Mining Mirror May 2018 | Page 9

Global CORTEZ 100 kilometers south-west of Elko, Nevada, in Lander and Eureka counties. Pipeline and Cortez Hills deposits mined by conventional opencast methods; Cortez Hills underground is an underhand cut-and-fill operation. N GOLDSTRIKE 40 kilometers north of Carlin, Nevada, in Elko and Eureka counties. Betze-Post opencast mine is a truck- and-shovel operation; Meikle and Rodeo underground are long-hole open stoping, and drift-and-fill operations. Legend: Property Boundary Open Pit Mineralization 0 2000 4000 Feet Underground Mineralization April 2017 Mineralisation at the Goldstrike mine. tasks like bulk sampling and developing sampling methods to meet automated advancements. The Cortez operations are located close to the town of Elko in north-eastern Nevada. The Cortez Mine is a joint venture between two wholly owned subsidiaries of Barrick: Barrick Cortez Incorporated (60%) and Barrick Gold Finance (40%). The Cortez operations consist of the Pipeline, Crossroads, Gap, Cortez Hills (CHOP), and Pediment open pits; the Cortez Hills underground (CHUG) mine; a 13 000 ton per day (stpd) carbon-in-leach (CIL) gold plant; heap leach pads and heap leach processing plants; and the planned Crossroads open pit, with additional mineral resources contained in the Cortez Pits and Gold Acres open pits. The nearby deposit of Hilltop is also part of the mine but does not have reportable resources at this time. The open pit is a large-scale operation using a conventional truck and shovel fleet that mines about 400 000stpd of ore and waste. Mining operations move between the various pits over the life of mine (LOM) plan. The underground mine is a 2 000stpd mechanised mine. Ore from the mines is treated at an oxide mill at the site, on leach pads, and refractory ore is shipped to Barrick’s Goldstrike operation for processing. Barrick completed a prefeasibility study (PFS) for underground mining in the Deep South Zone (the Cortez Underground Expansion Project), below currently permitted areas of the CHUG. The PFS indicated that the project has the potential to contribute average underground production of more than 300 000 ounces per year between 2022 and 2026 at average all-in sustaining costs of about USD580 per ounce. More detailed planning, subsequent to the PFS, has res ulted in the current LOM beginning underground gold production from the Deep South Zone in 2022 and producing 300 000 ounces per year between 2023 and 2027. Initial capital costs are estimated to be USD153-million. Barrick expects that dewatering and development work could begin as early as 2019 or 2020, with initial production from the Deep South Zone commencing in 2022. The expansion of the underground mine is expected to offset the impact of the end of mining in the Cortez Hills open pit, which is scheduled to conclude towards the end of this year. Barrick Nevada is an integrated gold mining operation that combines the Cortez and Goldstrike properties in Nevada, employing a total of 3 000 employees and 800 contractors. The operation uses both opencast and underground mining methods and hosts a range of processing facilities, including heap leaching, roasting, autoclaving, conventional leaching, and thiosulfate (cyanide-free) leaching. Barrick Nevada produced 2.3 million ounces of gold in 2017, at a cost of sales of USD792 per ounce and all-in sustaining costs of USD624 per ounce. Production in 2018 is anticipated to be 2.0–2.255 million ounces of gold, at a cost of sales of USD760–USD810 per ounce, and all-in sustaining costs of USD610–USD660 per ounce. Proven and probable gold reserves at Cortez as of 31 December 2017 were 10.0 million ounces (167.0 million tonnes, grading 1.87 grams per tonne). At Goldstrike, proven and probable gold reserves were 8.4 million ounces (67.8 million tonnes, grading 3.86 grams per tonne). Source: Most of the above information has been sourced by Barrick Gold ’s technical report about Cortez Hill, dated 21 March 2016. MAY 2018 MINING MIRROR [7]