UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of July 2019

Commission File Number: 1-9059

 

 

Barrick Gold Corporation

(Registrant’s name)

 

 

Brookfield Place, TD Canada Trust Tower, Suite 3700

161 Bay Street, P.O. Box 212

Toronto, Ontario M5J 2S1 Canada

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or

Form 40-F.

Form 20-F ☐        Form 40-F ☒                                    

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101(b)(1):   ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101(b)(7):   ☐

 

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: July 24, 2019				BARRICK GOLD CORPORATION
				By:		/s/ Kevin Thomson
				Name:		Kevin Thomson
				Title:		Senior Executive Vice-President, Strategic Matters

EXHIBIT INDEX

 

Exhibit		Description
99.1		Technical Report on the Feasibility Study of the Massawa Gold Project, Senegal

Exhibit 99.1

 

Technical Report on the Feasibility Study

of the Massawa Gold Project, Senegal

Report for NI 43-101

 

		Barrick Gold Corporation   TD Canada Trust Tower 161 Bay Street, Suite 3700 Toronto, Ontario Canada M5J 2S1

23^rd July 2019

Qualified Persons:

Mr. Rodney Quick, MSc, Pr Sci Nat

Mr. Simon P. Bottoms, CGeol, MGeol, FGS, FAusIMM

Mr. Richard Quarmby, BSc, Pr Eng & CEng, MSAIChE, MIoMMM, MBA

Mr Graham E. Trusler, MSc, Pr Eng, MiChe, MSAIChE

		Massawa Gold Project NI 43-101 Technical Report

 

Cautionary Statement on Forward-Looking Information

Certain information contained or incorporated by reference in this technical report, including any information as to our strategy, projects, plans, or future financial or operating performance, constitutes “forward-looking statements”. All statements, other than statements of historical fact, are forward-looking statements. The words “estimate”, “forecast”, “plan”, “evaluate”, “schedule”, “project”, “potential”, “develop”, “expect”, “possible”, “propose”, “following”, “strategy”, “continues”, “target”, “recommend”, “develop”, “suggest”, “indicate”, “appear”, “update”, “design”, “budget”, “can”, “will”, “would” and similar expressions identify forward-looking statements. In particular, this technical report contains forward-looking statements related to Barrick Gold Corporation’s (“Barrick” or the “Company”) Massawa Project (“Massawa” or the “Project”), including, without limitation, with respect to: (i) forecasts of cash flow and net present value, economic assessments, projected capital and operating expenditure, mine life and production rates; (ii) metal or mineral recoveries; (iii) expected grades; (iv) estimates of mineral resources and mineral reserves; (v) benefits of proposed mine design and layout; (vi) projected costs; (vii) proposed infrastructure and future infrastructure requirements; (viii) future exploration and the ability to further add to Massawa’s project inventory; (ix) potential environmental and social impacts related to the execution of the Project; (x) associated royalties payable; (xi) the ability of Barrick to realize the full potential of Massawa in cooperation with the government of Senegal; and (vii) planned rehabilitation for the Project following the completion of mining.

Forward-looking statements are necessarily based upon a number of estimates and assumptions including material estimates and assumptions related to the factors set forth below that, while considered reasonable by the Company as at the date of this technical report in light of management’s experience and perception of current conditions and expected developments, are inherently subject to significant business, economic, and competitive uncertainties and contingencies. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements, and undue reliance should not be placed on such statements and information. Such factors include, but are not limited to: fluctuations in the spot and forward price of gold, copper, or certain other commodities (such as silver, diesel fuel, natural gas, and electricity); the speculative nature of mineral exploration and development; changes in mineral production performance, exploitation, and exploration successes; risks associated with projects in the early stages of evaluation, and for which additional engineering and other analysis is required; disruption of supply routes which may cause delays in construction and mining activities; diminishing quantities or grades of reserves; increased costs, delays, suspensions and technical challenges associated with the development and construction of capital projects; operating or technical difficulties in connection with mining or development activities, including geotechnical challenges and disruptions in the maintenance or provision of required infrastructure and information technology systems; failure to comply with environmental and health and safety laws and regulations; timing of receipt of, or failure to comply with, necessary permits and approvals; uncertainty whether some or all of targeted investments and projects will meet the Company’s capital allocation objectives and internal hurdle rate; the impact of global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future cash flows; the impact of inflation; fluctuations in the currency markets; changes in national and local government legislation, taxation, controls or regulations and/ or changes in the administration of laws, policies and practices, expropriation or nationalization of property and political or economic developments in Canada, the United States and Senegal; damage to the Company’s reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to the Company’s handling of environmental matters or dealings with community groups, whether true or not; lack of certainty with respect to foreign legal systems, corruption and other factors that are inconsistent with the rule of law; the possibility that future exploration results will not be consistent with the Company’s expectations; risks that exploration data may be incomplete and considerable additional work

 

23rd July 2019

		Massawa Gold Project NI 43-101 Technical Report

 

may be required to complete further evaluation, including but not limited to drilling, engineering and socioeconomic studies and investment; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; litigation and legal and administrative proceedings; contests over title to properties, particularly title to undeveloped properties, or over access to water, power and other required infrastructure; risks associated with illegal and artisanal mining; the risks of operating in jurisdictions where infectious diseases present major health care issues; disruption of supply routes which may cause delays in construction and mining activities; risks associated with working with partners in jointly controlled assets; employee relations including loss of key employees; increased costs and physical risks, including extreme weather events and resource shortages, related to climate change; and availability and increased costs associated with mining inputs and labor. In addition, there are risks and hazards associated with the business of mineral exploration, development and mining, including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins, flooding and gold bullion, copper cathode or gold or copper concentrate losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks).

Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance. All of the forward-looking statements made in this technical report are qualified by these cautionary statements. Specific reference is made to the most recent Form 40-F/Annual Information Form on file with the SEC and Canadian provincial securities regulatory authorities for a more detailed discussion of some of the factors underlying forward-looking statements and the risks that may affect Barrick’s ability to achieve the expectations set forth in the forward-looking statements contained in this technical report.

Barrick disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.

 

23rd July 2019

		Massawa Gold Project NI 43-101 Technical Report

 

Table of Contents

 

1.		Executive Summary					1
		1.1.		Location			1
		1.2.		Ownership			2
		1.3.		Geology and Mineralisation			2
		1.4.		Exploration Concepts			4
		1.5.		Status of Exploration			4
		1.6.		Status of Development and Operations			5
		1.7.		Mineral Resource Estimate			5
		1.8.		Ore Reserve Estimate			6
		1.9.		Technical and Financial Study			7
		1.10.		Economic Analysis			19
		1.11.		Implementation			22
		1.12.		Alternate Case Ore Reserves and Economics at $1,200/oz Gold Price			22
		1.13.		Interpretation and Conclusions			24
		1.14.		Recommendations			25
2.		Introduction					27
		2.1.		Effective Date			27
		2.2.		Qualified Persons			27
		2.3.		Site Visit of Qualified Persons			28
		2.4.		Other Contributors			28
		2.5.		List of Abbreviations			30
		2.6.		Units			32
3.		Reliance on Other Experts					33
4.		Property Description and Location					34
5.		Accessibility, Climate, Local Resources, Infrastructure and Physiography					40
6.		History					42
7.		Geological Setting and Mineralisation					43
		7.1.		Regional Geology			43
		7.2.		Local Geology			44
		7.3.		The Mako Volcanic Belt			44
		7.4.		Massawa Deposit Geology			48
		7.5.		Massawa Central Zone			50
		7.6.		Massawa Northern Zone			56
		7.7.		Sofia Deposit Geology			59
		7.8.		Delya Deposit			67
		7.9.		Satellite Deposits			69

 

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		Massawa Gold Project NI 43-101 Technical Report

 

		7.10.		Advanced Targets			72
8.		Deposit Types					73
9.		Exploration					74
		9.1.		Massawa Central and North Zone			74
		9.2.		Sofia			76
		9.3.		Delya			77
		9.4.		Tina			79
		9.5.		Bambaraya			79
		9.6.		2019 Planned Exploration			80
10.		Drilling					81
		10.1.		Methods and Procedures			81
		10.2.		Survey Grids			81
		10.3.		Drill Planning and Site Preparation			81
		10.4.		Downhole Surveying			81
		10.5.		Collar Surveys			82
		10.6.		Diamond Drilling			82
		10.7.		Reverse Circulation Drilling			83
		10.8.		Trenching			85
		10.9.		Other Sampling Methods			86
		10.10.		Sample Volume Variance Bias			86
		10.11.		Drill Twinning Studies			86
		10.12.		Drill Spacing Optimisation			91
11.		Sample Preparation, Analysis and Security					94
		11.1.		Sample Preparation			94
		11.2.		Sample Analysis			94
		11.3.		Quality Assurance and Quality Control			103
		11.4.		Re-Assay Protocols			110
		11.5.		Round Robin Studies			112
		11.6.		Sample Security			116
		11.7.		Audit			117
12.		Data Verification					118
13.		Mineral Processing and Metallurgical Testing					119
		13.1.		Summary of Metallurgical Testing Programmes			119
		13.2.		Summary of Results			126
		13.3.		Recovery			128
		13.4.		Deleterious Elements			130
14.		Mineral Resource Estimates					132

 

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		Massawa Gold Project NI 43-101 Technical Report

 

		14.1.		Geological Modelling			133
		14.2.		Data Analysis and Domaining			143
		14.3.		Compositing			156
		14.4.		Top Cutting and Grade Restrictions			156
		14.5.		Massawa, Sofia and Delya Estimation Dataset Declustering			168
		14.6.		Variography			169
		14.7.		Bulk Density			172
		14.8.		Block Models			173
		14.9.		Resource Estimation			176
		14.10.		Resource Classification			184
		14.11.		Resource Model Validation			185
		14.12.		Resource Cut-off Grades			194
		14.13.		Massawa Gold Project Mineral Resource Summary by Deposit			198
15.		Ore Reserve Estimate					201
		15.1.		Ore Reserve Summary			201
		15.2.		Cut-Off Grade			207
16.		Mining Methods					211
		16.1.		Mine Design			211
		16.1.		Open Pit Mining and Ore Feed Schedules			220
		16.2.		Open Pit Mining Operating Costs			223
17.		Recovery Methods					226
		17.1.		Processing Plant Summary			226
		17.2.		Process Plant Design Criteria			229
		17.3.		Block Flow Diagram			244
		17.4.		Tailings Storage Facility and Diversion Dam			247
18.		Infrastructure					256
		18.1.		Project On-Site Infrastructure			258
		18.2.		Project Off-Site Infrastructure			263
		18.3.		Logistics and Transport			267
		18.4.		Potential National Grid Power			268
19.		Market Studies and Contracts					270
		19.1		Markets			270
		19.2		Contracts			270
20.		Environmental and Social Impact Assessment					271
		20.1.		Description of the Project Areas Affected			271
		20.2.		Relevant Policies, Legislation, and Institutional Framework			273
		20.3.		Project Baseline Conditions			274

 

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		Massawa Gold Project NI 43-101 Technical Report

 

		20.4.		Assessment of Impacts			275
		20.5.		Mitigation Measures			277
		20.6.		Rehabilitation and Closure Plan			278
		20.7.		Project Stakeholders and their Involvement in ESIA			278
		20.8.		Concluding Statement			279
21.		Capital and Operating Costs					281
		21.1.		Capital Costs			281
		21.2.		Operating Costs			284
22.		Economic Analysis					286
		22.1.		Basis of the Economic Analysis			286
		22.2.		Production and Cash Flow Forecast			286
		22.3.		Financial Analysis			287
		22.4.		Government Revenue			287
		22.5.		Sensitivity Analysis			288
23.		Adjacent Properties					290
		23.1.		Sabodala Gold Mine			290
		23.2.		Makabingui Gold Project			290
		23.3.		Mako Project			290
24.		Other Relevant Data and Information					292
		24.1.		Project Implementation			292
		24.2.		Alternate Case - Ore Reserves and Economics at $1,200/oz Gold Price			298
25.		Interpretation and Conclusions					310
26.		Recommendations					312
27.		References					313
28.		Date and Signature Page					318
29.		Certificate of Qualified Person					319
		29.1.		Rodney B. Quick			319
		29.2.		Simon P. Bottoms			320
		29.3.		Richard Quarmby			321
		29.4.		Graham E. Trusler			322
30.		Appendix					323
		30.1.		Field Duplicates			323
		30.2.		Blanks			335
		30.3.		CRMs			348
		30.1.		Appendix 1 – JORC 2012 Edition – Table 1 – Massawa Gold Project			361

 

23rd July 2019		Page iv

		Massawa Gold Project NI 43-101 Technical Report

 

List of Tables

 

Table 1-1 Massawa Project Mineral Resource Statement as at 31st December 2018		6
Table 1-2 Massawa, Sofia, and Delya Ore Reserves as at 31st December 2018		7
Table 1-3 Open Pit Mining Schedule		10
Table 1-4 LOM Material Movement		11
Table 1-5 Breakdown of Contactor Operating Costs		11
Table 1-6 Breakdown of Fixed and Variable Operating Costs		11
Table 1-7 Recoveries Summary per Ore Type and Weathering		13
Table 1-8 Process Operating Cost Estimate Summary		13
Table 1-9 Massawa Manpower		17
Table 1-10 Capital Cost Estimate per Phase		18
Table 1-11 LOM Estimated Capital Expenditure		18
Table 1-12 Year 1 to 10 Production and Cash Flow Forecast		20
Table 1-13 Project Financial Analysis		20
Table 1-14 Government Revenue Sensitivity		21
Table 1-15 NPV Sensitivity at Different Gold Prices and Discount Rates		21
Table 1-16 NPV at 20% Grade Variation at Different Gold Prices		21
Table 1-17 NPV at 20% Change in Operating Costs		21
Table 1-18 LOM Capital Cost Sensitivity		22
Table 1-19 Massawa, Sofia, and Delya Ore Reserves as at 31st December 2018 at $1,200/oz Gold Price		23
Table 1-20 $1,000/oz Gold Price Base Case Results versus Alternate Case $1,200/oz Gold Price		24
Table 4-1 Kanoumering and Kounemba Decrees		36
Table 4-2 Original Kanoumering and Kounemba Exploration Permits		37
Table 4-3 New Kanoumba Decree - 2010		37
Table 4-4 New Kanoumba Decree – Second Renewal 2016		37
Table 4-5 Kanoumba Exploration Permit Co-ordinates		39
Table 9-1 Summary of Exploration at Massawa CZ and NZ		74
Table 9-2 Summary of Exploration at Sofia Main and North		76
Table 9-3 Summary of Exploration at Delya		78
Table 9-4 Summary of Exploration at Tina		79
Table 9-5 Summary of Exploration at Bambaraya		79
Table 10-1 Massawa Project Drilling and Trenching Summary		81
Table 10-2 Massawa Central Zone Twinned Holes		87
Table 10-3 Massawa Northern Zone Drill Twinning		89
Table 10-4 Sofia Main and Sofia North Drill Twinning		89

 

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		Massawa Gold Project NI 43-101 Technical Report

 

Table 10-5 Delya Main Drill Twinning		90
Table 11-1 Summary of the Various of LeachWELL Methods Used by SGS During the Massawa Feasibility		96
Table 11-2 Summary Statistics for Q4’2014 LeachWELL Orientation Work at BIGS Global Ouagadougou (BLC105)		97
Table 11-3 Results from the Kinetic LeachWELL Tests at SGS Randfontein		100
Table 11-4 Summary of the Field Duplicate Samples Analysed by All Four Laboratories		103
Table 11-5 Summary of Blank Samples		106
Table 11-6 CRM Summary		108
Table 11-7 Failed Fire Assay QA/QC Procedure		110
Table 11-8 Failed LeachWELL QA/QC Procedure		111
Table 11-9 BIGS (BLC105) and SGS (LWL69M) LeachWELL Procedures		112
Table 11-10 Summary Statistics for Q1 2015 LeachWELL Initial Round Robin Studies		114
Table 11-11 Summary Statistics (Mean, Median) for the Six Round Robin Feasibility Campaigns		116
Table 13-1 Scoping Phase Campaign Summaries		120
Table 13-2 Pre-Feasibility Campaign Summaries		121
Table 13-3 Feasibility Campaign Summaries		122
Table 13-4 Pre-feasibility and Feasibility Trade-off Summaries		125
Table 13-5 Recoveries Summary per Ore Type and Weathering		130
Table 14-1 Massawa Project Mineral Resource Statement as at 31st December 2018		132
Table 14-2 Estimation Database Statistics for Massawa Satellite Resources		155
Table 14-3 Summary Table of Residuals Removed from All Massawa Datasets		156
Table 14-4 List of Mineralisation Domains in Top Cutting Groups		161
Table 14-5 Massawa CZ Top Cutting Statistics by Top Cutting Group		163
Table 14-6 Massawa Central Zone Top Cutting Values by Method		165
Table 14-7 Massawa North Zone Decluster Cell Size Results by Domain		168
Table 14-8 Massawa Central Zone Decluster Cell Size Results		168
Table 14-9 Delya Decluster Cell Size Results		169
Table 14-10 Massawa North Zone 1 Maptek Vulcan Variogram Model Parameters		170
Table 14-11 Massawa North Zone 2 High-Grade Maptek Vulcan Variogram Model Parameters		170
Table 14-12 Massawa North Zone Low-Grade Domain Maptek Vulcan Variogram Model Parameters		170
Table 14-13 Massawa Central Zone Top Cutting Group 1 Vulcan Variogram Model Parameters		171
Table 14-14 Massawa Central Zone Top Cutting Group 2 and 3 Vulcan Variogram Model Parameters		171

 

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		Massawa Gold Project NI 43-101 Technical Report

 

Table 14-15 Massawa Central Zone Top Cutting Group 4 Vulcan Variogram Model Parameters		171
Table 14-16 Sofia Main Maptek Vulcan Variogram Model Parameters		171
Table 14-17 Sofia North Maptek Vulcan Variogram Model Parameters		172
Table 14-18 Delya Maptek Vulcan Variogram Model Parameters		172
Table 14-19 Massawa Central and North Zone Model Densities Assigned per Lithology and Weathering Zone		173
Table 14-20 Sofia Model Densities Assigned per Lithology and Weathering Zone		173
Table 14-21 Delya Densities Assigned per Lithology and Weathering Zone		173
Table 14-22 Global Massawa Sofia and Delya Wireframe vs Block Model Volume Variance Reconciliation		174
Table 14-23 Massawa North Zone Block Model Extents		175
Table 14-24 Massawa Central Zone Block Model Extents		175
Table 14-25 Sofia Block Model Extents		175
Table 14-26 Delya Block Model Extents		175
Table 14-27 Massawa North Zone Resource Estimation Parameters		180
Table 14-28 Massawa Central Zone Low-Grade Estimation Parameters - Low-Grade Domains		181
Table 14-29 Massawa Central Zone Low-Grade Estimation Parameters - High-Grade Domains		182
Table 14-30 Sofia Estimation Parameters		183
Table 14-31 Delya Estimation Parameters		183
Table 14-32 Bambaraya and Tina Satellite Deposit Mineral Resource Estimation Parameters and Block Model Summary		184
Table 14-33 Massawa Gold Project Mineral Resource Classification		184
Table 14-34 Massawa North Zone Open Pit Mineral Resource Cut-off Grade Calculation at $1,500/oz Gold Price		194
Table 14-35 Massawa North Zone Underground Mineral Resource Cut-off Grade Calculation at $1,500/oz Gold Price		195
Table 14-36 Massawa Central Zone Cut-off Grade Calculation at $1,500/oz Gold Price		196
Table 14-37 Sofia Cut-off Grade Calculation at $1,500/oz Gold Price		197
Table 14-38 Delya Cut-off Grade Calculation at $1,500/oz Gold Price		198
Table 14-39 Massawa Gold Project Total Mineral Resources as of 31st December 2018, by Deposit		200
Table 15-1 Massawa, Sofia, and Delya Ore Reserves as at 31st December 2018		201
Table 15-2 Ore Reserve Reconciliation		201
Table 15-3 Massawa North Zone Ore Reserve Cut-Off Grade Calculation at $1,000/oz Gold Price		207

 

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		Massawa Gold Project NI 43-101 Technical Report

 

Table 15-4 Massawa Central Zone Ore Reserve Cut-off Grade Calculation for $1,000/oz Gold Price		208
Table 15-5 Sofia Main Ore Reserve Cut-off Grade Calculation for $1,000/oz Gold Price		209
Table 15-6 Delya Reserve Cut-off Grade Calculation for $1,000/oz Gold Price		210
Table 16-1 Characterisation of Surface Material from Logs and Photos with Test Support		211
Table 16-2 Slope Design Assumptions		212
Table 16-3 Massawa CZ LOM Ore Mining and Feed Schedule		220
Table 16-4 Massawa NZ LOM Ore Mining and Feed Schedule		220
Table 16-5 Sofia LOM Ore Mining and Feed Schedule		220
Table 16-6 Delya LOM Ore Mining and Feed Schedule		220
Table 16-7 Massawa, Sofia, and Delya Waste Mining Schedule		221
Table 16-8 Open Pit Mining Schedule		221
Table 16-9 Expected Mining Fleet		224
Table 16-10 Massawa Contract Mining Estimated Quantities		224
Table 16-11 Massawa Contractor and Owners Costs		225
Table 16-12 LOM Mine Operating Costs		225
Table 17-1 Summary of Process Plant Design Criteria		229
Table 17-2 Mill Simulation Summary		232
Table 17-3 Mill Duty Achievable Commentary		232
Table 17-4 Massawa Process Plant Ore Feed Scenarios		236
Table 17-5 CIL Sodium Cyanide and Lime Consumptions per Ore Type		241
Table 17-6 Raw Water Pond		243
Table 17-7 Process Water Pond		243
Table 17-8 Arsenic Removal Design Parameters		244
Table 17-9 Secondary Cyanide Removal Design Parameters		244
Table 17-10 Design Criteria for the Massawa TSF and DD		248
Table 17-11 Inroads Recommended Design Parameters		249
Table 17-12 Tailings Geotechnical Parameters Adopted for the Massawa Tailings		249
Table 17-13 Minimum FoS Requirements		253
Table 17-14 TSF Capital Estimate		254
Table 17-15 Diversion Dam Capital Estimate		254
Table 18-1 HFO Generator Sets Details		261
Table 18-2 LFO Generator Sets Details		262
Table 18-3 Plant Operational Vehicles		267
Table 18-4 Personnel Transport Vehicles		267
Table 18-5 Total Split of SENELEC Power		268
Table 18-6 Proposed Future Power Installations		269
Table 18-7 Proposed Senegalese Grid Power Rates		269

 

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		Massawa Gold Project NI 43-101 Technical Report

 

Table 21-1 Capital Cost Estimate per Phase		281
Table 21-2 LOM Estimated Capital Expenditure		283
Table 21-3 LOM Material Movement		284
Table 21-4 Breakdown of Contractor Operating Costs		284
Table 21-5 Breakdown of Fixed and Variable Operating Costs		284
Table 21-6 Process Operating Cost Estimate Summary		285
Table 21-7 G&A Costs Over the Life of Mine		285
Table 22-1 Production and Cash Flow Forecast		287
Table 22-2 Project Financial Analysis		287
Table 22-3 Government Revenue Sensitivity		288
Table 22-4 NPV Sensitivity at Different Gold Prices and Discount Rates		288
Table 22-5 NPV at 20% Grade Variation at Different Gold Prices		288
Table 22-6 NPV at 20% Change in Operating Costs		289
Table 22-7 LOM Capital Cost Sensitivity		289
Table 24-1 Massawa, Sofia, and Delya Ore Reserves as at 31st December 2018 at $1,200/oz Gold Price		298
Table 24-2 $1,000/oz Gold Price Base Case Results versus Alternate Case $1,200/oz Gold Price		299
Table 24-3 Massawa North Zone Ore Reserve Cut-Off Grade Calculation at $1,200/oz Gold Price		300
Table 24-4 Massawa Central Zone Ore Reserve Cut-off Grade Calculation for $1,200/oz Gold Price		300
Table 24-5 Sofia Ore Reserve Cut-off Grade Calculation for $1,200/oz Gold Price		301
Table 24-6 Delya Reserve Cut-off Grade Calculation for $1,200/oz Gold Price		302
Table 24-7 LOM Estimated Capital Expenditure at $1,200/oz Gold Price		303
Table 24-8 LOM Material Movement at $1,200/oz Gold Price		304
Table 24-9 Breakdown of Contractor Operating Costs at $1,200/oz Gold Price		304
Table 24-10 Breakdown of Fixed and Variable Operating Costs at $1,200/oz Gold Price		304
Table 24-11 Process Operating Cost Estimate Summary at $1,200/oz Gold Price		305
Table 24-12 G&A Costs Over the Life of Mine at $1,200/oz Gold Price		305
Table 24-13 Production and Cash Flow Forecast at $1,200/oz Gold Price		306
Table 24-14 Project Financial Analysis at $1,200/oz Gold Price		307
Table 24-15 Government Revenue Sensitivity at $1,200/oz Gold Price		307
Table 24-16 NPV Sensitivity at Different Gold Prices and Discount Rates ($1,200/oz Gold Price)		308
Table 24-17 NPV at 20% Grade Variation at Different Gold Prices ($1,200/oz Gold Price)		308
Table 24-18 NPV at 20% Change in Operating Costs at $1,200/oz Gold Price		308
Table 24-19 LOM Capital Cost Sensitivity at $1,200/oz Gold Price		309

 

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		Massawa Gold Project NI 43-101 Technical Report

 

List of Figures

 

Figure 1-1 Graph of Ore Mining Schedule and Material Type		10
Figure 1-2 Graph of Waste Mining Schedule by Pit		10
Figure 4-1 Location Map		35
Figure 4-2 Kanoumba Permit		36
Figure 4-3 Kanoumba Exploration Permit Co-ordinates		38
Figure 7-1 Location of the Kedougou-Kenieba-Inlier in the West African Craton		43
Figure 7-2 Regional Geology Map of the Senegalese Portion of the Kedougou-Kenieba Inlier		46
Figure 7-3 Geology of the Kanoumba Permit in the Mako Belt		47
Figure 7-4 Core Photographs of Dominant Lithologies at Massawa		49
Figure 7-5 Geological Map of the Massawa Central Zone Showing Geometry of the Mineralised Zones		51
Figure 7-6 Massawa Central Zone Typical Section of the New Mineralisation Model Showing Multiple Anastomosing Lodes		52
Figure 7-7 Massawa Mineralised Zones High Grade Shear 3D View		53
Figure 7-8 Level Plan Through Five Metre Spaced Drill Fences in the Central Zone of Massawa at 150 m RL		55
Figure 7-9 Core Photographs Showing Alteration and Mineralisation Styles Present in the Central Zone		56
Figure 7-10 Geological Map of the Massawa Northern Zone Showing Geometry of the Mineralised Zones		57
Figure 7-11 Cross Section Showing RC Results in Northern Zone 2 Versus the Existing Mineralisation Model		58
Figure 7-12 Core Photographs of the Dominant Hanging Wall Extrusive Lithologies Confirmed by Portable XRF Data at Sofia		60
Figure 7-13 Core Photographs of the Dominant Hanging Wall Intrusive Lithologies Confirmed by P XRF Data at Sofia		60
Figure 7-14 Core Photographs of the Dominant Lithologies at Sofia		61
Figure 7-15 Plan Map of the Sofia-Sabodala Structure Highlighting the Strike Change and Major Regional Stratigraphy		62
Figure 7-16 3D Schematic of Sofia Main: To the SW of Sofia Main		64
Figure 7-17 Simplified 3D Schematic of the Dilatational Geometry Modelled to Control the High-Grade Lode of the MZ at Sofia Main		65
Figure 7-18 Core Photographs of the Dominant Lithologies at Delya		68
Figure 7-19 Core Photographs of Mineralisation Styles at Delya		69
Figure 7-20 Map of Kanoumba Permit Showing the Location of Satellite Deposits and Exploration Targets		70

 

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Figure 10-1 Survey Tool Test Stand at Massawa Camp		82
Figure 10-2 Photograph of RC Channel Sample Taken from Trench in 2014		86
Figure 10-3 Spatial Distribution of 50 g Fire Assay Sample and Bulk LeachWELL Plus Tail Fire Assay with Mineralisation Wireframes and Pit		90
Figure 10-4 Grade Tonnage Curves for CZ1 GC Spacing Optimisation Models		92
Figure 10-5 Grade Tonnage Curves for NZ2 GC Spacing Optimisation Models		93
Figure 11-1 Scatter and QQ Plots Showing the Variance Between Fire and Assay and LeachWELL Analysis for Representative Oxide and Sulphide Samples		95
Figure 11-2 Scatter Plots and QQ Plots Showing the Q4’2014 LeachWELL Orientation Results for the Central Zone		97
Figure 11-3 (A) One vs Five LeachWELL Tablet Dissolution of Selected Central Zone Mineralised Samples; (B) One vs Five LeachWELL Total Gold Grades		99
Figure 11-4 Gold Dissolution Kinetics for Composites 1 to 6, Showing Little Difference in Au Dissolution from 4 hours to 24 hours.		100
Figure 11-5 Scatter Plot and QQ plot Showing the Results of the Q1’2018 Repeat 12 hr LeachWELL Analysis Compared Against the Original 24 hr LeachWELL Data		101
Figure 11-6 LeachWELL LWL69M5RG Flowchart		102
Figure 11-7 Normal and Log Scatter Plots of Massawa Field Duplicates Assayed (LeachWELL) by SGS Ouagadougou		104
Figure 11-8 HARD Plot of Massawa Field Duplicates Assayed (LeachWELL) by SGS Ouagadougou		104
Figure 11-9 Normal and Log Scatter Plots of Massawa LeachWELL Residues Assayed by SGS Ouagadougou		105
Figure 11-10 Normal and Log Scatter Plots of Massawa LeachWELL Residues Assayed by SGS Tarkwa		105
Figure 11-11 Massawa Blank Samples Assayed (LeachWELL) by SGS Ouagadougou		107
Figure 11-12 Tram Line of Massawa CRMs Assayed (LeachWELL) by SGS Ouagadougou Laboratory		109
Figure 11-13 Scatter Plots and QQ Plots Showing the Initial Q1 2015 Round Robin Results for the Central Zone		113
Figure 11-14 Scatter Plots and QQ plots Showing the Feasibility LeachWELL Round Robin Results for the Central Zone		115
Figure 13-1 Sofia North Metallurgical Sample Location		127
Figure 13-2 Sofia Main Recovery Summary and Recovery Estimation Based on Head Grade		129
Figure 14-1 Massawa Northern Zone 1 and Northern Zone 2		134
Figure 14-2 Cross Section of Section 74 Through the North of Massawa North Zone 2 Showing the Mineralised Envelope and Lithologies		135

 

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Figure 14-3 Surface Level Flitch at 175 m RL of Massawa Central Zone Mineralised Lode (Red) Low-Grade Wireframes Inside 2018 $1,500 Pit Shell		136
Figure 14-4 Cross Section of Section 49 Through the Centre of Massawa Central Zone Showing the Mineralised Envelope and Lithologies		137
Figure 14-5 Massawa Central Zone Low-Grade versus High-Grade Box and Whisker Uncut Grade Distribution Comparison		138
Figure 14-6 Cross Section of Section 43 Through the Centre of Sofia Main Showing the Alteration Zone (Mineralised Envelope) and Lithologies		139
Figure 14-7 Cross Section of Section 28 Through the Centre of Sofia North Showing the Alteration Zone (Mineralised Envelope) and Main Lithologies		140
Figure 14-8 Cross Section 24 Through the Centre of Delya Showing the Mineralised Envelope and Lithologies		142
Figure 14-9 North Zone 1 Mineralisation Zone Domain Grade Distribution Box and Whisker Uncut Grade Distribution Comparison		144
Figure 14-10 North Zone 2 Mineralisation Zone Domain Grade Distribution Box and Whisker Uncut Grade Distribution Comparison		145
Figure 14-11 Massawa North Zone 2 High-Grade Domain Wireframe and Supporting Drill Samples		146
Figure 14-12 Massawa North Zone 2 Log Histograms for the Raw Sample Data Inside the High-Grade Domain and the Remainder of the Mineralised Wireframe - Low/Medium-Grade Domain		146
Figure 14-13 Contact Analysis Plot of North Zone 2 Domain 2101 (Main Zone Mineralisation) and Domain 2111 (Main Zone High-Grade Mineralisation)		147
Figure 14-14 Massawa Central Zone Low-Grade vs High-Grade Proximal Box and Whisker Uncut Grade Distribution Comparison		148
Figure 14-15 Massawa Central Zone Low-Grade vs High-Grade Log Histogram Uncut Grade Distribution Comparison		148
Figure 14-16 Contact Analysis Plot of Central Zone Low-Grade Mineralisation (All Domains) and Central Zone High-Grade Mineralisation (All Domains)		149
Figure 14-17 Massawa Central Zone Grouped Domains		150
Figure 14-18 Sofia Main Mineralisation Zone Domain Grade Distribution Box and Whisker Uncut Grade Distribution Comparison		151
Figure 14-19 Sofia North Mineralisation Zone Domain Grade Distribution Box and Whisker Uncut Grade Distribution Comparison		152
Figure 14-20 Contact Analysis Plots of Sofia Main Mineralised Domains (6000 – MOZ, 6100 – FWOZ, 6200 – FW Vein, 6300 – MOZ North)		153
Figure 14-21 Contact Analysis Plot of Sofia North Mineralisation Domains (6400 – FWOZ, 6500 – MOZ, 6600 – HWOZ, 6700 – HW_Vein 6900 HWOZ1)		154

 

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Figure 14-22 Delya Mineralisation Zone Domain Grade Distribution Box and Whisker Uncut Grade Distribution Comparison		155
Figure 14-23 Massawa North Zone 1 Domain 1103 Log Histogram and Log Probability Plot of 1 m Composite with 0.5 m Merge Estimation Data Situated Within the NZ1 Mineralisation Wireframes		158
Figure 14-24 Massawa North Zone 1 Domain 1104 Log Histogram and Log Probability Plot of 1 m Composite With 0.5 m Merge Estimation Data Situated Within the NZ1 Mineralisation Wireframes		158
Figure 14-25 Massawa North Zone 1 Domains 1105, 1106, 1107 and 1108 Log Histogram and Log Probability Plot of 1 m Composite with 0.5 m Merge Estimation Data Situated Within the NZ1 Mineralisation Wireframes		159
Figure 14-26 Massawa North Zone 2 Log Histogram and Log Probability Plot of 1 m Composite with 0.5 m Merge Estimation Data Situated Within NZ2 High-Grade Domain 2111		160
Figure 14-27 Massawa North Zone 2 Log Histogram and Log Probability Plot of 1 m Composite with 0.5 m Merge Estimation Data Situated Within Domains 2101 and 2103		160
Figure 14-28 Massawa North Zone 2 Log Histogram and Log Probability Plot of 1 m Composite with 0.5 m Merge Estimation Data Situated Within Domain 2102		161
Figure 14-29 Grade Distributions of Grouped Central Zone Low-Grade and High-Grade Domains by Top Cutting Groups		162
Figure 14-30 Spatial Distributions of Massawa Central Top Cutting Groups 1 to 4		162
Figure 14-31 Metal at Risk Simulation Grade Distribution Algorithm Graphical Representation		164
Figure 14-32 Massawa Sofia Main Log Histogram and Log Probability Plot of 1 m Composite with 0.5 m Merge Estimation Data Situated Within Mineralisation Wireframes		165
Figure 14-33 Massawa Sofia North Domains 6500, 6700 and 6900 Log Histogram and Log Probability Plot of 1 m Composite With 0.5 m Merge Estimation Data Situated Within Mineralisation Wireframes		166
Figure 14-34 Massawa Sofia North Domains 6600 and 6400 Log Histogram and Log Probability Plot of 1 m Composite with 0.5 m Merge Estimation Data Situated Within Mineralisation Wireframes		166
Figure 14-35 Delya Domain 6000 Log Histogram and Log Probability Plot of 1 m Composite With 0.5 m Merge Estimation Data Situated Within Mineralisation Wireframes		167
Figure 14-36 Delya Domain 6100 and 6200 Log Histogram and Log Probability Plot of 1 m Composite Width 0.5 m Merge Estimation Data Situated Within Mineralisation Wireframes		168
Figure 14-37 Sofia Main QKNA for Block Size		177
Figure 14-38 Sofia Main High-Grade (Proximal) QKNA for Sample Limits (Bottom)		177
Figure 14-39 Sofia QKNA for Search Size		178
Figure 14-40 Sofia QKNA for Block Discretisation		178

 

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Figure 14-41 Localised Changes to Massawa Central Zone Search Ellipsoids (white) through Dynamic Anisotropy on the Estimated Mineralised Domains in the Block Model in the $1,500 Whittle Shell		179
Figure 14-42 Massawa North Zone 2 Domain 2101 Swath Plot Y Axis (Northing)		187
Figure 14-43 Massawa North Zone 1 Domain 1103 Swath Plot Y Axis (Northing)		188
Figure 14-44 Sofia Main Domain 6000 Swath Plot Y Axis (Northing)		189
Figure 14-45 Sofia North Domain 6500 Swath Plot Y Axis (Northing)		190
Figure 14-46 Delya Swath Plot Domain 6500 Z Axis (Down Dip)		191
Figure 14-47 Massawa Central Zone Low-Grade Swath Plot (Y) Northing		192
Figure 14-48 Massawa Central Zone High-Grade Swath Plot (Y) Northing		193
Figure 15-1 Final Grade Control Optimiser Solids		202
Figure 15-2 Solid Used to Limit the GCO Process and Reduce Processing Time to the Area of Interest		204
Figure 15-3 Final Grade Shelled Solids of Blocks Sent to Ore Destinations (Plan View)		205
Figure 15-4 Final Grade Shelled Solids of Blocks Sent to Ore Destinations (Longitudinal View)		206
Figure 15-5 Flitch Showing Manually Digitised Mineable Polygons		206
Figure 16-1 Central Zone Design Pit		214
Figure 16-2 North Zone Design Pit		215
Figure 16-3 Sofia Design Pit		215
Figure 16-4 Delya Design Pit		215
Figure 16-5 Image of ROM Pad Design		216
Figure 16-6 3D Image of Central and North Zone Pit and Dump Designs		218
Figure 16-7 3D Image of Sofia Pit and Dump Designs		218
Figure 16-8 3D Image of Delya Pit and Dump Designs		219
Figure 16-9 Massawa Central and North Pits and Dumps Relative to the ROM Pad		219
Figure 16-10 Graph of Ore Mining Schedule and Material Type		221
Figure 16-11 Graph of Waste Mining Schedule by Pit		222
Figure 17-1 Overall Process Flow Diagram		228
Figure 17-2 Whole Ore Leaching Process Plant Block Flow Diagram		245
Figure 17-3 Refractory Process Plant Block Flow Diagram		246
Figure 17-4 Tailings Particle Size Distribution for Typical Gold Tailings Made up of Oxides and Sulphides		250
Figure 17-5 General Arrangement of the Massawa TSF		252
Figure 18-1 General Layout of the Massawa Project		257
Figure 20-1 The Mitigation Hierarchy as Defined by the IFC		277
Figure 23-1 Regional Map Showing Location of Adjacent Properties		291
Figure 24-1 Phase 1 Project Schedule Summary		295

 

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Figure 24-2 Phase 2 Project Schedule Summary		296
Figure 24-3 Phase 3 Project Schedule Summary		297
Figure 30-1 Normal and Log Scatter Plots of Delya Field Duplicates Assayed (Fire Assay) by SGS Loulo		323
Figure 30-2 Normal Scatter Plot of Sofia Field Duplicates Assayed (Fire Assay) by SGS Bamako		323
Figure 30-3 HARD Plot of Delya Field Duplicates Assayed (Fire Assay) by SGS Loulo		324
Figure 30-4 Normal and Log Scatter Plots of Delya Field Duplicates Assayed (Fire Assay) by SGS Ouagadougou		324
Figure 30-5 HARD Plot of Sofia Field Duplicates Assayed (Fire Assay) by SGS Bamako		325
Figure 30-6 Normal and Log Scatter Plots of Sofia Field Duplicates Assayed (Fire Assay) by SGS Loulo		325
Figure 30-7 HARD Plot of Sofia Field Duplicates Assayed (Fire Assay) by SGS Loulo		326
Figure 30-8 Normal and Log Scatter Plots of Sofia Field Duplicates Assayed (Fire Assay) by SGS Ouagadougou		326
Figure 30-9 HARD Plot of Sofia Field Duplicate Assayed (Fire Assay) by SGS Ouagadougou		327
Figure 30-10 Normal and Log Scatter Plots of Massawa Field Duplicate Assayed (Fire Assay) by SGS Bamako		327
Figure 30-11 HARD Plot of Massawa Field Duplicate Assayed (Fire Assay) by SGS Bamako		328
Figure 30-12 Normal and Log Scatter Plots of Massawa Field Duplicates Assayed (Fire Assay) by SGS Loulo		328
Figure 30-13 HARD Plot of Massawa Field Duplicates Assayed (Fire Assay) by SGS Loulo		329
Figure 30-14 Normal and Log Scatter Plots of Massawa Field Duplicates Assayed (Fire Assay) by SGS Tarkwa		329
Figure 30-15 HARD Plot of Massawa Field Duplicates Assayed (Fire Assay) by SGS Tarkwa		330
Figure 30-16 Normal and Log Scatter Plots of Massawa Field Duplicates Assayed (LeachWELL) by SGS Tarkwa		330
Figure 30-17 HARD Plot of Massawa Field Duplicates Assayed (LeachWELL) by SGS Tarkwa		331
Figure 30-18 Normal and Log Scatter Plots of Massawa Field Duplicates Assayed (Fire Assay) by SGS Ouagadougou		331
Figure 30-19 HARD Plot of Massawa Field Duplicate Assayed (Fire Assay) by SGS Ouagadougou		332
Figure 30-20 Normal and Log Scatter Plots of Massawa Field Duplicates Assayed (LeachWELL) by SGS Ouagadougou		332

 

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Figure 30-21 HARD Plot of Massawa Field Duplicates Assayed (LeachWELL) by SGS Ouagadougou		333
Figure 30-22 Normal and Log Scatter Plots of Massawa Field Duplicates Assayed (LeachWELL) by BIGS Ouagadougou		333
Figure 30-23 HARD Plot of Massawa Field Duplicate Assayed (LeachWELL) by BIGS Ouagadougou		334
Figure 30-24 Delya Blank Samples Assayed (Fire Assay) by SGS Loulo		336
Figure 30-25 Delya Blank Samples Assayed (Fire Assay) by SGS Ouagadougou		337
Figure 30-26 Sofia Blank Samples Assayed (Fire Assay) by SGS Bamako		338
Figure 30-27 Sofia Blank Samples Assayed (Fire Assay) by SGS Loulo		339
Figure 30-28 Sofia Blank Samples Assayed (Fire Assay) by SGS Ouagadougou		340
Figure 30-29 Massawa Blank Samples Assayed (Fire Assay) by SGS Bamako		341
Figure 30-30 Massawa Blank Samples Assayed (Fire Assay) by SGS Loulo		342
Figure 30-31 Massawa Blank Samples Assayed (Fire Assay) by SGS Tarkwa		343
Figure 30-32 Massawa Blank Samples Assayed (LeachWELL) by SGS Tarkwa		344
Figure 30-33 Massawa Blank Samples Assayed (Fire Assay) by SGS Ouagadougou		345
Figure 30-34 Massawa Blank Samples Assayed (LeachWELL) by SGS Ouagadougou		346
Figure 30-35 Massawa Blank Samples Assayed (LeachWELL) by BIGS Ouagadougou		347
Figure 30-36 Tram Line of Delya CRMs Assayed (Fire Assay) by SGS Loulo Laboratory		349
Figure 30-37 Tram Line of Delya CRMs Assayed (Fire Assay) by SGS Ouagadougou Laboratory		350
Figure 30-38 Tram Line of Sofia CRMs Assayed (Fire Assay) by SGS Bamako Laboratory		351
Figure 30-39 Tram Line of Sofia CRMs Assayed (Fire Assay) by SGS Loulo Laboratory		352
Figure 30-40 Tram Line of Sofia CRMs Assayed (Fire Assay) by SGS Ouagadougou Laboratory		353
Figure 30-41 Tram Line of Massawa CRMs Assayed (Fire Assay) by SGS Bamako Laboratory		354
Figure 30-42 Tram Line of Massawa CRMs Assayed (Fire Assay) by SGS Loulo Laboratory		355
Figure 30-43 Tram Line of Massawa CRMs Assayed (Fire Assay) by SGS Tarkwa Laboratory		356
Figure 30-44 Tram Line of Massawa CRMs Assayed (LeachWELL) by SGS Tarkwa Laboratory		357
Figure 30-45 Tram Line of Massawa CRMs Assayed (Fire Assay) by SGS Ouagadougou Laboratory		358
Figure 30-46 Tram Line of Massawa CRMs Assayed (LeachWELL) by SGS Ouagadougou Laboratory		359
Figure 30-47 Tram Line of Massawa CRMs Assayed (LeachWELL) by BIGS Ouagadougou Laboratory		360

 

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1.	Executive Summary

The Massawa Gold Project (Massawa or the Project), located in Senegal, was discovered by Randgold Resources Limited (Randgold), an exploration and mining company that explored, developed, and operated mines in West and East Africa.

On 24^th September 2018, Barrick Gold Corporation (Barrick) agreed to merge with Randgold in a zero premium, share-for-share deal. The merger was completed on the 1^st January 2019 and resulted in Randgold becoming a wholly-owned subsidiary of Barrick and delisting from the London Stock Exchange and NASDAQ. Randgold is now part of the Barrick group which is listed on the Toronto and New York stock exchanges, and is one of the largest gold mining and exploration companies in the world. Randgold continues to be the owner of the Massawa Permit. On 22^nd January 2019, Randgold changed its name to Barrick Gold (Holdings) Limited.

This Technical Report conforms to National Instrument 43-101 Standards for Disclosure of Mineral Projects (NI 43-101) and has been prepared to support the 2018 year-end Mineral Resource and Ore Reserve estimation at Massawa based on feasibility level studies. Recent targeted project development work programmes, including resource drilling and metallurgical testwork in 2017 and 2018, have made a material impact on the understanding of the mineralised bodies and potential of the Project to provide significant economic returns at a range of gold prices. All currency in this report is US dollars ($) unless otherwise noted.

The Project feasibility study includes the open pit material from four pits, namely, Massawa Central Zone (CZ) and North Zone (NZ), Sofia, and Delya. The deposits consist of free milling ore from the oxide contribution of the pits and the fresh material of Sofia and the bulk of the CZ pit. Refractory fresh material is sourced from the northern part of the CZ pit as well as the NZ and Delya pits. The refractory ores have proven to be highly recoverable through a bio-oxidation process. Subsequent to the completion of the feasibility study, an application has been lodged with the Senegalese government to convert the Kanoumba Permit into a mining licence under the 2003 Mining Code of Senegal.

 

1.1.

Location

The Project is located approximately 700 km SE of the Senegalese capital city, Dakar. Dakar is serviced by commercial daily flights from European cities. The proposed main transport route for capital equipment would be by road from the port of Dakar.

The Millennium highway from Dakar to Bamako runs to the south of the permit. The laterite road from Mako to Sabodala, currently being upgraded, provides access to site from the SW. Alternative access from the south is via a laterite road from Bembou. Charter flights are available from Dakar to Kedougou, the regional centre, located 71 km from Massawa, between Bembou and Mako along the Millennium highway.

 

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Massawa can also be accessed by road from Barrick’s Loulo Mine in Mali which is located 90 km to the east of Massawa, with an average road journey time of five hours including the international border crossing.

 

1.2.

Ownership

The government of Senegal presently has a non-contributory 10% share of any mine developed on the property. The government’s interest is activated at the Exploitation Stage, when a local mining subsidiary must be created. Compagnie Senegalaise de Transports Transatlantiques Afrique de l’Ouest (CSSTAO), a local partner of Randgold in Senegal, has a 6.75% holding of the remaining 90% equity, resulting in Randgold having an effective 83.25% ownership of the Project. Conventions under the 1988 Mining Code (Law No 88-06 of 26^th August 1988) covered the original Kanoumering (2002) and Kounemba Permits (2003). Subsequent to the 1988 Mining Code, an updated mining code was passed in November 2003 (Law No 2003-36 of 24^th November 2003).

Randgold Senegal had the right under the 2003 Mining Code to accept the new code should it negotiate a new single convention that merged the two permits over the Project. This option was duly exercised, and on 14^th April 2010 the two permits were combined into a single Kanoumba Permit of 621 km² covered by a single convention based on the 2003 Mining Code. The arrêté (government legal document signed by the Minister of Mines) was approved on 21^st May 2010 (No. 04638 MMITPME/DMG) and is valid until May 2019. One three-year extension is allowed after May 2019. On completion of a final feasibility study (FS) and if Barrick takes the decision to construct a mine, a mining permit will be sought for the Kanoumba Permit.

 

1.3.	Geology and Mineralisation

Regionally, Massawa is located on the over 150 km long NE trending Main Transcurrent Shear Zone (MTZ), which is a significant transcrustal dislocation between the Mako Belt (basaltic flow rocks, minor intercalated volcaniclastics, and ultramafic sub-volcanic intrusions) and the Diale-Dalema Basin (volcano-sedimentary to sedimentary rocks) within the Paleoproterozoic (Birimian) Kedougou-Kenieba inlier. Mineralisation is present within various lithologies but is structurally controlled within anastomosing shears which converge to the north.

The Massawa deposit is differentiated into two zones, CZ and NZ, based on differing host rock geology, mineralogy, geometallurgical response and structural controls. Both zones are further divided into two sub-zones. CZ marks the southerly extent of the deposit and is hosted mainly in volcaniclastics, felsic porphyries, and gabbroic intrusions. In the CZ, multiple thin, NE trending, sub-vertical mineralized shears have been identified, each with average thicknesses between 3 m and 10 m and which anastomose horizontally and vertically along strike. Mineralisation in the individual lodes is domained into:

 

●

A distal zone of lower-grade, broad halo of disseminated pyrite and minor arsenopyrite.

 

●

A proximal zone of quartz-stibnite veins and disseminated arsenopyrite and minor pyrite.

 

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The proximal mineralisation contains 80% of the grade in the CZ with coarse visible Au within the veins and Au inclusions within the arsenopyrite and arsenian pyrite disseminations along the silicified contacts of the intrusive rocks.

The northern part of the CZ pit represents a transition zone between CZ and NZ, with structures merging into one main mineralised shear which continues towards the north. NZ has a strike length of 2.5 km and consists of a main NNE trending mineralised structure with discontinuous footwall (FW) and hanging wall (HW) lodes. NZ is further sub-divided into two zones based on structure (NZ1 and NZ2). The southern 1.1 km of the NZ (NZ1) hosts discontinuous, weaker gold mineralisation (average grade of 1 g/t Au to 1.5 g/t Au). The higher-grade but narrow mineralisation is focussed at the margins of a medium-grained greywacke and lithological contacts with contrasting grain size.

NZ2 represents the northern and highest-grade (above 4 g/t Au) portion of the deposit. Mineralisation is predominately confined to a single, continuous, narrow zone (10 m to 15 m average width), which is sub-vertical to steeply dipping (>70°) to the WNW. The mineralisation consists of fine disseminated arsenopyrite and pyrite associated with carbonate and sericite alteration. Gold mineralisation in the NZ is largely refractory in nature, locked up in the crystal lattice of arsenopyrite.

Sofia is located approximately 8 km to the west of Massawa, along the Sofia-Sabodala Shear Zone which hosts the Sabodala gold deposit approximately 20 km to the north. The deposit has been differentiated into two zones based on different structural trends along the tectonostratigraphic boundary. At Sofia Main the primary structures strike 040°, whereas at Sofia North mineralized structures strike 010°.

Mineralisation at Sofia Main is defined by a linear altered shear zone, where the mineralisation is thought to be structurally controlled. The majority of the high-grade mineralisation (above 2 g/t Au) is situated within a plunging tabular dilation zone, which is modelled to terminate on the FW structure. There are also a number of small discontinuous FW splays of mineralisation.

Sofia North consists of one main NNE trending mineralized structure and a discontinuous FW lode. The main mineralised structure that controls the alteration is developed at the major eastern contact of the Western Mafics that turns in strike from 040° to 010° and has been delineated over more than 2 km by trenching and reverse circulation (RC) drilling.

Delya consists of three parallel zones of mineralisation, over a one-kilometre strike length. The main zone of mineralisation is hosted at the lower margin of the gabbro within highly sheared and silicified and sericitised schist. The mineralised zone varies in thickness from 3 m to 10 m (average of 5 m), contains higher grades (up to 5 g/t Au), and dips to the east at 85°. The other branches are located to the west and have an average dip of 84° to the west. Mineralisation has been drill tested to a vertical depth of 150 m below the surface. The mineralisation consists of strong disseminated fine arsenopyrite and pyrite. Gold is largely refractory in nature and locked up in the crystal lattice of arsenopyrite.

Two satellite deposits with Inferred Mineral Resources occur in a 15 km radius around Massawa (Tina and Bambaraya).

 

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Tina target is located along the Bakan Corridor, where mineralisation is controlled by the Kossanto Shear. Two mineralized branches have been identified; a main western branch, which is steeply dipping, occurs on two sub-parallel sets and is hosted by a felsic intrusion and a set of eastern lower grade mineralised branches that are related to shears within the tuffs and gossanous rocks. Gold mineralisation is primarily associated with disseminated pyrite sulphide assemblages, which are non-refractory in nature.

Bambaraya is located in the NW corner of the Kanoumba Permit along the Sabodala Shear Corridor, approximately 18 km to the north of Sofia. The NE trending shear zone marks the brecciated contact between pillowed basalts and massive and foliated andesites. These volcanic rocks have been intruded by gabbro, dolerite, and felsic plutonic rocks in the vicinity of the deposit.

 

1.4.	Exploration Concepts

Randgold’s extensive integrated exploration programmes resulted in the greenfield discoveries of the of the Massawa, Sofia, and Delya deposits.

The Massawa, Sofia, and Delya soil anomalies were initially discovered during the regional Kounemba soil grid sampling programme in 2004 by Randgold Senegal. This was followed up by detailed soil, regolith, and lithological mapping. Field validation of soil anomalies returned mineralised rock chip samples and the first trench identified an intersection of 10.9 m at 2.03 g/t Au. This was followed up by rotary air blast (RAB) drilling and then diamond drilling. Initial wide spaced diamond drill lines, spaced approximately 400 m apart, were used to determine the strike length of mineralisation. Subsequent infill drilling programmes have been completed to build a geological model on the controls of mineralisation and to generate mineral resources.

 

1.5.	Status of Exploration

Recent exploration has been heavily focussed on better understanding the geological controls and the grade distribution along the Massawa CZ deposit and particularly how these relate to the mineability and metallurgy. Drilling of orientation grade control (GC) grids has led to an increased understanding of the structural and lithological controls on the quartz-stibnite veins and surrounding mineralisation. A resource drilling programme at 15 m by 10 m has allowed for modelling the continuity of the coarse gold lodes within the pit.

Follow-up trenching in Massawa NZ and RC drilling over a 150 m strike (5 m by 10 m hole spacing) has confirmed the continuity and high-grade nature of mineralisation in the NZ, with the remainder of the pit being drilled at 40 m by 40 m.

Infill surface trenching, RC, and diamond drilling to a nominal 40 m by 40 m spacing have been completed over the Sofia Main, Sofia North, and Delya deposits. This has confirmed the geological continuity and enabled the estimation of Indicated and Inferred Mineral Resources for these satellite pits.

 

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		Massawa Gold Project NI 43-101 Technical Report

 

1.6.	Status of Development and Operations

The Project has been competed to a feasibility level as of the 31^st December 2018. Indicated Mineral Resources and Probable Ore Reserves have been estimated at Massawa CZ and NZ, Sofia Main, Sofia North, and Delya.

 

1.7.	Mineral Resource Estimate

The Massawa Mineral Resources consist of Massawa CZ, Massawa NZ, Sofia, Tina, Delya, and Bambaraya.

The CZ, NZ, Sofia, and Delya Mineral Resources were re-estimated during 2018 using updated geological interpretations generated from both resource definition and advanced GC (AdvGC) drilling completed as part of the pre-feasibility study (PFS). Additionally, modifying factors for reserve definition have been updated and refined, including updated mining costs, selectivity, and recoveries, which are incorporated as part of the cut-off grade criteria. All Mineral Resource pit optimisations and associated underground reporting areas have been updated accordingly.

The 2018 AdvGC drill programmes in CZ, Sofia, and Delya were designed to determine the optimal drill spacing required to outline an accurate local estimation, which could be used during the mining process.

Outside of the three principal deposits (Massawa, Sofia, and Delya), Inferred Mineral Resources exist for two satellite projects (Bambaraya and Tina). No exploration has taken place on Bambaraya and Tina since the last Mineral Resource estimate in 2013. The satellite deposits have been delineated at 50 m to 100 m spaced drilling and thus estimated using inverse distance squared and as such have been classified as Inferred Mineral Resources. These satellite Inferred Mineral Resources represent less than 28% of the total declared tonnes and less than 7% of the contained gold ounces of the Project. Accordingly, they do not form part of the declared Ore Reserve and have no impact on the current economic evaluation of the Project. Further exploration programmes are planned to be completed on these satellites to evaluate their prospectively with additional resource development.

As at 31^st December 2018, the open pit (OP) Indicated Mineral Resource is estimated to be 23 Mt at an average grade of 4.00 g/t Au containing 2.97 Moz of gold and the OP Inferred Mineral Resource is estimated to be 3.7 Mt at an average grade of 2.2 g/t Au for 0.26 Moz of gold. An underground Inferred Mineral Resource, situated below the NZ1 and NZ2 open pit solid, is estimated to be 2.6 Mt at an average grade of 4.1 g/t Au containing 0.35 Moz gold (Table 1-1).

 

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Table 1-1 Massawa Project Mineral Resource Statement as at 31^st December 2018

 

Mineral Resource		Tonnes   (Mt)		Grade (g/t Au)		Contained Gold   (Moz)		Attributable Contained   Gold (Moz)*
OP Measured		-		-		-		-
OP Indicated		23		4.00		3.0		2.5
Total Measured + Indicated		23		4.00		3.0		2.5
OP Inferred		3.7		2.2		0.26		0.22
UG Inferred		2.6		4.1		0.35		0.29
Total Inferred		6.3		3.0		0.61		0.51

* Attributable gold (Moz) refers to the quantity attributable to Barrick based on Barrick’s 83.25% interest in the Massawa Project.

Open pit Mineral Resources are reported as the insitu mineral resources falling within the $1,500/oz pit shell reported at an average cut-off grade of 0.8 g/t Au.

Underground Mineral Resources are those insitu mineral resources below the $1,500/oz pit shell of the North Zone 2 deposit reported at a 2.5 g/t Au cut-off grade.

Mineral Resources are reported inclusive of Ore Reserves.

Mineral Resources for Massawa were generated by Simon Bottoms, MGeol, FGS CGeol, FAusIMM, an employee of the company and Qualified Person.

Barrick is not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the Mineral Resource estimate.

The Mineral Resource estimate has been prepared according to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves standards and guidelines published and maintained by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (the JORC (2012) Code). Barrick has reconciled the Mineral Resources to Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources, Mineral Reserves dated 10^th May 2014 as incorporated into NI 43-101, and there are no material differences.

 

1.8.	Ore Reserve Estimate

The Massawa Ore Reserves have been estimated in accordance with the JORC (2012) Code. Barrick has reconciled the Ore Reserve to CIM Definition Standards for Mineral Resources and Mineral Reserves dated 10^th May 2014 as incorporated in NI 43-101, and there are no material differences.

Only Measured and Indicated Mineral Resources have been used for the conversion to Ore Reserves and thus the Massawa, Sofia, and Delya deposits have been incorporated into reserves. Tina, Bambaraya, and Massawa North Zone Underground only contain Inferred Resources and, therefore, have not been converted to Ore Reserves.

The 2018 Ore Reserve estimate includes an OP Probable Ore Reserve of 7.1 Mt at 4.69 g/t Au for 1.1 Moz Au from the Massawa CZ; 4.6 Mt at 4.9 g/t Au for 0.72 Moz Au from the Massawa NZ; 5.7 Mt at 2.9 g/t Au for 0.54 Moz Au for Sofia; and 0.7 Mt at 4.4 g/t Au for 0.92 Moz for Delya. The OP Ore Reserves are those reserves occurring within a $1,000/oz pit design.

Total Massawa, Sofia, and Delya Ore Reserve estimates, as of 31^st December 2018, are presented in Table 1-2.

 

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Table 1-2 Massawa, Sofia, and Delya Ore Reserves as at 31^st December 2018

 

Ore Reserve		Tonnes   (Mt)		Grade (g/t   Au)		Contained Gold (Moz)		Attributable   Gold (Moz)*
CZ Probable		7.1		4.69		1.1		0.89
NZ Probable		4.6		4.89		0.72		0.60
Sofia Probable		5.7		2.91		0.54		0.45
Delya Probable		0.66		4.40		0.092		0.077
Total OP Probable		18		4.17		2.4		2.0

*Attributable gold (Moz) refers to the quantity attributable to Barrick based on Barrick’s 83.25% interest in the Massawa Project.

Open pit Ore Reserves are reported at a gold price of $1,000/oz and include dilution and ore loss factors.

Open pit Ore Reserves were generated by Shaun Gillespie, an employee of the company, under the supervision of Rodney Quick, MSc, Pr Sci Nat. an officer of the company and Qualified Person.

Barrick is not aware of any mining, metallurgical, infrastructure, permitting, or other relevant factors that could materially affect the Ore Reserve estimate.

 

1.9.	Technical and Financial Study

A technical and financial study has been conducted by Barrick to support the disclosure of updated Ore Reserves. The study is based on an open pit mining project whereby the ore is mined and fed through an on-site metallurgical plant to produce gold in doré.

 

1.9.1.

Dilution and Ore Loss

Mining dilution of 10% and ore loss of 3% were applied to the Massawa NZ, Sofia, and Delya deposits, based on knowledge of similar ore bodies at the Loulo-Gounkoto complex.

The CZ dilution of 36% and ore loss of 8% was applied based on a grade control optimisation dilution study carried out by Maptek taking into account the very narrow nature in areas of the CZ ore body.

 

1.9.2.

Hydrogeology

The hydrogeological assessment for the Massawa mining feasibility evaluation found naturally shallow groundwater levels across the site (typically 10 m to 30 m below surface), and therefore groundwater inflow to the excavations will occur throughout mining. The groundwater inflow horizons are associated with the near surface weathered horizons, and the NNE-SSW fracture zones and lithological contacts at depth. In general, the sedimentary units are more permeable than the igneous units.

The inflows depend on the hydraulic characteristics of the units, the pit size, and the mining advance rate. Due to the accelerated mining rate of each pit (up to 40 m per year), high groundwater drawdown rates need to be achieved to keep pace with the operation. The likely range of pumping rates per pit during their Life of Mine (LOM) are as follows:

 

●

Massawa Central Zone Pit: average 70 L/s (range: 19 – 96 L/s).

 

●

Massawa North Zone 1 Pit: average 43 L/s (range: 32 – 72 L/s).

 

●

Massawa North Zone 2 Pit: average 18 L/s (range: 7 – 21 L/s.

 

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		Massawa Gold Project NI 43-101 Technical Report

 

●

Sofia Main Pit: average 10 L/s (range: 1 – 14 L/s).

 

●

Sofia Main Satellite Pit: average 3 L/s (range: 2 – 4 L/s).

 

●

Sofia North Pit: average 17 L/s (range: 12 – 22 L/s).

 

●

Delya North Pit: average 3 L/s (range 1 – 3 L/s).

 

●

Delya South Pit: <1 L/s.

According to the geophysical surveys, the monitoring data, the insitu hydraulic testing, and the calibrated numerical forecast models, the majority of the groundwater can be intercepted by perimeter and in-pit dewatering wells (approximately 80% of groundwater inflow). The remaining water will be drained using sub-horizontal drains drilled into the pit wall. This groundwater seepage will collect in the in-pit sumps.

The geotechnical slope stability analysis can therefore be based on ‘drained’ or ‘dry’ pit slopes. In addition to seepage water, the in-pit sumps’ storage volume and pumping capacity are designed to retain and evacuate a 1:50 year return period storm event (183 mm/24 hours). The size of each sump varies between <1,000 m³ and 40,000 m³ and can be accommodated along the pit floor.

The capital and recurring capital investment for the dewatering system is estimated to amount to a minimum of $16.5 million for all pits combined. This investment is spread across the LOM in accordance with the mine advance rates. The operating costs are estimated to be in the order of $3.7 million. An additional contingency should be built into the final costs calculations as adjustments and modifications to mine dewatering plans commonly occur.

 

1.9.3.

Geotechnical Slope Design Parameters

The slope design is defined in terms of three material types:

 

●

Soils: free digging, shovel dressed benches with face angle at 60°; dewatering measures.

 

●

Broken Rock: loosening blasts with vertical buffer wall row and shovel dressed nominal bench face angles.

 

●

Rock: Twin benching with wall control blasting using inclined pre-split, buffer and trim shots; wall drilling angle and berm width varies by domain, mid-level operating offset 2 m.

The standard operating lift (single bench height) has been taken across all material types and domains.

The soils slope design applies across the area and does not depend upon the orientation of the pit walls. The soils slopes, which are dependent on the vertical wall height, are differentiated into two categories:

 

●

Slopes down to <40 m depth (top four benches): generally 44° inter-ramp (I-R) or as locally adjustment for vulnerable slopes

 

●

Slopes where the saprolite/saprock are deeper than or equal to 40 m depth, or zones of vulnerability: 40° I-R

 

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		Massawa Gold Project NI 43-101 Technical Report

 

The Broken Rock slopes occur as determined by the base-of-soft and top of fresh planning surfaces. The zone may be absent, or in the greatest extent encountered, 40 m thick. Design geometry reflects the rock slope design, but the wall drilling is vertical and the berm widths are wider to accommodate more loose rock.

The Rock slopes are divided into two domains according the position of the wall with respect to the mineralised zones:

 

●

HW

 

●

FW

The bench face drilling angles and the berm width vary, giving different I-R angles, for each domain and for each of the properties, according to the specific stability conditions indicated by the probabilistic discontinuity-controlled failure analysis.

 

1.9.4.

Mining Method

The mining method proposed for this study is conventional drill and blast followed by truck and excavator. Due to the narrow, multi lode and sub-vertical nature of the ore body with a likely strip ratio of 7.6:1, an open pit mining method is proposed using 2.0 m flitches in ore blasted in 10 m benches, with movement limiting methods such as choke blasting being suggested to minimise dilution.

Using a processing rate of 1.2 million tonnes per annum (Mtpa) per pit as the current target, a mine life of nine years is expected. Based on the average LOM strip ratio of approximately 7:6 (based upon year by year strip ratio), this requires an average digging rate of approximately 6 Mtpa per excavator.

Mine scheduling of the OP reserve is dictated by the different metallurgical ore domains present. The plan focusses on the mining of the oxide and oxidised transition material from all pits first, followed by Sofia fresh, then CZ fresh, and finally Massawa NZ and Delya refractory ore.

Randgold has used various mining contractors over the last 20 years in West Africa and has a firm idea of realistic and achievable rates, productivities, and costs in the region. Mining costs have been based on contract tenders for $3.55/t over the life of the mining operation. The mining cost covers drill, blast, load, and haul from the open pit to the Run-of-Mine (ROM) pad, as well as the re-handle of the mined material into the primary crusher. In addition, there are owner’s costs that cover water management, grade control, survey, and mine management. The open pit mining schedule is presented in Table 1-3.

 

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Table 1-3 Open Pit Mining Schedule

 

Schedule				Year
				1		2		3		4		5		6		7		8		9		10		LOM
Ore Tonnes Mined - Oxide		kt		2,060		814		375		446		283		255		78		0		0		0		4,311
Ore Tonnes Mined - Transitional		kt		274		942		639		155		208		225		189		0		0		0		2,632
Ore Tonnes Mined - Fresh		kt		29		994		1,805		1,841		1,071		1,415		2,178		1,021		703		0		11,056
Total Ore Grade (g/t Au)				2.87		3.23		3.84		5.31		4.08		4.57		4.56		4.71		6.86		0.00		4.18
Total Waste Mined		kt		20,176		20,175		19,331		16,814		17,901		16,419		15,253		7,358		4,477		0		137,904
Total tonnes Mined		kt		22,538		22,925		22,149		19,256		19,463		18,315		17,698		8,379		5,180		0		155,903
Strip Ratio (Waste/Ore)				8.54		7.34		6.86		6.89		11.46		8.66		6.24		7.21		6.37		0.00		7.66

The grade profile increases as the depth increases due to the plunging nature of the high grade in the NZ. Initial years are dominated by oxide material followed by significant hard rock mining from year 3 onwards (Figure 1-1 and Figure 1-2).

 

Figure 1-1 Graph of Ore Mining Schedule and Material Type

 

Figure 1-2 Graph of Waste Mining Schedule by Pit

 

 

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