Virtual Gold Mine Tour

Nevada

With the benefit of the new roaster facility, the Goldstrike Property produced 590,492 ounces of gold during the second quarter, an increase of 12 percent over the same period last year. The Property accounted for 62 percent of total Company production. Total cash costs were $195 per ounce compared to $179 the previous year. Year-to-date production totaled 1,203,970, 17 percent higher than the previous year at total cash costs of $185 per ounce.

The Goldstrike Property is expected to produce 2.3 million ounces of gold in 2001, marginally lower than the record 2.4 million ounces in 2000. Total cash costs are expected to average $195 per ounce for the year, higher than the first half as processed grades decline at Betze-Post in the second half of the year. Overall, the higher costs for the Property reflect higher power costs and lower processing grades in 2001 at Meikle and in the second half of the year at Betze-Post. Through productivity improvements the Property expects to be able to offset an unbudgeted second power cost increase totaling $10 million that took effect March 1, 2001. The higher power costs in the western United States are expected to persist for at least the next two years, resulting in marginally higher costs at the Property.

Betze-Post Mine

The Betze-Post Mine produced 403,688 ounces of gold in the second quarter, 23 percent more than in the same period last year. The increase reflects both the additional processing capacity provided by the roaster and the continuation of mining in the high-grade 7th West Layback. Year-to-date the Mine produced 855,334 ounces of gold, 30 percent higher than last year.

Total cash costs were $213 per ounce, compared to $215 for the second quarter of 2000. Unit mining costs declined by 11 percent year-to-date, compared to last year while tons mined increased by 18 percent. These results are attributable to the addition of six 330-ton haul trucks in mid-January and to modifications to the mine sequencing, which shortened the cycle times for hauling waste rock from the 8th West Layback. Because of the new roaster, the Mine also benefited from lower processing costs.

The high ore grades mined in the first half are expected to decline towards reserve grade going forward. The Mine is on track to meet its production target of 1.6 million ounces of gold in 2001, at a total cash cost of $218 per ounce, which is in line with plan despite the second power cost increase.

Meikle Mine

The Meikle Mine produced 186,804 ounces of gold during the second quarter, 11,000 ounces higher than plan due to the earlier than anticipated access to Rodeo and Griffin development ore. During the same period of 2000, the Mine produced 198,638 ounces of gold. Total cash costs were $156 per ounce in the second quarter, compared to $117 per ounce in the same quarter of 2000. The higher costs relate to mining in lower grade areas of the Mine, as well as to mining more low-grade development ore than planned.

Tons mined in the second quarter were 24 percent higher than plan, due to an increase of 126,000 tons in development ore from Griffin and to the earlier than expected access to Rodeo development ore. At the end of the second quarter, 51,000 tons of ore had been stockpiled for processing later in the year. The ore was stockpiled because of scheduled maintenance at the autoclaves and roasters in the first quarter.

The mining rate is now benefiting from the intensive training program instituted in 2000 to counter the underground labor shortage. Employment is now at planned levels and development productivity is the highest in the Mine's history.

Production for 2001 is expected to be marginally higher than plan at 685,000 ounces with the mining of more development ore than planned. Total cash costs are expected to be $143 per ounce, $6 more than plan, because of the higher ground support costs associated with the mining of development ore.

Rodeo is on budget and on schedule for production start-up in the fourth quarter. It is expected to contribute about 70,000 ounces to the Mine's total 2001 production, primarily in the fourth quarter. The exploration drift to Banshee has been deferred until the current exploration program better defines the zone of mineralization. Exploration also continues to focus on the deep potential of Main Meikle and on the Barrel area (west of Rodeo).

Goldstrike Process Division

The autoclaves processed 1,362,413 tons of ore in the second quarter, compared with 1,411,612 tons in 2000. The lower throughput was due to scheduled maintenance during the quarter. Two more autoclaves are scheduled to undergo routine maintenance, one in the third quarter and the other in the fourth. Overall, unit autoclave processing costs were lower than plan and recovery rates higher than plan. This reflects higher tonnage from Meikle and the fact that less transitional ore was processed than planned. Transitional ore requires more grinding time, and therefore lowers throughput and increases costs. The higher tonnage from Meikle was due to the reclassification of high-grade material originally scheduled for the roaster. This material was routed to the autoclaves to improve the recovery rate.

Construction is nearly complete on a new ball mill to increase the grinding capacity and throughput of the autoclave facility. It is scheduled for completion in the third quarter, at a cost of $7 million. As of the fourth quarter, it will provide an additional 1,600 tons per day of processing capacity, primarily benefiting Betze-Post.

Roasters

The roasters processed a total of 1,198,094 tons of carbonaceous ore during the second quarter, averaging 13,300 tons per day compared to 878,934 tons during the corresponding period of 2000 when the facilities were commissioned. The throughput rate for the first six months was 6 percent lower than the expected full year average of 12,700 tons per day, due to the voluntary five-day closure of the facility under the state of Nevada's voluntary power curtailment program. Unit roaster costs for the second quarter were marginally higher than the 2001 plan and higher than 2000, due to the increase in power costs. Recovery rates were lower than plan, due to the routing of high-grade Meikle ore to the autoclaves instead of to the roaster. The decision to reroute this ore reflects continuing work by the process division to optimize throughput, recovery rates and unit costs by rationalizing the use of the two processing facilities.

Thursday, August 30, 2001
BARRICK GOLD CORP and NEWMONT MINING CORP
Newmont has temporarily halted operations at its Betze-Post mine in Nevada after a slope wall of the open pit collapsed. The collapse occurred on the south wall of the pit, blocking an access road to the underground portal, but did not affect the underground mine structure. The company reported that there were no injuries, and the impact on production was still unknown. The underground mine will remain closed until federal and state investigators have completed their investigation. Open pit operations at the mine were not affected, and will remain active during the investigation. The underground operations, which produce 160,000 ounces per year, are operated by Newmont, while the open pit operations are operated by Barrick, producing an additional 1.5 million ounces per year.
Property: GOLDSTRIKE (BETZE-POST)
(Complete Text of Aug 30, 2001 News Release) ^PDF

Barrick Goldstrike Mines, the youngest mine of the four represented, was purchased on December 31, 1986 from Western States Minerals for $62 million, which was considered too high of a price to pay at that time. Today, Barrick is comprised of two world class mines: the Betze-Post surface mine and the Meikle underground mine. Barrick has 1,760 employees and is currently constructing a $330 million Roaster Project, which is scheduled to be completed by the middle of the year 2000. It will employ 145 workers. Barrick Goldstrike Mines produces 20% of the nation’s gold.

Earthquake History of Nevada

Nevada ranks among the most seismically active States.