Exploration by American Barrick Resources (TSE) along the northern Carlin Trend in Nevada continues to expand the company’s gold reserves at a phenomenal rate.
Brian Meikle, Barrick’s senior vice-president of development, told a large audience at a recent Canadian Institute of Mining, Metallurgy and Petroleum luncheon in Toronto that his company’s 1992 discovery rate for new ore in the Goldstrike area has averaged more than 100,000 oz. per month at an average cost of less than $4 per oz.
The company currently has five deposits in the Goldstrike area; the Deep Star, Betze/Post, Screamer, Rodeo and the Meikle. Present production totalling more than one million ounces gold per year is from the Betze/Post open pit.
Most of Barrick’s current exploration efforts have focused on the Meikle deposit, which is estimated to contain about 10% of the 50 million oz. gold found to date along the Carlin Trend.
The Meikle orebody consists of a north and south zone. Proven reserves for the north zone are 7.2 million tons grading 0.63 oz. gold per ton. This figure is adequate for 11 years of production. The company has not released a reserve figure on the south zone.
Shaft sinking at the Meikle deposit should commence in mid-1993 once the water table has been lowered and permitting is completed. When the development starts, the mine will be kept as dry as possible to avoid any heat flow as the water in the area is very hot. Because of the hot water flow, climate control will be required in the mine.
Commercial production of 2,000 tons per day should begin in 1996. Capital costs prior to production are estimated to be $180 million and operating costs about $75 per ton or $125 per oz.
In 1993, Barrick plans to continue testing other targets in the Goldstrike area.
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