Lagunas Norte starts production

Barrick Gold‘s (ABX-T) Lagunas Norte gold mine in Peru has begun production ahead of schedule and within budget.

The company expects Lagunas Norte to produce from 545,000 to 550,000 oz. of gold by the end of this calendar year. Total cash costs are expected to be US$110-$120 per oz. gold.

At the end of last year the Lagunas proven and probable resource was estimated at 208.1 million tonnes grading 1.37 grams gold per tonne.

Barrick brought the mine into production within three years of its discovery.

It is an exceptional year for Barrick, as it began production at its 70%-owned Tanzanian Tulawaka mine during the first quarter and is planning to begin production at its Argentinian Veladero gold mine before year-end.

The company expects to produce between 5.4- and 5.5-million oz. of gold this year. Overall total cash costs are projected to be close to US$230 per oz.