Barrick Gold Corporation

Barrick Gold Corporation

March 05, 2008 11:32 ET

Barrick Completes Acquisition of Cortez Property in Nevada

TORONTO, ONTARIO--(Marketwire - March 5, 2008) -

Based on US GAAP and expressed in US dollars

Barrick Gold Corporation (NYSE:ABX)(TSX:ABX) announced today that it has completed its acquisition of the additional 40% interest in the Cortez property from Kennecott Explorations (Australia) Ltd., a subsidiary of Rio Tinto plc, for a total cash consideration of $1.695 billion. The transaction was previously announced on February 21, 2008 when the parties entered into a definitive purchase and sale agreement. Barrick has been entitled to the production and economic benefit of 100% of the property from March 1, 2008.

The acquisition will increase Barrick's share of proven and probable reserves by 4.6 million ounces to 11.5 million ounces (100% basis)(1) and measured and indicated mineral resources by 1.4 million ounces to 3.5 million ounces (100% basis)(1).

The Cortez mine is already a significant contributor to Barrick's quality Nevada production base. When the Cortez Hills project is commissioned, production from the Cortez property is expected to increase to 950,000 - 1,000,000 ounces of gold (100% basis) at total cash costs of $280-$290(2) per ounce in the first full five years of production.

Barrick's vision is to be the world's best gold company by finding, acquiring, developing and producing quality reserves in a safe, profitable and socially responsible manner.

(1) Proven reserves contain 15.6 million tons of ore at 0.127 oz/ton for 2.0 million ounces. Probable reserves contain 128.5 million tons of ore at 0.074 oz/ton for 9.5 million ounces. Measured resources contain 7.5 million tons of ore at 0.042 oz/ton for 0.32 million ounces. Indicated resources contain 68.7 million tons of ore at 0.046 oz/ton for 3.14 million ounces. Mineral reserves and resources have been calculated as at December 31, 2007 in accordance with National Instrument 43-101 as required by Canadian securities regulatory authorities. Calculations have been prepared by employees of Barrick, its joint venture partners or its joint venture operating companies, as applicable, under the supervision of Jacques McMullen, Senior Vice President, Technical Services of Barrick, Rick Allan, Senior Director, Mining of Barrick, and Rick Sims, Senior Director, Resources and Reserves of Barrick. For a breakdown of reserves and resources by category and additional information relating to reserves and resources, see pages 100-105 of Barrick's Year-End Report 2007.

(2) Total cash costs is defined as cost of sales divided by ounces of gold sold. Total cash costs exclude amortization expense and inventory purchase accounting adjustments. For further information on this performance measure see pages 45 to 46 of Barrick's Year-End Report 2007.


Certain information contained in this Press Release, including any information as to our future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward-looking statements". All statements, other than statements of historical fact, are forward-looking statements. The words "believe", "expect", "will", "anticipate", "contemplate", "target", "plan", "continue', "budget", "may", "intend", "estimate" and similar expressions identify forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The Company cautions the reader that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual financial results, performance or achievements of Barrick to be materially different from the Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not limited to: changes in the worldwide price of gold or certain other commodities (such as fuel and electricity); fluctuations in currency markets; changes in U.S. dollar interest rates or gold lease rates; risks arising from holding derivative instruments; legislative, political or economic developments in the U.S.; operating or technical difficulties in connection with mining or development activities; employee relations; availability and increasing costs associated with mining inputs and labor; the speculative nature of exploration and development, including the risks of obtaining necessary licenses and permits and diminishing quantities or grades of reserves; contests over title to properties; and the risks involved in the exploration, development and mining business. These factors are discussed in greater detail in the Company's most recent Form 40-F/Annual Information Form on file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.

The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

Contact Information

  • Barrick Gold Corporation
    INVESTOR CONTACT: Deni Nicoski
    Vice President, Investor Relations
    (416) 307-7410
    Barrick Gold Corporation
    MEDIA CONTACT: Vincent Borg
    Senior Vice President, Corporate Communications
    (416) 307-7477