Barrick Gold plans to invest $35 million in a new exploration project in Chile’s Atacama region, specifically focusing on the El Alto area. In Argentina, the company aims to optimize the Veladero mine’s operations, aiming for increased output. Analysts predict a sustained rise in gold prices influenced by monetary policy and geopolitical developments.
Barrick Gold Corporation, headquartered in Canada, intends to invest $35 million in exploration within Chile’s Atacama region. This project aligns with its past interests in the Pascua initiative, which is now undergoing closure. The newly proposed project, named El Alto, is currently in the environmental impact assessment (EIA) phase and aims to explore resource potential in the Alto del Carmen area.
Previously, Barrick planned to develop the Pascua-Lama project, which extends into Argentina but faced legal challenges leading to its closure in 2020 due to environmental violations. After investing over $8 billion and anticipating a substantial haul of resources, the plans were halted entirely. Barrick is now seeking approval from the SEA to set up 43 drilling platforms in the Andes mountains to revisit the area’s mining potential.
If the project receives approval, operations are expected to commence in July 2026, structured over two years in two main phases, limited due to winter access constraints. Barrick maintains a sales and royalty agreement with Wheaton Precious Metals, which is set to expire in 2039 for the Pascua site.
At the Veladero mine in Argentina, Barrick produced 505,000 ounces of gold last year, surpassing expectations thanks to improved recovery rates from operational upgrades. Cost management has been effective amid rising royalty pressures due to record gold prices. Veladero is jointly operated with Shandong Gold, and further expansions are planned.
Gold prices remain robust, with analysts predicting continued growth largely dependent on U.S. monetary policy and global economic stability. Recent trends show gold prices briefly exceeding $3,000/ounce, attributed to macroeconomic conditions like easing inflation and geopolitical factors that drive demand for gold.
Barrick continues to enhance its operations at Veladero, including ongoing expansion of its leach pads. With an invested capital of $159 million for phase 7B completed, work is underway on phase 8 with an estimated cost of $250-270 million. Discoveries at two new targeted areas, Fabiana and Brujas, will be vital as exploration focuses intensively in the upcoming months before the winter season restricts access.
Barrick Gold is strategically investing in exploration projects in Chile and Argentina, aiming to capitalize on favorable gold prices. With promises of new drilling initiatives and expansions at existing mines, Barrick is seeking to stabilize and increase production. These efforts are underpinned by ongoing exploration and a robust understanding of market conditions, essential for navigating the volatile mining landscape.
Original Source: www.bnamericas.com
