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Processing Restrictions at Barrick's Veladero Mine Lifted

Barrick Gold CorporationABX declared that restrictions on processing activities at its Veladero mine in San Juan province, Argentina, have been lifted. The addition of new reagents to the mine's heap leach circuit was restricted by a local court due to the failure of a valve on a pipe carrying cyanide solution at the leach pad, which led to a release of solution.

Once the faulty valve was detected, Barrick promptly set up a comprehensive downstream water monitoring program. The monitoring, along with the testing results from an independent third-party laboratory, indicated that there were no risks to the health of downstream communities due to the incident. These results were consistent with the independent water testing results released by other third parties in San Juan province, including the Public Health Department and the state water distribution company.

A number of other preventive measures and controls have been implemented at the leach pad to make sure it is safe to resume full operations as the safety of the people and the environment remains company's main priority. An investigation is also being carried out to identify the main cause of the incident. Barrick does not expect production to get materially affected due to the incident.

Production at Veladero decreased 20.1% year over year to 151,000 ounces in the second quarter of 2015. All-in sustaining costs ("AISC") of $961 per ounce benefited from better-than-expected sales and reduced sustaining capital.

Currently, Barrick carries a Zacks Rank #3 (Hold).

Better-ranked mining companies include Asanko Gold Inc. AKG , Lake Shore Gold Corp. LSG and Denison Mines Corp. DNN . All of these stocks hold a Zacks Rank #2 (Buy).

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BARRICK GOLD CP (ABX): Free Stock Analysis Report

LAKE SHORE GOLD (LSG): Free Stock Analysis Report

DENISON MINES (DNN): Free Stock Analysis Report

ASANKO GOLD INC (AKG): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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