Barrick Gold and Falconbridge Form Joint Venture on Kabanga Nickel Deposit
Barrick Gold Corporation and Falconbridge Limited have finalized a joint-venture agreement regarding the Kabanga nickel deposit in Tanzania. Under the terms of the agreement, Falconbridge has acquired a 50% indirect joint-venture interest in the Kabanga Project for $15 million and will be the operator of the joint venture. Falconbridge will fund and conduct a $50-million work plan over several years to explore the project, update the resource model, and bring the project towards feasibility.
Key Takeaways:
- Falconbridge has acquired a 50% indirect joint-venture interest in the Kabanga Project for $15 million and will be the operator.
- The joint venture will conduct a $50-million work plan over several years to explore the project and update the resource model.
- Falconbridge will draw upon its nickel processing, project development, and engineering expertise to bring the project towards feasibility.
- The partners expect to mine approximately two million tonnes of ore per year, producing approximately 30,000 to 35,000 tonnes of nickel in concentrates per year.
- At least 50% of the nickel concentrates will be processed at Falconbridge's Sudbury nickel smelter and Norwegian nickel refinery on behalf of the joint venture.
- Barrick has increased the known resource estimate of the Kabanga Nickel Project since acquiring it in 1999, with the current estimated inferred resource being 26.4 million tonnes grading 2.6% nickel.
- The Project is located in northwestern Tanzania, west of Barrick's Bulyanhulu gold mine and northwest of its Tulawaka gold mine.
Statistics:
- Acquisition price: $15 million
- Work plan funding: $50 million
- Expected annual ore production: 2 million tonnes
- Expected annual nickel production: 30,000 to 35,000 tonnes
- Inferred resource current estimate: 26.4 million tonnes grading 2.6% nickel
Sources:
- Dow Jones Commodities News via Comtex
- Edited Press Release