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Barrick Investor Day 08 African Barrick Gold
Barrick Investor Day 08 African Barrick Gold
Barrick Investor Day 08 African Barrick Gold
CAUTIONARYSTATEMENTON
FORWARDLOOKINGINFORMATION
Certain information contained in this presentation, including any information as to our strategy, projects, plans or future financial or
operating performance and other statements that express management's expectations or estimates of future performance, constitute
"forward-looking statements. All statements, other than statements of historical fact, are forward-looking statements. The words believe,
"expect", "will", anticipate, contemplate, target, plan, continue, budget, may, intend, estimate and similar expressions identify
forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while
considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties and
contingencies The Company cautions the reader that such forward-looking
contingencies.
forward looking statements involve known and unknown risks
risks, uncertainties
and other factors that may cause the actual financial results, performance or achievements of Barrick to be materially different from the
Company's estimated future results, performance or achievements expressed or implied by those forward-looking statements and the
forward-looking statements are not guarantees of future performance. These risks, uncertainties and other factors include, but are not
limited to: changes in the worldwide price of gold, copper or certain other commodities (such as silver, fuel and electricity); fluctuations in
currency markets; legislative, political or economic developments in the jurisdictions in which the Company carries on business, including
Zambia and Saudi Arabia; operating or technical difficulties in connection with mining or development activities; employee relations;
availability and costs associated with mining inputs and labor; the speculative nature of exploration and development, including the risks of
obtaining necessary licenses and permits and diminishing quantities or grades of reserves; changes in costs and estimates associated with
our projects; contests over title to properties, particularly title to undeveloped properties; the organization of our previously held African
gold operations under a separate listed entity; the risks involved in the exploration, development and mining business. Certain of these
factors are discussed in greater detail in the Companys most recent Form 40-F/Annual Information Form on file with the U.S. Securities
and Exchange Commission and Canadian provincial securities regulatory authorities.
Th C
The
Company di
disclaims
l i
any iintention
t ti or obligation
bli ti tto update
d t or revise
i any fforward-looking
d l ki statements
t t
t whether
h th as a resultlt off new
information, future events or otherwise, except as required by applicable law.
KeyStrengths
Platformfor
African
Growth
1.0Moz
Target
Barrick
Support
~74%
74% owned by Barrick
Benefits from Barricks expertise and insight
Exploration
Upside
AssetSize&Quality
African Barrick Gold is one of the five largest
gold producers in Africa
346 K oz of gold production in H1 2011(1)
total cash costs of $655/oz(2)
$245 million of EBITDA in H1 2011(3)
$806/oz of total cash margins in H1 2011(2)
OverviewofAssets
Four operating mines
Four projects in feasibility
One project in scoping
One entering scoping in H2
North Mara
Gokona/Nyabigena U/G
Nyabirama U/G
Nyanzaga
Tulawaka
Bulyanhulu
Bulyanhulu Tailings
Bulyanhulu Upper East
Golden Ridge
Buzwagi
TANZANIA
Mines
Projects in Feasibility
Projects in Scoping(1)
(1) Nyabirama U/G entering scoping study in H2
Production&Reserves
2011E
Production700760Koz(1)
CashCosts $590$650/oz(3)
2010A
P&PReserves16,821Koz(2)
TULAWAKA
67
TULAWAKA
BULYANHULU
NORTHMARA
2,836
BUZWAGI
2,892
NORTH MARA
NORTHMARA
BUZWAGI
BULYANHULU
11,026
(1) 100% basis. (2) 100% basis, with Tulawaka at 100% of ABGs 70% interest; see final slide #2
TrackRecordofAddingValue
Bulyanhulu threefold increase in reserves to 11.0 M oz(1)
since acquisition
mine life now in excess of 25 years
Bulyanhulu
OVERVIEW
Bulyanhulu
MINING&PROCESSING
Mi
Mineralization
li ti associated
i t d
with steeply-dipping reefs
containing gold, silver and
copper in sulphides
C
Copper/gold/silver
/ ld/ il
concentrate produced from
flotation and gold dor
through electrowinning
Bulyanhulu
ADDINGVALUE
10
Bulyanhulu
ADDINGVALUE
Tailings Reprocessing
Opportunity: incremental
production increase
Description: potential
increase of existing CIL plant
to 2.4 M tpa (6.5 K tpd)
Next steps: feasibility study
initiated results expected by
initiated,
Q1 2012
Expected start-up: 2013
11
NorthMara
OVERVIEW
12
NorthMaraMINING&PROCESSING
3 high grade open pits
Several types of gold
mineralization
i
li ti including
i l di
shear-zone-related quartz
vein and disseminated gold
4 excavators, 33 haul
trucks, 7 drill rigs, and a
fleet of auxiliary equipment
NorthMara
13
ADDINGVALUE
Gokona/Nyabigena U/G
Opportunity: incremental production increase(1)
Description: high-grade
high grade lodes beneath planned final pit
Next steps: feasibility study due in Q3 2011
Expected start-up: 2013
14
NorthMara
ADDINGVALUE
Nyabirama Deeps
Opportunity: potential
f additional
for
dd
l
underground
production(1)
Description: U/G and
layback ounces beneath
Nyabirama pit
Next steps: ongoing
37,000 meter drill
program, scoping study
to commence in H2 2011
NorthMara
15
CSRINITIATIVES
16
Buzwagi
OVERVIEW
Buzwagi
MINING&PROCESSING
Gravity-Flotation-Leach plant
Gold/copper concentrate
produced from flotation and
gold dor from electrowinning
5 excavators, 16 haul
trucks, 11 drill rigs, and
a fleet of auxiliary
equipment
Current recovery(1):88.0% Au
18
Buzwagi
ADDINGVALUE
Golden Ridge
Opportunity: incremental
production increase((1))
Description: open pit
target 55km north
of Buzwagi
Next steps: finalize and
review feasibility study,
completion expected
in Q4 2011
Expected start-up:
2013/2014
Represents selected drill results
Tulawaka
19
OVERVIEW
Mature operation
2010 reserves: 0.07 M oz(1)
2010 M&I resources:
0.09 M oz(1)
2010 inferred resources:
0.015 M oz(1)
20
Tulawaka
MINING&PROCESSING
21
Tulawaka DeepsADDINGVALUE
Tulawaka Depth Extensions
Opportunity: extend mine life beyond mid-2012(1)
Description: targeting mineralization between levels 10
10-15
15
Next steps: updated life-of-mine plan before year end 2011
Expected start-up: ongoing
22
CSRAKEYCOMPANYFOCUS
Over 90% of our workforce is Tanzanian - ongoing commitment to
localization with initiatives including:
87 students
t d t tto undertake
d t k our G
Graduate
d t T
Training
i i P
Program b
by yearend (at a cost of over $1 million per year)
Over 5,000 community students have received educational
scholarships
149 local community students receiving vocational scholarships on
our Integrated Mining & Technical Training Program
Launched the Maendeleo Fund with an annual budget of $10m
23
ExplorationTANZANIA
2011 Budget: US$55 M(1)
GrassrootsProgram
TargetDelineation
AdvancedExploration&
ResourceDevelopment
Scoping&
FeasibilityStudies
Buly Reef
1&2East
Gokona
Corridor
Karagwe
Ankolean
Nyanzaga
Regional
Kahama
BulyReef
2West
Surubu
Jomu
TargetSize
>1Moz
>750
koz
>500
koz
>100
koz
Nyabirama
Deeps
Dett
Opportunity
Tulawaka
Deeps
Komarera
Nyakafuru
JV
Masabi
Extensions
Buly
UpperEast
Zone
Nyanzaga
Mine
Site
Satellite
Buly
Tailings
Project
Lake
Victoria
Goldfields
Gokona /
Gena UG
Golden
Ridge
Production
AfricaWide
M&A
Africa
Wide
24
Nyanzaga Project
OVERVIEW
25
Nyanzaga ProjectADDINGVALUE
Opportunity: Develop
new stand alone
(1)
operation
p
Description: Potential
large scale open pit
with potential for U/G
development
Next steps: Scoping
study underway with
expected completion in
early 2012, resource
update expected before
year end 2011
Potential start-up: 2015/16
(1) See final slide #3
26
Footnotes
1. Total cash costs per ounce, total cash margin per ounce and EBITDA are non-GAAP financial measures. See page 26 of African Barrick Gold s Half Year Report 2011.
2. African Barrick Golds mineral reserves (reserves) and mineral resources (resources) have been calculated as at December 31, 2010 in accordance with National Instrument 43-101
as required by Canadian securities regulatory authorities. For a breakdown of reserves and resources by category and additional information relating to reserves and resources, see
pages 96 to 99 of African Barrick Golds 2010 Annual Report. Below is an overview extract from the Annual Report (100% basis).
Mine
Classification
Tonnes
(000s)
GradeAu(g/t)
Ounces(000s)
B l h l
Bulyanhulu
P
Proven
& P b bl
&Probable
29 342
29,342
11 687
11.687
11 026
11,026
Mineralresource
11,062
8.096
2,879
8,814
11.804
3,345
Proven &Probable
55,582
1.619
2,892
Mineralresource
18,079
0.971
564
6,284
1.215
246
Proven &Probable
27,623
3.194
2,836
Mineralresource
18,638
3.059
1,833
1,859
1.893
113
Proven &Probable
320
6.527
67
Mineralresource
518
5.405
90
94
4.976
15
112,867
4.636
16,821
Mineralresource
48,297
3.456
5,367
Inferred
17,052
6.783
3,719
Inferred
Buzwagi
Inferred
NorthMara
Inferred
Tulawaka (70%)
Inferred
Total
3.
Proven &Probable
African Barrick Golds exploration programs are designed and conducted under the supervision of Peter Spora, Senior Vice President, Global Exploration of African Barrick Gold. For
information on the geology, exploration activities generally, and drilling and analysis procedures on African Barrick Gold s material properties, see African Barrick Golds 2010 Annual
Report.
27