Barrick Gold Corporation
NYSE : ABX
LSE : BGD
TSX : ABX

Barrick Gold Corporation

November 24, 2006 08:53 ET

Lagunas Norte Reaches Milestone of One Million Ounces of Gold Production

TORONTO, ONTARIO--(CCNMatthews - Nov. 24, 2006) - Barrick Gold Corporation (NYSE:ABX)(TSX:ABX)(LSE:BGD) announced today that its new Lagunas Norte mine in Peru has reached the milestone of one million ounces of gold produced in 2006.

"There are not many gold mines in the world with the capability to produce over one million ounces in a year. Lagunas Norte has been an unqualified success story for Barrick, highlighting our exploration expertise, along with our ability to construct large-scale projects ahead of schedule and within budget," said Barrick President and CEO Greg Wilkins. "In fact, Lagunas Norte is just one of four new mines Barrick has commissioned since April 2005, which is really an unprecedented achievement in our industry and a testament to Barrick's global team of employees."

The mine is located in rugged terrain, 4,200 meters above sea level in the Peruvian Andes. The US$340 million project posed numerous technical challenges but was completed in June 2005 ahead of schedule and within its original budget.

Barrick acquired the Alto Chicama/Lagunas Norte property in 2002, and invested $40 million in a robust exploration program. It became the gold industry's largest greenfields discovery of the past decade. Within two years, the Company had converted a promising discovery into a multi-million ounce reserve ore body. As at Dec. 31, 2005, Lagunas Norte had 8.2 million ounces of proven and probable gold reserves (1).

Lagunas Norte was built by a talented pool of approximately 4,000 Peruvian workers. "In addition to the direct and indirect job creation, the mine has contributed to the social and economic development of the region of La Libertad. Lagunas Norte has become a leading example for successful mining development in Peru and throughout South America," said Igor Gonzales, Barrick's South America President. "It has achieved remarkable operational results. But the mine has also come to embody Barrick's philosophy of responsible mining, through an unwavering commitment to best practices in environmental management, safety and sustainable development."

Lagunas Norte also has one of Barrick's best safety records, with a Lost Time Injury Frequency Rate of just 0.11. Peru's Mining Safety Institute awarded Lagunas Norte first place in the open pit category at its 2005 Safety Awards, recognizing the mine's excellent accident prevention initiatives and safety best practices.

The Company also announced that Lagunas Norte's Human Resource policies and practices have received ISO 9001 certification, recognizing the mine's commitment to standardize work flow processes and facilitate enhanced employees relations by creating an optimal working environment for its staff.

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) Mineral reserves ("reserves") have been calculated as at December 31, 2005. Calculations have been prepared by employees of Barrick under the supervision of Jacques McMullen, Vice-President, Metallurgy and Process; Richard Allen, Director, Engineering and Mining Support, and Rick Sims, Director, Reserves and Resources of Barrick. For a more detailed description of the methods used in calculating Barrick's reserves and resources, see Barrick's most recent Annual Information Form/Form 40-F on file with Canadian provincial securities regulatory authorities and the U.S. Securities and Exchange Commission.

Contact Information

  • INVESTOR CONTACTS:
    Barrick Gold Corporation
    James Mavor
    Vice President, Investor Relations
    (416) 307-7463
    Email: jmavor@barrick.com
    or
    Barrick Gold Corporation
    Mary Ellen Thorburn
    Director, Investor Relations
    (416) 307-7363
    Email: mthorburn@barrick.com
    or
    MEDIA CONTACT:
    Barrick Gold Corporation
    Vincent Borg
    Senior Vice President, Corporate Communications
    (416) 307-7477
    Email: vborg@barrick.com