Barrick has agreed to purchase Teck Cominco's 50% interest in the Hemlo operation, thereby consolidating 100% ownership, for a cash consideration of $65 million. The sale is expected to be completed in the second quarter.
676,000 tonnes were milled to produce 66,000 ounces, which was 16% lower than last year due to lower mill throughput and feed grades. Gold production for the remainder of the year is expected to be consistent with the first half of 2008, as, going forward, less mill feed is coming from the higher grade
underground workings as compared with 2007. Cost cutting measures implemented in late 2007 helped to reduce total operating costs in the second quarter. However, due to the decline in gold production and the effect of the strong Canadian dollar, cash operating costs increased to US$692 per ounce in the second quarter 2008.
March 31, 2008
Gold production of 61,200 ounces was similar to plan but 22% lower than last year due to lower mill throughput and feed grades. Current production tonnage from both the David Bell and Williams underground mines is less than past years as various high grade sections of the mine have been
depleted and a greater percentage of mill feed is coming from the lower grade open pit in 2008. Cost cutting measures implemented in late 2007 helped to reduce total operating costs by 11% in the first quarter. Cash operating costs are expected to decline slightly for the remainder of the year as the full effects of recent cost reduction measures are realized.
