LATIN AMERICA — Barrick’s Latin American growth plans include Pierina, Pascua, Lama

While Nevada’s Carlin trend remains the cornerstone of Barrick Gold’s (ABX-T) gold mining empire, Latin America appears to be prodiving the company with a steady stream of exploration and development opportunities.

Barrick has two producing mines in Chile, Tambo and El Indio, but these are scheduled to be phased out in the next few years. Relative to the company’s core operations, both are high-cost producers. Tambo turned out 41,211 oz. at a cash cost of US$289 per oz. in the 1998 first quarter, while El Indio produced 23,365 oz. at US$244 per oz.

By contrast, the cash cost from all operations averaged US$154 per oz. for the period. Next year, Barrick’s stated goal is to trim cash costs to US$150 per oz., while boosting overall production to 3.5 million oz. from the current 3-million-ounce level.

Barrick’s efforts in Latin America are now focused on developing low-cost mines. More than fitting the bill is the new Pierina mine project in Peru, scheduled to enter production later this year.

The open-pit mine is expected to turn out 750,000 oz. gold annually at a cash operating cost of a mere US$50 per oz. The wholly owned heap-leach operation has 7.2 million contained ounces plus a further resource of 878,000 contained ounces. An 11-year mine life is projected — more, if exploration adds to reserves.

Another important project in the company’s pipeline is Pascua, in Chile’s El Indio mineral belt. Work this year at the high-altitude project is aimed at expanding reserves, which, at the end of 1997, stood at 11 million contained ounces gold and 335 million contained ounces silver (plus a further 6-million oz. gold resource).

An aggressive exploration program is under way on the Lama property in Argentina, across the border from Pascua. The property hosts extensive areas of ore-grade mineralization outcropping on surface.

Barrick is also carrying out regional exploration on its extensive holdings in the Pierina belt in Peru, and on the El Indio belt in Chile, where new target areas have been delineated.