Canada’s Barrick Gold reported increased production at the Veladero mine in Argentina’s San Juan province.
In Q1, gold production at Veladero increased 4% compared to the previous quarter, with attributable output for Barrick’s 50% stake of 57,000oz. For this year, attributable output is expected to be between 210,000oz and 240,000oz of gold, Barrick said in its operational and financial results.
Previously, Barrick had estimated producing between 160,000oz and 180,000oz in 2023 at the mine but recoveries on the leach pad and optimization measures exceeded expectations, it said.
The increase, together with lower export duties, reduced the cost of sales per ounce and total cash costs by 4% and 6%, respectively, compared to the last quarter of 2023, the report adds.
Another favorable aspect was a transmission line from Chile that has been supplying renewable energy to Veladero since last year, which increased cost efficiency.
Toronto-based Barrick shares Veladero with China’s Shandong Gold Mining.
Last year, total gold production at Veladero grew 6% to 414,000oz, and a plant expansion and other optimizations in the leaching area are underway that are expected to take production to 500,000oz/y in the long term.
The start-up of phase 7B of the project could be brought forward this year, the mining company said, after estimating its start for 2026.
At the end of March, Barrick had disbursed US$131mn of estimated capital of US$160mn for the new stage, although local media reported that the company’s share of investment would amount to US$271mn until 2027 to ensure average production of 400,000oz/y of gold.
Phase 7A was completed with a budget of US$81mn, and Barrick expects to continue contributing to local development with investments of 7.4bn Argentine pesos (US$8.4mn) in community initiatives.
Barrick is optimistic about Javier Milei’s administration. “We are happy that the new government appreciates the value of the investments,” said CEO Mark Bristow in a recent interview with Argentine media.
Exploration in Chile
The Norte Abierto JV between Barrick and Denver-based Newmont submitted the US$52mn Sector Casale exploration project in Chile’s Atacama region, located at an altitude of between 3,750m and 4,450m, to environmental review agency SEA.
The environmental impact assessment outlines 101 drill holes, access roads and warehouses for the storage of samples in Tierra Amarilla municipality under a two-year plan which would begin in September 2025.
The area has been explored in the past and has proven and probable reserves of 23.2Moz gold and 5.8Blb (2.63Mt) of copper, according to the company.
