veladero project updatemerrill crowe process plant amable open pit filo federico open pit crushing...

VELADERO PROJECT UPDATE – OCTOBER 2, 2002

VELADERO PROJECT UPDATEMining Investment Forum – Denver, Colorado – October 2, 2002

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VELADERO PROJECT UPDATEVELADERO PROJECT UPDATEVELADERO PROJECT UPDATE

Alan R. HillExecutive Vice President Development

Ray ThrelkeldVice President Project Development

Mining Investment Forum – Denver, Colorado – October 2, 2002

PARAGU

A

CHILE ARGENTINA

! 375 km. NNW. of San Juan, Argentina

! 600 km. N. of Santiago, Chile

Veladero

San Juan

Santiago

PROJECT LOCATION

2

! 120 km. access road from Tudcum

! $23 million construction

! Complete by June 03

Despoblados Pass (4,500 m)

Potrerillo Pass(4,500 m)

Conconta Pass (4,850 m)

El Indio Mine

Pascua-LamaVeladero

Tudcum

ACCESS ROAD


VELADERO

kilometers

0 1 2 3 4 5

PASCUA-LAMA

CHILE ARGENTINA

area enlargedPROPERTY PLAN

3


PROJECT OVERVIEW

! Recoverable ounces: 6.8 million ounces

! Mine life: 13 years

! Average annual production: 530,000 oz

! Average cost per ounce: $155

! Initial capital: $425 million

! IRR: 14%

NW

NW

NE

NE

ENE

NE

GRADECONTOURS

Amable

Filo Federico

CuatroEsquinas

> 400> 200> 100> 50> 20

Grade X thickness

4


FILO FEDERICO SCHEMATIC ALTERATION CROSS SECTION, LOOKING EAST

Filo FedericoBx Mario

The RidgelineNorth South

Proposed pit outline

Silica Altera tion

Colluvium Steam Heated Silic a Alteration Alunite Silica Alteration

Illite Silica Altera tionSilica Alunite Alteration

Prop yllitic Altera tion

0 10 00 20 00M ete rs



Amable

Zone 203

Cerro Pelado

West


East

West Silica

Colluviu

Steam Heated Silica

Alunite Silica

Illite Silica

Silica Alunite

Propyllitic 0 1000 2000 Meters

AMABLE SCHEMATIC ALTERATION CROSS SECTION, LOOKING NORTH

5


GEOLOGICAL DATA BASE

! 110 diamond drill holes

! 747 reverse circulation drill holes

! 509 meters of tunnel in Amable

! 638 meters of tunnel in Filo Federico

! 227,664 samples in total


DRILL HOLEAND TUNNELLOCATIONS

CuatroEsquinas

FiloFederico

Amable

6


CuatroEsquinas

FiloFederico

Amable

CuatroEsquinas

FiloFederico

Amable

EXPLORATION DRIFT

Filo Federico Decline Plan View

Assays from Channel Samples(~1 meter, in grams per tonne)

55m @2.75 g/t

187m @5.91 g/t

48m @ 4.4 g/t

N

kilometers

0 1 2

area enlargedarea enlarged


LONGITUDINAL SECTION

! 15.13 million ounce gold resource

AmableFilo Federico Cuatro Esquinas



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938666781552551Contained Au Ounces (x 1000)

1.2651.1041.2822.049Contained Au Grade (g/t)

230707188217376838722Total Tonnes (kt)

Total Ore



43604397865843223Total Tonnes (kt)

ROM



187103148430318435489Total Tonnes (kt)

Crush Feed

9333476877859360236202Total Tonnes (kt)

TotalFilo Federico

Filo MarioAmableOPEN PIT RESERVES


RESERVE INFORMATIONthousands of ounces

Sep 02* Dec 01

8,4169,386

* Date of Homestake-Barrick Merger

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PROBABLE RESERVE SUMMARY

Ore tonnes (million) 231

Gold (g/t) 1.265

Silver (g/t) 15.05

Contained Gold (million oz) 9.386

Total tonnes mined in-pit (million) 934

Stripping ratio 3.051

Tonnes mined/contained oz Au 99.5


GOLD RECOVERIES

Amable Filo Federico

Type I 75% 80%

Type II 49% 49%

Crushed ore 73%

Run of mine 36%

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RESERVES BY DEPOSIT

Deposit Tonnes Grade Ouncesmillions g/t millions

Filo Type I 173.9 1.102 6.18

Filo Type II 17.9 1.152 0.66

Amable Type I 29.1 1.811 1.69

Amable Type II 9.7 2.762 0.86

Total 9.39


VELADERO PROJECT

Pascua-LamaPenelope

VELADEROAmableAmableFilo

FedericoFilo

Federico

CHILE

10


VELADERO PROJECT

AmableOpen Pit

FiloFedericoOpen Pit

PotrerillosHeap Leach

Area

Plant Site Area


VELADERO

kilometers

0 1 2 3 4 5

PASCUA-LAMA

CHILE ARGENTINA

area enlargedPROPERTY PLAN

11


Valley-FillHeap Leach

Merrill CroweProcess Plant

AmableOpen Pit

Filo Federico Open Pit

Crushing

Administrationand Camp

Waste

Waste

kilometers

0 1 2 3 4 5

MINESITE PLAN ! 2 Open Pits

! Truck Shop and Crushinglocated next to Filo Federico Open Pit

! Merrill-Crowe RecoveryPlant adjacent to heapleach pad


4 5


Valley Fill Heap Leach

Truck Loadout

Truckshop & Admin.


Pond

Pond

Pond

Dam

Dam

Dam

Dam

PIERINA MINE

12

PROCESS FLOWSHEET

GyratoryCrusher

2000 tonneSurge Stockpile

PRIMARY CRUSHINGScreens (2)

ConeCrushers(2)

Lime

SECONDARY CRUSHING

LEACHING CIRCUIT

Dam

Pregnant Solution

Valley-Fill Heap Leach

Emitters

PREGNANT SOLUTION CLARIFICATION

UnclarifiedPregnantSolution

Tank

ClarifiedPregnantSolution

Tank

PressureLeaf Filters

(5)

DeaerationTower

ZincDust

REFINING CIRCUIT

FilterPresses (5)

MercuryRetorts (2)

Induction RefiningFurnace

GoldBullion

BarrenSolutionRecirc.

NaCN


PRODUCTION STATISTICS

! Mining capacity: 80 million tonnes/year

! Crushing: 12.6 million tonnes/year

! Run of mine: 3.5 million tonnes/year

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VELADERO PROJECT UPDATE – OCTOBER 2, 2002kilometers

0 1 2 3 4 5

Open Pitoperations

Open Pitoperations

240-ton haultrucks and 37 cubic meter shovels

DM-M2Production Drills


0 1 2 3 4

Primary Crusher at Pierina

Crushing

Secondary Crusher at Pierina

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0 1 2 3 4 5

Haultruck and Truck Loadout Bin at Pierina

TruckLoadoutBin


Valley-FillHeap Leach

Valley-fill heap leach at Pierina

kilometers

0 1 2 3 4 5

15


0 1 2 3 4 5

Merrill Crowe process plant at Pierina



EQUIPMENT SPECIFICATIONSStart up Maximum

240-ton haultrucks 8 22

37 cubic meter shovels 2 3

23 cubic meter loaders 1 2

Production drills 2 5

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SCHEDULE TO COMMISSIONING

! Nov. 2002: Access Road Construction

! May 2003: Environmental Impact Approval

! July 2003: Barrick Board Approval

! Oct. 2003: Mine Prestrip Begins

! Sep. 2005: Pad Loading

! Mar. 2006: Process commissioning


CAPITAL COST OF CONSTRUCTIONUS$ millions

Mining $ 155Process plant and heap leach 59Infrastructure 44Indirect cost 91Contingency 41Owners cost 35

Total capital cost $ 425

17


OPERATING COSTSUS$ per ounce

Mining $84Processing 33G&A 30Refining 3Royalties and taxes 5

Total $155


14%

12%

PROJECT ECONOMICSrate of return as percent

at $325 gold

at $300 gold

8% cost of capital

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FORWARD LOOKING STATEMENT

Certain statements included herein regarding realized gold prices, gold lease rates and contango constitute "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Such Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Barrick or of the gold mining industry to be materially different from future results, performance of achievements expressed or implied by those forward looking statements. Barrick is subject to the effects of changes in the worldwide price of gold and the risks involved in mining operations. These factors are discussed in greater detail in Barrick's most recent Annual Information Form and Management's Discussion and Analysison file with the U.S. Securities and Exchange Commission and Canadian provincial securities regulatory authorities.

veladero project updatemerrill crowe process plant amable open pit filo federico open pit crushing...

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