EX-99.1 2 a2184254zex-99_1.htm EXHIBIT 99.1

Exhibit 99.1

 

 

 

BARRICK GOLD CORPORATION

Brookfield Place
TD Canada Trust Tower, Suite 3700
P.O. Box 212

161 Bay Street
Toronto, Ontario
M5J 2S1

 

 

ANNUAL INFORMATION FORM

 

For the year ended December 31, 2007

 

Dated as of March 27, 2008

 



 

BARRICK GOLD CORPORATION
ANNUAL INFORMATION FORM

TABLE OF CONTENTS

 

GLOSSARY OF TERMS

3

 

 

FORWARD-LOOKING INFORMATION

7

 

 

SCIENTIFIC AND TECHNICAL INFORMATION

8

 

 

GENERAL INFORMATION

8

 

 

Incorporation

8

Subsidiaries

9

Areas of Interest

9

General Development of the Business

9

Transactions

12

 

 

NARRATIVE DESCRIPTION OF THE BUSINESS

16

 

 

Regional Business Units

16

North America

16

Australia Pacific

17

Africa

17

South America

17

Production

17

Mineral Reserves and Mineral Resources

18

Marketing and Distribution

28

Employees and Labor Relations

29

Competition

30

 

 

MATERIAL PROPERTIES

30

 

 

Goldstrike Property

30

Lagunas Norte Mine

36

Veladero Mine

40

Zaldívar Mine

45

 

 

EXPLORATION, DEVELOPMENT AND BUSINESS DEVELOPMENT

49

 

 

ENVIRONMENT AND CLOSURE

52

 

 

FINANCIAL RISK-MANAGEMENT

54

 

 

LEGAL MATTERS

57

 

 

Government Controls and Regulations

57

 

i



 

Legal Proceedings

59

 

 

RISK FACTORS

62

 

 

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

71

 

 

CONSOLIDATED FINANCIAL STATEMENTS

71

 

 

CAPITAL STRUCTURE

71

 

 

RATINGS

74

 

 

MARKET FOR SECURITIES

76

 

 

MATERIAL CONTRACTS

76

 

 

TRANSFER AGENTS AND REGISTRARS

77

 

 

DIVIDEND POLICY

77

 

 

DIRECTORS AND OFFICERS OF THE COMPANY

78

 

 

AUDIT COMMITTEE

85

 

 

Audit Committee Mandate

85

Purpose

85

Committee Responsibilities

85

Powers

88

Composition

89

Meetings

89

Composition of the Audit Committee

89

Participation on Other Audit Committees

91

Audit Committee Pre-Approval Policies and Procedures

91

External Auditor Service Fees

91

 

 

CONTROLS AND PROCEDURES

92

 

 

NON-GAAP FINANCIAL MEASURES

92

 

 

Total Cash Costs

92

Realized Price

95

 

 

ADDITIONAL INFORMATION

96

 

ii



 

GLOSSARY OF TERMS

 

Assay

 Analysis to determine the amount or proportion of the element of interest contained within a sample.

 

Autoclave system

Oxidation process in which high temperatures and pressures are applied within a pressurized closed vessel to convert refractory sulphide mineralization into amenable oxide ore.

 

Ball mill

A horizontal rotating steel cylinder which grinds ore to fine particles. The grinding is carried out by the pounding and rolling of a charge of steel balls carried within the cylinder.

 

By-product

A secondary metal or mineral product that is recovered along with the primary metal or mineral product during the ore concentration process.

 

Carbonaceous

Containing carbon or coal, especially shale or other rock containing small particles of carbon distributed throughout the mass.

 

Carbon-in-leach (C-I-L)

A process step wherein granular activated carbon particles much larger than the ground ore particles are introduced into the ore pulp. Cyanide leaching and precious metals adsorption onto the activated carbon occurs simultaneously. The loaded activated carbon is mechanically screened to separate it from the barren pulp, processed to remove the precious metals and finally prepared for reuse.

 

Concentrate

A processing product containing the valuable ore mineral from which most of the waste mineral has been eliminated.

 

Contained ounces

Represents total ounces in a mineral reserve before reduction to account for ounces not able to be recovered by the applicable metallurgical process.

 

Contango

The positive difference between the spot market gold price and the forward market gold price. It is often expressed as an interest rate quoted with reference to the difference between inter-bank deposit rates and gold lease rates.

 

Crushing

Breaking of ore from the size delivered from the mine into smaller and more uniform fragments to be then fed to grinding mills or to a leach pad.

 

Cut-off grade

The minimum metal grade at which material can be economically mined and processed (used in the calculation of ore reserves).

 

Development

Work carried out for the purpose of opening up a mineral deposit. In an underground mine, this includes shaft sinking, crosscutting, drifting and raising. In an open pit mine, development includes the removal of overburden and/ or waste rock.

 

3



 

Dilution

Sub-economic material that is unavoidably included with the mined ore, lowering the mined grade.

 

Doré

Unrefined gold and silver bullion bars usually consisting of approximately 90% precious metals that will be further refined to almost pure metal.

 

Drift

A horizontal tunnel generally driven within or alongside an orebody and aligned parallel to the long dimension of the ore.

 

Drift-and-fill

A method of underground mining used for flat-lying mineralization or where ground conditions are less competent.

 

Drilling

Core: a drilling method that uses a rotating barrel and an annular-shaped, diamond-impregnated rock-cutting bit to produce cylindrical rock cores and lift such cores to the surface, where they may be collected, examined and assayed.

 

Reverse circulation: a drilling method that uses a rotating cutting bit within a double-walled drill pipe and produces rock chips rather than core. Air or water is circulated down to the bit between the inner and outer wall of the drill pipe. The chips are forced to surface through the centre of the drill pipe and are collected, examined and assayed.

 

Conventional rotary: a drilling method that produces rock chips similar to reverse circulation except that the sample is collected using a single-walled drill pipe. Air or water circulates down through the center of the drill pipe and returns chips to the surface around the outside of the pipe.

 

In-fill: The collection of additional samples between existing samples, used to provide greater geological detail and to provide more closely-spaced assay data.

 

Exploration

Prospecting, sampling, mapping, diamond-drilling and other work involved in locating the presence of economic deposits and establishing their nature, shape and grade.

 

Flotation

A process by which some mineral particles are induced to become attached to bubbles and float, and other particles to sink, so that the valuable minerals are concentrated and separated from the uneconomic gangue or waste.

 

Grade

The amount of metal in each ton of ore, expressed as troy ounces per ton or grams per tonne for precious metals and as a percentage for most other metals.

 

Grinding (Milling)

 Powdering or pulverising of ore, by pressure or abrasion, to liberate valuable minerals for further metallurgical processing.

 

Heap leaching

A process whereby gold is extracted by “heaping” broken ore on sloping impermeable pads and continually applying to the heaps a weak cyanide solution which dissolves the contained gold. The gold-laden solution is then collected for gold recovery.

 

4



 

Lode

A mineral deposit, consisting of a zone of veins, veinlets or disseminations, in consolidated rock as opposed to a placer deposit.

 

Long-hole open stoping

A method of underground mining involving the drilling of holes up to 30 meters or longer into an ore bearing zone and then blasting a slice of rock which falls into an open space. The broken rock is extracted and the resulting open chamber may or may not be filled with supporting material.

 

Metric conversion

Troy ounces

×

31.10348

=

Grams

Troy ounces per short ton

×

34.28600

=

Grams per tonne

Pounds

×

0.00045

=

Tonnes

Tons

×

0.90718

=

Tonnes

Feet

×

0.30480

=

Meters

Miles

×

1.60930

=

Kilometers

Acres

×

0.40468

=

Hectares

Fahrenheit

(°F-32) × 5 ¸ 9

=

Celsius

 

Mill

A processing facility where ore is finely ground and thereafter undergoes physical or chemical treatment to extract the valuable metals. Also the device used to perform grinding (milling).

 

Mineral reserve

See “Narrative Description of the Business – Gold Mineral Reserves and Mineral Resources”.

 

Mineral resource

See “Narrative Description of the Business – Gold Mineral Reserves and Mineral Resources”.

 

Mining claim

That portion of applicable mineral lands that a party has staked or marked out in accordance with applicable mining laws to acquire the right to explore for and exploit the minerals under the surface.

 

Net profits interest royalty

A royalty based on the profit remaining after recapture of certain operating, capital and other costs.

 

Net smelter return royalty

A royalty based on a percentage of valuable minerals produced with settlement made either in kind or in currency based on the spot sale proceeds received less all of the offsite smelting, refining and transportation costs associated with the purification of the economic metals.

 

Open pit mine

A mine where materials are removed entirely from a working that is open to the surface.

 

Ore

Rock, generally containing metallic or non-metallic minerals, which can be mined and processed at a profit.

 

Orebody

A sufficiently large amount of ore that is contiguous and can be mined economically.

 

Oxide ore

Mineralized rock in which some of the original minerals have been oxidized. Oxidation tends to make the ore more amenable to cyanide solutions so that minute particles of gold will be readily dissolved.

 

5



 

Qualified Person

See “Scientific and Technical Information”.

 

Reclamation

The process by which lands disturbed as a result of mining activity are modified to support beneficial land use. Reclamation activity may include the removal of buildings, equipment, machinery and other physical remnants of mining, closure of tailings storage facilities, leach pads and other mine features, and contouring, covering and re-vegetation of waste rock and other disturbed areas.

 

Reclamation and Closure Costs

The cost of reclamation plus other costs, including without limitation certain personnel costs, insurance, property holding costs such as taxes, rental and claim fees, and community programs associated with closing an operating mine.

 

Recovery rate

A term used in process metallurgy to indicate the proportion of valuable material physically recovered in the processing of ore. It is generally stated as a percentage of the material recovered compared to the total material originally present.

 

Refining

The final stage of metal production in which impurities are removed from the molten metal.

 

Refractory material

Mineralized material in which the metal is not amenable to recovery by conventional cyanide methods without any pre-treatment. The refractory nature can be due to either silica or sulphide encapsulation of the metal or the presence of naturally occurring carbons or other constituents that reduce gold recovery.

 

Roasting

The treatment of sulphide ore by heat and air, or oxygen enriched air, in order to oxidize sulphides and remove other elements (carbon, antimony or arsenic).

 

Shaft

A vertical passageway to an underground mine for ventilation, moving personnel, equipment, supplies and material including ore and waste rock.

 

Tailings

The material that remains after all economically and technically recoverable precious metals have been removed from the ore during processing.

 

Tailings storage facility

A natural or man-made confined area suitable for depositing the material that remains after the treatment of ore.

 

Tons

Short tons (2,000 pounds).

 

Total cash costs

See “Non-GAAP Financial Measures - Total Cash Costs”.

 

6



 

REPORTING CURRENCY, FINANCIAL AND RESERVE INFORMATION

 

All currency amounts in this Annual Information Form are expressed in United States dollars, unless otherwise indicated. References to “C$” are to Canadian dollars. References to “A$” are to Australian dollars. For Canadian dollars to U.S. dollars, the average exchange rate for 2007 and the exchange rate at December 31, 2007 were one Canadian dollar per 0.9304 and 1.0120 U.S. dollars, respectively. For Australian dollars to U.S. dollars, the average exchange rate for 2007 and the exchange rate at December 31, 2007 were one Australian dollar per 0.8389 and 0.8816 U.S. dollars, respectively.

 

Barrick Gold Corporation (“Barrick” or the “Company”) prepares its financial statements in accordance with the United States generally accepted accounting principles (“U.S. GAAP”). Accordingly, unless otherwise indicated, financial information in this Annual Information Form is presented in accordance with U.S. GAAP. The consolidated financial statements of the Company for the year ended December 31, 2007 (the “Consolidated Financial Statements”) are incorporated by reference in this Annual Information Form. The Consolidated Financial Statements are available electronically from the Canadian System for Electronic Document Analysis and Retrieval (“SEDAR”) at www.sedar.com and from the U.S. Securities and Exchange Commission’s (the “SEC”) Electronic Document Gathering and Retrieval System (“EDGAR”) at www.sec.gov.

 

Mineral reserves have been calculated in accordance with National Instrument 43-101, as required by Canadian securities regulatory authorities. For United States reporting purposes, Industry Guide 7 (under the Securities Exchange Act of 1934), as interpreted by Staff of the SEC, applies different standards in order to classify mineralization as a reserve.  For U.S. reporting purposes, as at December 31, 2007, the mineralization at the Pueblo Viejo project was classified as mineralized material.  In addition, while the terms “measured”, “indicated” and “inferred” mineral resources are required pursuant to National Instrument 43-101, the SEC does not recognize such terms. Canadian standards differ significantly from the requirements of the SEC, and mineral resource information contained herein is not comparable to similar information regarding mineral reserves disclosed in accordance with the requirements of the SEC. Investors should understand that “inferred” mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. In addition, investors are cautioned not to assume that any part or all of Barrick’s mineral resources constitute or will be converted into reserves.

 

FORWARD-LOOKING INFORMATION

 

Certain information contained or incorporated by reference in this Annual Information Form, including any information as to our strategy, plans or future financial or operating performance, constitutes “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” 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 us, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include, but are not limited to: fluctuations in the currency markets (such as the Canadian and Australian dollars versus the U.S. dollar); fluctuations in the spot and forward price of gold, copper or certain other commodities (such as silver, diesel fuel and electricity); changes in U.S. dollar interest rates or gold lease rates that could impact the mark-to-market value of outstanding derivative instruments and ongoing payments/receipts under interest rate swaps and variable rate debt obligations; risks arising from holding derivative instruments (such as credit risk, market liquidity risk and mark-to-market risk); changes in national and local government legislation, taxation, controls, regulations and political or economic developments in Canada, the United States, Dominican Republic, Australia, Papua New Guinea, Chile, Peru, Argentina, Tanzania, South Africa, Pakistan, Russia or Barbados or other countries in which we do or may carry on business in the future; business opportunities that may be presented to, or pursued by, us; our ability to successfully integrate acquisitions; operating or technical difficulties in connection with mining or development activities; employee relations; availability and increasing costs associated with mining inputs and labor; the speculative nature of mineral exploration and development, including the risks of

 

7



 

obtaining necessary licenses and permits; diminishing quantities or grades of reserves; adverse changes in our credit rating; and contests over title to properties, particularly title to undeveloped properties. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks). Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this Annual Information Form are qualified by these cautionary statements. Specific reference is made to “Narrative Description of the Business –Mineral Reserves and Mineral Resources” and “Risk Factors” and to the “Management’s Discussion and Analysis of Financial and Operating Results for the year ended December 31, 2007” incorporated by reference herein for a discussion of some of the factors underlying forward-looking statements.

 

The Company may, from time to time, make oral forward-looking statements. The Company advises that the above paragraph and the risk factors described in this Annual Information Form and in the Company’s other documents filed with the Canadian securities commissions and the SEC should be read for a description of certain factors that could cause the actual results of the Company to materially differ from those in the oral forward-looking statements. The Company disclaims any intention or obligation to update or revise any oral or written forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

 

SCIENTIFIC AND TECHNICAL INFORMATION

 

Unless otherwise indicated, scientific or technical information in this Annual Information Form relating to mineral reserves or mineral resources is based on information prepared by employees of Barrick, its joint venture partners or its joint venture operating companies, as applicable, under the supervision of, or has been reviewed by, Jacques McMullen, Senior Vice President, Technical Services of Barrick, Rick Allan, Senior Director, Mining of Barrick, and Rick Sims, Senior Director, Resources and Reserves of Barrick.

 

Scientific or technical information in this Annual Information Form relating to the geology of particular properties, and the exploration programs described in this Annual Information Form, are prepared and/or designed and carried out under the supervision of Robert Krcmarov, Vice President, Global Exploration of Barrick.

 

Each of Messrs. McMullen, Allan, Sims and Krcmarov is a “Qualified Person” as defined in National Instrument 43-101. A “Qualified Person” means an individual who is an engineer or geoscientist with at least five years of experience in mineral exploration, mine development or operation or mineral project assessment, or any combination of these, has experience relevant to the subject matter of the mineral project, and is a member in good standing of a professional association.

 

GENERAL INFORMATION

 

Incorporation

 

Barrick is a corporation governed by the Business Corporations Act (Ontario) resulting from the amalgamation, effective July 14, 1984 under the laws of the Province of Ontario, of Camflo Mines Limited, Bob-Clare Investments Limited and the former Barrick Resources Corporation. By articles of amendment effective December 9, 1985, the Company changed its name to American Barrick Resources Corporation. Effective January 1, 1995, as a result of an amalgamation with a wholly-owned subsidiary, the Company changed its name from American Barrick Resources Corporation to Barrick Gold Corporation. On December 7, 2001, in connection with its acquisition of Homestake Mining Company (“Homestake”), the Company amended its articles to create a special voting share, which has special voting rights designed to permit holders of Barrick Gold Inc. (formerly Homestake Canada Inc.) (“BGI”) exchangeable shares to vote as a single class with the holders of Barrick common shares. In connection with its acquisition of Placer Dome Inc. (“Placer Dome”), Barrick amalgamated with Placer Dome pursuant to articles of

 

8



 

amalgamation dated May 9, 2006 (see “– Transactions”). Barrick’s head and registered office is located at Brookfield Place, TD Canada Trust Tower, 161 Bay Street, Suite 3700, Toronto, Ontario, M5J 2S1.

 

Subsidiaries

 

A significant portion of Barrick’s business is carried on through its subsidiaries. A chart showing Barrick’s mines, projects, related operating subsidiaries, other significant subsidiaries and certain associated subsidiaries as at March 27, 2008 and their respective locations or jurisdictions of incorporation, as applicable, is set out at the end of this “General Information” section. All subsidiaries, mines and projects referred to in the chart are 100% owned unless otherwise noted.

 

Areas of Interest

 

A map showing Barrick’s mining operations and projects as at March 27, 2008 is set out at the end of this “General Information” section.

 

General Development of the Business

 

Barrick entered the gold mining business in 1983 and is now the largest gold mining company in the world in terms of production, reserves and market capitalization. The Company has operating mines or projects in Canada, the United States, Dominican Republic, Australia, Papua New Guinea, Peru, Chile, Argentina, Pakistan, Russia, South Africa and Tanzania. The Company’s principal products and sources of earnings are gold and copper.

 

During its first ten years, Barrick focused on acquiring and developing properties in North America, notably the Company’s flagship Goldstrike property on the Carlin Trend in Nevada. Since 1994, Barrick has strategically expanded beyond its North American base to ensure growth in reserves and production, and now also operates in South America, Africa, Australia, Papua New Guinea, Pakistan and Russia.

 

Barrick has employed a growth strategy that involves acquisitions, a district development program and exploration. In 2006, Barrick completed the acquisition of Placer Dome, which included 12 mines and 4 significant projects.  In connection with the acquisition of Placer Dome, Barrick completed the sale to Goldcorp Inc. of all of Placer Dome’s Canadian properties and operations, including all historic mining, reclamation and exploration properties, Placer Dome’s interest in the La Coipa mine in Chile, and a 40% interest in the Pueblo Viejo project.  Barrick sold its interest in the South Deep mine, acquired in connection with the Placer Dome acquisition, in late 2006. For details of Barrick’s more recent acquisitions, see “–Transactions”.

 

Barrick’s exploration strategy includes both its district development program and its early stage exploration program.  The district development program involves focusing exploration on and around existing properties. Through this program, the Company discovered and brought into production the Goldstrike Underground mine and related mineral deposits on the Goldstrike property and added additional resources at several of its operations. In the years leading up to 2003, exploration spending across the mining industry, particularly among junior companies, was in a state of general decline. During this same period, Barrick increased its exploration activities and engaged in early stage exploration in four major areas: Peru, Tanzania, Australia and Chile/Argentina. This program resulted in the grassroots discovery of the Lagunas Norte deposit in the Alto Chicama District in Peru in 2002. Barrick’s exploration program continues to focus both on areas around our existing mines and early stage exploration activities in the United States, Canada, Peru, Tanzania, Australia, Argentina, Chile, Papua New Guinea, Russia, Pakistan and South Africa. For additional information regarding Barrick’s exploration programs, see “Exploration, Development and Business Development”.

 

Through a combination of acquisitions and its exploration program, Barrick has a project pipeline consisting of ten projects at varying stages of development.  The successful development of Barrick’s projects is expected to have a significant impact on Barrick’s future operations.  Reflecting higher activity at its Reko Diq, Kabanga, Sedibelo, Cerro Casale and Kainantu projects, Barrick expects its 2008 project development expenses to increase from 2007.

 

9


 

As a result of the continued development of its projects, in particular, at Pueblo Viejo, Buzwagi and Cortez Hills, Barrick expects 2008 capital expenditures to increase significantly from 2007.  For 2008, subject to permitting and other matters, the timing of which is not in Barrick’s control, Barrick expects to spend $1.5 - $1.7 billion on capital expenditures for its projects.  For additional information regarding Barrick’s projects, see “Exploration, Development and Business Development”.

 

In 2005, overall gold production increased from 2004 levels as Barrick’s Lagunas Norte and Veladero mines commenced operations in the second half of 2005. In 2006, with its acquisition of Placer Dome, Barrick produced 8.64 million ounces of gold and 367 million pounds of copper.  Prior to 2006, Barrick did not produce a significant amount of copper.  In 2007, Barrick’s production was 8.06 million ounces of gold and 402 million pounds of copper, with total cash costs of $350 per ounce and $0.83 per pound, respectively.  The processing of lower average ore grades and higher waste stripping contributed to the decrease in 2007 gold production from 2006 (see also “Narrative Description of the Business – Production”).

 

The following table summarizes Barrick’s interest in its producing mines and its share of gold production from these mines:

 

Gold Mines

 

Ownership(1)

 

2007

 

2006(5)

 

 

 

 

 

(thousands
of ounces)

 

(thousands
of ounces)

 

North America

 

 

 

 

 

 

 

Goldstrike Property, Nevada

 

 

 

 

 

 

 

Goldstrike Open Pit

 

100

%

1,216

 

1,388

 

Goldstrike Underground

 

100

%

413

 

477

 

Goldstrike Property total

 

 

 

1,629

 

1,865

 

Eskay Creek Mine, British Columbia

 

100

%

68

 

113

 

Round Mountain Mine, Nevada(2)

 

50

%

289

 

340

 

Hemlo Property, Ontario (2)

 

50

%

169

 

205

 

Marigold Mine, Nevada (2)

 

33

%

47

 

50

 

Bald Mountain Mine, Nevada

 

100

%

123

 

273

 

Cortez Mine, Nevada (2, 9)

 

60

%

323

 

253

 

Turquoise Ridge Mine, Nevada (2)

 

75

%

184

 

180

 

Golden Sunlight Mine, Montana

 

100

%

198

 

93

 

Ruby Hill Mine, Nevada (6)

 

100

%

154

 

 

Storm Mine, Nevada (2, 7)

 

60

%

17

 

 

 

 

 

 

3,201

 

3,372

 

 

10



 

South America

 

 

 

 

 

 

 

Veladero Mine, Argentina

 

100

%

473

 

511

 

Pierina Mine, Peru

 

100

%

520

 

509

 

Lagunas Norte Mine, Peru

 

100

%

1,086

 

1,084

 

 

 

 

 

2,079

 

2,104

 

Australia Pacific

 

 

 

 

 

 

 

Plutonic Mine, Western Australia

 

100

%

208

 

237

 

Darlot Mine, Western Australia

 

100

%

120

 

137

 

Lawlers Mine, Western Australia

 

100

%

115

 

110

 

Kalgoorlie Mine, Western Australia (2)

 

50

%

304

 

338

 

Granny Smith Mine, Western Australia

 

100

%

175

 

295

 

Kanowna Mine, Western Australia

 

100

%

362

 

477

 

Osborne Mine, Queensland, Australia

 

100

%

42

 

30

 

Henty Mine, Tasmania

 

100

%

70

 

68

 

Cowal Mine, Central New South Wales, Australia (3)

 

100

%

240

 

122

 

Porgera Mine, Papua New Guinea (2,8)

 

95

%

487

 

406

 

 

 

 

 

2,123

 

2,220

 

Africa

 

 

 

 

 

 

 

Bulyanhulu Mine, Tanzania

 

100

%

243

 

330

 

Tulawaka Mine, Tanzania(2)

 

70

%

125

 

98

 

North Mara Mine, Tanzania

 

100

%

237

 

362

 

South Deep Mine, South Africa(2, 4)

 

50

%

 

124

 

 

 

 

 

605

 

914

 

Other

 

 

 

52

 

33

 

Company Total

 

 

 

8,060

 

8,643

 

 


(1)

 

Barrick’s interest is subject to royalty obligations at certain mines.

(2)

 

Barrick’s proportional share.

(3)

 

The Cowal mine commenced production in May 2006.

(4)

 

Barrick sold its interest in the South Deep mine in December 2006.

(5)

 

Barrick’s share of the acquired Placer Dome mines production reflects the results from January 20, 2006.

(6)

 

The Ruby Hill mine commenced production in February 2007.

(7)

 

The Storm mine commenced production in April 2007.

(8)

 

Barrick increased its interest in the Porgera mine from 75% to 95% in August 2007.

(9)

 

Barrick increased its interest in the Cortez mine from 60% to 100% in March 2008.

 

11



 

The following table summarizes Barrick’s interest in its principal producing copper mines and its share of copper production from these mines:

 

Copper Mines

 

Ownership

 

2007

 

2006(1)

 

 

 

 

 

(millions of
pounds)

 

(millions of
pounds)

 

Zaldívar Mine, Chile

 

100

%

315

 

308

 

Osborne Mine, Queensland, Australia

 

100

%

87

 

59

 

Company Total

 

 

 

402

 

367

 

 


(1)                   Barrick’s share of the acquired Placer Dome mines production reflects the results from January 20, 2006.

 

See Note 4 “Segment Information” to the Consolidated Financial Statements and Management’s Discussion and Analysis for the year ended December 31, 2007 (the “Management’s Discussion and Analysis”) for further information on the Company’s operating and geographic segments.

 

2008 gold production is targeted at approximately 7.6 to 8.1 million ounces at expected average total cash costs of $390 to $415 per ounce.  Lower gold production is expected in North America as a result of lower production at Golden Sunlight and Ruby Hill and the end of production from Eskay Creek, while production in South America, Australia and Africa is expected to be similar to 2007 levels.  A continuing trend of industry wide cost pressures from factors such as higher labor costs, higher energy costs and commodity prices, higher gold price related costs and a weakening U.S. dollar in addition to the effects, particular to the Company, of lower by-product silver credits due to the closure of Barrick’s Eskay Creek mine, are contributing to higher expected 2008 total cash costs per ounce.  2008 copper production is targeted at approximately 380 to 400 million pounds at expected total cash costs of approximately $1.15 to $1.25 per pound.  Copper cash costs are expected to be higher than 2007 due principally to higher energy and higher acid costs.

 

At December 31, 2007, proven and probable mineral reserves for Barrick were 124.6 million ounces of gold, with mineral resources of 50.6 million ounces of measured and indicated gold and 31.9 million ounces of inferred gold. Barrick also had proven and probable mineral reserves of 6.2 billion pounds of copper, with mineral resources of 5.4 billion pounds of measured and indicated copper and 15.4 billion pounds of inferred copper. For a breakdown of Barrick’s reserves and resources by category, see “Narrative Description of the Business – Mineral Reserves and Mineral Resources”.

 

Transactions

 

Acquisition of Additional 20% Interest in Porgera Mine

 

In August 2007, Barrick acquired an additional 20% interest in the Porgera mine in Papua New Guinea from Emperor Mines Limited, for cash consideration of $259 million.  Following this transaction Barrick’s interest in the Porgera mine increased from 75% to 95%.  The Government of Papua New Guinea holds the remaining 5% undivided interest in the Porgera mine.   Barrick has entered into a call option deed regarding the possible sale of up to a 5% interest to the Government of Papua New Guinea, for the proportionate acquisition cost paid by Barrick. The call option deed expires in 2008.

 

Acquisition of Arizona Star Resource Corp.

 

In October 2007, Barrick commenced an offer to acquire the shares of Arizona Star Resource Corp. (“Arizona Star”).  Barrick concluded its offer for Arizona Star in December 2007, acquiring an approximate 94% interest in Arizona Star for cash consideration of approximately $730 million.  In March 2008, Barrick acquired the remaining shares of Arizona Star by way of a compulsory acquisition.  Arizona Star owns a 51% interest in the Cerro Casale deposit in the Maricunga district of Region III in Chile.  Kinross Gold Corporation (“Kinross”) owns the remaining 49% of the Cerro Casale deposit.

 

12



 

Acquisition of Kainantu Mineral Property and Papua New Guinea Exploration Properties

 

In December 2007, Barrick completed the acquisition of the Kainantu mineral property and over 2,900 square kilometres of exploration licenses in Papua New Guinea from Highlands Pacific Limited for approximately $135 million in cash (net of $7 million held back pending renewal of certain exploration licenses).

 

Acquisition of Additional 40% Interest in Cortez Property

 

In March 2008, Barrick acquired an additional 40% interest in the Cortez property from Kennecott Explorations (Australia) Ltd., a subsidiary of Rio Tinto plc, for consideration of $1.695 billion in cash, a further $50 million payable if and when an additional 12 million ounces of contained gold resources are added to Barrick’s December 31, 2007 reserve statement for Cortez, and a sliding scale royalty payable to Rio Tinto on 40% of all Cortez production in excess of 15 million ounces on and after January 1, 2008.  This acquisition consolidates 100% ownership for Barrick of the existing Cortez mine and the Cortez Hills development project plus any future potential from the property.

 

13


 

 

14


 

 

 


 

NARRATIVE DESCRIPTION OF THE BUSINESS

 

Barrick is engaged the production and sale of gold, as well as related activities such as exploration and mine development.  Barrick also produces some copper and holds interests in a platinum group metals development project and a nickel development project, both located in Africa, and a platinum group metals project located in Russia.   Unless otherwise specified, the description of Barrick’s business, including products, principal markets, distribution methods, employees and labor relations contained in this AIF, applies to each of its regional business units (“RBU”) (as described below) and Barrick as a whole.

 

Regional Business Units

 

Barrick has four RBUs: North America, South America, Australia Pacific, and Africa.  This structure reflects how Barrick manages its business and how it classifies its operations for planning and measuring performance. Set out below is a brief description of the mines and projects of each RBU.  Each region receives direction from Barrick’s corporate office, but has responsibility for all aspects of its business, such as strategy and sustainability of mining operations, including exploration, production and closure.  In 2007, recognizing the importance of its project pipeline to its long-term strategy of growing its business, Barrick expanded the capacity of the group responsible for the development and construction of the projects through the addition of experienced staff with the necessary specialized skill set associated with project management.  Efforts in this regard will continue in 2008 with a number of positions identified to be added to enhance Barrick’s capacity to deliver on the significant project pipeline in the coming years (for additional information regarding Barrick’s projects, see “Exploration, Development and Business Development”)For details regarding 2007 production for the mines in each RBU, see “General Information – General Development of the Business”.  For additional details regarding each RBUs reserves and resources, see “ – Mineral Reserves and Resources”.  See also Note 4 “Segment Information” to the Consolidated Financial Statements and Management’s Discussion and Analysis for the year ended December 31, 2007 (the “Management’s Discussion and Analysis”) for further financial and other information on the Company’s operating and geographic segments.

 

North America

 

Barrick’s North American operations consist of its Goldstrike property (a material property for the purposes of this AIF, see “Material Properties – Goldstrike Property”), its Cortez property (consisting of the Cortez mine and Cortez Hills project), its 50% interest in the Round Mountain mine, its Ruby Hill mine, its Eskay Creek mine, its 50% interest in the Hemlo property, its 33% interest in the Marigold mine, its Bald Mountain mine, its Golden Sunlight mine and its 75% interest in the Turquoise Ridge mine. Barrick’s North American projects are its 50% interest in the Donlin Creek project and its 60% interest in the Pueblo Viejo project.  In March 2008, Barrick acquired the remaining 40% of the Cortez property (including the Cortez Hills project) (see “General Information – Transactions – Acquisition of Additional 40% Interest in Cortez Property”).  In 2007, the region produced approximately 3.2 million ounces at total cash costs of $370 per ounce. In 2008, the region is expected to produce 3.0 to 3.15 million ounces at total cash costs of $450 to $465 per ounce.  Production is expected to be lower than 2007 primarily due to the mining of lower-grade ore.  Total cash costs per ounce are expected to be higher in 2008 due to the impact of lower production; lower silver credits due to the closure of Eskay Creek; increased labor rates; higher energy costs mainly due to higher oil prices; and higher royalties and production taxes as a result of higher gold prices.

 

16



 

Australia Pacific

 

Barrick’s Australia Pacific operations consist of its Cowal mine, its 50% interest in the Kalgoorlie mine, its operating mines located in the Yilgarn District in Western Australia (Plutonic, Darlot and Lawlers), its Granny Smith mine, its Henty mine, its Kanowna mine and its Osborne mine as well as its 95% interest in the Porgera mine and its Kainantu property, which are in Papua New Guinea.  During 2007, Barrick acquired an additional 20% interest in the Porgera mine and acquired the Kainantu mineral property and over 2,900 square kilometres of exploration licenses in Papua New Guinea (see “General Information Transactions”).  In 2007, the region produced approximately 2.1 million ounces at total cash costs of $452 per ounce.  In 2008, the region is expected to produce 1.975 to 2.15 million ounces of gold at total cash costs of $450 to $475 per ounce.  Total cash costs per ounce are expected to be higher in 2008 due to higher currency hedge rates, higher oil prices, labor rate increases and higher royalty costs.

 

Africa

 

Barrick’s African operations are its Bulyanhulu mine, its 70% interest in the Tulawaka mine and its North Mara mine, each in Tanzania.  Barrick’s African projects are its Buzwagi and Kabanga projects, located in Tanzania, and its Sedibelo project, located in South Africa.  The Buzwagi project was approved for construction on August 1, 2007, and is expected to begin production in mid-2009 (see “Exploration Development and Business Development”).  In 2007, Sedibelo’s pre-feasibility was completed and Acceptance of the Mining Rights application was received from the Department of Minerals and Energy (see “Exploration Development and Business Development”).  The region produced approximately 600,000 ounces of gold in 2007 at total cash costs of $408 per ounce.  In 2008, the region is expected to produce 0.625 to 0.7 million ounces of gold at total cash costs of $380 to $400 per ounce.  Production is expected to increase primarily at Bulyanhulu, reflecting the expected resolution of labor issues, improved equipment availability, and higher ore grades. Total cash costs per ounce are expected to be lower in 2008, reflecting the increase in production levels.

 

South America

 

The South American RBU’s Lagunas Norte mine in Peru, Veladero mine in Argentina, and its Zaldívar copper mine in Chile are each material properties for the purposes of this AIF (see “Material Properties – Lagunas Norte, - Veladero, and - Zaldívar”) . Its other operation consists of its Pierina mine in Peru. Barrick’s South American development projects consists of the Pascua-Lama project in Chile and Argentina and its Cerro Casale project in Chile, which was acquired in connection with Barrick’s acquisition of Arizona Star (see “General Information Transactions”).   In 2007, the region produced approximately 2.1 million ounces of gold, at total cash costs of $197 per ounce, and 315 million pounds of copper at total cash costs of $0.70 per pound.  In 2008, the South American RBU is expected to produce 1.95 to 2.05 million ounces of gold at total cash costs of $250 to $270 per ounce.  Production is expected to remain consistent with 2007, as higher production at Veladero is expected to be offset by lower production at Pierina.  Total cash costs per ounce are expected to be higher in 2008, mainly due to higher energy costs, labor rates and other cost increases.

 

Production

 

For the year-ended December 31, 2007, Barrick produced 8.06 million ounces of gold at average total cash costs of $350 per ounce and 402 million pounds of copper at average total cash costs of $0.83 per pound. Barrick’s 2008 gold production is targeted at approximately 7.6 to 8.1 million ounces at expected average total cash costs of $390 to $415 per ounce.  Lower gold production is expected in North America as a result of lower production at Golden Sunlight and Ruby Hill and the end of production from Eskay Creek, while production in South America, Australia and Africa is expected to be similar to 2007 levels. 

 

17



 

A continuing trend of industry wide cost pressures from factors such as higher labor costs, higher energy costs and commodity prices, higher gold price related costs and a weakening U.S. dollar in addition to the effects, particular to the Company, of lower by-product silver credits due to the closure of Barrick’s Eskay Creek mine, are contributing to higher expected 2008 total cash costs per ounce.  2008 copper production is targeted at approximately 380 to 400 million pounds at expected total cash costs of approximately $1.15 to $1.25 per pound.  Copper cash costs are expected to be higher due principally to higher energy and higher acid costs.  See “Forward-Looking Information”.

 

Mineral Reserves and Mineral Resources

 

At December 31, 2007, Barrick’s total proven and probable gold mineral reserves were 124.6 million ounces. In aggregate, Barrick increased its total reserves from year-end 2006 by approximately 1.5 million ounces.  This increase in gold reserves is a combination of Barrick acquiring approximately 1.2 million contained ounces of gold reserves in connection with its acquisition of an additional 20% in its Porgera mine; adding approximately 9.8 million contained ounces of gold reserves (primarily attributable to additional reserves at Pueblo Viejo, Pascua Lama, Buzwagi; and Bulyanhulu; and producing 8.06 million ounces of gold (9.5 million contained ounces) (see “- Reconciliation of Mineral Reserves”).  At December 31, 2007, Barrick’s total proven and probable copper mineral reserves were 6.2 billion pounds. During 2007, Barrick produced 402 million pounds of copper (500 million contained pounds)Barrick’s 2007 reserves and resources do not include its recently acquired interest in the Cerro Casale deposit due to insufficient time, after its acquisition in December 2007, to complete the work necessary to incorporate this deposit in year-end results (see “General Information Transactions”).  In March 2008, Barrick acquired the remaining 40% interest in the Cortez property (see “General Information Transactions”).  Barrick’s 2007 reserves and resources do not include the addition of approximately 4.6 million ounces of gold reserves and 1.4 million ounces of gold resources acquired with the remaining Cortez interest.

 

Except as noted below, 2007 reserves have been calculated using an assumed gold price of $575 (A$750) per ounce, an assumed silver price of $10.75 per ounce, an assumed copper price of $2.00 per pound and exchange rates of $1.15 C$/U.S.$ and $0.77 U.S.$/A$. Reserve calculations incorporate current and/or expected mine plans and cost levels at each property.

 

Unless otherwise noted, Barrick’s reserves and resources have been calculated as at December 31, 2007 in accordance with definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum and incorporated into National Instrument 43-101 (see “Definitions” below). Calculations have been prepared by employees of Barrick, its joint venture partners or its joint venture operating companies, as applicable, under the supervision of Jacques McMullen, Senior Vice President, Technical Services, Rick Allan, Senior Director, Mining, and Rick Sims, Senior Director, Resources and Reserves.  Such calculations incorporate then current and/or expected mine plans and cost levels at each property. Varying cut-off grades have been used depending on the mine, methods of extraction and type of ore contained in the reserves. Mineral resource metal grades and material densities have been estimated using industry-standard methods appropriate for each mineral project with support of various commercially available mining software packages. For the cut-off grades used in the calculation of reserves, see “ – Notes to the Reserves, Resources and Reconciliation Tables”. Barrick’s normal data verification procedures have been employed in connection with the calculations. Sampling, analytical and test data underlying the stated mineral resources and reserves have been verified by Mr. McMullen, Mr. Allan and/or Mr. Sims, employees under their supervision, and/or independent Qualified Persons. Verification procedures include industry-standard quality control practices. For details of data verification and quality control practices at each material property, see “Principal Regions”.

 

Barrick reports its reserves in accordance with National Instrument 43-101, as required by Canadian securities regulatory authorities and, for United States reporting purposes, Industry Guide 7 under the

 

18



 

Securities Exchange Act of 1934, which (as interpreted by the Staff of the SEC) applies different standards in order to classify mineralization as a reserve (see Note 7 of the “– Notes to the Mineral Reserves, Resources and Reconciliation Tables”).  For U.S. reporting purposes, as at December 31, 2007, the mineralization at the Pueblo Viejo project was classified as mineralized material.  In addition, while the terms “measured”, “indicated” and “inferred” mineral resources are required pursuant to National Instrument 43-101, the SEC does not recognize such terms. Canadian standards differ significantly from the requirements of the SEC, and mineral resource information contained herein is not comparable to similar information regarding mineral reserves disclosed in accordance with the requirements of the SEC. Investors should understand that “inferred” mineral resources have a great amount of uncertainty as to their existence and great uncertainty as to their economic and legal feasibility. In addition, investors are cautioned not to assume that any part or all of Barrick’s mineral resources constitute or will be converted into reserves.

 

Although the Company has carefully prepared and verified the mineral reserve figures presented below and elsewhere in this Annual Information Form, such figures are estimates, which are, in part, based on forward-looking information, and no assurance can be given that the indicated level of mineral will be produced. Estimated reserves may have to be recalculated based on actual production experience. Market price fluctuations of gold, copper and silver, as well as increased production costs or reduced recovery rates, may render the present proven and probable reserves unprofitable to develop at a particular site or sites. See “Risk Factors” and “Forward-Looking Information” for additional details concerning factors and risks that could cause actual results to differ from those set out below.

 

Definitions

 

A mineral resource is a concentration or occurrence of diamonds, natural solid inorganic material, or natural solid fossilized organic material including base and precious metals, coal, and industrial minerals in or on the Earth’s crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a mineral resource are known, estimated or interpreted from specific geological evidence and knowledge. Mineral resources are sub-divided, in order of increasing geological confidence, into inferred, indicated and measured categories.

 

An inferred mineral resource is that part of a mineral resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes.

 

An indicated mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape and physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.

 

A measured mineral resource is that part of a mineral resource for which quantity, grade or quality, densities, shape, and physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate

 

19


 

techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.

 

A mineral reserve is the economically mineable part of a measured or indicated mineral resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting that economic extraction can be justified. A mineral reserve includes diluting materials and allowances for losses that may occur when the material is mined. Mineral reserves are sub-divided in order of increasing confidence into probable mineral reserves and proven mineral reserves.

 

A probable mineral reserve is the economically mineable part of an indicated and, in some circumstances, a measured mineral resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction can be justified.

 

A proven mineral reserve is the economically mineable part of a measured mineral resource demonstrated by at least a preliminary feasibility study. This study must include adequate information on mining, processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that economic extraction is justified.

 

20



 

GOLD MINERAL RESERVES (1), (3), (4), (7), (10), (11)

 

 

 

PROVEN

 

PROBABLE

 

TOTAL

 

As at December 31, 2007

 

Tons

 

Grade (8)

 

Contained ozs (9)

 

Tons

 

Grade (8)

 

Contained ozs (9)

 

Tons

 

Grade (8)

 

Contained ozs (9)

 

Based on attributable ounces

 

(000’s)

 

(oz/ton)

 

(000’s)

 

(000’s)

 

(oz/ton)

 

(000’s)

 

(000’s)

 

(oz/ton)

 

(000’s)

 

NORTH AMERICA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goldstrike Open Pit

 

64,828

 

0.119

 

7,734

 

30,086

 

0.148

 

4,460

 

94,914

 

0.128

 

12,194

 

Goldstrike Underground

 

2,623

 

0.493

 

1,293

 

4,800

 

0.293

 

1,407

 

7,423

 

0.364

 

2,700

 

Goldstrike Property Total

 

67,451

 

0.134

 

9,027

 

34,886

 

0.168

 

5,867

 

102,337

 

0.146

 

14,894

 

Pueblo Viejo (60%) (7)

 

7,233

 

0.105

 

757

 

121,892

 

0.094

 

11,501

 

129,125

 

0.095

 

12,258

 

Cortez (60%) (12)

 

9,342

 

0.127

 

1,186

 

77,115

 

0.074

 

5,698

 

86,457

 

0.080

 

6,884

 

Bald Mountain

 

73,449

 

0.025

 

1,827

 

54,644

 

0.023

 

1,232

 

128,093

 

0.024

 

3,059

 

Turquoise Ridge (75%)

 

6,239

 

0.477

 

2,978

 

2,190

 

0.402

 

880

 

8,429

 

0.458

 

3,858

 

Round Mountain (50%)

 

30,846

 

0.022

 

672

 

47,271

 

0.016

 

770

 

78,117

 

0.018

 

1,442

 

Ruby Hill

 

18,325

 

0.050

 

916

 

438

 

0.032

 

14

 

18,763

 

0.050

 

930

 

Hemlo (50%)

 

5,771

 

0.079

 

456

 

1,648

 

0.107

 

177

 

7,419

 

0.085

 

633

 

Marigold (33%)

 

14,767

 

0.021

 

311

 

16,339

 

0.020

 

320

 

31,106

 

0.020

 

631

 

Golden Sunlight

 

2,495

 

0.056

 

140

 

 

 

 

2,495

 

0.056

 

140

 

Eskay Creek

 

35

 

0.457

 

16

 

 

 

 

35

 

0.457

 

16

 

SOUTH AMERICA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pascua-Lama

 

42,947

 

0.049

 

2,113

 

401,663

 

0.039

 

15,865

 

444,610

 

0.040

 

17,978

 

Veladero

 

30,352

 

0.030

 

910

 

358,093

 

0.030

 

10,750

 

388,445

 

0.030

 

11,660

 

Lagunas Norte

 

12,043

 

0.051

 

618

 

210,133

 

0.039

 

8,115

 

222,176

 

0.039

 

8,733

 

Pierina

 

14,681

 

0.029

 

432

 

25,427

 

0.025

 

641

 

40,108

 

0.027

 

1,073

 

AUSTRALIA PACIFIC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Porgera (95%) (14)

 

56,639

 

0.099

 

5,611

 

22,421

 

0.117

 

2,628

 

79,060

 

0.104

 

8,239

 

Kalgoorlie (50%)

 

45,859

 

0.052

 

2,399

 

33,553

 

0.065

 

2,190

 

79,412

 

0.058

 

4,589

 

Cowal

 

8,061

 

0.025

 

204

 

73,402

 

0.036

 

2,672

 

81,463

 

0.035

 

2,876

 

Plutonic

 

374

 

0.158

 

59

 

11,737

 

0.150

 

1,765

 

12,111

 

0.151

 

1,824

 

Kanowna

 

4,303

 

0.184

 

792

 

4,571

 

0.159

 

727

 

8,874

 

0.171

 

1,519

 

Darlot

 

2,228

 

0.124

 

276

 

2,980

 

0.127

 

379

 

5,208

 

0.126

 

655

 

Granny Smith

 

1,116

 

0.108

 

121

 

2,333

 

0.144

 

337

 

3,449

 

0.133

 

458

 

Lawlers

 

644

 

0.085

 

55

 

2,555

 

0.138

 

352

 

3,199

 

0.127

 

407

 

Henty

 

 

 

 

626

 

0.236

 

148

 

626

 

0.236

 

148

 

Osborne

 

1,755

 

0.024

 

42

 

2,426

 

0.016

 

40

 

4,181

 

0.020

 

82

 

AFRICA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bulyanhulu

 

1,299

 

0.396

 

515

 

34,753

 

0.332

 

11,528

 

36,052

 

0.334

 

12,043

 

North Mara

 

22,828

 

0.100

 

2,289

 

13,633

 

0.096

 

1,305

 

36,461

 

0.099

 

3,594

 

Buzwagi

 

144

 

0.056

 

8

 

72,543

 

0.049

 

3,585

 

72,687

 

0.049

 

3,593

 

Tulawaka (70%)

 

300

 

0.100

 

30

 

439

 

0.449

 

197

 

739

 

0.307

 

227

 

OTHER

 

 

 

 

346

 

0.419

 

145

 

346

 

0.419

 

145

 

TOTAL

 

481,526

 

0.072

 

34,760

 

1,630,057

 

0.055

 

89,828

 

2,111,583

 

0.059

 

124,588

 

 

COPPER MINERAL RESERVES (1), (3), (4), (7), (11)

 

 

 

PROVEN

 

PROBABLE

 

TOTAL

 

 

 

Tons

 

Grade (8)

 

Contained lbs (9)

 

Tons

 

Grade (8)

 

Contained lbs (9)

 

Tons

 

Grade (8)

 

Contained lbs (9)

 

Based on attributable pounds

 

(000’s)

 

%

 

(millions)

 

(000’s)

 

%

 

(millions)

 

(000’s)

 

%

 

(millions)

 

Zaldívar

 

221,808

 

0.566

 

2,510

 

328,001

 

0.537

 

3,521

 

549,809

 

0.548

 

6,031

 

Osborne

 

1,755

 

2.128

 

75

 

2,426

 

2.019

 

98

 

4,181

 

2.065

 

173

 

TOTAL

 

223,563

 

0.578

 

2,585

 

330,427

 

0.548

 

3,618

 

553,990

 

0.560

 

6,203

 

 

See “ - Notes to the Mineral Reserves, Resources and Reconciliation Tables.”

 

21



 

GOLD MINERAL RESOURCES (1), (2), (3), (5)

 

 

 

MEASURED (M)

 

INDICATED (I)

 

(M) + (I)

 

INFERRED

 

As at December 31, 2007

 

Tons

 

Grade (8)

 

Contained ozs (9)

 

Tons

 

Grade (8)

 

Contained ozs (9)

 

Contained ozs (9)

 

Tons

 

Grade (8)

 

Contained ozs (9)

 

Based on attributable ounces

 

(000’s)

 

(oz/ton)

 

(000’s)

 

(000’s)

 

(oz/ton)

 

(000’s)

 

(000’s)

 

(000’s)

 

(oz/ton)

 

(000’s)

 

NORTH AMERICA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Goldstrike Open Pit

 

20,561

 

0.052

 

1,072

 

13,971

 

0.051

 

716

 

1,788

 

5,014

 

0.064

 

321

 

Goldstrike Underground

 

893

 

0.431

 

385

 

3,236

 

0.301

 

974

 

1,359

 

2,747

 

0.371

 

1,020

 

Goldstrike Property Total

 

21,454

 

0.068

 

1,457

 

17,207

 

0.098

 

1,690

 

3,147

 

7,761

 

0.173

 

1,341

 

Pueblo Viejo (60%)

 

1,407

 

0.063

 

89

 

40,267

 

0.064

 

2,566

 

2,655

 

7,728

 

0.062

 

476

 

Cortez (60%) (12)

 

4,516

 

0.042

 

191

 

41,228

 

0.046

 

1,885

 

2,076

 

11,604

 

0.153

 

1,776

 

Bald Mountain

 

13,000

 

0.025

 

331

 

23,493

 

0.023

 

530

 

861

 

24,648

 

0.017

 

411

 

Turquoise Ridge (75%)

 

1,790

 

0.407

 

728

 

679

 

0.415

 

282

 

1,010

 

1,500

 

0.440

 

660

 

Round Mountain (50%)

 

4,911

 

0.024

 

116

 

11,972

 

0.021

 

250

 

366

 

15,665

 

0.015

 

237

 

Ruby Hill

 

3,067

 

0.071

 

217

 

135

 

0.207

 

28

 

245

 

6

 

0.333

 

2

 

Hemlo (50%)

 

1,357

 

0.101

 

137

 

1,614

 

0.139

 

224

 

361

 

3,298

 

0.122

 

402

 

Marigold (33%)

 

7,000

 

0.020

 

137

 

10,053

 

0.021

 

209

 

346

 

67,531

 

0.012

 

841

 

Golden Sunlight

 

7,346

 

0.055

 

404

 

954

 

0.049

 

47

 

451

 

48

 

0.021

 

1

 

South Arturo (60%)

 

 

 

 

10,757

 

0.070

 

752

 

752

 

367

 

0.022

 

8

 

Donlin Creek (50%) (13)

 

2,378

 

0.071

 

169

 

202,491

 

0.072

 

14,499

 

14,668

 

25,609

 

0.068

 

1,729

 

SOUTH AMERICA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pascua-Lama

 

9,965

 

0.044

 

439

 

89,193

 

0.037

 

3,321

 

3,760

 

15,227

 

0.037

 

568

 

Veladero

 

1,572

 

0.018

 

28

 

25,772

 

0.018

 

475

 

503

 

96,223

 

0.012

 

1,191

 

Lagunas Norte

 

4,740

 

0.023

 

109

 

100,335

 

0.025

 

2,535

 

2,644

 

52,126

 

0.027

 

1,423

 

Pierina

 

2,775

 

0.017

 

47

 

9,705

 

0.015

 

147

 

194

 

159

 

0.025

 

4

 

AUSTRALIA PACIFIC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Porgera (95%) (14)

 

33,500

 

0.082

 

2,747

 

23,110

 

0.063

 

1,452

 

4,199

 

10,645

 

0.093

 

993

 

Kalgoorlie (50%)

 

1,655

 

0.055

 

91

 

1,180

 

0.071

 

84

 

175

 

1,212

 

0.173

 

210

 

Cowal

 

 

 

 

23,076

 

0.035

 

819

 

819

 

9,821

 

0.029

 

281

 

Plutonic

 

64

 

0.250

 

16

 

18,755

 

0.143

 

2,688

 

2,704

 

4,295

 

0.192

 

825

 

Kanowna

 

2,496

 

0.149

 

373

 

1,822

 

0.167

 

304

 

677

 

7,515

 

0.118

 

887

 

Darlot

 

460

 

0.126

 

58

 

3,071

 

0.120

 

370

 

428

 

222

 

0.180

 

40

 

Granny Smith

 

560

 

0.186

 

104

 

2,475

 

0.147

 

365

 

469

 

8,003

 

0.222

 

1,775

 

Lawlers

 

53

 

0.113

 

6

 

6,724

 

0.167

 

1,122

 

1,128

 

1,923

 

0.151

 

291

 

Henty

 

 

 

 

79

 

0.165

 

13

 

13

 

73

 

0.247

 

18

 

Osborne

 

1,425

 

0.025

 

36

 

2,177

 

0.028

 

61

 

97

 

4,760

 

0.019

 

89

 

Reko Diq (37.5%)

 

69,757

 

0.010

 

679

 

375,074

 

0.008

 

3,062

 

3,741

 

1,417,219

 

0.007

 

10,490

 

AFRICA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bulyanhulu

 

 

 

 

1,516

 

0.427

 

647

 

647

 

10,253

 

0.459

 

4,704

 

North Mara

 

6,534

 

0.062

 

402

 

6,003

 

0.066

 

399

 

801

 

1,416

 

0.069

 

98

 

Buzwagi

 

56

 

0.036

 

2

 

19,937

 

0.030

 

606

 

608

 

947

 

0.045

 

43

 

Tulawaka (70%)

 

 

 

 

178

 

0.281

 

50

 

50

 

53

 

0.245

 

13

 

OTHER

 

 

 

 

 

 

 

 

370

 

0.295

 

109

 

TOTAL

 

203,838

 

0.045

 

9,113

 

1,071,032

 

0.039

 

41,482

 

50,595

 

1,808,227

 

0.018

 

31,936

 

 

COPPER MINERAL RESOURCES (1), (2), (3), (5)

 

 

 

MEASURED (M)

 

INDICATED (I)

 

(M) + (I)

 

INFERRED

 

As at December 31, 2007

 

Tons

 

Grade (8)

 

Contained lbs (9)

 

Tons

 

Grade (8)

 

Contained lbs (9)

 

Contained lbs (9)

 

Tons

 

Grade (8)

 

Contained lbs (9)

 

Based on attributable pounds

 

(000’s)

 

(%)

 

(millions)

 

(000’s)

 

(%)

 

(millions)

 

(millions)

 

(000’s)

 

(%)

 

(millions)

 

Zaldívar

 

27,104

 

0.477

 

258

 

71,247

 

0.431

 

614

 

873

 

176,453

 

0.510

 

1,801

 

Osborne

 

1,425

 

2.214

 

63

 

2,177

 

1.782

 

78

 

141

 

4,760

 

1.440

 

137

 

Reko Diq (37.5%)

 

69,757

 

0.528

 

737

 

375,074

 

0.480

 

3,601

 

4,337

 

1,417,219

 

0.474

 

13,427

 

TOTAL

 

98,286

 

0.538

 

1,058

 

448,498

 

0.479

 

4,292

 

5,351

 

1,598,432

 

0.481

 

15,366

 

 

See “ - Notes to the Mineral Reserves, Resources and Reconciliation Tables.”

 

22



 

CONTAINED SILVER WITHIN REPORTED GOLD RESERVES (A)

 

 

 

IN PROVEN GOLD RESERVES

 

IN PROBABLE GOLD RESERVES

 

TOTAL

 

For the year ended Dec. 31, 2007

 

Tons

 

Grade (8)

 

Contained ozs (9)

 

Tons

 

Grade (8)

 

Contained ozs (9)

 

Tons

 

Grade (8)

 

Contained ozs (9)

 

Process
recovery

 

Based on attributable ounces

 

(000s)

 

(oz/ton)

 

(000s)

 

(000s)

 

(oz/ton)

 

(000s)

 

(000s)

 

(oz/ton)

 

(000s)

 

%

 

NORTH AMERICA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pueblo Viejo (60%) (7)

 

7,233

 

0.67

 

4,828

 

121,892

 

0.54

 

65,551

 

129,125

 

0.55

 

70,379

 

86.6

%

Eskay Creek

 

35

 

25.60

 

896

 

 

 

 

 

 

 

35

 

25.60

 

896

 

90.3

%

SOUTH AMERICA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pascua-Lama

 

42,947

 

1.77

 

76,100

 

401,663

 

1.63

 

655,277

 

444,610

 

1.64

 

731,377

 

78.5

%

Lagunas Norte

 

12,043

 

0.11

 

1,377

 

210,133

 

0.10

 

21,007

 

222,176

 

0.10

 

22,384

 

18.8

%

Veladero

 

30,352

 

0.42

 

12,656

 

358,093

 

0.50

 

178,413

 

388,445

 

0.49

 

191,069

 

7.0

%

Pierina

 

14,681

 

0.25

 

3,598

 

25,427

 

0.20

 

5,088

 

40,108

 

0.22

 

8,686

 

40.0

%

AFRICA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bulyanhulu

 

1,296

 

0.23

 

300

 

34,753

 

0.25

 

8,832

 

36,049

 

0.25

 

9,132

 

65.0

%

TOTAL

 

108,587

 

0.92

 

99,755

 

1,151,961

 

0.81

 

934,168

 

1,260,548

 

0.82

 

1,033,923

 

64.1

%

 


(A) Silver is accounted for as a by-product credit against reported or projected gold production costs.

 

CONTAINED COPPER WITHIN REPORTED GOLD RESERVES (A)

 

 

 

IN PROVEN GOLD RESERVES

 

IN PROBABLE GOLD RESERVES

 

TOTAL

 

For the year ended Dec. 31, 2007

 

Tons

 

Grade (8)

 

Contained lbs (9)

 

Tons

 

Grade (8)

 

Contained lbs (9)

 

Tons

 

Grade (8)

 

Contained lbs (9)

 

Process
recovery

 

Based on attributable pounds

 

(000s)

 

(%)

 

(millions)

 

(000s)

 

(%)

 

(millions)

 

(000s)

 

(%)

 

(millions)

 

%

 

NORTH AMERICA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pueblo Viejo (60%) (7)

 

7,233

 

0.125

 

18.0

 

121,892

 

0.097

 

236.1

 

129,125

 

0.098

 

254.2

 

88.0

%

SOUTH AMERICA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pascua-Lama

 

42,947

 

0.094

 

81.0

 

401,663

 

0.072

 

581.5

 

444,610

 

0.074

 

662.5

 

57.7

%

AFRICA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Buzwagi

 

144

 

0.148

 

0.4

 

72,543

 

0.121

 

174.9

 

72,687

 

0.121

 

175.3

 

77.6

%

Bulyanhulu

 

1,296

 

0.441

 

11.4

 

34,753

 

0.611

 

424.7

 

36,049

 

0.605

 

436.1

 

85.0

%

TOTAL

 

51,620

 

0.107

 

110.9

 

630,851

 

0.112

 

1,417.2

 

682,471

 

0.112

 

1,528.1

 

72.8

%

 


(A) Copper is accounted for as a by-product credit against reported or projected gold production costs.

 

CONTAINED ZINC WITHIN REPORTED GOLD RESERVES (A)

 

 

 

IN PROVEN GOLD RESERVES

 

IN PROBABLE GOLD RESERVES

 

TOTAL

 

For the year ended Dec. 31, 2007

 

Tons

 

Grade (8)

 

Contained lbs (9)

 

Tons

 

Grade (8)

 

Contained lbs (9)

 

Tons

 

Grade (8)

 

Contained lbs (9)

 

Process
recovery

 

Based on attributable pounds

 

(000s)

 

(%)

 

(millions)

 

(000s)

 

(%)

 

(millions)

 

(000s)

 

(%)

 

(millions)

 

%

 

NORTH AMERICA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pueblo Viejo (60%) (7)

 

7,233

 

0.794

 

114.9

 

121,892

 

0.623

 

1,518.1

 

129,125

 

0.632

 

1,633.0

 

83.2

%

 


(A) Zinc is accounted for as a by-product credit against reported or projected gold production costs.

 

23



 

CONTAINED SILVER WITHIN REPORTED GOLD RESOURCES

 

 

 

MEASURED (M)

 

INDICATED (I)

 

(M) + (I)

 

INFERRED

 

For the year ended Dec. 31, 2007

 

Tons

 

Grade (8)

 

Contained ozs (9)

 

Tons

 

Grade (8)

 

Contained ozs (9)

 

Ounces (9)

 

Tons

 

Grade (8)

 

Contained ozs (9)

 

Based on attributable ounces

 

(000’s)

 

(oz/ton)

 

(000’s)

 

(000’s)

 

(oz/ton)

 

(000’s)

 

(000’s)

 

(000’s)

 

(oz/ton)

 

(000’s)

 

NORTH AMERICA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Eskay Creek

 

 

 

 

 

 

 

 

 

 

 

Pueblo Viejo (60%)

 

1,407

 

0.40

 

567

 

40,267

 

0.36

 

14,303

 

14,870

 

7,728

 

0.46

 

3,548

 

SOUTH AMERICA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lagunas Norte

 

3,320

 

0.07

 

222

 

55,193

 

0.07

 

4,107

 

4,329

 

18,470

 

0.03

 

606

 

Pascua–Lama

 

9,965

 

0.60

 

6,001

 

89,193

 

0.52

 

46,171

 

52,172

 

15,227

 

0.72

 

11,039

 

Pierina

 

2,775

 

0.32

 

879

 

9,705

 

0.31

 

2,992

 

3,871

 

159

 

0.12

 

19

 

Veladero

 

1,572

 

0.47

 

737

 

25,772

 

0.43

 

10,988

 

11,725

 

96,223

 

0.39

 

37,364

 

AFRICA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bulyanhulu

 

 

 

 

1,516

 

0.29

 

442

 

442

 

10,253

 

0.38

 

3,899

 

TOTAL

 

19,039

 

0.44

 

8,406

 

221,646

 

0.36

 

79,003

 

87,409

 

148,060

 

0.38

 

56,475

 

 

CONTAINED COPPER WITHIN REPORTED GOLD RESOURCES

 

 

 

 

 

 

 

 

 

 

 

 

 

IN MEASURED (M) GOLD RESOURCES

 

IN INDICATED (I) GOLD RESOURCES

 

(M) + (I)

 

INFERRED

 

For the year ended Dec. 31, 2007

 

Tons

 

Grade (8)

 

Contained lbs (9)

 

Tons

 

Grade (8)

 

Contained lbs (9)

 

Contained lbs (9)

 

Tons

 

Grade (8)

 

Contained lbs (9)

 

Based on attributable pounds

 

(000’s)

 

(%)

 

(millions)

 

(000’s)

 

(%)

 

(millions)

 

(millions)

 

(000’s)

 

(%)

 

(millions)

 

NORTH AMERICA
Pueblo Viejo (60%)

 

1,407

 

0.078

 

2.2

 

40,267

 

0.070

 

56.5

 

58.7