Goldstrike - Nevada
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Various NSR and NPI 1,629,000 oz (Au) 14,894,000 oz (Au) 3,147,000 oz M&I¹ / 1,341,000 oz Inf. (Au) Barrick Gold Corporation |
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The Goldstrike Complex is comprised of: the Betze-Post open pit mine and the Meikle and Rodeo underground mines. Barrick is the operator of each of these mines. The royalties within the Goldstrike Complex are made up of the following multiple claims groups:
- 4% NSR and 5% NPI that cover the Post and Goldstrike claims, which cover the central and southern portions of the Goldstrike Open Pit Mine. These royalties apply to a total of 44 claims (865 acres). NSR payments have been made from the start of production on these claims, and NPI royalty payments began in the fourth quarter of 1993;
- 4% NSR and 5% NPI over 1,280 acres covering the Extension and Gold Bug claims which cover the Goldstrike Underground Mine. The Goldstrike Underground Mine is located just north of the Goldstrike Open Pit Mine, along the same mineralized trend as the surface deposits. The Goldstrike Underground Mine includes the Meikle deposit, a high-grade ore body that was discovered in 1989 and entered production in 1996 and the Rodeo deposit, a second ore body that entered production in 2002;
- 2% NSR over the Bazza claims and a 2% NSR and 2.4% NPI over the Bazza Strip area, which cover a western portion of the Goldstrike Open Pit Mine; and
- 6% NPI over the SJ claims and SPLC lease area, which cover the northwestern and southwestern portions of the Goldstrike Open Pit Mine.
- Barrick reported 2007 production of 1,629 koz of gold at total production costs of $448 per ounce. An extended period of waste removal began in 2007 at the Betze-Post pit and has continued into the first half of 2008. During this period, Goldstrike supplemented mill feed with lower-grade stockpiled ore, resulting in lower production levels. It is reported by Barrick that production is expected to improve in the second half of 2008 when higher-grade ore from the pit becomes accessible.
- Barrick's 2008 outlook is for production of between 1.66 Moz and 1.72 Moz at Goldstrike at total cash of between $410 to $420/oz².
¹ Measured and indicated resources are exclusive of reserves.
² Total cash cost guidance, including royalties and production taxes which are impacted by the spot gold price, are at an assumed average gold price of $800 per ounce for the year, and an assumed oil price of $90 per barrel.