Official Launch of Lumwana’s Super Pit Expansion: Everything You Need to Know

All amounts expressed in US$

LUMWANA, Zambia, Oct. 02, 2024 (GLOBE NEWSWIRE) — Barrick Gold Corporation (NYSE:GOLD)(TSX:ABX) – The development of a Super Pit at Barrick’s Lumwana copper mine was officially launched today by the Zambian President, His Excellency Hakainde Hichilema, accompanied by members of his cabinet.

The feasibility study for the Super Pit Expansion is expected by the end of the year, paving the way for construction to start in 2025. Once completed, the $2 billion project^1,4 unlocks the potential to transform Lumwana into a long-life, high-yielding, top 25 copper producer¹ and a Tier One² copper mine.

The expansion involves first doubling throughput of the existing process circuit and then significantly increasing mining volumes. Plant throughput will grow from the current 27Mt to 52Mt, doubling the mine’s annual copper production from 120kt to a life-of-mine average of 240kt a year^3,4. The process plant expansion is supported by a ramp-up of total mining volumes, which are planned to increase incrementally year-on-year, from 150Mt in 2025 to approximately 240Mt in 2028 and then to an average rate of 290t per annum from 2030 onwards^3,4.

Speaking at the groundbreaking ceremony also attended by the Barrick board of directors, Barrick president and chief executive Mark Bristow said a critical element of the Super Pit Expansion was its focus on creating a sustainable legacy through the development of local capacity within the region, which would benefit both local communities and businesses throughout the construction and operational phases. The expansion will need around 550 additional workers over the next five years to support the ramp up and an additional 2,500 construction workers for a three-year period to 2028.

“We are also planning to build critical infrastructure, including an airstrip and an industrial supplier park. This will enable key suppliers to establish themselves in the area, creating an economic hub that will further fuel growth and development in the wider region,” Bristow said.

“Mining plays a key role in Zambia’s economic structure and our partnership with Barrick is creating one team with a shared vision to develop a new economic frontier in the North-Western Province of the country and beyond,” said President Hakainde Hichilema.

Barrick enquiries

Investor and media relations        
Kathy du Plessis                
+44 20 7557 7738                
Email: barrick@dpapr.com

Zambia Country Manager
Anthony Malenga
+260 977 730 513 
Website: www.barrick.com

Technical Information

The scientific and technical information contained in this press release has been reviewed and approved by Richard Peattie, MPhil, FAusIMM, Mineral Resources Manager: Africa and Middle East; Simon Bottoms, CGeol, MGeol, FGS, FAusIMM, Mineral Resource Management and Evaluation Executive; John Steele, CIM, Metallurgy, Engineering and Capital Projects Executive; and Joel Holliday, FAusIMM, Executive Vice-President, Exploration—each a “Qualified Person” as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

Endnotes

1. Financial metrics and production metrics are based upon Barrick’s internal pre-feasibility study which is conceptual in nature because it includes mineral resources that are not yet categorized as mineral reserves, and there is no certainty that the pre-feasibility assessment will be realized. These metrics are subject to change upon completion of the feasibility study. The assumptions outlined within the pre-feasibility study assessment have formed the basis for the ongoing study and were made by a Qualified Person. The Qualified Person will evaluate the results of the completed feasibility study before determining whether all or a part of the mineral resource for the Super Pit Expansion Project may be converted to a mineral reserve.
2. A Tier One Copper Asset is an asset with a $3.00/lb reserve with potential for 5 million tonnes or more of contained copper to support a minimum 20-year life, annual production of at least 200ktpa, with all-in sustaining costs per pound in the lower half of the industry cost curve. Tier One Assets must be located in a world class geological district with potential for organic reserve growth and long-term geologically driven addition.
3. Life of Mine Plan mined tonnes, grade and ounces and financials are based on the pre-feasibility study but are conceptual in nature due to using mineral resources and are subject to change with completion of the feasibility study which is anticipated for Q4 2024.
4. The results in this press release represent forward-looking information and are based on Barrick’s internal pre-feasibility study for the Super Pit. These results are based on mineral resources only and depend on inputs that are subject to a number of known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those presented here. Barrick is in the process of completing a feasibility study in respect of the Super Pit, the results of which may differ from the figures disclosed in this press release. Barrick does not currently identify Lumwana as a material property.  Barrick expects to re-evaluate Lumwana’s status as a potential material property following the completion of the feasibility study for the Super Pit Expansion Project and the preparation of updated mineral reserves and resources estimates for Lumwana as of December 31, 2024. A Technical Report will be prepared in accordance with Form 43-101F1 and filed on SEDAR+ within 45 days of the disclosure of the results of the feasibility study if Lumwana is classified as a material property. 

Cautionary Statement on Forward-Looking Information

Certain information contained in this press release, including any information as to our strategy, projects, 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 “would”, “will”, “projected”, “estimated”, “starting”, “plan”, “ramp up”, “strategic move”, “evolving market landscape”, “leveraging expertise”, “positioning itself” and similar expressions identify forward-looking statements. In particular, this press release contains forward-looking statements including, without limitation, with respect to: Barrick’s Lumwana Super Pit expansion project and its ability to extend Lumwana’s life of mine; global projected copper production and demand profiles; the potential for Lumwana to become a Tier One asset, and the potential for Lumwana to become a top 25 copper asset; estimated copper production and throughput from the Lumwana Super Pit expansion, including projected mining rates; the estimated capital budget for the Lumwana Super Pit expansion; anticipated timelines for delivery of the feasibility study and project construction; Barrick’s strategy, plans, targets and goals in respect of environmental and social governance issues, including local community development; and expectations regarding future price assumptions, financial performance and other outlooks or guidance.

Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this press release in light of management’s experience and perception of current conditions and expected developments, 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 and undue reliance should not be placed on such statements and information. Some of the key factors contributing to the development of the Lumwana Super Pit Expansion are the strategic move in the evolving market landscape, leveraging expertise in the copper sector, and positioning itself as a significant player in the global copper market.

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. The vision and forward-thinking approach demonstrated by Barrick in expanding its copper operations in Zambia underscores both its commitment to sustainable growth and its recognition of the strategic importance of the copper market in the transition to clean energy and electric vehicles.

Barrick’s expansion project at Lumwana also showcases its ability to navigate challenges in large-scale mining operations, such as cost overruns and price fluctuations, highlighting the company’s strategic planning and risk management capabilities. Additionally, the focus on creating a sustainable legacy through local capacity development underscores Barrick’s commitment to social responsibility and community engagement in its operational regions.