Goldstrike the largest U.S. gold producer
Goldstrike the largest U.S. gold producer
Canadian mining giant Barrick Gold Corp. is engaged in a long-
running wrangle over the Busang gold mine in East Kalimantan, one
of the world's richest gold finds. Barrick recently invited a
number of Indonesian journalists to visit its Goldstrike mine in
Elko, Nevada, U.S. -- the largest gold producer in North America.
The Jakarta Post's journalist Benget Simbolon joined the tour.
The following is his story on Goldstrike.
Elko, Nevada, (JP): Ten years ago no one foresaw that
Goldstrike Property would become the largest producer of gold in
North America and one of the most modern, efficient mining
operations in the world.
A number of companies had previously explored the property to
no avail. They only identified a smaller reserve of gold which
did not encourage them to further their explorations.
When Barrick Gold Corp. acquired a 100 percent stake of
Goldstrike Property from Pancana Industries and Western States
Minerals in January 1987 for US$62 million, it identified a gold
reserve of about 600,000 ounces, said Vincent Borg, vice
president of Barrick for public affairs and communication.
He said that following the acquisition, Barrick pursued
intensive exploration efforts. In March 1987, it discovered the
Betze deposit, which contained 12 million ounces of gold. Since
that time, the reserves have steadily risen to today's level of
about 30 million ounces of gold.
Under Barrick's development plan, the mine, which now employs
about 2,000 people, has grown from a small heap leach operation
producing 40,000 ounces of gold per year into one of the world's
largest gold mining and processing complexes. It produces 2.4
million ounces per year.
Located in Elko, a small city with a population of 21,000 in
northern Nevada, U.S., the 7,000-acre Goldstrike Property
contains the single largest gold reserves in the country.
Now Goldstrike Property has the Betze-Post and Meikle mines.
The Betze-Post mine is an open pit gold mine which contains 23.3
million ounces with an average grade of 0.203 ounces of gold per
ton. The Meikle mine, on the other hand, is an underground mine
which contains 6.6 million ounces of gold with an average grade
of 0.68 ounces of gold per ton.
Processing plant
The company also has a gold processing plant in the area that
currently can process up to 17,500 tons of ore per day to produce
about 6,500 ounces of gold per day or 2.4 million ounces per
year.
"Betze-Post Mine was a conventional open pit shovel and truck
operation, using large-scale equipment, to mine about 150 million
tons per year," Borg said.
He added that the Betze-Post Mine is the largest open pit gold
mine in the world, producing about two million ounces of gold per
year.
Goldstrike Property has invested $160 million on mine
equipment which includes four 42-cubic yard electric shovels and
three 23-cubic yard hydraulic shovels. There are 73 190-ton
trucks used in the pit. Each 190-ton truck cost $1.6 million and
each electric shovel cost $7 million.
It has a computerized truck dispatch system which has
increased productivity and improved cost efficiency by
coordinating the truck and shovel fleet operations in the pit.
The mine has also installed a $26-million electrified trolley-
assist system for faster and more cost-effective hauling from the
pit. The system benefits include reduced energy costs, increased
engine life and reduced emissions and improved air quality in the
pit.
The Meikle mine, located one mile north of the Betze-Post Mine
on the Carlin Trend, is a compact, high grade ore body
underground mine.
It was first discovered in 1989. Its sulfide ore body has been
outlined at a depth of between 800 feet and 1,900 feet below the
surface.
The Meikle mine, which came into production late 1996,
produces about 400,000 ounces of gold per year.
The capital required to develop the mine was $180 million, or
about $30 per ounce. These development costs were financed
through existing cash and future cash flow from the Betze-Post
mine.
Borg said Barrick would continue its explorations to expand
the current reserves.
"In Goldstrike alone we spent averagely $10 million per year
for explorations. But overall in our world operations, we spent
approximately $110 million per year for explorations," he said.
He said his company's exploration expenditures increased every
year. For instance, the 1996 budget for exploration at Goldstrike
was set at approximately $17.5 million, increasing by 53 percent
from $11.4 million in 1995.
"Only by continuing explorations can we extend our mining
life," he said, adding that besides the explorations his company
would also pursue community development and environmental
programs that would in turn benefit his company. (bnt)