Barrick sees 37% increase in Goldstrike gold output

Some pleasant surprises at American Barrick Resources’ (TSE) Goldstrike mine in Nevada have increased the company’s confidence that production targets set for 1990 will be reached and possibly exceeded. Having produced 151,667 oz. gold in the first six months of 1990, Barrick says the open pit operation should be capable of churning out 330,000 oz. by the end of this year. That would represent a 37% increase from 1989 production levels.

In a recent financial report, Barrick said confidence in the mine has been enhanced by recoveries from the Post claim area where grades as high as 0.40 oz. gold per ton have proved considerably better than those indicated in the open pit reserve model.

As part of a plan to increase the daily mining capacity at Goldstrike to 12,750 tons, Barrick will install six autoclave units on site within the next 36 months. The first autoclave, commissioned in February 1990, is operating at rates of more than 2,000 tons per day, and is making an increasing contribution to production, the company said.

Around 115 million tons of material is expected to be mined from the property this year.

Although in the early stages of production, autoclave operating costs, estimated for this year at $16.50 per ton, are in line with design, Barrick said. However, those costs are expected to decline to $11 per ton when all six units come into production at the end of 1992.

Meanwhile, according to the latest reports from Goldstrike, mining crews have reached the 5080 ft. elevation in their attempt to access higher grade sulphide ore at depth.

Due to pressure from a perched water table and movement experienced as crews mine through a fault zone, some small slides have occurred within a limited area of the temporary walls starting at the 5,260 ft. elevation on the southeast side of the pit.

In a bid to solve this problem, intermediate step-out benches have been established below the slide areas to minimize any further movement, Barrick said. To keep the pit dry, Barrick said this month it will increase the amount of water it is pumping to 17,000 gallons per minute from 11,000 gallons.