Barrick Gold Pursues Expansion Amid Rising Gold Prices in Chile and Argentina

Barrick Gold plans to invest USD 35 million in an exploration project in Chile’s Atacama region, focusing on the El Alto project. In Argentina, the Veladero mine is being expanded to increase production. Analysts anticipate that gold prices will rise, influenced by global economic conditions and monetary policies. Barrick is committed to enhancing its mining operations in the region amid these favorable market dynamics.

Barrick Gold, based in Canada, is set to invest USD 35 million in a new exploration project located in Chile’s Atacama region, specifically focused on the El Alto project. This area was previously home to the Pascua initiative, which is currently in the closure phase due to environmental violations. The new exploration aims to enhance resource potential in the Alto del Carmen area, where Barrick had invested over USD 8 billion over 20 years before a court-ordered cessation in 2020. The company is seeking approval for 43 drilling platforms in the Andes mountains to commence operations in July 2026, contingent upon approval from the environmental review agency SEA.

In Argentina, Barrick is expanding its Veladero mine in San Juan province, where it surpassed production targets by reaching 505,000 ounces of gold last year. This achievement resulted from enhancements in the plant and leaching pad. Despite rising royalties due to surging gold prices, the costs remained below projections. The Veladero mine is operated through a joint venture with China’s Shandong Gold, with ongoing exploration aiming to prolong the mine’s life.

Analysts predict that gold prices will likely continue rising in the coming months, influenced by the U.S. Federal Reserve’s monetary policies and global geopolitical events. Antonio Di Giacomo, a financial market analyst for Latin America, indicated that ongoing economic uncertainty could lead to record-breaking gold prices if interest rate cuts are implemented. With gold recently surpassing USD 3,000 per ounce, increased demand as a safe-haven asset has been observed.

Barrick aims to boost production at Veladero, continuing its leach pad expansion with a recent investment of USD 159 million and initiating phase 8, which is expected to cost between USD 250 and 270 million. Barrick has also commenced drilling at strategic gold targets, Fabiana and Brujas, to explore further opportunities before the winter season sets in, emphasizing its commitment to increasing output and extending the operational life of Veladero.

Barrick Gold is strategically positioning itself to capitalize on record gold prices through significant investments in exploration projects in both Chile and Argentina. The expansion of the Veladero mine reflects Barrick’s commitment to increasing production efficiently. As global economic conditions evolve, the company remains optimistic about gold’s continued appeal as a safe asset, seeking to leverage this opportunity for ongoing growth in the Latin American mining sector.

Original Source: www.bnamericas.com