Barrick Gold Announces Closure of Peruvian Gold Mine

SEATTLE (Scrap Monster): Barrick Gold announced its decision to place its Lagunas Norte Mine-one of the largest gold mines in Peru, on care and maintenance, while the team assesses the sulphide resource potential. It must be noted that the company had earlier decided to close its other Peruvian mine, Pierna.

Barrick Gold has been considering sale of a stake in the mine or addition of a partner since 2017. However, it has so far failed to reach an agreement with potential buyers on sale of the mine. However, the company in early January this year announced that it has suspended its plans to sell the Peruvian assets and that it is working out on a new plan for the Lagunas Norte mine. The latest announcement to close the mine is being mentioned in the recently released report outlining the company’s regional exploration strategy.

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Barrick Gold had booked $405 million as impairment charges on Laguna Norte in 2018. The production from the mine had totaled 245,000 onces of gold during the year. Located in the north-western part of Peru in La Libertad Region, the mine has estimated reserves of 5.8 million ounces of gold.

The report states that the company plans to invest more than $30 million in exploration in Argentina alone over the next two years. The investment will be towards expansion and identification of future potentials for its Pueblo Viejo, Veladero and Pascua Lama mines. It also noted progress in Chile’s Norte Abierto and Alturas projects.