Barrick Gold Corporation (TSX: ABX) (NYSE: GOLD) President and CEO Mark Bristow and Nevada Governor Joe Lombardo attended a ribbon-cutting ceremony on Friday to open The Goldrush Project in Nevada.
Bristow announced that the project is officially on track to produce 130,000 ounces of gold this year. He also highlighted that Nevada Gold Mines (NGM) will continue to increase its value to the state through taxes, employment, and meaningful support for communities.
Barrick owns 61.5 per cent of the project through the NGM joint venture with Newmont Corporation (NYSE: NEM) (TSX: NGT), which holds 38.5 per cent.
The company is developing and will operate the mine. Goldrush is scheduled to reach commercial production by 2026 and grow to approximately 400,000 ounces by 2028. The 24-year underground mine will provide 500 jobs during its construction and employ 570 people once operational. The project has already seen more than $300 million spent of a $1 billion capital budget.
Both Barrick and NGM have invested over USD$370 million in the Goldrush project to date. Additionally, the company expects an investment of USD$1 billion to get the mine to production. Now the company has ramped up recruitment and delivered production equipment on track.
The company also expects to produce approximately USD$326 million in net proceeds tax and a further spending USD$142 million in gold and silver excise tax for education in Nevada under the new mine tax framework.
Speaking at the ribbon-cutting ceremony, Bristow thanked the bipartisan federal delegation and the governor for their commitment. He also thanked community stakeholders for their support throughout the permitting process.
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Nevada produced 158 million gold ounces between 1835 and 2016
Nevada currently operates 23 major gold mines that collectively produce about 5 million ounces per year. If Nevada were a country, it would rank as the world’s fourth-largest gold-producing nation. From 1835 to 2016, it produced 158 million ounces of the yellow metal.
In late February, Orla Mining (TSX: OLA) acquired Contact Gold (TSXV: C) and its two exploration-stage properties for USD$8.1 million.
This move combines the Railroad-Pinion district by merging South Railroad with Contact’s Pony Creek oxide gold project. The combined project now spans 45 square kilometers and sits adjacent to South Railroad, with both projects located on Nevada’s renowned Carlin trend.
Orla is currently advancing the feasibility-stage, open-pit South Railroad project towards a construction decision. South Railroad presently hosts 1.8 million ounces of measured and indicated resources at a grade of 0.74 grams per tonne of gold, and it also contains 719,000 ounces of inferred mineral resources at a grade of 1.00 gram per tonne of gold.
Contact owns the Green Springs property at the southern end of Nevada’s Cortez trend, positioned east of Calibre Mining Corp‘s (TSX: CXB) (OTCQX: CXBMF) Pan Mine and the feasibility-stage Gold Rock Project. The property covers 19.5 square kilometers and features three shallow past-producing open pits.
Calibre operates the Pan Mine in Nevada. While Calibre is primarily focused on its high producing mines in Nicaragua and Newfoundland, the company anticipates starting production at its Gold Rock project both this year and next.
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