry higher costs and risks.
Cortez, one of Barrick's largest and lowest-cost operations, last year produced about 1.4-million ounces of gold at cash cost of $245 each. It contains reserves of about 14.5-million ounces.
The site is also home to one of Barrick's most promising new discoveries, Goldrush. Barrick has already delineated a resource of more than seven-million ounces at Goldrush and views it as one of its most significant finds in decades. It expects to boost its estimate on the size of the asset further in coming months.
Barrick already controls about 230 000 acres around Cortez.
The Mill Canyon property consists of claims that Victoria Gold bought from Newmont Mining Corp in 2003. Newmont, the world's No 2 gold miner, has a back-in right to earn a 50% interest in the property.
Barrick will pay $19 million upfront for Mill Canyon and interests in the nearby Santa Fe property. It will pay Victoria a further $5-million should Newmont's right to back into a joint venture on the property expire or be eliminated.