Barrick to buy stake in Golden Ridge — Major to take over 50% interest held by Randgold Resources

Just weeks after launching a bid for Sutton Resources (STT-T) and its prized Bulyanhulu gold deposit, Barrick Gold (ABX-T) is expanding its holdings around the Tanzanian property by acquiring Johannesburg-based Randgold Resources’ interest in the Golden Ridge gold deposit.

Subject to due diligence, Barrick is acquiring, for an undisclosed sum, a half-interest in Golden Ridge, with Pangea Goldfields (PGD-T) continuing to hold the remaining interest.

Under the terms of the original Pangea-Randgold agreement, which Barrick will now assume, Randgold served as operator and can earn a 65% interest by completing a bankable feasibility study by September 2000.

Situated 30 km southeast of Bulyanhulu, the Golden Ridge property contains three banded-iron-formation-hosted gold zones: Nyaligongo, Hill 4 and Hill 5. Randgold estimates the total resource in these three areas to be 37 million tonnes grading 1.4 grams gold per tonne to a depth of 120 metres, equivalent to 1.67 million contained ounces. Measured and indicated resources at Nyalingongo and Hill 5 are pegged at 8.1 million tonnes grading 2.4 grams gold, equivalent to 620,000 contained ounces.

The Golden Ridge property also contains the Siga Hills deposit, where trenching has exposed gold mineralization in a brecciated and sulphidized banded iron formation.

For its part, Randgold will concentrate on its Malian gold projects, which include the recently expanded Syama open-pit mine, as well as the Morila project, where a bankable feasibility study being conducted.