Barrick Gold plans to invest US$35 million in the El Alto exploration project in Chile while expanding the Veladero mine in Argentina. The company aims to boost production amid soaring gold prices and submitted an environmental assessment for a new project in Chile. Analysts predict continued growth in gold prices due to economic uncertainties.
Barrick Gold Corporation, based in Canada, has announced its intention to invest US$35 million in an exploration project located in the Atacama region of Chile. This initiative is part of Barrick’s broader efforts to enhance its resource potential in the area, specifically focusing on a project known as El Alto. Recently, the local subsidiary, Minera Nevada, submitted an environmental impact assessment (EIA) for review by the relevant agency, SEA.
In conjunction with its endeavors in Chile, Barrick Gold is also working to expand the Veladero mine situated in San Juan province, Argentina. This expansion includes optimization projects and the identification of new exploration targets, following successful production figures from last year which surpassed expectations, achieving 505,000 ounces of gold.
The troubled Pascua-Lama project, which straddles the Argentina-Chile border, had previously seen over US$8 billion spent over two decades before its closure due to environmental violations. Despite this setback, Barrick has not dismissed the potential of the area, seeking approval for 43 drilling platforms near the border with Argentina, anticipated to commence operations in July 2026.
At Veladero, improvements to production capabilities have materialized due to the expansion of processing facilities and enhancements to the leaching pad. This has allowed the company to maintain costs below estimates, notwithstanding escalating royalties attributed to the soaring gold prices.
Current analysts are optimistic about the future of gold prices, suggesting they may continue to rise given ongoing economic uncertainties and possible interest rate adjustments from the Federal Reserve. Speculation indicates that gold may break new records if economic conditions persist, heightened by various geopolitical factors affecting market dynamics.
As part of Barrick’s strategy, the company has initiated phase 8 of the Veladero leach pad expansion following the successful phase 7B. This phase involves an investment of approximately US$250-270 million, aimed at extending the operational life of the mine. Meanwhile, Barrick is actively exploring high-sulfidation gold targets in the region to further augment its production capabilities as they head into the winter season.
Barrick Gold is diligently investing in exploration and expansion projects in both Chile and Argentina, aiming to capitalize on record gold prices and the potential for increased resource recovery. The company is simultaneously addressing past setbacks while optimistically navigating the future of its mining operations. With ongoing improvements at Veladero and plans for new drilling in Chile, Barrick is positioned to enhance its contributions to the global gold market.
Original Source: www.bnamericas.com
