Barrick touts ‘world-class’ potential of Fourmile project with huge resource boost

A resource update for Barrick Gold‘s (TSX: ABX; NYSE: GOLD) Fourmile project in Nevada has increased contained ounces as much as 192% and grades by 35% compared to last year’s estimate. 

The deposit now hosts 3.6 million indicated tonnes grading 11.76 grams gold per tonne for 1.4 million oz. of gold, and 14 million inferred tonnes at 14.1 grams gold for 6.4 million ounces, the company reported Friday. That represents increases of 192% and 137% in the respective categories over Barrick’s 2023 year-end resource estimate. 

The increased resource reflects the addition of 25 new drill holes to the 2023 estimate across the southernmost portion of the orebody, immediately adjacent to the Goldrush project at Cortez, which is part of the Nevada Gold Mines (NGM) joint venture with Newmont (NYSE: NEM; TSX: NGT; ASX: NEM; PNGX: NEM).

Speaking at Barrick’s Investor Day in New York, CEO Mark Bristow said that the Fourmile project “was a truly world-class asset” and could be compared to the original Goldstrike deposit, the foundational asset of Barrick, now part of NGM’s Carlin complex.

“Our strategy of investing in organic growth through exploration and mineral resource management has set us apart from the industry,” he said, noting that the NGM joint venture has added more than 19 million oz. of proven and probable reserves on a 100% basis since its formation in 2019.

Resource management and evaluation executive Simon Bottoms added that the mineral resource update for Fourmile only covers approximately one-third of the overall orebody as defined by drilling to date.

“To illustrate the potential value that a truly world-class orebody like Fourmile has, we have completed a preliminary economic assessment using conservative mining rates and costs, all of which draw directly from the current Goldrush mine plan,” Bottoms said. “The results highlight the potential for annual operating cash flows resulting from Fourmile to be more than 70% higher than the already world-class Goldrush project.”

The Goldrush underground mine, part of NGM’s Cortez complex near Beowawe, officially opened in April and is scheduled to produce 130,000 oz. of gold this year. Commercial production is anticipated to begin by 2026, growing to 400,000 oz. annually by 2028. The US$1 billion mine has a projected life of 24 years.

For the next stage of the Fourmile project, Barrick plans to start a three-year prefeasibility study in 2025, which it says will continue to define substantial resources and reserves across the entire orebody from surface drilling.