Mineral Resource Management Rod Quick Project Evaluation
Mineral resource management at New Barrick… Manage the orebody from gold in the ground to value for all stakeholders – only possible through ownership of the orebody MRM are empowered on the mines to own the orebody but are held accountable for the orebody understanding and estimation Responsible for resource sustainability and thus responsible for feasibility and replenishment – gatekeepers to ensure reserves pass our filters We are in the consumptive business and if we do not replenish we will die Superior orebody knowledge minimizes technical risk and ensures optimised mine plans Long term planning is critical – allows us to be pre-emptive and not reactive
Kibali…a case study of getting the geology right First visit in 2006 identified significant mineralisation and alteration system with folding and plunging shoots in interesting rocks Used BIF, chert, and carbonaceous argillite markers and stratigraphic younging direction and changing orientation of bedding to model folding Pale coloured ankerite, and/or siderite, quartz, and sericite alteration is the widespread alteration assemblage. ACSA _A An overprint assemblage of texturally destructive siderite and pyrite with minor quartz. ACSA_B Disseminated magnetite within ACSA-A and B altered rocks can be used to map the extent of BIF horizons in the protolith. Principal lodes are hosted in vein and disseminated pyrite associated with the ACSA-B assemblage. Gold generally occurs as inclusions in both disseminated and vein pyrite, and small grains along the margins of pyrite. Curviplanar mineralized BIF extends: around the hinges of the folds, locally along the limbs of the folds Only rarely extends along the axial surfaces of the folds, The resulting lodes have complex shapes, but an overall northeast plunge parallel to the fold axes Understanding the controls to mineralisation led to efficient conversion of resource to reserve – within 1 year we doubled the reserve from 5.5Moz @ 4g/t to 10Moz @ 4.2g/t As of Dec 2017 we have added 6Moz @ 3.7g/t to the acquisition reserve.
Kibali…a case study of getting the geology right Distribution of ounces per vertical 5,800 meter drove the decision of shaft access Geological, resource and 5,700 geotechnical model defined the mining method 5,600 Understanding of rock hardness and gold deportment drove 5,500 metallurgical response and process plant design Hydration and oxidation of siderite 5,400 alteration explained backfill properties 5,300 Defining the geometry and character of the orebody allows for infrastructure decisions that 5,200 enhance value 5,100 - 50,000
Strategic filters for investment… Striving to be the world’s most valued gold mining business By finding, developing and owning the best assets, with the best people, to deliver sustainable returns for our owners and partners It applies principally to gold (copper) It is located in a world class geological gold district We have the right to mine and repatriate profits It fits our values in respect to social license, political risk, environmental compliance, FILTERS manage closure liability We have active management participation It enhances our strategic partnering network Tier 1 A reserve potential greater than 5 million ounces of gold and at least a 15% IRR at the long term gold price Tier 2 A reserve potential of greater than 3 million ounces of gold and least a 20% IRR at a long term gold price
A large pipeline of potential projects Scoping Prefeasibility Feasibility Execution/Extensions P u eblo Viejo Alturas Goldrush Deep South expansion Loulo 3 OP-UG Massawa Turquoise Ridge Zal d i v ar Ikamva Kalimva Expansion Yalea Norte Abierto Gara Kibali
Goldrush Project – potential Tier 1 asset Feasibility (completed 4Q17) Mining Method(s) Underground only Orebody Refractory Declines from Cortez Access Drill program from decline will allow optimisation Hills Operations Orebody optimisation in indications are that Ore Transport Trucks infill drilling results in increase of grade and (to processing) ounces Processing Goldstrike Roaster Geotechnical modelling Initial Capital ~$1.0B Mining method optimisation Est. Production ~ 500K oz/yr Backfill optimisation COS per ounce ~$749 Material handling AISC 1 per ounce ~$643 1. This is a non-GAAP reporting measure with no standardized meaning under IFRS.
Massawa feasibility project … Interim resource model update highlights significant shift in grade distribution within CZ orebody – higher Delya Main (18km) Delya Strike grades in the southern portion and lower grades in 92koz @ 4.8g/t Extents Tina northern half Under evaluation Resource Ore reserve Bambaraya (18 km) Resource Revised financial models support a robust project at North Zone $1,000 and current gold prices 804koz @ 4.5g/t Ore reserve Potential exists to add resources to the mine life from Central Zone extensions to existing pits, as well as advanced 1.2Moz @ 3.4g/t satellite targets which are showing economic potential Ore reserve Metallurgical recovery models updated and recovery Central Zone Extensions Sofia (10.7km) model curves assigned to block model to report Under evaluation 538Koz @ 2.9g/t recoverable gold within pit optimisations Ore reserve KB & Kaviar Under Sofia North – recovery optimised through addition of evaluation Aachen oxygen injection technology – follow up NPV and IRR Sensitivities to gold price campaign returned 2.6% higher recovery for fresh material now modelled at 85.5% Option $1 000/oz $1 200/oz $1 400/oz Construction capital cost remains largely in line with NPV $154m $414m $670m previous estimate at $415 million Base case IRR 15% 29% 41% Initial steps of public participation process undertaken
Loulo 3…scoping study Long-section with L3DH156 L3DH154 Q3 drilling Preliminary economic assessment 19.8m @ 4.39g/t 9.7m @ 20.49g/t completed with potential for expanded pit Current depletion N and underground project MZ1 US$ 1000/oz pit shell Open pit pushback forms part of existing US$ 1500/oz pit shell Loulo ore reserves L3DH158 Drilling beneath pit focused on high grade L3DH155 8.0m @ 11.05g/t 4.7m @ 18.2g/t shoot below southern section of pit within MZ2 structure L3DH159 L3DH157 4.8m @ 34.8g/t Underground mineralisation 3.9m @ 0.97g/t 32% drilled to a level that would -280m RL support inferred mineral resources Q4 drill limit MZ2 68% defined by drilling and confirms L3DH153 continuity of mineralisation 7.3m @ 15.71g/t Gram.Metre 200m Value Unclassified material included in evaluation +40 for scoping purposes 30 - 40 Target Summary: 20 - 30 Q4 Proposed Drilling Composite metallurgical samples from 32 MZ1 Target (48 drill holes) 15 - 20 drill intersections returned average leach MZ2 Target (18 drill holes) Previous Drilling <15 recovery of 85% Notes: Target summary from diamond drilling at the spacing shown. There are insufficient exploration results to report a resource, and it is uncertain that further exploration will result in a resource estimate.
Yalea…460koz @ +11g/t added to the mine plan Yalea Transfer Zone Long-section with YDH282 YaDH68 extra ounces 11.4m @ 6.39g/t TW 8m @ 10.01g/t TW Q3 drilling YaDH86 N 17.3m @ 25.2g/t TW YaDH92 Yalea Central Deep 12.3m @ 15.88g/t TW extra ounces YaDH80 Purple Patch 4.3m @ 32.21g/t TW 100m YDH280 3.8m @ 6.0g/t TW YaDH88 Yalea North 21.7m @ 8.83g/t TW targets 280m YDH281 Conversion Shoot 1000m 500m 4.3m @ 1.39g/t TW Gold g/t target >8g/t High Priority Conceptual Proposed Proposed 4 - 8g/t Targets Targets (New) ADGC Drilling Exploration Drilling 4 – 3g/t 3 – 2g/t Conversion and Exploration Target Summary: Yalea Transfer Zone (15 drill holes) Yalea FW Panel (15 drill holes) 2 - 0.7g/t Size: 500m strike x 100m VD Size: 1000m strike x 280m VD Wt. Av. Grade: 13.3g/t (range 5.7 to 19.9g/t) Wt. Av. Grade: 4.1g/t (range 0.14 to 8.41g/t) Av. Thickness: 11.4m (range 2.4 to 21.7m) Av. Thickness: 5.3m (range 2.5 to 11.4m)
Turquoise Ridge1,2 2P Reserves 4 M&I Resource 4 2018 Minex Drilling1,2 North Zone Getchell extended to NW SHAFT 2 SHAFT 1 by 125m TS1802 - 16.5m at 16.9 g/t SHAFT 3 Getchell TS1803 – 16m at 11.1 g/t Fault Resource Footwall Pond Extension extended to Conversion W by 55m and N by 35m TS1802 TS1804 – 2.7m at 18.2 g/t, TS1803 South Zone 4.7m at 9.6 g/t Bass Pond East project extended to North Zone NE by 120m TS1804 A - 6.7m at 15.3 g/t TS1804B – 3.8m at 13.9 g/t TS1804A Deposit remains open in multiple TS1804 FWP Extension View to the TS1804 directions – further drilling planned & BPE Projects southwest B 1. For additional detail regarding Turquoise Ridge, see the Technical Report on the Turquoise Ridge Mine, State of Nevada, U.S.A., dated March 19, 2018, and filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov on March 23, 2018. 2. 75% Barrick owned 3. See Appendix B for additional details including assay results for the significant intercepts 4. Proven and Probable Reserves: 5.9Moz (11.8 Mt @ 15.6 g/t); Measured and Indicated Resources: 1.5 Moz (5.1 Mt @ 9.1 g/t). See Endnote #3
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