Tanzania-focused gold producer African Barrick Gold (ABG) has raised its reserves estimate at the Bulyanhulu Upper East Project as it continues to expand the project.
The company said that the acceleration of mining of the Upper East Zone at Bulyanhulu has continued and it has received approval to begin the ordering of certain long lead items for the project.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The incorporation of Reef 2 is said to significant enhance the project economics, driving a post-tax internal rate of return (IRR) of 34% at $1,700 per ounce.
As a result, the project is thought to need around $100m of pre-production capital to be spent in 2013 and 2014 and is planned to deliver life of mine production of 1.86Moz over the next 20 years.
ABG's Chief Executive Officer Greg Hawkins said: "One of our key aims for this year is to progress the expansion of Bulyanhulu in order to accelerate the realisation of the value provided by the scale of the reserve base. In May we received board approval for the CIL expansion, and we have now successfully expanded the scope of the Upper East Project whilst maintaining our planned timeline for first production.
"With the two expansion projects, we now have a clear path to increasing production levels at Bulyanhulu towards 400,000 ounces per annum over the coming years."
-
Steve Webb: The triple lock is there to do a job. I’m not embarrassed or ashamed of itThe triple lock means 13 million pensioners will now get an above-inflation state pension boost in April. While the rising cost of the policy has stirred controversy, Steve Webb, who served as pensions minister when it was introduced, argues the triple lock is vital and should stay. Webb speaks to Kalpana Fitzpatrick on the new episode of MoneyWeek Talks – out now.
-
How retirement pots risk running out 11 years early if inflation remains highPension savers could find their retirement income may not last as long as they anticipated over fears that inflation may not slow down
