Barrick Gold Expands Operations in Chile and Argentina Amid Rising Gold Prices

Barrick Gold plans to invest $35 million in Chile’s Atacama region and expand its Veladero mine in Argentina. The El Alto project aims to enhance resources and follows a previously halted Pascua-Lama initiative. Barrick’s Veladero mine produced 505,000 ounces of gold last year. Analysts expect gold prices to rise amid economic uncertainties, further benefiting Barrick’s operations.

Barrick Gold Corporation, based in Canada, is planning to invest approximately $35 million in an exploration initiative located in Chile’s Atacama region. This initiative takes place adjacent to where the firm previously aimed to develop the Pascua project, which is currently going through a closure process. Barrick will also further develop the Veladero mine in Argentina’s San Juan province by optimizing current operations and exploring new targets.

The Chilean project, named El Alto, has had its environmental impact assessment submitted for review by Minera Nevada to the SEA. The goal of the project is to enhance resource potential in the Alto del Carmen region. Similar to earlier efforts with Pascua-Lama, which was halted due to environmental issues, Barrick seeks to obtain approval for up to 43 drilling platforms in the Andean mountains near the Argentine border. If this approval is granted, operations are expected to commence in July 2026.

At Veladero, Barrick surpassed its production expectations last year by achieving a total output of 505,000 ounces of gold. This success is credited to enhanced recovery and operational improvements, despite rising royalty costs resulting from high gold prices. The mine operates as a joint venture between Barrick and China’s Shandong Gold.

Analysts predict that gold prices will continue to rise, influenced by the Federal Reserve’s monetary policies and broader geopolitical factors. Antonio Di Giacomo, a financial market analyst, noted that ongoing economic uncertainties might prompt continued demand for gold as a safe haven. Subsequently, gold prices recently exceeded $3,000 per ounce due to factors such as diminishing inflation and expectations of interest rate reductions.

Barrick is committed to increasing output at Veladero, presently undertaking an expansion of its leach pad. Following the completion of Phase 7B, which required an investment of $159 million, the company is now progressing to Phase 8, estimated to cost around $250-270 million. Additionally, Barrick has been actively exploring new high-sulfidation gold targets, Fabiana and Brujas, and aims to advance these projects prior to the onset of winter.

In conclusion, Barrick Gold is making significant moves to expand its operations in both Chile and Argentina amid favorable gold market conditions. The company’s investment in the El Alto project reflects its intent to enhance resource exploration and increase production, particularly at Veladero. As analysts project sustained growth in gold prices, Barrick’s strategic initiatives may position the firm advantageously within the mining sector.

Original Source: www.bnamericas.com