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 March 2020

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: March 26, 2020     BARRICK GOLD CORPORATION
    By:  

/s/ Richie Haddock

    Name:   Richie Haddock
    Title:   General Counsel


EXHIBIT INDEX

 

Exhibit

  

Description

99.1    Technical Report on the Carlin Complex, Eureka and Elko Counties, State of Nevada, USA
EX-99.1

Exhibit 99.1

 

 

TECHNICAL REPORT ON THE CARLIN

COMPLEX, EUREKA AND ELKO

COUNTIES, STATE OF NEVADA, USA

PREPARED FOR BARRICK GOLD

CORPORATION AND NEWMONT

CORPORATION BY NEVADA GOLD

MINES LLC

 

Report for NI 43-101

Qualified Persons:

Mr. Craig Fiddes, BSc (Hons) Geology, SMERM (04197758RM)

Mr. Jay Olcott, BSc, Geo, SMERM (4173430RM)

Mr. Charles Lynn Bolin, MBA, BSc, Mine Eng, SMERM (4049169RM)

Mr. Steven W. Yopps, MSc, Metallurgical Eng., MMSA QP (01315QP)

March 25, 2020

 

 

   

    Nevada Gold Mines LLC – Carlin Complex

  

    Technical Report NI 43-101 – March 25, 2020

   Cover Page - i


 

 

 

 

CRAIG FIDDES, SME (RM)

I, Craig Fiddes, SME (RM), as an author of this report entitled “Technical Report on the Carlin Complex Mines, Eureka and Elko Counties, Nevada, USA” prepared for Barrick Gold Corporation and Newmont Corporation by Nevada Gold Mines LLC and dated March 25, 2020 with an effective date of December 31, 2019, do hereby certify that:

 

 

I am Manager - Resource Modelling at Nevada Gold Mines LLC, the operator of the Carlin Complex.

 

 

I am a graduate of University of Otago, New Zealand in 1998 with a BSc (Hons) Geology.

 

 

I am registered as a SME Registered Member #04197758. I have worked as a geologist for over 20 years since my graduation. My relevant experience for the purpose of the Technical Report is: Over 20 years experience in mine geology and resource modeling.

 

 

I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101.

 

 

I work at Nevada Gold Mines LLC, the operator of the Carlin Complex.

 

 

I share responsibility with my co-author Charles Lynn Bolin for Sections 14 to 16 and Sections 18, 21 and 22 and related disclosure in Sections 1, 24, 25, 26, and 27 of the Technical Report

 

 

I am not independent of the Issuer applying the test set out in Section 1.5 of NI 43-101.

 

 

I have had prior involvement with the property that is the subject of the Technical Report.

 

 

I have read NI 43-101, and the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1.

 

 

At the effective date of the Technical Report, to the best of my knowledge, information, and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Dated this 25th day of March, 2020

(Original signed and sealed) Craig Fiddes

Craig Fiddes, SME (RM) #04197758

 

   

    Nevada Gold Mines LLC – Carlin Complex

       

    Technical Report NI 43-101 – March 25, 2020

   Certificates of Qualified Persons - i


 

 

 

 

JAY OLCOTT, SME (RM)

I, Jay Olcott, SME (RM), as an author of this report entitled “Technical Report on the Carlin Complex Mines, Eureka and Elko Counties, Nevada, USA” prepared for Barrick Gold Corporation and Newmont Corporation by Nevada Gold Mines LLC and dated March 25, 2020 with an effective date of December 31, 2019, do hereby certify that:

 

 

I am Project Manager at Nevada Gold Mines LLC, the operator of the Carlin Complex.

 

 

I am a graduate of Brigham Young University in 2001 with a B.Sc. Geology.

 

 

I am registered as a SME Registered Member #04173430. I have worked as a geologist for over 18 years since my graduation. My relevant experience for the purpose of the Technical Report is: Preparation of technical report on several of Newmont’s underground mines.

 

 

I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101.

 

 

I work at Nevada Gold Mines LLC, the operator of the Carlin Complex.

 

 

I am responsible for Sections 5, 7 to 12, 19, 20, and 23 of the Technical Report and related disclosure in Sections 1, 24, 25, 26, and 27 of the Technical Report.

 

 

I am not independent of the Issuer applying the test set out in Section 1.5 of NI 43-101.

 

 

I have had prior involvement with the property that is the subject of the Technical Report.

 

 

I have read NI 43-101, and the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1.

 

 

At the effective date of the Technical Report, to the best of my knowledge, information, and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Dated this 25th day of March, 2020

(Original signed and sealed) Jay Olcott

Jay Olcott, SME (RM) #04173430

 

   

    Nevada Gold Mines LLC – Carlin Complex

       

    Technical Report NI 43-101 – March 25, 2020

   Certificates of Qualified Persons - ii


 

 

 

 

CHARLES LYNN BOLIN

I, Charles Lynn Bolin, MBA, SME (RM), as an author of this report entitled “Technical Report on the Carlin Complex Mines, Eureka and Elko Counties, Nevada, USA” prepared for Barrick Gold Corporation and Newmont Corporation by Nevada Gold Mines LLC and dated March 25, 2020 with an effective date of December 19, 2019, do hereby certify that:

 

 

I am Chief Surface Engineer at Nevada Gold Mines LLC, the operator of the Carlin Complex.

 

 

I am a graduate of New Mexico Institute of Mining and Technology in 1985 with a Bachelor of Science in Mine Engineering.

 

 

I am registered as a SME Registered Member #4049169RM. I have worked as a mining engineer for a total of 26 years since my graduation. My relevant experience for the purpose of the Technical Report is:

   

Twenty-six years open pit mine engineering experience

   

Chief Engineer/Technical Services Manager from 2010 at Ahafo and Akyem in Ghana, and Long Canyon and Carlin in Nevada

 

 

I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101.

 

 

I work at Nevada Gold Mines LLC, the operator of the Carlin Complex.

 

 

I am share responsibility with my co-author Craig Fiddes for Sections 14 to 16 and Sections 18, 21 and 22 and related disclosure in Sections 1, 24, 25, 26, and 27 of the Technical Report.

 

 

I am not independent of the Issuer applying the test set out in Section 1.5 of NI 43-101.

 

 

I have had prior involvement with the property that is the subject of the Technical Report.

 

 

I have read NI 43-101, and the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1.

 

 

At the effective date of the Technical Report, to the best of my knowledge, information, and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Dated this 25th day of March, 2020

(Original signed and sealed) Charles Lynn Bolin

Charles Lynn Bolin, MBA, SME (RM) #4049169

 

   

    Nevada Gold Mines LLC – Carlin Complex

       

    Technical Report NI 43-101 – March 25, 2020

   Certificates of Qualified Persons - iii


 

 

 

 

STEVE WAYNE YOPPS, MMSA (QP)

I, Steve Wayne Yopps, MMSA (QP), as an author of this report entitled “Technical Report on the Carlin Complex Mines, Eureka and Elko Counties, Nevada, USA” prepared for Barrick Gold Corporation and Newmont Corporation by Nevada Gold Mines LLC and dated March 25, 2020 with an effective date of December 31, 2019 do hereby certify that:

 

 

I am Manager of Growth Projects at Nevada Gold Mines LLC, the operator of the Carlin Complex.

 

 

I am a graduate of Colorado School of Mines in 1984 with B. Sc. Metallurgical and Engineering and Colorado School of Mines in 1986 with M. Sc. Metallurgical and Engineering

 

 

I am registered as a Qualified Professional with Mining and Metallurgical Society of America. I have worked as a metallurgical engineer for over 25 years since my graduation. My relevant experience for the purpose of the Technical Report is:

 

  a.

Goldstrike – Autoclave Superintendent through Process Manager 1996 – 2005

  b.

TRJV – Member of JVs Processing Technical Committee 2015—2017

  c.

Barrick Nevada – Cortez Roaster Project Study Manager—2018

 

 

I have read the definition of “qualified person” set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101.

 

 

I work at Nevada Gold Mines LLC, the operator of the Carlin Complex.

 

 

I am responsible for Sections 13 and 17 of the Technical Report and related disclosure in Sections 1, 24, 25, 26, and 27 of the Technical Report.

 

 

I am not independent of the Issuer applying the test set out in Section 1.5 of NI 43-101.

 

 

I have had prior involvement with the property that is the subject of the Technical Report.

 

 

I have read NI 43-101, and the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1.

 

 

At the effective date of the Technical Report, to the best of my knowledge, information, and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Dated this 25th day of March, 2020

(Original signed and sealed) Steve Wayne Yopps

Steve Wayne Yopps, MMSA (#01315QP)

 

   

    Nevada Gold Mines LLC – Carlin Complex

       

    Technical Report NI 43-101 – March 25, 2020

   Certificates of Qualified Persons - iv


 

 

 

 

Forward Looking Statements

This report contains forward-looking statements. All statements, other than statements of historical fact regarding Nevada Gold Mines LLC, Barrick Gold Corporation, Newmont Corporation, or the Carlin Complex, are forward-looking statements. The words “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “intend”, “project”, “continue”, “budget”, “estimate”, “potential”, “may”, “will”, “can”, “could” and similar expressions identify forward-looking statements. In particular, this report contains forward looking statements with respect to cash flow forecasts, projected capital, operating and exploration expenditure, targeted cost reductions, mine life and production rates, potential mineralization and metal or mineral recoveries and information pertaining to potential improvements to financial and operating performance and mine life at the Carlin Complex. All forward-looking statements in this report are necessarily based on opinions and estimates made as of the date such statements are made and are subject to important risk factors and uncertainties, many of which cannot be controlled or predicted. Material assumptions regarding forward-looking statements are discussed in this report, where applicable. In addition to such assumptions, the forward-looking statements 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. Such factors include, but are not limited to: fluctuations in the spot and forward price of commodities (including gold, diesel fuel, natural gas and electricity); the speculative nature of mineral exploration and development; changes in mineral production performance, exploitation and exploration successes; diminishing quantities or grades of reserves; increased costs, delays, suspensions, and technical challenges associated with the construction of capital projects; operating or technical difficulties in connection with mining or development activities, including disruptions in the maintenance or provision of required infrastructure and information technology systems; damage to Nevada Gold Mines LLC’s, Barrick Gold Corporation’s, or Newmont Corporation’s reputation due to the actual or perceived occurrence of any number of events, including negative publicity with respect to the handling of environmental matters or dealings with community groups, whether true or not; risk of loss due to acts of war, terrorism, sabotage and civil disturbances; uncertainty whether the Carlin Complex will meet Nevada Gold Mines LLC’s capital allocation objectives; 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 interest rates; changes in national and local government legislation, taxation, controls or regulations and/or changes in the

 

   

    Nevada Gold Mines LLC – Carlin Complex

  

    Technical Report NI 43-101 – March 25, 2020

   Forward Looking - i


 

 

 

 

administration of laws, policies and practices, expropriation or nationalization of property and political or economic developments in USA; 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; litigation; contests over title to properties or over access to water, power and other required infrastructure; 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 ore losses (and the risk of inadequate insurance, or inability to obtain insurance, to cover these risks).

Many of these uncertainties and contingencies can affect Nevada Gold Mines LLC’s 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, Nevada Gold Mines LLC. All of the forward-looking statements made in this report are qualified by these cautionary statements. Nevada Gold Mines LLC and the Qualified Persons who authored this report undertake no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law.

 

   

    Nevada Gold Mines LLC – Carlin Complex

  

    Technical Report NI 43-101 – March 25, 2020

   Forward Looking - ii


 

 

 

 

Table of Contents

 

1.

 

Executive Summary

     1-1  
 

1.1.

 

Economic Analysis

     1-7  
 

1.2.

 

Technical Summary

     1-7  
 

1.3.

 

Recommendations and Conclusions

     1-15  

2.

 

Introduction

     2-1  
 

2.1.

 

Sources of Information

     2-2  

3.

 

Reliance on Other Experts

     3-1  

4.

 

Property Description and Location

     4-1  
 

4.1.

 

Mineral Tenure and Surface Rights

     4-1  

5.

 

Accessibility, Climate, Local Resources Infrastructure, and Physiography

     5-1  
 

5.1.

 

Accessibility

     5-1  
 

5.2.

 

Climate

     5-1  
 

5.3.

 

Local Resources and Infrastructure

     5-2  
 

5.4.

 

Physiography

     5-2  
 

5.5.

 

Comments on Accessibility, Climate, Infrastructure, and Physiography

     5-3  

6.

 

History

     6-1  
 

6.1.

 

District History

     6-1  
 

6.2.

 

History of the Carlin Complex

     6-1  
 

6.3.

 

Production History

     6-5  

7.

 

Geological Setting and Mineralization

     7-1  
 

7.1.

 

Regional Geology

     7-1  
 

7.2.

 

Local and Project Geology

     7-4  
 

7.3.

 

Deposit Descriptions

     7-8  
 

7.4.

 

Open Pit Deposits

     7-9  
 

7.5.

 

Underground Deposits

     7-13  
 

7.6.

 

Comments on Geological Setting and Mineralization

     7-15  

8.

 

Deposit Types

     8-1  
 

8.1.

 

Comments on Deposit Types

     8-2  

9.

 

Exploration

     9-1  
 

9.1.

 

Geological Mapping

     9-2  
 

9.2.

 

Geochemical Sampling

     9-3  

 

   

    Nevada Gold Mines LLC – Carlin Complex

  

    Technical Report NI 43-101 – March 25, 2020

   TOC - i


 

 

 

 

 

9.3.

 

Geophysics

     9-4  
 

9.4.

 

Pits and Trenches

     9-5  
 

9.5.

 

Petrology, Mineralogy, and Research Studies

     9-6  
 

9.6.

 

Comments on Exploration

     9-6  

10.

 

Drilling

     10-1  
 

10.1.

 

Drill Methods

     10-1  
 

10.2.

 

Air and Mud Drilling Methods

     10-2  
 

10.3.

 

Reverse Circulation Drilling Methods

     10-3  
 

10.4.

 

Core Drilling Methods

     10-5  
 

10.5.

 

Surface Grade Control Drilling

     10-12  
 

10.6.

 

Underground Drilling

     10-13  
 

10.7.

 

Sample Length/True Thickness

     10-14  
 

10.8.

 

Drilling Used to Support Mineral Resource Estimation

     10-14  
 

10.9.

 

Exploration Potential

     10-30  
 

10.10.

 

Comments on Drilling

     10-33  

11.

 

Sample Preparation, Analyses, and Security

     11-1  
 

11.1.

 

Sample Preparation

     11-1  
 

11.2.

 

Sample Analysis

     11-2  
 

11.3.

 

Sample Security

     11-4  
 

11.4.

 

Analytical Quality Assurance and Quality Control

     11-6  
 

11.5.

 

Comments on Sample Preparation, Analyses, and Security

     11-10  

12.

 

Data Verification

     12-1  
 

12.1.

 

Audits or Reviews

     12-1  
 

12.2.

 

Comments on Data Verification

     12-1  

13.

 

Mineral Processing and Metallurgical Testing

     13-1  
 

13.1.

 

Metallurgical Testwork - GOLDSTRIKE

     13-1  
 

13.2.

 

Metallurgical Testing

     13-2  
 

13.3.

 

Recovery

     13-3  
 

13.4.

 

Allocation and Reconciliation

     13-5  
 

13.5.

 

Production Statistics

     13-7  
 

13.6.

 

Metallurgical Testwork - Carlin

     13-7  
 

13.7.

 

Throughput Assumptions

     13-12  
 

13.8.

 

Conclusions and Recommendations

     13-13  

 

   

    Nevada Gold Mines LLC – Carlin Complex

  

    Technical Report NI 43-101 – March 25, 2020

   TOC - ii


 

 

 

 

14.

 

Mineral Resource Estimates

     14-1  
 

14.1.

 

Introduction

     14-1  
 

14.2.

 

Geological Interpretations and Modelling

     14-1  
 

14.3.

 

Mineral Resource Estimation

     14-3  
 

14.4.

 

Mineral Resource Statements

     14-16  
 

14.5.

 

Mineral Resource Peer Reviews

     14-17  
 

14.6.

 

Mineral Resource Risk Assessment

     14-18  

15.

 

Mineral Reserves Estimate

     15-1  
 

15.1.

 

Barrick-Contributed Open Pit Mineral Reserves

     15-2  
 

15.2.

 

Newmont-Contributed Mines: Open Pit Mineral Reserves

     15-7  
 

15.3.

 

Goldstrike Underground

     15-10  
 

15.4.

 

Carlin Underground – Leeville and Portal mines Mineral Reserves

     15-13  
 

15.5.

 

Reconciliation

     15-16  
 

15.6.

 

Mineral Reserves Risk Assessment

     15-18  

16.

 

Mining Methods

     16-1  
 

16.1.

 

Open Pit Mines

     16-2  
 

16.2.

 

Open Pit Mine Design

     16-3  
 

16.3.

 

Open Pit Geomechanics

     16-9  
 

16.4.

 

Open Pit Hydrogeology

     16-11  
 

16.5.

 

Open Pit Mine Equipment

     16-13  
 

16.6.

 

Underground Mines

     16-14  
 

16.7.

 

Underground Geomechanics

     16-15  
 

16.8.

 

Underground Hydrogeology

     16-17  
 

16.9.

 

Underground Mining Methods

     16-19  
 

16.10.

 

         Underground Mine Development

     16-25  
 

16.11.

 

         Underground Infrastructure Facilities

     16-26  
 

16.12.

 

         Backfill

     16-27  
 

16.13.

 

         Ventilation

     16-29  
 

16.14.

 

         Comments on Mining Methods

     16-31  
 

16.15.

 

         Underground Mine Equipment

     16-32  
 

16.16.

 

         Production Schedule

     16-33  

17.

 

Recovery Methods

     17-1  
 

17.1.

 

Introduction

     17-1  

 

   

    Nevada Gold Mines LLC – Carlin Complex

  

    Technical Report NI 43-101 – March 25, 2020

   TOC - iii


 

 

 

 

 

17.2.

 

Recovery Methods

     17-1  
 

17.3

 

Processing Schedule

     17-19  
 

17.4

 

Comments on Recovery Methods

     17-19  

18.

 

Project Infrastructure

     18-1  
 

18.1.

 

Site

     18-1  
 

18.2.

 

Water Management

     18-3  
 

18.3.

 

Open Pit Infrastructure

     18-6  
 

18.4.

 

Underground Infrastructure

     18-7  
 

18.5.

 

Waste Storage Facilities

     18-8  
 

18.6.

 

Tailings Storage Management

     18-9  
 

18.7.

 

Comments on Infrastructure

     18-10  

19.

 

Market Studies and Contracts

     19-1  
 

19.1.

 

Markets

     19-1  
 

19.2.

 

Contracts

     19-1  
 

19.3.

 

Commodity Price Projections

     19-1  
 

19.4.

 

Comments on Market Studies and Contracts

     19-1  

20.

 

Environmental Studies, Permitting, and Social or Community impact

     20-1  
 

20.1.

 

Baseline Studies

     20-1  
 

20.2.

 

Environmental Considerations

     20-2  
 

20.3.

 

Tailings Characterization

     20-3  
 

20.4.

 

Closure Plan

     20-3  
 

20.5.

 

Permitting

     20-4  
 

20.6.

 

Considerations of Social and Community Impacts

     20-6  

21.

 

Capital and Operating Costs

     21-1  
 

21.1.

 

Capital Costs

     21-1  
 

21.2.

 

Operating Costs

     21-2  
 

21.3.

 

Comments on Capital and Operating Costs

     21-4  

22.

 

Economic Analysis

     22-1  

23.

 

Adjacent Properties

     23-1  

24.

 

Other Relevant Data and Information

     24-1  

25.

 

Interpretation and Conclusions

     25-1  
 

25.1.

 

Accessibility, Climate, Infrastructure, and Physiography

     25-1  
 

25.2.

 

Geological Setting and Mineralization

     25-1  
 

25.3.

 

Deposit Types

     25-1  
 

25.4.

 

Exploration

     25-2  

 

   

    Nevada Gold Mines LLC – Carlin Complex

  

    Technical Report NI 43-101 – March 25, 2020

   TOC - iv


 

 

 

 

 

25.5.

 

Drilling

     25-2  
 

25.6.

 

Sample Preparation, Analyses, and Security

     25-2  
 

25.7.

 

Data Verification

     25-4  
 

25.8.

 

Mineral Processing and Metallurgical Testing

     25-5  
 

25.9.

 

Mineral Resource Estimation

     25-5  
 

25.10.

 

Mineral Reserve Estimation

     25-5  
 

25.11.

 

Mining Methods

     25-5  
 

25.12.

 

Recovery Methods

     25-6  
 

25.13.

 

Project Infrastructure

     25-6  
 

25.14.

 

Market Studies and Contracts

     25-7  
 

25.15.

 

Environmental Studies, Permitting, and Social or Community Impact

     25-7  
 

25.16.

 

Capital and Operating Costs

     25-7  
 

25.17.

 

Risks

     25-8  

26.

 

Recommendations

     26-1  
 

26.1.

 

Sample Preparation, Analyses, and Security

     26-1  
 

26.2.

 

Mineral Processing and Metallurgical Testing

     26-1  
 

26.3.

 

Mineral Resources

     26-1  
 

26.4

 

Mineral Reserves

     26-2  

27.

 

References

     27-1  
 

27.1.

 

References

     27-1  
 

27.2.

 

Glossary of Units, Abbreviations, and Symbols

     27-3  

28.

 

Signature Page

     28-1  

Tables

Table 1-1: Mineral Resources (inclusive of Reserves) Statement for the Carlin Complex as of December 31, 2019

Table 1-2: Carlin Complex Gold Mine Mineral Reserves (Metric) Summary as of December 31, 2019

Table 6-1: Historical 10-Year Underground Mine Production - Goldstrike

Table 6-2: Historical 10-Year of Open Pit Mine Production - Goldstrike

Table 6-3: Historical 10-Year Open Pit Mine Production - Carlin

Table 6-4: Historical 10-Year Underground Mine Production - Carlin

Table 10-1: Summary by Drill Type

Table 10-2: Downhole Survey Summary

Table 10-3: Core Recovery Summary

 

   

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Table 10-4: Goldstrike Open Pit Drilling Summary

Table 10-5: Gold Quarry Drilling Summary

Table 10-6: Tri-Star Complex Drill Summary

Table 10-7: Perry Drill Summary

Table 10-8: Green Lantern Drill Summary

Table 10-9: Rain/Emigrant Area Drill Summary

Table 10-10: Goldstrike Underground Drilling Summary

Table 10-11: Goldstrike Underground Drilling Data

Table 10-12: Drill Summary for Leeville Complex

Table 10-13: Exodus/Northwest Exodus Drill Summary

Table 10-14: Pete Bajo Drill Summary

Table 11-1: Analytical Laboratories List

Table 13-1: Alkaline POX-CATS-RIL/CIL Recovery Equations for LOM Plan – Goldstrike

Table 13-2: Acid POX-CATS-RIL/CIL Recovery Equations for LOM Plan – Goldstrike

Table 13-3: Roaster-CIL Recovery Equations for LOM Plan – Goldstrike

Table 13-4: Summary of Head Grade Adjustments NGM – Goldstrike

Table 13-5: Autoclave and Roaster Production Statistics 2015-2019 NGM – All ore processed

Table 13-6: Northwest Exodus Recovery Model

Table 13-7: Exodus and Northwest Exodus Amenability Results

Table 13-8: Leeville Monthly Amenability Results

Table 13-9: Four Corners Recovery Model

Table 13-10: Mill 6 Surface Monthly Recovery Samples

Table 14-1: Mineral Domains

Table 14-2: Minimum and Maximum Gold Values by Deposit

Table 14-3: Open Pit Block Model Parameters

Table 14-4: Underground Block Model Parameters

Table 14-5: Goldstrike: Underground and Open-Pit Resource Classification Criteria

Table 14-6: Newmont-Contributed Mines: Open-Pit Resource Classification Criteria

Table 14-7: Newmont-Contributed Mines: Underground Resource Classification Criteria

Table 14-8: Goldstrike Open-Pit Cut-Off Grade Assumptions

Table 14-9: Newmont-Contributed Mines: Open-Pit Mining Cost Assumptions

Table 14-10: Newmont-Contributed Mines: Processing Assumptions

Table 14-11: Newmont-Contributed Mines: Open Pit Cut-Off Grade Assumptions

 

   

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Table 14-12: Perry, Emigrant, Lantern, Green Lantern Cut-Off Assumptions

Table 14-13: Goldstrike Underground Cut-Off Grade Assumptions

Table 14-14: Carlin UG – Leeville, Portal Mines Mining Cut-off Grade Assumptions

Table 14-15: Gold Mineral Resource (inclusive of Reserve) Statement Effective Date December 31, 2019 (Metric)

Table 15-1: Mineral Reserves, December 31, 2019 by Mine Source

Table 15-2: Betze-Post Open Pit Cut-off Grade Parameters

Table 15-3: Goldstrike Open Pit Stockpile Mineral Reserves - December 31, 2019

Table 15-4: Stockpile Summary as of December 31, 2019

Table 15-5: Carlin Open Pit LG Parameters

Table 15-6: Refining, G&A and Royalty Cost Assumptions

Table 15-7: 2019 Cost Assumptions for Cut-off Grade Calculations by Material Type – Carlin Open Pit

Table 15-8: Underground Cut-off Grade Estimates

Table 15-9: Underground Dilution and Extraction by Mining Type EOY2019 – Goldstrike

Table 15-10: 2019 Incremental Cut-off Grades by Material Type – Underground

Table 15-11: Reconciliation Summary for All Carlin Complex Operating Mines

Table 16-1: NGM Operated Mines

Table 16-2: Goldstrike Open Pit Mine Design Parameters

Table 16-3: Goldstrike Mine Equipment Fleet

Table 16-4: North Area Carlin, Gold Quarry, and Emigrant Surface Mine Production Equipment

Table 16-5: Underground Mine Equipment

Table 17-1: Leach LOM Major Consumables

Table 17-2: Mill 5 Typical Consumables Usage Rates

Table 17-3: Mill 6 Typical Consumables Usage Rates

Table 20-1: Permit Status

Table 21-1: Capital Costs Estimated for the Carlin Complex over LOM Mining Activities (100% basis)

Table 21-2: LOM Mining Costs per Tonne Mined (ore and waste)

Table 21-3: LOM Processing Costs per Tonne Processed by Facility

Table 21-4: Projected Workforce for the LOM

 

   

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Figures

Figure 1-1: Location Map for Carlin Complex

Figure 4-1: Location Map for Operations on the Carlin Complex

Figure 4-2: Land Ownership for Goldstrike

Figure 4-3: Land Ownership for North Area Carlin and Carlin Underground

Figure 4-4: Land Ownership for Gold Quarry

Figure 4-5: Land Ownership for Rain/Emigrant

Figure 7-1: Simplified Geologic Map, Carlin Trend

Figure 7-2: Spectrum Diagram of Mineralization within the Carlin Trend

Figure 9-1: Geochemical Sampling Index Plan

Figure 9-2: Geophysics Index Plan

Figure 10-1: Goldstrike Collar Location Map – Open Pit and Underground

Figure 10-2: Conventional and Mud, RC, Core Collar Location Map – Gold Quarry

Figure 10-3: Conventional and Mud, RC, and Core Drill Collar Location Map – Tri-Star Complex, Exodus, and Green Lantern

Figure 10-4: RC Drill Collar Location Map, Perry Deposit and Pete Bajo

Figure 10-5: Conventional and Mud, RC, and Core Drill Collar Location Map – Rain/Emigrant

Figure 10-6: Conventional and Mud, RC, and Core Drill Hole Collar Location Plan – Leeville Complex

Figure 13-1: Gold Recovery

Figure 13-2: Pete Bajo Amenability Results

Figure 15-1: Process Flow for Determining Material Routing at Goldstrike

Figure 16-1: Goldstrike Reserve Pit (2019)

Figure 16-2: Gold Quarry Reserve Pit (2019)

Figure 16-3: Tri-Star Ultimate Reserve Pit (2019)

Figure 16-4: Emigrant Ultimate Reserve Pit (2019)

Figure 16-5: Underground Section and Plan

Figure 16-6: Plan View of Surface, Leeville Complex

Figure 16-7: Longitudinal Section View- Leeville Complex (looking east)

Figure 16-8: Isometric View of Northwest Exodus looking Northeast

Figure 16-9: Isometric View of Pete Bajo, Looking South

Figure 17-1: Simplified POX-CaTS-RIL Process Flow Diagram

Figure 17-2: Roaster Process Flow Diagram

 

   

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Figure 17-3: Heap Leach and CIC Gold Recovery Flowsheet

Figure 17-4: Mill 5 Block Flow Diagram

Figure 17-5: Mill 6 Block Flow Diagram

Figure 17-6: Simplified Process Flowsheet, Mill 6

 

   

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1.

EXECUTIVE SUMMARY

This report has been produced by Nevada Gold Mines, LLC (NGM) to support the public disclosure of the year end 2019 Mineral Resource and Mineral Reserve estimates at the Carlin Complex located in Nevada as of December 31, 2019. Certain references to NGM or Nevada Gold Mines LLC in this report also include NGM’s owners and their respective predecessors, as applicable.

The Carlin Complex is located near the towns of Carlin and Elko Nevada, USA, within the Carlin Trend which is the largest known concentration of gold deposits in North America (Figure 1-1).

The Carlin Complex came about due to the merging of the Newmont Corporation (Newmont) and Barrick Gold Corporation (Barrick) assets in the Carlin region as part of the NGM Joint Venture (JV). On March 10, 2019, Barrick entered into an implementation agreement with Newmont to create a joint venture combining the companies’ respective mining operations, assets, reserves and talent in Nevada, USA. This includes Barrick’s Cortez, Goldstrike, Turquoise Ridge and Goldrush properties (Barrick-Contributed Mines or, as applicable Goldstrike) and Newmont’s Carlin, Twin Creeks, Phoenix, Long Canyon and Lone Tree properties (Newmont-Contributed Mines). On July 1, 2019, the transaction closed, establishing NGM, and Barrick began consolidating the operating results, cash flows and net assets of NGM from that date forward. Barrick is the operator of the joint venture and owns 61.5%, with Newmont owning the remaining 38.5% of the joint venture. Certain of the disclosure contained in this report will reference Barrick’s practices for Barrick-Contributed Mines and Newmont’s practices for Newmont-Contributed Mines (rather than the consolidated practices of NGM for the Carlin Complex), either for historical purposes or because the applicable mines currently have noteworthy differences in practices. Information in this report for the period prior to July 1, 2019 in respect of any property discussed was collected or produced by the prior operator of the property (i.e., Barrick or Newmont).

Unless otherwise stated, all data in this report is reported on a 100% basis. Barrick previously disclosed detail of the Goldstrike property in multiple National Instrument 43-101 Standards of Disclosure for Mineral Projects (NI 43-101) reports (latest Roscoe Postle Associates Inc., 2019). With the formation of the NGM JV, Goldstrike has been incorporated into the Newmont Carlin (Newmont, 2019) property and the combined assets renamed the Carlin Complex. The Carlin Complex Resources and Reserves (R&R) in this report reflect these changes, and as such reflects a material change in the R&R numbers reported by Barrick.

 

   

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This report does not include information on the South Arturo property, located adjacent to the Goldstrike Mine, except where expressly indicated. South Arturo is a joint venture between Premier Gold Mines Limited (40%) and NGM (60%). The mineralized material from South Arturo is trucked to the Goldstrike Roaster and toll milled.

The Carlin Complex is a series of both open pit and underground operating mines, advanced projects, and seven processing facilities and associated infrastructure. The Complex’s operating mines and advanced projects include the Goldstrike open pit and underground mine, the Leeville underground mine, the Pete Bajo/Fence underground mine, the Exodus underground mine, the Genesis/Tri-Star Complex open pits (Goldstar and Silverstar), the Gold Quarry open pit, Emigrant open pit, and the satellite open pit deposits (Perry and Green Lantern). The Complex produces gold doré bars as the primary saleable product.

The effective date of this report is December 31, 2019. The Mineral Resource and Mineral Reserve estimates have been prepared according to the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) 2014 Definition Standards for Mineral Resources and Mineral Reserves dated May 10, 2014 (CIM (2014) Standards) as incorporated with in NI 43-101.

The total Measured and Indicated Mineral Resources inclusive of Mineral Reserves for the Carlin Complex, inclusive of South Arturo, is 350 million tonnes (Mt) at 2.70 g/t Au for 30 million ounces (Moz) of gold, with an additional Inferred Mineral Resources of 24 million tonnes (Mt) at 2.6 g/t Au for 2.0 million ounces (Moz) of gold (Table 1-1). These Mineral Resources are reported at 100% basis for all but South Arturo, which is reporting at 60%. The total Measured and Indicated Mineral Resources inclusive of Mineral Reserves for the Carlin Complex, exclusive of South Arturo, is 330 million tonnes (Mt) at 2.74 g/t Au for 29 million ounces (Moz) of gold, with an additional Inferred Mineral Resources of 21 million tonnes (Mt) at 2.8 g/t Au for 1.8 million ounces (Moz) of gold, on a 100% basis (Table 1-1). These Mineral Resources have been depleted to December 31, 2019 using the mined-out surfaces or expected depletion and voids. There were three open pit deposits within the Mineral Resources that were not updated due to no additional data or changes: Carlin – Perry, Emigrant and Lantern. None of these mines are currently in production or are planned for production before 2021.

The total Proven and Probable Mineral Reserves for the Carlin Complex, inclusive of South Arturo, are estimated to be 200 million tonnes (Mt) at 3.32 g/t Au, containing 21 million ounces (Moz) as of December 31, 2019. These Mineral Reserves are reported at 100% basis for all but South Arturo,

 

   

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which is reporting at 60%. The total Proven and Probable Mineral Reserves for the Carlin Complex, exclusive of South Arturo, are estimated to be 190 million tonnes (Mt) at 3.32 g/t Au, containing 21million ounces (Moz), on a 100% basis. The Carlin Complex Mineral Reserves Statement as of December 31, 2019 is shown in

 

   

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Table 1-2. Surface stockpiles represent approximately 24% of the total reserves.

The Qualified Persons (QPs) are not aware of any environmental, permitting, legal, title, socioeconomic, marketing, fiscal, metallurgical, or other relevant factors which could materially affect the Mineral Resource estimates.

 

   

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Table 1-1: Mineral Resources (inclusive of Reserves) Statement for the Carlin Complex as of December 31, 2019

 

                                                                                                                                                                                                  
Carlin Complex   Measured     Indicated     Measured + Indicated     Inferred  
 

 

Tonnes

 

Mt

   

Grade

 

g/t

   

Contained

 

Moz

   

Tonnes

 

Mt

   

Grade

 

g/t

   

Contained

 

Moz

   

Tonnes

 

Mt

   

Grade

 

g/t

   

Contained

 

Moz

   

Tonnes

 

Mt

   

Grade

 

g/t

   

Contained

 

Moz

 

Stockpile

 

     Gold Quarry     9.6       2.07       0.63                               9.6       2.07       0.63                          
     Tri-Star/Genesis      1.2       2.93       0.11                               1.2       2.93       0.11                          
     Carlin     2.5       2.69       0.22                               2.5       2.69       0.22                          
     Goldstrike UG     0.021       9.15       0.0062                               0.021       9.15       0.0062                          
     Goldstrike OP     48       2.66       4.1                               48       2.66       4.1                          
     Stockpile Subtotal     61       2.58       5.1                               61       2.58       5.1                          

    

                                                                                                    

Open Pit

 

     Gold Quarry     2.2       2.98       0.21       140       1.66       7.4       140       1.68       7.6       4.7       1.6       0.24  
     Tri-Star/Genesis      0.10       1.95       0.0063       28       1.39       1.3       28       1.39       1.3       4.5       0.9       0.13  
     Goldstrike     5.1       3.44       0.56       4.7       3.40       0.52       10       3.42       1.1       0.65       2.3       0.047  
     Carlin     0.082       0.67       0.0018       2.6       0.63       0.053       2.7       0.63       0.055       2.5       0.5       0.040  
     Rain/Emigrant                             16       0.42       0.22       16       0.42       0.22       0.4       0.4       0.0053  
     Lantern                             20       0.93       0.59       20       0.93       0.59       3.0       0.9       0.090  
     Open Pit Subtotal     7.5       3.25       0.79       210       1.48       10       220       1.54       11       16       1.1       0.55  
     Surface Total     69       2.65       5.8       210       1.48       10       280       1.77       16       16       1.1       0.55  

    

                                                                                                    

Underground

 

     Leeville     13       8.91       3.7       5.8       9.28       1.7       19       9.03       5.4       0.74       9.1       0.22  
     Portal Mines     2.9       7.47       0.7       5.5       6.53       1.1       8.4       6.85       1.8       1.8       6.5       0.37  
     Goldstrike     19       7.88       4.7       5.3       7.12       1.2       24       7.71       5.9       2.5       8.9       0.71  
    

Underground

Total

    34       8.23       9.1       17       7.68       4.1       51       8.05       13       5.0       8.1       1.3  
                                                                                                         

Total

(excluding  

South

Arturo)

         100       4.52       15       230       1.94       14       330       2.74       29       21       2.8       1.8  

South

Arturo

(60%)

         7.9       2.23       0.57       8.6       1.61       0.44       16       1.90       1.0       3.5       1.4       0.16  

Carlin

Total

         110       4.35       16       230       1.93       15       350       2.70       30       24       2.6       2.0  

Notes:

Mineral Resources are reported above at 100% basis except for South Arturo which is reporting at 60%. Barrick’s and Newmont’s attributable shares of the Mineral Resources are 61.5% and 38.5%, respectively.

The Barrick 2018 mineral resources were reported on an exclusive basis and exclude all areas that form mineral reserves; the Barrick 2019 Mineral Resources, including the Barrick-Contributed Mines associated with the Carlin Complex, are reported on an inclusive basis and include all areas that form Mineral Reserves, reported at a Mineral Resource cut-off and associated commodity price. As a result, the respective Barrick 2018 Mineral Resources are not directly comparable to that of the Barrick or Carlin Complex 2019 Mineral Resources.

The Mineral Resource estimate has been prepared according to CIM (2014) Standards.

The Mineral Resources were estimated using cut-off grades (COGs) of 0.21 g/t Au to 6.38 g/t depending on mine location, processing plant, and mining method.

All Mineral Resources in this table are reported inclusive Mineral Reserves.

Open pit Mineral Resources are those within a $1,500/oz cones or autopits.

Underground Mineral Resources utilize $1,500/oz MSO (Mine Stope Optimizer).

Numbers may not add due to rounding.

 

   

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Table 1-2: Carlin Complex Gold Mine Mineral Reserves (Metric) Summary as of December 31, 2019

 

                                                                                                                                                                         
         
          

Proven

 

    

Probable

 

    

Total

 

 
                   
Carlin Complex   

 

Tonnes

     Grade      Contained      Tonnes      Grade      Contained      Tonnes      Grade      Contained  
                     
           Mt      g/t      Moz      Mt      g/t      Moz      Mt      g/t      Moz  

Stockpile

 

   

Gold Quarry

     9.6        2.07        0.63                                   9.6        2.07        0.63  
   

Tri-Star/Genesis

     1.2        2.93        0.11                                   1.2        2.93        0.11  
   

Carlin

     2.5        2.69        0.22                                   2.5        2.69        0.22  
   

Goldstrike UG

     0.021        9.15        0.0062                                   0.021        9.15        0.0062  
   

Goldstrike OP

     47        2.68        4.0                                   47        2.68        4.0  
   

Stockpile Subtotal  

     60        2.59        5.0                                   60        2.59        5.0  

Open Pit

 

   

Gold Quarry

     1.4        2.96        0.14        58        2.04        3.8        59        2.06        3.9  
   

Tri-Star/Genesis

     0.080        1.66        0.0043        21        1.31        0.89        21        1.31        0.89  
   

Goldstrike

     4.7        3.68        0.55        4.3        3.64        0.51        9.0        3.66        1.1  
   

Rain

                                12        0.40        0.16        12        0.40        0.16  
   

Open Pit Subtotal

     6.2        3.49        0.69        96        1.74        5.3        100        1.85        6.0  
   

Surface Total

     66        2.68        5.7        96        1.74        5.3        160        2.12        11  
                                                                                      

Underground

 

   

Leeville

     9.0        10.32        3.0        3.8        10.63        1.3        13        10.41        4.3  
   

Portal Mines

     2.0        8.44        0.54        3.2        7.73        0.79        5.2        8.00        1.3  
   

Goldstrike

     10        9.53        3.2        2.5        9.06        0.73        13        9.44        3.9  
   

Underground

Total

     21        9.76        6.7        9.5        9.24        2.8        31        9.60        9.5  

Total

(excluding South Arturo)

         88        4.40        12        110        2.42        8.2        190        3.32        21  
South Arturo (60%)          3.5        3.53        0.40        1.4        2.67        0.12        4.9        3.28        0.52  
Carlin Total          91        4.37        13        110        2.42        8.3        200        3.32        21  

Notes:

Mineral Reserves are reported above at 100% basis except for South Arturo which is reporting at 60%. Barrick’s and Newmont’s attributable shares of the Mineral Reserves are 61.5% and 38.5%, respectively.

The Mineral Reserve estimate has been prepared according to CIM (2014) Standards.

The Mineral Reserves were estimated using cut-off grades (COGs) of 0.21 g/t Au to 7.99 g/t depending on mine location, processing plant, and mining method.

Open pit and underground Mineral Reserves are reported at a gold price of $1,200/oz within mine designs.

Numbers may not add due to rounding.

 

   

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Figure 1-1: Location Map for Carlin Complex

 

 

   

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1.1.

ECONOMIC ANALYSIS

This section is not required as Barrick is a producing issuer, the Complex is currently in production, and there is no material expansion of current production planned.

 

1.2.

TECHNICAL SUMMARY

Property Description and Location

The Carlin Complex is in Eureka County, near the towns of Carlin and Elko, Nevada USA within the high desert of the Basin and Range physiographic providence. The latitude and longitude of the center of the Carlin Complex is 40.778, and -116.197. The Carlin Complex mines are located within the Carlin Trend, a 64 kilometres (~40 miles) long concentration of multiple gold deposits. The mines are spread over the entirety of this 64 kilometre trend, at an elevation range of 1,585 to 2,720 metres (5,200 to 6,800 ft) above sea level.

Land Tenure

The plan boundaries of the Carlin Complex encompass more than 22,250 hectare (55,000 acres) which include about 12,141 hectares (30,000 acres) of private land (surface and minerals) owned or controlled by NGM, and approximately 10,117 hectares (25,000 acres) owned by the United States government that are administered by the United States Bureau of Land Management (BLM). These rights are owned or controlled through ownership of various forms of patents issued by the United States federal government and by ownership of unpatented mining and millsite claims held subject to the paramount title of the United States federal government.

Infrastructure

Mining has been an active industry in northern Nevada for more than 150 years. Elko, Nevada is a local hub for mining operations in northern Nevada and many services necessary for mining operations are readily available. A considerable amount of site infrastructure, including seven process plants (including roasters, autoclaves, and leach pads), maintenance workshops for heavy and light duty equipment, multiple tailings facilities, and waste facilities; offices, roads and rail connections; power, process and potable water facilities; and communication facilities are contained within the Carlin Complex.

 

   

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History

Initial prospecting for the Carlin Complex began in the South Area around Gold Quarry in 1870. By 1935, several small underground and surface mines had produced a few hundred tonnes of copper, lead, and barite. In 1925, a gold deposit was developed about 19 kilometres southeast of the Carlin deposit and is known as the Maggie Creek claims. The earliest gold mining activity in the northern part of the Carlin Trend occurred at the Bootstrap and Blue Star mines prior to the discovery of gold at Goldstrike. At Bootstrap, just northwest of Goldstrike, antimony was discovered in 1918, followed by gold in 1946. Gold was produced at Bootstrap from 1957 to 1960. At Blue Star, immediately south of Goldstrike, gold was identified in 1957 in areas that had been mined for turquoise.

The first discovery of gold in the Goldstrike Mine property was in 1962 by Atlas Minerals. Continued exploration by soil samples and drilling discovered low-grade gold mineralization at shallow depth. Until the first deep hole was drilled in 1986 at Post, discovering the Deep Post deposit. Exploration drilling from 1987 to 1988 led to the discovery of a number of other deposits similar to Deep Post. These included Betze and Screamer which, together with Deep Post, comprise the Betze-Post deposit. Other discoveries in 1987 and 1988 included Deep Star, Rodeo, Meikle (previously named Purple Vein), South Meikle, and Griffin.

Newmont commenced exploration on the Carlin Trend in 1961, investigating the Bluestar mine and Maggie Creek claims (Heitt, 2002). However, as negotiations to acquire the deposits were not successful, Newmont focused on exploring jasperoid outcrops located 4.5 kilometres southeast of Bluestar subsequently delineating the North Carlin deposit. Mining commenced with an open pit at Carlin in 1965. During the late 1980s, higher grade refractory mineralization was discovered in the north Carlin area. The South Area mines, Gold Quarry and Rain deposits, were discovered in 1980, and an additional 10 deposits were identified by 1988.

Geology

Gold deposits in the Carlin Complex operations are hosted by lower Paleozoic sedimentary rocks that are subdivided into three major packages: 1) an autochthonous shelf to outer shelf carbonate and clastic sequence (eastern assemblage rocks); 2) an allochthonous, predominantly eugeoclinal sequence (western assemblage rocks); and 3) a late Mississippian overlap assemblage.

 

   

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Early phase contractional thrusts and anticlines form important structural traps across the Carlin Trend. The orientation of mineralized stratigraphy and structures across the entire Carlin Trend correlate with orientations generated by earlier deformational events. These orogenic and tectonic events formed broad amplitude, N25º–35ºW-trending, northerly-plunging anticlines within autochthonous carbonate assemblage rocks that are now preserved in uplifted tectonic windows. All Carlin Complex deposits discovered have been within or adjacent to these windows. Structures on the Carlin Complex record a complex history of contractional and extensional tectonics and later reactivation during successive periods of deformation.

Gold mineralization was emplaced approximately 39 Ma ago along favorable stratigraphy and structural features such as faults and folds, and along contacts between sedimentary rocks and the intrusive rocks. Faulting provided major conduits for mineralizing fluids and may also have produced clay alteration that may have acted as a barrier to mineralizing fluids. Also, lithology and alteration contacts act as permeability barriers to fluids causing mineralization to pond along them particularly where feeder structures intersect these contacts.

Mineralization consists primarily of micrometer-sized gold and sulfides disseminated in zones of siliciclastic and decarbonated calcareous rocks and commonly associated with jasperoids. Mineralization is predominantly oxides, sulfides, or sulfide minerals in carbonaceous rocks, and the ore type determines how it is processed.

Exploration Status

To date, surface geological mapping and prospecting has been completed on the Carlin Complex, with pit mapping on-going. Over 77,000 core and reverse circulation (RC) holes have been drilled on the Complex to the end of 2019. Geochemical soil and rock sampling were carried out on the Carlin Complex in early exploration phases. Geophysical surveys include airborne and ground magnetometer; gravity; time domain pole-dipole induced polarization (IP); direct-current (DC) resistivity; controlled source audio magnetotellurics (CSAMT) and magnetotellurics (MT); time domain MT/IP using a distributed assay system; electrical logging of drill holes; and downhole IP. Gold mineralization is not directly detectable by geophysical methods; however, surveys identify subsurface properties that are useful in interpreting lithology, alteration, and structure as guides to gold mineralization. Aerial photographic surveys are performed frequently, from daily in the active mining and process areas, to every other year where no exploration or mining is occurring.

 

   

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In 2019, 19 exploration projects exclusive of grade control drilling were conducted on the Newmont-Contributed Mines, which included 14 underground programs and five surface programs. These programs included initial drill testing, infill drilling, and reserve definition drilling for a total of 42,108 metres using both RC and diamond core drilling methods. These programs began before the NGM JV but continued after the transaction was closed on July 1, 2019. The total drilling metres reported are for the full 2019 year.

In 2019, 15 growth and infill projects were conducted on the Barrick-Contributed Mines, which included initial drill testing, infill drilling, and reserve definition drilling for 736 drill holes for a total of 81,458 metres. The areas drilled included two underground exploration projects and three surface projects for 20,280 metres, three projects for Goldstrike open pit for 19,341 metres, and seven projects for Goldstrike underground for 41,837 metres. These projects used both reverse circulation and diamond core drilling with standardized approved assaying methods to facilitate the collection of structural, lithological, and mineralogical data. Drilling also included testing for new target zones and infill drilling to confirm ore reserves to extend known mineralization ahead of mining. These programs began before the NGM JV but continued after the transaction was closed on July 1, 2019. The total drilling metres reported are for the full 2019 year.

Mineral Resources

The Mineral Resource estimate has an effective date of December 31, 2019. The Mineral Resources are reported inclusive of Mineral Reserves. Total Measured and Indicated Mineral Resources for the Carlin Complex, exclusive of South Arturo, are estimated to be 330 Mt at 2.74 g/t Au for 29 Moz of gold, with an additional Inferred Mineral Resources of 21 Mt at 2.8 g/t Au for 1.8 Moz of gold as of December 31, 2019 (on a 100% basis, excluding South Arturo).

The Carlin Complex has experienced on-site staff dedicated to maintaining block models. Different resource estimation procedures and block models are used to estimate the different open pit and underground resources on the Carlin Complex. Grade estimation was completed using Inverse Distance Weighting (IDW), Ordinary Kriging (OK), Localized Indicator Kriging (LIK) and IDW using Dynamic Anisotropy (DA/IDW) with Maptek Vulcan. Mineral Resources were classified as Measured, Indicated, and Inferred Resources based on a combination of drilling density, geological continuity, spatial grade continuity, confidence and conditional simulation drill spacing studies. All

 

   

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blocks that have an estimated gold grade were subsequently classified based on the confidence in the estimation. Validation procedures were undertaken on the estimations. These included comparison of global mean grades, visual comparisons to composite grades, comparisons to reconciliation (when available), change of support corrections estimated using discrete Gaussian model under a diffusion model assumption (DGM or HERCO), grade-tonnage curves, slope of regression calculations, comparison to nearest neighbour analysis (bias check at the 0 cut-off), and swath plots.

Mineral Reserves

The Mineral Reserves are generated based upon the mine designs applied to the Mineral Resources. The design methodology uses cut-off grade estimates, confidence ratings, and economic assessment for validation. The Mineral Reserve estimates have been prepared utilizing acceptable estimation methodologies and the classification of Proven and Probable Reserves conforms to Canadian Institute of Mining (CIM) (2014) Standards.

Total Proven and Probable Mineral Reserves for the Carlin Complex, exclusive of South Arturo, are estimated to be 190 Mt at 3.32 g/t Au, containing 21 Moz of gold as at December 31, 2019 (on a 100% basis, excluding South Arturo). The Carlin Complex maintains a complex system of ore and low-grade stockpiles, making up approximately 24% of the total Mineral Reserves, which have been growing since the late 1980s.

The mine planning and economic analysis of the Carlin orebodies was developed from the LOM 2019 business plan. Detailed mine designs have been completed for all reserve open pits and underground mines using appropriate geotechnical parameters, mining methods based on geometry, mining access, geohydrological parameters, and costing structure based on the latest Life-of-Mine (LOM) plan.

Mining Methods

Open Pit

The Carlin Complex has three major open pit operations including Goldstrike, Gold Quarry and Goldstar (part of the Genesis/Tri-Star Complex). All three are truck and shovel operations. Blasting is required and blast patterns are laid out according to material type using rock type designations of

 

   

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hard, average, soft, or a combination of the three. The pit design varies between 6.1 metre to 12.2 metre (20 to 40 ft) benches and, where possible, up to 18.3 metre (60 ft) benches in the ore, though mined in 6.1 metre (20 ft) cuts. Slopes vary based on location.

The current mine equipment fleet will be used throughout the mine life and is shared with the other mines at the Carlin Complex. The number of loading and hauling units allocated to each deposit varies depending on the operational needs from the mine plans. The equipment list also includes the auxiliary equipment needed to support mining and the re-handling of the ore from the stockpile pad into the mill feeders.

Underground

The Carlin Complex has three major operating underground mines including Goldstrike underground, Leeville and the Portal Mines (including Pete Bajo and Exodus/Northwest Exodus). All mines utilize drift and fill and/or long-hole stoping and are accessed by shaft or portals. Ground conditions vary greatly in the different mining areas. Poor conditions in some areas are due to increased brecciation and/or alteration of original structures. Oxidation affects rock strengths in some areas and requires corrosion-resistant ground support. Generally low-strength rock conditions are the key factor in the mine design and mining method selection.

The underground mines utilize three forms of backfill including cemented rock fill (CRF), uncemented run of mine waste, and paste fill. All underground mines adhere to the ventilation requirements described in the Federal Metal and Non-metal Mine Safety, Health & Training Regulations 30 CFR 57.11050.

Secondary egress is provided through a series of escape raises and declines. In addition, there are refuge chambers strategically located throughout the mine in accordance with NGM’s Nevada refuge policies. The current underground production mobile equipment fleet across the Carlin Complex consists of load-haul-dump units, haul trucks, jumbos, longhole drills, bolters, and roadheaders. In addition, there are many function-specific utility vehicles and personnel carriers. The underground mining fleet can be shared across the different NGM operations as needed by the integrated mine plan.

 

   

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Mineral Processing

The Carlin Complex includes a series of integrated facilities to process ores from multiple open pit and underground sources, within the Carlin Complex as well as ore from other NGM mines. Plant facilities have the flexibility to treat the mineralization that is typical of the various Carlin-style deposits. Ores are classified based on gold grade, level of oxidation, refractory characteristics (e.g., presence of preg-robbing components in ore) and proximity to processing facilities. An integrated process production plan is now used to maximize economic returns as a synergy that was unlocked by the formation of NGM. The processing operations contained on the Carlin Complex include roasters, autoclaves, and leach pads and are below:

 

   

Mill 5 (flotation and cyanide leaching)

 

   

Mill 6 (Roaster)

 

   

South Area Leach

 

   

North Area Leach

 

   

Emigrant Area Leach

 

   

Goldstrike Autoclave

 

   

Goldstrike Roaster

Metallurgical Recovery

NGM has developed recovery calculations based on evaluation of historical data and test work. They have changed over time as the ore and operations have changed. As a result, the mill process and associated recovery factors are considered appropriate to support Mineral Resource and Mineral Reserve estimation, and mine planning.

Market Studies

Gold is the principal commodity at the Carlin Complex and is freely traded, at prices that are widely known, so that prospects for sale of any production are virtually assured. The Carlin Complex has many supply contracts in place for goods and services required to operate the open pit, underground mines and integrated processing facilities. The contracts for smelting and refining are normal course of business contracts for a large-scale producer.

 

   

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Environmental, Permitting, and Social Considerations

NGM has environmental teams and management systems to ensure that the necessary permits and licenses are obtained and maintained. These teams also carry out the required monitoring and reporting. Existing operations have been reviewed by the BLM and Nevada Division of Environmental Protection Bureau of Mining Regulation and Reclamation (NDEP-BMRR). BLM Nevada Environmental Policy Act (NEPA) analysis under an EA or EIS can result in Determination of NEPA Adequacy (DNA), Findings of No Significant Impacts (FONSI), or Record of Decision (ROD). These determinations are issued by the BLM for those operations where a Plan of Operations (PoO) contain public lands. The PoOs are updated and amended, as necessary, to allow for continuation of mining or additional mine development. Expansions may also require additional baseline studies and NEPA analysis.

Tailings are analysed and reported quarterly as part of the Water Pollution Control Permits (WPCP) requirements. Tailings impoundments are engineered structures requiring separate approval and strict monitoring and reporting requirements as regulated by the NDEP. The tailings facilities are also closely monitored and inspected for geotechnical stability by the State Division of Water Resources (DWR).

Initial planning for closure is included within all proposals and reclamation plan documents during the permitting process. Closure planning is integrated with mine and reclamation planning to the extent practicable during active operations. Concurrent reclamation of lands as mining progresses is a primary objective of NGM. These reclamation plans are reviewed regularly and are revised at a minimum of every three years to ensure adequate financial assurances have been put in place for required reclamation activities. Approvals are required from both the BLM and NDEP for reclamation and closure plan amendments and bond adjustments.

All NGM’s surface activities, including reclamation, comply with all applicable Federal and State laws and regulations. The fundamental requirement, implemented in 43 CFR 3809, is that all hard rock mining under a PoO or Notice on the public lands must prevent unnecessary or undue degradation to the environment. The PoOs and any modifications to the approved PoOs must also meet the requirement to prevent unnecessary or undue degradation.

 

   

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Capital and Operating Cost Estimates

Current LOM capital costs for the Carlin Complex are estimated to be $2,182 million (on a 100% basis). The major capital cost for the open pit will be capitalized waste stripping at the Goldstrike, Gold Quarry, and Goldstar open pits; sustaining capital, which consists primarily of equipment replacement capital and tailings expansion; underground mine development at Goldstrike, Leeville, and the Portal Mines; and capitalized drilling.

The total operating cost has been estimated by the Carlin Complex based on historical costs and assumptions for mining activities over the LOM plan (2020-2038). The operating costs are considered to be appropriate for the mining methods and processing.

 

1.3.

RECOMMENDATIONS AND CONCLUSIONS

Conclusions

Based on the total synthesis of the work, NGM offers the following conclusions.

Accessibility, Climate, Infrastructure, and Physiography

The existing and planned infrastructure, availability of staff, existing power, water, and communications facilities, and methods whereby goods can be transported to the mining operations are well-established and well-understood by NGM given the decades of experience that Barrick and Newmont have from their previous mining operations on the Carlin Trend.

Within NGM’s ground holdings, there is sufficient area to allow for the operation of all required project infrastructure, and sufficient room remains if expansions to the existing infrastructure are required.

Mining operations can be conducted year-round.

Geological Setting and Mineralization

The understanding of the deposit settings, lithologies, and geologic, structural, and alteration controls on mineralization is sufficient to support estimation of Mineral Resources and Mineral Reserves;

 

   

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The mineralization styles and settings are well understood and can support declaration of Mineral Resources and Mineral Reserves.

The geological knowledge of the area is adequate to reliably inform mine planning.

Deposit Types

The understanding of the deposit type was appropriate in guiding initial exploration activities, is suitable for current exploration programs, and is sufficient to support estimation of Mineral Resources and Mineral Reserves.

Exploration

The exploration programs completed to date are appropriate to the style of the deposits and prospects within the Carlin Complex. The Carlin Complex retains significant exploration potential, and additional work is planned.

Drilling

The quantity and quality of the RC and core drilling, lithological and geotechnical data, collar and downhole survey data collected in the exploration, delineation, and grade control drill programs are sufficient to support Mineral Resource and Mineral Reserve estimation.

Sample Preparation, Analyses, and Security

The QPs consider that the sampling, sample preparation and analytical methods are acceptable, meet industry-standard practice, and are adequate for Mineral Resource and Mineral Reserve estimation and mine planning purposes.

Data Verification

The process of data verification for the Carlin Complex has been performed by NGM personnel and external consultancies contracted by NGM.

The QPs have reviewed the reports and are of the opinion that the data verification programs undertaken on the data collected from the Carlin Complex adequately support the geological

 

   

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interpretations, the analytical and database quality, and therefore support the use of the data in Mineral Resource and Mineral Reserve estimation, and in mine planning.

All QPs have visited the Carlin Complex within the last year: Charles Lynn Bolin is based out at the Carlin Complex and has visited all sites; Steven Yopps visited in November, 2019; Craig Fiddes has visited each site regularly in 2019; Jay Olcott visited the site before or during 2019.

Observations made during the site visits, in conjunction with discussions with site-based technical staff also support the geological interpretations, and analytical and database quality. The QPs’ personal inspections support the use of the data in Mineral Resource and Mineral Reserve estimation, and in mine planning.

The QPs also receive and review monthly reconciliation reports (refer to Section 15.5). These reports support use of the underlying data in the Mineral Resource and Mineral Reserve estimates.

Mineral Processing and Metallurgical Testing

In the opinion of the QPs, the 2019 updates to the recovery equations for the Goldstrike facilities should allow these facilities to meet or exceed production commitments from the mineralization contained within the reserves and resources. The annual throughput at the Goldstrike facilities has steadily increased in recent years reflecting well-operated and maintained assets. The 2019 updates to the average roaster recoveries for the Newmont-Contributed Mines are reasonable and should adequately reflect the recoveries possible from the mineralization contained within the reserves and resources.

Mineral Resource Estimation

The Carlin block models and grade estimations are constructed in line with standard industry practices and in the opinion of the QPs provides adequate support for the Resource and Reserve updates.

Mineral Reserve Estimation

The Carlin reserve estimations are constructed in line with standard industry practices and in the opinion of the QPs provides adequate support for the Resource and Reserve updates.

 

   

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Mining Methods

In the opinion of the QPs, the mining methods used are appropriate to the geological, geotechnical and hydrogeological characteristics of each deposit and employ conventional mining tools and mechanization. The LOM plan has been appropriately developed to maximize mining efficiencies, based on the current knowledge of geotechnical, hydrological, mining and processing information on the Carlin Complex. The equipment and infrastructure requirements required for life-of-mine operations are well understood. The LOM fleet requirements are appropriate to the planned production rate and methods. The information provided herein depicts the short- and mid-term mine plans through 2038. Mine production schedules are subject to revisions and modifications responding to the factors listed in Section 16.6.

Recovery Methods

In the opinion of the QPs, the metallurgical flowsheets, parameters and recovery estimates are appropriate to define the production for the different mineralization styles encountered in the deposits.

Plant facilities have the flexibility to treat the mineralization that is typical of the various Carlin-style deposits.

Project Infrastructure

The QPs are of the opinion that no additional major mine facilities are anticipated based on the current Mineral Reserves. There is sufficient allocation for capital and operating costs for development of the deposit in the LOM financial plans and there is sufficient permitted space for residue disposal for the current LOM mining capacities.

Market Studies and Contracts

The terms contained within the sales contracts are typical and consistent with standard industry practice, and are similar to contracts for the supply of doré elsewhere in the world.

Metal prices used in this study have been set by Barrick and are appropriate to the commodity and mine life projections.

 

   

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Environmental Studies, Permitting, and Social or Community Impact

NGM currently has posted approximately $675 million in financial assurances in the form of letters of credit and surety bonds to cover mine closure costs for the Carlin Complex.

Carlin Complex operations have the required permits to operate or will be applying for the permits as required for mine development.

There are no specifically identified social or community requirements for the Carlin Complex, however, NGM is a prominent local business and applies industry best practice social and community engagement standards at its operation. Stakeholder engagement activities, community development projects and local economic development initiatives contribute to the maintenance and strengthening of the Carlin Complex SLTO.

Capital and Operating Costs

The QPs have reviewed the capital and operating cost provisions for the LOM plan that supports Mineral Reserves and considers that the basis for the estimates that include mine budget data, vendor quotes, and operating experience, is appropriate to the known mineralization, mining and production schedules, marketing plans, and equipment replacement and maintenance requirements.

Appropriate provision has been made in the estimates for the expected mine operating usages including labour, fuel and power and for closure and environmental considerations.

Capital cost estimates include appropriate sustaining estimates.

RECOMMENDATIONS

Based on the total synthesis of the work, the QPs offer the following recommendations:

Sample Preparation, Analyses, and Security

It is the QPs’ opinion that Barrick-Contributed Mines should adopt a field duplicate sampling procedure for core holes. It is also the QPs’ opinion that Barrick-Contributed Mines should proceed with the planned adoption of using umpire labs to verify primary lab assay results.

 

   

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Mineral Processing and Metallurgical Testing

The QPs recommend the Newmont-Contributed processing mines/facilities transition from an average fixed recovery for each ore body, to a grade/recovery relationship for each process facility. The QPs also recommend additional focus on the identification of ore domains within the geologic model to ensure that future metallurgical test work continues to leverage the updates to the geologic model to best effect.

Mineral Resources

The QPs recommend NGM continue work to build consistency in the approach to all aspects of resource and reserve estimation across the Carlin Complex. The use of trace element geochemistry has been successful in improving many of the geologic models. It is recommended that this work should be continued across all geologic models within the Carlin Complex.

NGM should continue work to on its understanding of the controls on spatial distribution of elements that are important for ore routing and processing. Use this knowledge to improve estimation domains, parameters, and validation of these elements.

Resource classification is performed using a variety of approaches across the Carlin Complex deposits. It is recommended that resource classification methodology and potential for improvement be evaluated and optimized across the site.

Mineral Reserves

The QPs recommend NGM continue the stockpile sampling program to confirm the grades and metallurgical characteristics, especially stockpiles that will be processed within the short term.

NGM should also continue the hydrogeologic and geotechnical studies for the Carlin Complex underground mines to support mine extensions as defined in the LOM.

 

   

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2.

INTRODUCTION

The purpose of this report is to support public disclosure of Mineral Resource and Mineral Reserve estimates at the Carlin Complex as of December 31, 2019. This report conforms to NI 43-101. The effective date of the Mineral Resource and Mineral Reserve estimates in this report is December 31, 2019, and information in this report is current as of that date unless otherwise specified.

Barrick is a publicly traded Canadian mining company with a large portfolio of operating mines and projects. Newmont is a publicly traded gold producer with a portfolio of operations and exploration projects, based in Denver, Colorado, USA. On March 10, 2019, Barrick entered into an implementation agreement with Newmont to create a joint venture combining the companies’ respective mining operations, assets, reserves and talent in Nevada, USA. This includes Barrick-Contributed Mines, which includes the Cortez, Goldstrike, Turquoise Ridge and Goldrush properties and Newmont-Contributed Mines, which include the Carlin, Twin Creeks, Phoenix, Long Canyon and Lone Tree properties. On July 1, 2019, the transaction closed, establishing NGM and Barrick began consolidating the operating results, cash flows and net assets of NGM from that date forward.

The Carlin Complex is located within the northern Carlin Trend on the western flank of the Tuscarora Mountains in Eureka and Elko Counties, north central Nevada, USA, approximately 38 mi northwest of Elko and 25 mi north of the town of Carlin.

The Complex consists of both open pit and underground operations. The major operations from north-to-south include; Goldstrike (both open pit and underground mines), North Area Carlin (multiple open pit mines including Tri-Star and Perry), Leeville (underground mine), Portal Mines (underground mines), Gold Quarry (open pit mine) and Rain/Emigrant (open pit mine).

A large amount of stockpiled ore, which has been accumulating since the late 1980s, makes up 25% of the Mineral Reserves.

Except for the purposes legislated under Canadian provincial securities laws, any use of this report by any third party is at that party’s sole risk.

 

   

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2.1.

SOURCES OF INFORMATION

All QPs have visited the Carlin Complex within the last year: Charles Lynn Bolin is based out of the Carlin Complex and has visited all the sites; Steven Yopps visited in November, 2019; Craig Fiddes has visited each site regularly in 2019; and Jay Olcott had worked at the Goldstrike underground from 2003 until 2010 as a mine geologist, and then worked at various Newmont-Contributed mines on the Carlin Complex until July 1, 2019. He again visited the Goldstrike Underground Mine in April 2019.

Discussions were held with the following NGM personnel:

 

   

Mr. Paul Wilmot, General Manager, Process

 

   

Mr. Duncan Bradford, General Manager Mining OP and UG

 

   

Ms. Tricia Evans, Mineral Resource Manager

 

   

Ms. Celeste Wilson, Resource Manager

 

   

Mr. Stuart Wilson, Carlin Surface open pit Chief Engineer

 

   

Mr. Graeme Stroker, Goldstrike open pit Chief Engineer

 

   

Ms. Heather Orr, Leeville underground Chief Engineer, PE

 

   

Mr. William Newman, Portal Mines underground Chief Engineer

 

   

Mr. John Stefanic, Goldstrike underground Chief Engineer

 

   

Mr. Michael Deal, Goldstrike Process Manager

 

   

Mr. Michael McGlynn, Operations Superintendent, Carlin Process

Certain operations of the Carlin Complex have been the subject of Technical Reports and resource/reserve technical audits as follows:

Barrick-Contributed Mines: Goldstrike

 

   

March 22, 2019, Technical Report on the Goldstrike Mine, Eureka and Elko Counties, Nevada, USA, Roscoe Postle Associates Inc.

 

   

April 25, 2017, Technical Report on the Goldstrike Mine, Eureka and Elko Counties, Nevada, USA, Roscoe Postle Associates Inc.

 

   

March 2012, NI 43-101 Technical Report, RPA (RPA, 2012)

 

   

December 2010, Mineral Reserve & Resource Review, RPA

 

   

December 2008, Mineral Reserve & Resource Review, Scott Wilson Roscoe Postle Associates Inc. (Scott Wilson RPA, a predecessor company to RPA)

 

   

June 29, 2008, 2008 Mid-year Model Review, Resource Modeling Inc.

 

   

January 2006, Reserve Procedure Audit, Scott Wilson RPA

 

   

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February 7, 2005, Review of Mineral Reserve Estimation Procedures, Scott Wilson RPA November 2004, Sarbanes Oxley Review, Scott Wilson RPA

Newmont-Contributed Mines:

 

   

All Carlin Open Pit and Underground Resource Model and Geology R&R Review/NI 43-101, Newmont (2019)

 

   

Gold Quarry R&R Database audit, AMEC (Wood.) (June 2011)

 

   

Leeville Complex R&R Database audit, RPA (2011)

NGM considers data from the operations conducted by Barrick and Newmont to be reliable.

Mr. Bolin reviewed the underground and open pit mine planning and production and is responsible for Sections 15 and 16. Mr. Yopps is responsible for Sections 13 and 17. Mr. Fiddes reviewed the resource estimates and is responsible for Section 14. Mr. Olcott reviewed and is responsible for Sections 4 to 12. The authors share responsibility for Sections 1 to 3, and 18 to 27 of this report.

This report does not include information on the South Arturo property, located adjacent to the Goldstrike Mine, except where expressly indicated. South Arturo is a joint venture between Premier Gold Mines Limited (40%) and NGM (60%). The mineralized material from South Arturo is trucked to the Goldstrike Roaster and toll milled.

The documentation reviewed, and other sources of information, are listed at the end of this report in Section 27 References.

 

   

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3.

RELIANCE ON OTHER EXPERTS

This report has been prepared by NGM for Barrick and Newmont. The information, conclusions, opinions, and estimates contained herein are based on:

 

   

Information available to NGM at the time of preparation of this report; and

 

   

Assumptions, conditions, and qualifications as set forth in this report.

The properties and mineral rights are owned or controlled through ownership of various forms of patents issued by the USA and by ownership of unpatented mining and millsite claims held subject to the paramount title of the USA.

NGM has relied on Barrick for guidance on applicable taxes, royalties, and other government levies or interests, applicable to revenue or income from the Carlin Complex.

 

   

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4.

PROPERTY DESCRIPTION AND LOCATION

 

4.1.

MINERAL TENURE AND SURFACE RIGHTS

The Carlin Complex is located near the towns of Carlin and Elko Nevada, USA within the Carlin Trend the largest concentration of gold deposits in North America. The latitude and longitude of the center of the Carlin Complex is 40.778, and -116.197. Nevada mining and exploration companies have discovered over 40 deposits along the 64 kilometres (38-mile long), north-northwest-oriented Carlin Trend.

NGM is a joint venture between Barrick and Newmont. Barrick is the operator of the joint venture and owns 61.5%, with Newmont owning the remaining 38.5%.

The Carlin Complex consists of both open pit and underground operations, advanced projects, seven processing facilities and associated infrastructure. The Carlin Complex’s operating mines and advanced projects include the Goldstrike open pit and underground operation, the Leeville underground mine, the Pete Bajo/Fence underground mine, the Exodus underground mine, the Genesis/Tri-Star open-pit complex (Goldstar and Silverstar), the Gold Quarry open pit, the Rain/Emigrant open pit and satellite open pit deposits (Perry and Green Lantern). Current land ownership is shown in Figure 4-1.

The plan boundaries of the Carlin Complex encompass more than 22,250 hectares (55,000 acres) which include about 12,141 hectares (30,000 acres) of private land (surface and minerals) owned or controlled by NGM, and approximately 10,117 hectares (25,000 acres) owned by the United States government that are administered by the BLM. These rights are owned or controlled through ownership of various forms of patents issued by the United States federal government and by ownership of unpatented mining and millsite claims held subject to the paramount title of the United States federal government. Patented and fee lands require annual payment of tax assessments to Elko and Eureka Counties. The Carlin Complex controls 1,306 unpatented mining and mill-site claims. The claims are located on public lands and are held subject to the paramount title of the United States federal government. The claims are maintained on an annual basis, and do not expire as long as the maintenance fee payments are timely filed with the BLM. Details of the claims are a matter of public record, available at the BLM Land & Mineral Legacy Rehost System (LR2000 website).

 

   

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Ownership maps for the individual operating areas are shown in Figure 4-2 through Figure 4-5.

A number of agreements exist with different parties, and these are monitored using a land management database. The data managed includes contractual obligations, leases, associated payments, parties to agreements, and locations and details of the properties that the agreements cover. All mining leases and subleases are managed and reviewed on a monthly basis and all payments and commitments are paid as required by the specific agreements. The database covers both monetary obligations such as lease payments and non-monetary obligations such as third-party required reporting, work commitments, taxes, and contract expiry dates. The agreements that NGM has with third parties on the Carlin Complex are monitored using this database.

Royalties

There are numerous royalties that pertain to the active mines within the Carlin Complex operations. Royalty payments vary, as the payments depend upon actual tonnages mined, and the amount of gold recovered from that mined material. The Goldstrike property has various royalty holders with a maximum overriding net smelter royalty of 4% and net profit interest royalties of between 2.4% and 6% over various parts of the property. In connection with the formation of NGM, each of Barrick and Newmont was granted a 1.5% net smelter returns royalty over the respective properties they contributed (including the Goldstrike and Newmont-Contributed Mines). Each of these “retained royalties” is only payable once the aggregate production from the properties subject to the royalty exceeds the publicly reported reserves and resources as of December 31, 2018.

Key royalty stakeholders are:

 

   

Franco-Nevada US: South Arturo, 4% - 9% variable Gross Smelter Royalty (GSR)

 

   

Franco-Nevada US: Gold Quarry, 7.29% Net Smelter Royalty (NSR)

 

   

Royal Gold: Carlin, Leeville 5% NSR

 

   

Sandstorm Gold Royalties: Emigrant/Rain, 1.5% NSR

 

   

EUX Royalty: Leeville, 1% GSR

 

   

Franco-Nevada US: Goldstrike, 2- 4% NSR, 2.4-6% Net Profit Interest (NPI)

 

   

Royal Gold Inc.: Goldstrike, 0.9% NSR

In addition, the State of Nevada imposes a 5% net proceeds tax on the value of all minerals severed in the State. The tax is calculated and paid based on a prescribed net income formula, which is different from book income.

 

   

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Figure 4-1: Location Map for Operations on the Carlin Complex

 

   

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Figure 4-2: Land Ownership for Goldstrike

 

 

   

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Figure 4-3: Land Ownership for North Area Carlin and Carlin Underground

 

   

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Figure 4-4: Land Ownership for Gold Quarry

 

   

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Figure 4-5: Land Ownership for Rain/Emigrant

 

   

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In order to minimize environmental liabilities on the property, NGM has secured all required environmental permits and conducts work in compliance with these permits. Additionally, NGM complies with all applicable legal and other obligations. Within NGM’s ground holdings, there is sufficient area to allow for the operation of all required project infrastructure, and sufficient room remains if expansions to the existing infrastructure are required. The QPs are not aware of any other significant factors and risks that may affect access, title, or the right or ability to perform the proposed work program on the property.

 

   

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5.

ACCESSIBILITY, CLIMATE, LOCAL RESOURCES INFRASTRUCTURE, AND PHYSIOGRAPHY

 

5.1.

ACCESSIBILITY

Primary access to the Carlin Complex is from Interstate 80. Access for the Carlin Complex is generally from Elko, NV, 26 miles west on Interstate I-80 to Carlin, Nevada which is the closest town to the mine sites and is located just off the Interstate. In addition, various alternate access routes use Nevada State Route 766, and Elko and Eureka County roads. These roads are well maintained, and most are paved.

The Carlin Complex is also crossed by a network of gravel roads, providing easy access to various portions of the site. All roads are suitable for all weather conditions. However, in extreme winter conditions, roads may be closed for a few hours for snow removal.

The Union Pacific Rail line runs parallel to Interstate 80 in the area of the Carlin Complex. NGM operates the Dunphy Rail Terminal, which is located 43 kilometres (27 miles) west of Carlin, for the transportation of bulk commodities such as lubricants, fuel, and mill balls. These bulk commodities are transported from the Dunphy Rail Terminal over the road via commercial trucking services to each site. Improved logistics for the transport of bulk commodities through the Dunphy Rail Terminal to all operations within NGM was a synergy unlocked by the formation of the joint venture.

Elko, the nearest and largest city to the Carlin Complex, is serviced by daily commercial flights to Salt Lake City, Utah.

 

5.2.

CLIMATE

The Carlin Complex is situated in the high desert region of the Basin and Range physiographic province. Precipitation averages 23 to 33 cm (9 to 13 inches) per year across the Complex primarily derived from snow and summer thunderstorms. There are warm summers and generally mild winters

 

   

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however overnight freezing conditions are common during winter. The mean annual temperature is 10°C (51ºF) and ranges from minus 39°C to 40°C (minus 38ºF to 104ºF).

The effect of climate on the operations is minimal and operations are possible at the project year-round.

 

5.3.

LOCAL RESOURCES AND INFRASTRUCTURE

The Carlin Complex is located in a major mining region and local resources including labour, water, power, natural gas, and local infrastructure for transportation of supplies are well established. Mining has been an active industry in northern Nevada for more than 150 years. Elko (pop. 20,300) is a local hub for mining operations in northern Nevada and services necessary for mining operations are readily available. The majority of the workforce lives in the nearby towns of Elko, Carlin (pop. 2,400), Spring Creek (pop. 12,400), and Battle Mountain (pop. 3,600).

Surface rights and sufficiency of the rights to support current and planned mining operations is discussed in Section 4.0.

Currently, the major infrastructure for the Carlin Complex are:

 

   

Underground and open pit mines with production from several mineralized zones;

 

   

The physical plant sites including the administrative office complexes and associated facilities, the open pit and underground mine workings and associated facilities, ore processing plants and associated facilities such as laboratories, ore stockpiles, waste dumps, coarse ore storage, tailings storage, workshops, and warehouses;

 

   

Facilities providing basic infrastructure to the mine, including electric power, water treatment and supply, and sewage treatment; and

 

   

Surface and underground infrastructure including mine ramps, headframes, hoists, ventilation raises, maintenance shops, and mobile equipment fleets.

Detailed site infrastructure is discussed in Section 18.

 

5.4.

PHYSIOGRAPHY

The Carlin Complex is situated within the Great Basin, a part of the Basin and Range geologic province. This environment is a high desert where there is relatively little precipitation.

 

   

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Carlin Complex operations are located between elevations of 1,585-2,072 m (5,200–6,800 ft) above mean sea level.

The vegetation found in this area consists of primarily shrubs such as sagebrush and rabbitbrush. Juniper trees and a variety of grasses are also present. In general, vegetation is relatively sparse.

 

5.5.

COMMENTS ON ACCESSIBILITY, CLIMATE, INFRASTRUCTURE, AND PHYSIOGRAPHY

In the opinion of the QPs, declaration of Mineral Resources and Mineral Reserves are supported with the following findings:

 

   

The existing and planned infrastructure, availability of staff, existing power, water, and communications facilities, and methods whereby goods can be transported to the mining operations are well-established and well-understood by NGM given the decades of experience that Barrick and Newmont have from their previous mining operations on the Carlin Trend;

 

   

Within NGM’s ground holdings, there is sufficient area to allow for the operation of all required project infrastructure, and sufficient room remains if expansions to the existing infrastructure are required; and

 

   

Mining operations can be conducted year-round.

 

   

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6.

HISTORY

 

6.1.

DISTRICT HISTORY

Initial prospecting for the Carlin Complex began in the South Area around Gold Quarry in 1870. By 1935 several small underground and surface mines had produced a few hundred tonnes of copper, lead, and barite. In 1925, a gold deposit was developed about 19 kilometres southeast of the Carlin deposit and is known as the Maggie Creek claims. Mining started here as an open-pit mine, using steam shovels and approximately 54 tonnes of mineralized material was extracted in 1936 (Castor and Ferdock, 2003).

Early mining activities in the northern Carlin Complex included exploitation of the Lynn Creek gold placers in 1907, antimony from the Bootstrap area in 1918, the Big Six auriferous quartz veins in the 1930s, the Number 8 turquoise mine in 1925, and disseminated gold from the Bootstrap deposit in 1958.

 

6.2.

HISTORY OF THE CARLIN COMPLEX

Barrick-Contributed Mines

The following history of the Goldstrike property was obtained from Keith Bettles’ report (Bettles, 2002) and includes the history of both the Goldstrike open pit (Betze-Post) and Goldstrike underground (Meikle and Rodeo).

The earliest gold mining activity in the northern part of the Carlin Trend occurred at the Bootstrap and Blue Star mines prior to the discovery of gold at Goldstrike. At Bootstrap, just northwest of Goldstrike, antimony was discovered in 1918, followed by gold in 1946. Gold was produced at Bootstrap from 1957 to 1960. At Blue Star, immediately south of Goldstrike, gold was identified in 1957 in areas that had been mined for turquoise. At the Goldstrike, the only evidence of early mining activities is small workings for mercury of unknown age, located along the Post Fault Zone, south of the Meikle deposit.

The first discovery of gold in the Goldstrike Mine property was in 1962 by Atlas Minerals. Soil samples and drilling discovered low-grade gold mineralization. No further work was conducted until

 

   

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an increase in gold price was seen in 1973 to 1974, which led the Nevada Syndicate (funded by Lac Minerals) to re-evaluate the area. Using various exploration methods, shallow mineralization in the Long Lac and Winston areas was outlined. Polar Resources (Polar) in 1975, followed by Pancana Minerals Ltd. (Pancana) from 1976 to 1977, delineated the Number 9 deposit and several low-grade zones within the Goldstrike intrusion to the east of Nevada Syndicate property. From 1975 to 1977, Polar and Pancana operated a small open pit and heap leach.

In 1978, Western States Minerals Corporations (WSMC) entered into a 50/50 joint venture with Pancana, which had consolidated the various claims and leases in Goldstrike. The bulk of the production was from oxidized zones, chiefly from the Long Lac, Bazza, and West Bazza deposits, plus some production from deposits within the Goldstrike intrusion. The Post deposit was discovered in 1982. Exploration continued until 1986 when a deep core hole was drilled at Post and the Deep Post deposit was discovered.

American Barrick Resources Corporation acquired the mine and properties from WSMC (50%) in December 1986 and subsequently purchased Pancana’s interest (50%) in January 1987 for a total purchase price of $62 million. An aggressive deep drilling program outlined the large, high-grade Deep Post deposit, which was subsequently found to continue onto the adjacent property owned by Newmont. Exploration drilling from 1987 to 1988 led to the discovery of a number of other deposits similar to Deep Post. These included Betze and Screamer which, together with Deep Post, comprise the Betze-Post deposit. Other discoveries in 1987 and 1988 included Deep Star, Rodeo, Meikle (previously named Purple Vein), South Meikle, and Griffin.

Additional drilling in 1987 and 1988 expanded the reserve to justify bringing the Betze-Post deposit into production by open pit methods. Even though the deposit was deep, the size and grade allowed for economic development. Heap leach ore production from the Betze-Post pit continued from the time of purchase to the end of 1998. Oxide mill ore processing started in August 1988 and the autoclave portion of the mill, which oxidizes sulphide ores, commenced operation in early 1990. The processing of ores by the roaster began in 2000.

The Meikle deposit, formerly known as the Purple Vein, is located approximately 2.4 kilometres north-northwest of the Betze-Post deposit and is currently in production. The deposit is approximately 244 metres to 610 metres below the surface. Although there is very little gold at the surface above the Meikle, Rodeo/Goldbug, and Griffin deposits, there is extensive silicification of the rocks along fault zones and a weak arsenic anomaly has been detected in soil samples. The Meikle

 

   

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deposit was discovered in September 1989 when the tenth deep drill hole EX-89-4 intersected 165 metres of 14.1 g/t Au from 398 metres to 562 metres. This hole was targeted at an inferred structural intersection associated with induced polarization (IP) geophysical and soil geochemistry anomalies. Gold mineralization is absent at surface (in contrast to the Betze-Post deposit), although the area was the site of small-scale mercury workings in the 1940s.

Discovery of the Rodeo and Griffin deposits were part of the original deep exploration program. Both predate the discovery of Meikle. The discovery of the Rodeo deposit was in June 1988 and Griffin in July 1988. Their development since discovery has been significantly aided by the knowledge gained from the Meikle mine and from the underground access from the Meikle mine.

On May 3, 1999, Newmont and Barrick completed a transaction known as the asset exchange. The purpose of the asset exchange was to rationalize the ownership and control of both the surface and subsurface estates that were jointly owned by the parties and to reduce the number of complex agreements that were needed to permit efficient operation and development of properties owned by both companies.

As a result of these exchanges, Goldstrike obtained: (1) the land needed for the development of the west end of the Betze-Post open pit; (2) control of the open pit, including the right to backfill the pit; (3) control of other lands important to its security that were needed for waste rock facilities; (4) the underground deposits adjacent to its Meikle and Rodeo mines.

The 1999 Asset Exchange with Newmont resulted in the acquisition by Barrick of the Goldbug (the southern portion of Rodeo), West Rodeo, Barrel, and North Post deposits. These deposits were in the Newmont land corridor separating the Betze-Post and Meikle mines. The Banshee property north of the Meikle was also part of the exchange.

Newmont-Contributed Mines

Newmont commenced exploration on the Carlin Trend in 1961, investigating the Bluestar mine and Maggie Creek claims (Heitt, 2002). However, as negotiations to acquire the deposits were not successful, Newmont focused on exploring jasperoid outcrops located 4.5 kilometres southeast of Bluestar subsequently delineating the Carlin deposit. Mining commenced with an open pit at Carlin in 1965.

 

   

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In 1972, the Bluestar and Bootstrap deposits were acquired. In 1977, the Northstar deposit was discovered north of Bluestar. Mineralization was treated through Mill 1, an oxide mill.

During the 1970s, a number of processes were used to treat different ore types, including the addition of a flash chlorination circuit and a double oxidation process to Mill 1 and heap leach pads at Bootstrap and Maggie Creek.

The Gold Quarry and Rain deposits were discovered in 1980, and an additional 10 deposits were identified by 1988. As a result of the discoveries, additional processing facilities were constructed to treat the open-pit ores.

Newmont commissioned the Mill 2 oxide mill at Gold Quarry in 1985, followed by Mill 3 at Rain and Mill 5 at Gold Quarry in 1988, and Mill 4 in the North Area in 1989. The Mill 6 Roaster was commissioned at Gold Quarry in 1994. Oxide leach pads were also constructed at Rain, Gold Quarry, and the North Area.

During the late 1980s, higher grade refractory mineralization was discovered. Mining activities of this mineralization include:

 

   

Carlin East – located in the East Carlin pit in the North Area. Mining started in 1994; inactive since 2010;

 

   

Rain – located in the Rain pit south of Carlin. Mining started in 1994; inactive since 2002;

 

   

Deep Star – located in the Genesis pit in the North Area Carlin. Mining started in 1995 and closed in 2011;

 

   

Deep Post – located in the Betze Post pit. Mining started in 2001 and closed in 2009;

 

   

Leeville – Mining started in 2005 and is still in progress;

 

   

Chukar – located in the Gold Quarry pit. Mining started in 2002 and was completed in 2019;

 

   

Exodus – located in the Lantern pit in the North Area Carlin. Mining started in 2010 and is still in progress;

 

   

Northwest Exodus – accessed from the Exodus mine. Mining started in 2016 and is still in progress;

 

   

Pete Bajo – located in the Pete pit in the North Area Carlin. Mining started in 2011 and is still in progress; and

 

   

Pete Bajo - Full House – Part of the Pete Bajo mine, located between Pete Bajo and Leeville with material extracted through both mines. Mining commenced in 2012 and

 

   

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was suspended in 2013; however, capital development to return to active mining recommenced in 2018.

 

6.3.

PRODUCTION HISTORY

Barrick-Contributed Mines

Production from the underground operations at Goldstrike for the past 10 years is listed in Table 6-1.

Table 6-1: Historical 10-Year Underground Mine Production - Goldstrike

 

Mine  

 Production 

(years)

 

 Ore Produced 

(Mtonnes)

 

 Contained Ounces 

(koz)

 

Mine

    Status    

Goldstrike Underground

  2010-2019   12.73   3,874   Active

Production from the open pit operations at Goldstrike for the past 10 years is listed in Table 6-2.

Table 6-2: Historical 10-Year of Open Pit Mine Production - Goldstrike

 

Mine  

 Production 

(years)

 

 Ore Produced 

(Mtonnes)

 

 Contained Ounces 

(koz)

 

Mine

    Status    

Goldstrike Open Pit

  2010-2019   56.06   7,488   Active

Production at Goldstrike has varied on an annual basis, with the largest annual variance in production being the open pit mining, where ore production is a function of the ore availability in the pit. The large annual variance is smoothed through the use of stockpiles.

Newmont-Contributed Mines

Production from open pit operations including North Area Carlin (Tri-Star), Gold Quarry and Emigrant for the last 10 years is summarized in Table 6-3 by mine.

Table 6-3: Historical 10-Year Open Pit Mine Production - Carlin

 

Mine  

Historical

 Production 

(years)

 

Ore

 Produced 

 (Mtonnes) 

 

 Contained 

Gold

(koz)

 

Mine

  Status  

Gold Quarry     2010-2019     66.34   3,387   Active
Emigrant   2010-2019   71.56   1,298   Inactive
Tri-Star   2010-2019   46.83   1,967   Active

 

   

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Production for the underground operations at Carlin including Leeville, Pete Bajo, Chukar and Exodus, by mine site, is presented in Table 6-4 by mine.

Table 6-4: Historical 10-Year Underground Mine Production—Carlin

 

Mine  

Historical

 Production 

(years)

 

Ore

 Produced 

 (Mtonnes) 

 

 Contained 

Gold

(koz)

 

Mine

  Status  

Chukar    2009 – 2019    3.73   793   Closed
Exodus   2010 – 2019   3.32   835   Active
Leeville   2009 – 2019   16.9   5,769   Active
Pete Bajo   2011 – 2019   2.06   590   Active

 

   

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7.

GEOLOGICAL SETTING AND MINERALIZATION

 

7.1.

REGIONAL GEOLOGY

The geology of northern Nevada displays a complicated sequence of orogeny and tectonism, summarized below from Stewart (1980) and Jory (2002):

 

   

Lower Paleozoic: From the Cambrian to Early Mississippian, the northern portion of Nevada was situated along a stable paleo-continental margin. A westward-thickening, prism-shaped sedimentary package was deposited from the outer margins of the paleo-continental shelf into an adjacent oceanic basin. The western sedimentary package comprised predominantly siliciclastic rocks whereas the eastern portion of the sedimentary package consisted mainly of silty carbonate rocks;

 

   

Late Devonian-Early Mississippian: Compressional tectonism associated with the Late Devonian to Middle Mississippian Antler Orogeny resulted in regional-scale folding and east-directed imbricate thrusting of the westernmost siliciclastic package over the eastern carbonate package along the Roberts Mountains Thrust. The accreted mass formed the Antler highlands. Erosion during the Middle Mississippian to Early Pennsylvanian shed an easterly-directed overlap assemblage of clastic rocks;

 

   

Mesozoic: Late Paleozoic tectonism during Early to Middle Pennsylvanian time (Humboldt Orogeny) was followed by deposition of shelf carbonate sequences during Middle Mississippian to Early Pennsylvanian. A third period of resumed uplift and folding, possibly related to the Early Triassic Sonoma Orogeny, was followed by yet another period of eastward-directed folding and thrusting during the Early Cretaceous Sevier Orogeny. These uplifts were accommodated by north-northwest striking faults and associated north0nothwest trending upright folds;

 

   

Late Jurassic: Late/post-Elko Orogeny plutonism included c. 158 Ma emplacement of the granodiorite Goldstrike stock, Little Boulder Basin and Vivian stocks/dikes, and contact metamorphism;

 

   

Eocene: Extension and magmatism with coeval main-stage (36–40 Ma) gold mineralization and Tertiary dikes; and

 

   

Miocene: 14–20 Ma basin-and-range extension occurred with north–south faulting, deposition of Carlin Formation volcaniclastic sediments in basins, and exposure of lower Paleozoic rocks.

The orogenic and tectonic events formed broad amplitude, N25º–35ºW-trending, northerly-plunging anticlines within autochthonous carbonate assemblage rocks that are now preserved in uplifted tectonic windows along the Carlin Trend, a 64- kilometres -long, northwesterly-trending alignment of predominantly carbonate-hosted gold deposits, which accounts for more gold production than any

 

   

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other mining district in the United States. From north to south these tectonic windows include Bootstrap, Lynn, Carlin, and Rain. All the Carlin Trend gold deposits discovered to date occur either within or proximal to these tectonic windows. A simplified geologic plan of the Carlin area is shown in Figure 7-1, and is comprised predominantly of the major deposits identified to date on the trend, including deposits that are not held by NGM.

The collision between Antler terrane and the North America plate induced higher crustal temperatures and pressures which produced numerous hot springs along the suture zone. Several episodes of subsurface magmatism are known to have occurred subsequent to the collision. During these episodes, and particularly during the Eocene epoch, hydrothermal fluids brought dissolved minerals toward the surface, precipitating them out along fissures. Among these minerals were gold and silver. Most of the largest gold deposits lie within 107 metres of the Roberts Mountains Thrust at the base of the allochthon. A geochronologic study indicates that most of the gold in the Carlin Trend was emplaced over a short interval of time between approximately 42 and 36 Ma. Analyses of the sulphosalt galkhaite from the Rodeo deposit at the Goldstrike Mine have yielded a mineralization age of 39.8 ± 0.6 Ma.

 

   

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Figure 7-1: Simplified Geologic Map, Carlin Trend

 

From Rhys, Valli, Burgess, Heitt, Griesel and Hart (2015).

 

   

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7.2.

LOCAL AND PROJECT GEOLOGY

Project Geology

The stratigraphic sequence from the base is as follows: Silurian-Devonian Roberts Mountains (Roberts Mountains) Formation silty/fossiliferous/laminated limestones and sedimentary breccias; Devonian Popovich limestones, limey mudstones and sedimentary breccias; Devonian Rodeo Creek siltstones and argillites; and Ordovician Vinini Formation siltstones, mudstones, and cherts. These formations have been intruded by the Goldstrike stock and other Jurassic diorite dikes and sills as well as by Tertiary dikes and sills. The Vinini Formation rocks, which lie mostly east of the pit, have been thrust over the younger units along the Roberts Mountains. Unconformably overlying the older units are volcaniclastic sedimentary rocks, tuffs, and gravels of the Tertiary-aged Carlin Formation, which was succeeded by Quaternary alluvium.

The Slaven, Elder, and Vinini Formations contain similar lithologies and are usually collectively referred to as the Vinini Formation. The regional Roberts Mountains Thrust fault separates the Vinini Formation and the Rodeo Creek Unit. The Rodeo Creek Unit has been subdivided into four units: (1) a lower calcareous mudstone-argillite unit; (2) a calcareous sandstone unit; (3) a calcareous mudstone, siltstone, and argillite unit; and (4) an upper carbonaceous limestone unit.

The Popovich Formation is subdivided into four units: (1) the lower Wispy Unit, which consists of wispy laminated muddy to silty limestone with abundant interbedded debris flows; (2) the planar unit consisting of thin planar bedded muddy limestone, (3) the soft-sediment deformation unit of thick to medium bedded muddy to micritic limestone with occasional soft-sediment deformation features; and (4) the upper muddy limestone unit consisting of thin to medium bedded muddy limestone.

The Roberts Mountains Formation is subdivided by a facies change from north to south. In the south, from the Betze-Post open pit through the Rodeo underground mine, a thin bedded, planar laminated silty limestone basinal facies predominates with an upper coarse wispy laminated horizon. To the north of the Rodeo underground mine, the Bootstrap massive fossiliferous limestone is present. This facies relationship reflects a Roberts Mountains high related to reef development along the Paleozoic continental margin. The Popovich Formation thins to the north in response to the Roberts Mountains high, and both the Popovich and the Roberts Mountains units show local facies transitions with the Bootstrap limestone. At Betze-Post through Rodeo, there is a full section of Popovich, however, at

 

   

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the north end of Meikle, only the upper member of the Popovich is present. The Roberts Mountains high at Meikle has been accentuated by high and low angle reverse faulting.

The Hanson Creek Formation is a medium to thick bedded to massive dolomite to sandy dolomite. Drilling to date on the property has intercepted only the top of the Hanson Creek Formation. The Eureka quartzite thickness ranges from a massive to thinly bedded orthoquartzite with local lenses of dolomite. The Pogonip Group contains thin to thick bedded limestone, cherty limestone, and dolomite.

Local Settings

Gold deposits operated on the Carlin Complex in the Carlin Trend are hosted by lower Paleozoic sedimentary rocks that are subdivided into three major packages:

 

   

An autochthonous shelf to outer shelf carbonate and clastic sequence (eastern assemblage rocks);

 

   

An allochthonous, predominantly eugeoclinal sequence (western assemblage rocks); and

 

   

A late Mississippian overlap assemblage.

The autochthonous sequence, comprising the Roberts Mountains, Popovich and the Rodeo Creek Formation, is host to the majority of gold deposits on the Carlin Trend and within the Carlin Complex operations, with most deposits occurring in the upper 400 to 500 metres, structurally beneath the Roberts Mountains thrust. The Roberts Mountains Formation is host to such gold deposits as Carlin, Betze, West Leeville, Pete, Screamer, Deep Post, Goldbug–Post, and Mike. The Popovich Formation and equivalent rocks are host to gold deposits at Betze–Post, Genesis–Blue Star, Gold Quarry (Deep West), Meikle, Goldbug–Rodeo, Deep Star, Bootstrap-Capstone, and Dee-Storm. The Popovich Formation is subdivided into four units: (1) the lower Wispy Unit, which consists of wispy laminated muddy to silty limestone with abundant interbedded debris flows; (2) the planar unit consisting of thin planar bedded muddy limestone, (3) the soft-sediment deformation unit of thick to medium bedded muddy to micritic limestone with occasional soft-sediment deformation features; and (4) the upper muddy limestone unit consisting of thin to medium bedded muddy limestone. The Rodeo Creek Unit has been subdivided into four units: (1) a lower calcareous mudstone-argillite unit; (2) a calcareous sandstone unit; (3) a calcareous mudstone, siltstone, and argillite unit; and (4) an upper carbonaceous limestone unit. The Rodeo Creek Formation and equivalent rocks are host to gold deposits in portions of Leeville and Goldstrike underground (Upper Rodeo).

 

   

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The allochthonous unit, consisting of the Vinini, Slaven and Elder Formations, is host to dominantly high-angle, structurally controlled and sheeted, vein-style gold deposits, such as Capstone, Big Six, Crow, and Antimony Hill.

The regional Roberts Mountains Thrust Fault separates the Vinini Formation and the Rodeo Creek Unit. The overlap assemblage hosts mineralization at the Rain and Emigrant deposits. Mineralization is developed within a brecciated contact zone (unconformity) at the base of Pilot Formation mudstones and extends as collapse breccia pipe bodies into the underlying Guilmette Formation limestones.

Local Structural Setting

Deposits vary on an individual scale, but have some similar structural features, including:

 

   

High-angle, northwest-striking fault sets that served as primary fluid conduits and are commonly filled by lamprophyric and monzonitic dikes;

 

   

High-angle northeast-striking faults that served as secondary conduits, particularly at structural intersections with northwest faults;

 

   

Broad to moderate amplitude anticlinal folds in autochthonous carbonate rocks; and

 

   

High-angle and stratabound, pre-mineralization stage, collapse breccia bodies.

Early phase contractional thrusts and anticlines form important structural traps across the Carlin Trend. The orientation of mineralized stratigraphy and structures across the entire Carlin Trend correlate with orientations generated by earlier deformational events. This suggests that reactivation of pre-existing structures and inheritance of pre-existing structural geometries are important controls on the localization of gold mineralization.

Structures on the property record a complex history of contractional and extensional tectonics and later reactivation during successive periods of deformation. Stratigraphic formations have gentle dips except in the vicinity of high angle faults and along the western margin of the Goldstrike stock where bedding may be steeper. Mesozoic folding and thrust faults form important structural traps for the mineralization in the Betze-Post open pit. A detailed description of the structural setting can be found in a 2015 paper by Rhys (Rhys, 2015).

 

   

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Local Alteration Features

Pervasiveness and intensity of alteration varies both within and between gold deposits, depending on magnitude of the mineralizing system, nature of the host rock, and structural preparation. Mineralization is disseminated as gold-bearing pyrite and marcasite in replacement and/or breccia styles. Mineralization is associated with decalcification, dissolution breccia, structural breccia, silicification/silicified breccia, and clay alteration. Alteration styles may occur together but are commonly zoned outward from fluid conduits along permissive host horizons and within secondary structural features like low angle faults or folds.

Local Mineralization

Gold mineralization was emplaced approximately 39 Ma ago along favorable stratigraphy and structural features such as faults and folds, and along contacts between sedimentary rocks and the intrusive rocks. Faulting provided major conduits for mineralizing fluids and may also have produced clay alteration that may have acted as a barrier to mineralizing fluids. For example, intense fracturing around the contact zone of the Goldstrike stock caused solution collapse and brecciation of the surrounding sedimentary units. Secondary fracture permeability was generated along the crests of anticlines, creating focal points for collapse breccia and dissolution zone formation. Finally, lithology and alteration contacts act as permeability barriers to fluids causing mineralization to pond along them particularly where feeder structures intersect these contacts. Alteration is characterized by decalcification of limestone, silicification of all rock types, and clay development in structurally disturbed areas.

Figure 7-2 is a spectrum diagram, showing the different mineralization styles and deposit emplacements for mineralization along the Carlin Trend. Not all deposits marked in Figure 7-2 are held or operated by NGM.

Mineralization consists primarily of micrometer-sized gold and sulfides disseminated in zones of siliciclastic and decarbonated calcareous rocks and commonly associated with jasperoids. Mineralization is predominantly oxides, sulfides, or sulfide minerals in carbonaceous rocks, and the ore type determines how it is processed.

Research conducted on the micrometer to sub-micrometer gold occurrence typical of Carlin-type deposits (Hausen, 1967; Ramadorai, et al, 1991) indicate the small size of the gold and the

 

   

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disseminated nature of its occurrence are explained by the sulfidation of reactive iron in the host rock and fluid mixing. The remaining gold is found in microcrystalline quartz, kaolin and other clays, or in other forms of pyrite and marcasite.

Figure 7-2: Spectrum Diagram of Mineralization within the Carlin Trend

 

 

   

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7.3.

DEPOSIT DESCRIPTIONS

The deposit descriptions for the deposits amenable to open pit mining methods are discussed first, followed by those deposits that can be mined using underground methods.

 

7.4.

OPEN PIT DEPOSITS

Barrick-Contributed Mines - Goldstrike - Betze-Post

The Betze-Post deposit, the largest on the Carlin Trend, is divided into sub-deposits which, from east to west, are the Deep Post, Post, Betze, West Betze, and Screamer. Other zones within the pit are North Betze, West Barrel, and North Screamer.

Five generations of pyrite mineralization have been recognized at the Betze-Post open pit. Early stages of diagenetic pyrite, and coarse-grained pyrite in the metamorphic aureole of the Goldstrike diorite, are barren. Early hydrothermal, very fine-grained pyrite and marcasite grains of the third generation are coated by a 25 µm thick rind and cut by micro-veinlets of arsenic and gold bearing pyrite of the fourth generation. Barren, late hydrothermal coarse-grained pyrite and marcasite is accompanied by barite and stibnite. Sulphides make up approximately 2% by weight of the ore, locally up to 20%.

The gold bearing arsenian pyrite may be subdivided into coarse grained sulphides at ±200 µm diameter and fined grained at 10 µm to 20 µm, with the latter carrying proportionately much more gold. Gold at 0.05 µm to 0.1 µm is occluded in the iron sulphides. Approximately 10% to 20% of the gold is free, 20% to 30% is held in the fine-grained pyrite/marcasite, a few percent (generally less than 2%) is contained in coarse pyrite, and the balance is in very fine pyrite associated with clay.

Mineralization may be predominantly oxides, sulphides, or refractory or carbonaceous sulphides. Weathering alteration extends up to 200 metres in depth resulting in oxide mineralization, which overlies the refractory sulphides. Alteration has liberated gold by the destruction of pyrite and resulted in the formation of oxide and secondary sulphate minerals, which include goethite, hematite, jarosite, scorodite, alunite, and gypsum. The alteration is deepest in the Post deposit due to extensive fracturing and high pyrite content.

 

   

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Newmont-Contributed Mines - Carlin - Gold Quarry

The mineralization of Gold Quarry is generally bounded on the northwest by the northeast-striking Chukar-Alunite Fault zone, and on the southeast by the north–northeast-striking Deep Sulfide Feeder Fault zone. Mineralization is preferentially located in the hanging wall of the Chukar-Alunite Fault Zone and in the footwall of the Good Hope Fault. Gold mineralization is disseminated, with higher gold grades concentrated adjacent to structures.

Ten geologically distinctive mineral zones have been defined, referred to as Quarry Main, Deep West, Deep Sulfide Feeder, Chukar North, Chukar South, Good Hope, Mac, Magpie, Southwest, and Wedge.

Six major lithologic units are recognized in the Gold Quarry deposit from surface mapping and drill hole logging: Tertiary Carlin, Devonian Slaven, Devonian Rodeo Creek, Devonian Popovich, Silurian Roberts Mountains, and Ordovician Hanson Creek Formations.

The four main gold-hosting lithologies are:

 

   

Silty limestone sections of the Roberts Mountains Formation;

 

   

The upper 90 metres of the Popovich Formation consisting of silty limestone and calc-arenite;

 

   

Siltstone, siliceous mudstone, and cherty siltstone of the Rodeo Creek Formation; and

 

   

About 60 metres of upper-plate sedimentary rocks of the Marys Mountain sequence that consists of limy mudstone and siltstone.

Detailed surface mapping and drill hole interpretation indicates that there are four dominant fault sets at Gold Quarry. These include (from youngest to oldest): north striking basin-bounding, normal faults (Grey, and Tuff Faults), northeast-striking normal faults (Chukar, Alunite, Bad Attitude, and Deep Sulfide Feeder Faults), northwest-striking Good Hope reverse Fault, and low-angle Roberts Mountains thrust.

Oxide gold ore consists of minute particles of finely-disseminated native gold within the host rock. Oxidization of portions of the deposit may have occurred as a result of late hydrothermal acid-leaching and supergene leaching of the original refractory material. Oxide material is subdivided into oxide carbonate (OC) and oxide siliceous (OS) styles, based on the presence of carbonates. Refractory mineralization is subdivided into silica sulfide refractory (SSR), carbon sulfide refractory

 

   

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(CSR), and unoxidized carbonate (UC). Refractory conditions of each type are due to a combination of silica ± pyrite encapsulation of gold ± the presence of naturally activated organic carbon ± the presence of carbonate. These represent the unoxidized portions of the Gold Quarry deposit. Mineralization is associated with As, Sb and Hg.

Sulfidation, decalcification, and dolomitization of the Popovich and Roberts Mountains limestones and silicification of the Rodeo Creek siliciclastic rocks are the dominant alteration types associated with mineralization. Barite and clay-altered intrusive rocks have been noted in association with the Alunite and Good Hope Faults.

Newmont-Contributed Mines - North Area Carlin - Tri-Star (Silverstar and Goldstar)

The gold deposits at the Tri-Star complex (formerly Genesis) are developed along the Tuscarora, Turquoise, and Ridge anticlines within the Lynn Window. They occur over an area of about 3.2 kilometres long by 1.9 kilometres wide. The Silverstar deposit occurs in the hinge of the Tuscarora anticline whereas the Bluestar Point, Bobstar, Goldstar, and Payraise deposits occur on the more western anticlines. The anticlines are intruded in the north by the 158 Ma Goldstrike intrusion, a thick composite diorite–granodiorite sill complex.

Five major lithologic units are recognized in the Tri-Star deposit from surface mapping and drill hole logging: Tertiary Carlin, Devonian Rodeo Creek, Devonian Popovich, Silurian Roberts Mountains, and Ordovician Hanson Creek Formations.

Mineralization is preferentially developed in laminated silty limestone and bioclastic debris flows of the Popovich and Roberts Mountains Formations, but locally can also occur in contact metamorphosed calc-silicate hornfels, Rodeo Creek Formation siliceous mudstone, siltstone and calcarenite, Vinini Formation mudstone/quartz hornfels, and fractured Goldstrike intrusive margins. Gold deposits generally occur where mineralizing fluids exploited thrust faults, conjugate northwest- and northeast-striking normal faults, and anticline hinge zones. The deposits have dimensions that range from about 183 to 457 metres by 61 to 183 metres. Mineralization can be stratabound locally but is typically discordant to the formations along faults with thicknesses ranging from 15 metres to 91 metres.

 

   

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Newmont-Contributed Mines - North Area Carlin - Perry

The Perry deposit is located approximately 0.8 kilometres to the north-west of the Pete deposit. Mineralization is primarily hosted by silty limestones of the Roberts Mountains Formation and along the contact with the underlying Hanson Creek Formation, with only minor mineralization in the Hanson Creek Formation. The deposit is situated on the east limb of the Tuscarora anticline and lies on the northwest-striking, east-dipping Castle Reef Fault. The Castle Reef Fault is the main mineralizing conduit.

Gold is typically micron-sized and disseminated, similar to other Carlin deposits.

Newmont-Contributed Mines - North Area Carlin - Green Lantern

The Green Lantern deposit is located along the north–northwest-trending Tuscarora anticline and trends along the northeast striking Secret Fault at depths ranging from 213 metres to 305 metres.

Three major lithologic units are recognized in the Green Lantern deposit: Tertiary Carlin, Devonian Popovich, and Silurian Roberts Mountains Formations. The principal structures are the Castle Reef Fault, a N45ºW striking fault that controls mineralization, and the Secret Fault, a N30º–40ºE striking fault which localizes mineralization to the northeast. In addition to these through-going structures, several unnamed faults striking northeast are recognized and locally help to focus high-grade mineralization.

Gold mineralization is contained within poorly-altered calcareous Roberts Mountains Formation. The deposit is hosted in stratigraphic horizons along the Secret Fault and in localized pods at favourable fault intersections. The main deposit strikes northeast and is generally horizontal with stratigraphy with minor folding from east-west compressional tectonics. Gold is typically micron-sized and disseminated, similar to other Carlin deposits

Newmont-Contributed Mines - Emigrant

Gold mineralization at the Emigrant deposit is located along the flanks of the Emigrant antiform with the majority of the mineralization being concentrated on the western limb in a shallow, southwest-dipping tabular orebody located at the contact between siltstones of the Mississippian Webb Formation and limestones of the Devonian Devils Gate Formation.

 

   

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Major lithologic units recognized in the Emigrant deposit from surface mapping, drill hole logging, and litho-chemistry include; Tertiary Indian Wells (Tiw), Tertiary Elko (Te), Mississippian Chainman (Mc), Mississippian Webb (Mw), Devonian Woodruff (Dw), Devonian Devils Gate (Ddg) Formations, and the Devonian Nevada Group (Dng).

Detailed surface mapping and drill hole interpretation indicates that there are a series of N10ºW to N10ºE structures present at Emigrant (Emigrant Fault system). The Emigrant Fault appears to bound the hanging wall to the deposit and places the Mississippian Webb Formation (east side) against the Pennsylvanian Tonka, Mississippian Chainman and Devonian Woodruff formations (west side).

Emigrant demonstrates the typical Carlin Trend deposit geochemical signature in that fine-grained gold mineralization is associated with Au, As, Sb, and Hg. Gold occurs as elemental gold encapsulated in quartz as well as in submicrometer substitutions in arsenian rims over pyrite.

 

7.5.

UNDERGROUND DEPOSITS

Barrick-Contributed Mines - Goldstrike underground (Meikle and Rodeo deposits)

The gold deposits of the Goldstrike underground mines are hosted in lower Paleozoic carbonates of the Devonian Rodeo Creek Formation (Drc), Devonian Popovich Formation (Dp), Devonian Bootstrap Limestone, and Siluro-Devonian Roberts Mountains Formations (SDrm), and series of highly altered dikes cross cutting stratigraphy.

Gold mineralization at the Goldstrike underground mine is subdivided into East Banshee, West Banshee, Meikle, South Meikle, (East) Griffin, Extension, West Griffin, Rodeo, Barrel, West Rodeo, and North Post deposits and sub-deposits. The sulphide mineralization is associated with silicification and argillization, and there is little or no oxide mineralization. In sulphide mineralization, the gold is intimately associated with very fine-grained pyrite and marcasite and is wholly refractory ore. Associated sulphide minerals include arsenopyrite, realgar, orpiment, and stibnite. Gangue minerals include quartz, calcite, and barite. Realgar and orpiment are generally low in abundance; however, these minerals are locally common in stockwork veinlets, fracture fillings, and breccia matrices.

The orientation of the mineralization is different in each zone. East Banshee, Meikle, Meikle-East, Extension, Rodeo, North Post, and East-Griffin are characterized by steep and shallow angle east-

 

   

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dipping mineralization. South Griffin, West Banshee, and part of Lower Rodeo are more moderately west dipping. South Meikle, West Griffin, and Barrel mineralization are relatively flat lying. Mineralization is commonly hosted throughout the stratigraphy column from the Bazza Sands in the Rodeo Creek Formation to the Roberts Mountains Formation with strong structural controls such as hydrothermal and collapse breccias, folding, and intrusive dikes and sills.

Newmont-Contributed Mines - Leeville (West Leeville, Turf, Four Corners Deposits)

Gold deposits of the Leeville underground Complex are hosted by lower Paleozoic carbonates of the Devonian Rodeo Creek Formation (Drc), Devonian Popovich Formation (Dp), and Siluro-Devonian Roberts Mountains Formations (SDrm), and a series of highly altered, undifferentiated dikes cross cutting stratigraphy.

Gold mineralization is controlled by a combination of lithology and structure. Intrusive rocks occur as dikes and sills, and locally host mineralization. Lithologic hosts include Rodeo Creek, Popovich, and Roberts Mountains Formations that vary between sub-horizontal to moderately folded. Mineralized material consists of 60 – 90% quartz, 5 - 20% kaolinite, 1 - 17% carbonate, and 3 – 7% pyrite. Gold mineralization in the Leeville complex is wholly refractory.

Newmont-Contributed Mines - Exodus and Northwest Exodus

Lithologic units include the typical Carlin lower plate stratigraphy of the Ordovician Hanson Creek Formation (Ohc), Silurian/Devonian Roberts Mountains Formation (SDrm), Devonian Popovich Formation (Dp), Devonian Rodeo Creek Formation (Drc), and upper plate Ordovician Vinini Formation (Ov). The Devonian Popovich Formation consists of sub-units Upper Mud (DpUM), Soft Sediment Deformation (DpSSD), Planar (DpPL), and Wispy (DpWS). A series of igneous dikes intrude the sediments and have been identified as lamprophyres, biotite-feldspar porphyries, and granodiorite. These units are uncomformably overlain by the upper plate Ordovician Vinini Formation.

Mineralization, primarily hosted in the Devonian Popovich Formation (Dp), is bound on the west by the Castle Reef Fault (CRF) and restricted to the east by the Eastern Dike Swarm (EDS). This structurally controlled system follows near vertical structural fabrics and crosses stratigraphic boundaries. The highest gold values are located adjacent to, or within, the steeply dipping Big Green Dike (BGD), Castle Reef Intrusive (CRI), and Eastern Dike Swarm (EDS). These intrusive filled

 

   

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structures appear to be the main conduits for Exodus gold mineralization. Sediment hosted mineralization appears to have no correlation with a specific alteration type. Mineralization also occurs on the footwall side of the CRF in the lower Silurian/Devonian Roberts Mountains Formation and upper Ordovician Hanson Creek Formation.

Newmont-Contributed Mines - Pete Bajo (Fence and Full House)

The Pete Bajo Complex is made up of three deposits: Pete Bajo, Fence, and Full House. Pete Bajo is the down-dip extension of the mineralization mined in the Pete open pit. The Fence deposit is located to the north, about 366 m down-dip of the Pete Bajo deposit. Full House is a down-dip extension of the Carlin East deposit and is offset by the Bullmoose Fault.

Lithologic units recognized in the Pete Bajo Complex include the upper portion of the Hanson Creek Formation (Ohc), Roberts Mountains Formation (SDrm), Popovich Formation (Dp), Rodeo Creek Formation (RC), and the upper plate Vinini Formation (Ohc).

The majority of the gold mineralization in the Pete Bajo Complex is hosted within the lower unit of the Popovich Formation (DpW). Localized, thin intercepts are also present within the Roberts Mountains Formation (SDrm) unit. Low angle faulting along the Popovich Formation (Dp/SDrm) contact thins or removes the upper units of the DpW within various zones of Pete Bajo resulting in discontinuous mineralized strata. These units are subsequently offset by a series of northwest striking apparent normal faults that dip to the northeast. An East-West striking, sub-vertical dike swarm has also been observed across the Pete Bajo and Fence deposits.

 

7.6.

COMMENTS ON GEOLOGICAL SETTING AND MINERALIZATION

In the opinion of the QPs:

 

   

The understanding of the deposit settings, lithologies, and geologic, structural, and alteration controls on mineralization is sufficient to support estimation of Mineral Resources and Mineral Reserves;

 

   

The mineralization styles and settings are well understood and can support declaration of Mineral Resources and Mineral Reserves; and

 

   

The geological knowledge of the area is adequate to reliably inform mine planning.

 

   

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8.

Deposit Types

The mineral deposits along the Carlin Trend form a suite of deposits known as Carlin-type. Carlin deposits comprise stratabound disseminated gold mineralization hosted by Silurian-Devonian carbonate rocks that have been metamorphosed to varying extents. The deposits are hydrothermal in origin and are usually structurally controlled. The carbonate host rocks are part of an autochthonous miogeoclinal carbonate sequence exposed as tectonic windows beneath the Roberts Mountains allochthon. The allochthonous rocks are a sequence of lower Paleozoic dominantly siliciclastic eugeoclinal rocks that were displaced eastward along the Roberts Mountains Thrust over younger units during the Upper Paleozoic Antler Orogeny. The Carlin Trend is the largest concentration of gold deposits in North America. NGM and other companies have discovered over 40 deposits along the 64 kilometre long, north–northwest-oriented Carlin Trend. Gold deposits are generally hosted in a variable stratigraphic package of Ordovician through Lower Mississippian rocks. The preferential host rocks are autochthonous carbonate assemblage rocks that are now preserved in uplifted tectonic windows. All Carlin Trend gold deposits that have been discovered to date are either within the Bootstrap, Lynn, Carlin, and Rain tectonic windows, or proximal to them. Within specific deposits, Cretaceous and Tertiary dike swarms and a Jurassic-aged granodiorite stock (Goldstrike stock) may constitute as much as 15% of the mineralized material.

Host rocks are most commonly thinly-bedded silty or argillaceous carbonaceous limestone or dolomite, commonly with carbonaceous shale. Although less mineralized, non-carbonate siliciclastic and rare metavolcanic rocks can locally host gold that reaches economic grades. Felsic plutons and dikes may also be mineralized at some deposits. Deposits typically have a tabular shape and are stratabound, localized at contacts between contrasting lithologies but can also be discordant or breccia-related.

Mineralization consists primarily of micron-sized gold and sulfide grains disseminated in zones of siliciclastic and decarbonated calcareous rocks and are commonly associated jasperoids. Major ore minerals include native gold, pyrite, arsenopyrite, stibnite, realgar, orpiment, cinnabar, fluorite, barite, and rare thallium minerals. Gangue minerals typically comprise fine-grained quartz, barite, clay minerals, carbonaceous matter, and late-stage calcite veins.

 

   

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Current models attribute the genesis of the deposits to:

 

   

Epizonal plutons that contributed heat and possibly fluids and metals;

 

   

Meteoric fluid circulation resulting from crustal extension and widespread magmatism;

 

   

Metamorphic fluids, possibly with a magmatic contribution, from deep or mid-crustal levels; and

 

   

Upper crustal orogenic-gold processes within an extensional tectonic regime.

 

8.1.

COMMENTS ON DEPOSIT TYPES

In the opinion of the QPs:

 

   

The understanding of the deposit type was appropriate in guiding initial exploration activities, is suitable for current exploration programs, and is sufficient to support estimation of Mineral Resources and Mineral Reserves.

 

   

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9.

EXPLORATION

Modern exploration commenced along the Carlin Trend in 1961 and has been nearly continuous since that time. Exploration has been undertaken by NGM or by contractors commissioned by NGM (e.g. airborne geophysical surveys, hydrological surveys, and geotechnical studies).

In 2019, 19 exploration projects (exclusive of grade control drilling) were conducted on the Newmont-Contributed Mines, which included 14 underground programs and five surface programs. These programs included initial drill testing, in-fill drilling, and reserve definition drilling for a total of 42,108 metres using both reverse circulation and diamond core drilling methods. These programs began before the NGM JV but continued after the transaction was closed on July 1 2019. The total drilling metres reported are for the full 2019 year.

In 2019, 15 growth/infill projects, were conducted on the Barrick-Contributed Mines, which included initial drill testing, in-fill drilling, and reserve definition drilling for 736 drill-holes for a total of 81,458 metres. The areas drilled included two underground exploration projects and three surface projects in South Arturo Pits for 20,280 metres, three projects for Goldstrike open pit for 19,341 metres, and seven projects for Goldstrike underground for 41,837 metres. These projects used both reverse circulation and diamond core drilling with standardized approved assaying methods to facilitate the collection of structural, lithological, and mineralogical data. Drilling also included testing for new target zones and infill drilling to confirm ore reserves to extend known mineralization ahead of mining. These programs began before the NGM JV but continued after the transaction was closed on July 1 2019. The total drilling metres reported are for the full 2019 year.

Future exploration on the Carlin Complex will continue to step out on the current mining areas, both along the preferred lithologic host rocks as well as at depth long the structural controls. Significant exploration targets include the below:

 

   

Banshee target – This target is an intrusive breccia and considered to be the northern extension of the current Banshee mining area at Goldstrike underground.

 

   

Rodeo Deep target – This target is at depth, below the main Rodeo deposit at Goldstrike underground. Mineralization is in silicified breccias along Zappa and Dormant style Faults hosted in the Lower Laminated Unit of the Silurian Devonian Roberts Mountains Formation.

 

   

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Leeville extensions – These are multiple targets testing along the preferred lithologic host (Devonian Popovich Formation) both north and north east from Leeville.

Further description of the exploration potential by deposit is located in Section 10.9 below.

 

9.1.

GEOLOGICAL MAPPING

Pre-mine geologic mapping was completed in eastern Nevada by geologists from the United States Geological Survey (USGS) and previous operators. From 1961 to 2019, NGM has surface-mapped the NGM ground holdings at various scales, ranging from pit wall to district scale.

The final walls of the open pit mines are generally mapped as mine requirements allow for all open pit Carlin Complex Mines.

Survey control for mapping at all Carlin Complex Mines is generated from surveyed exploration drill holes, geo-points staked by the geologists, and by using GPS. Control points and as-built topography are plotted on a base map with structural, lithological, and alteration overlays. Map boards, 43 cm by 61 cm (17 inches by 24 inches) in size, were previously used to encourage geological interpretation in the field as mapping is conducted. Interpretive maps were digitized into AutoCAD and used as the basis for the 3D geologic model. Current mapping is conducted on Tablet PCs using ArcGIS mapping software.

Historically all underground mapping has been conducted in 2D on paper at mid-rib height: an imaginary plane at approximately chest height (1.5 metres) extending along both ribs and the face.    Survey detail of the face and rib outlines were used when available, however this is very rare. The geologist commonly used the engineering heading plan scaled to 1:20. The geologists record mainly lithologic contacts, faults, joints, alteration and punctual bedding measurements.

Mapping was generally limited to no more than 3.1 metres (10 ft) back from the mining face due to placement of shotcrete for ground support, particularly at the Leeville mine. The paper maps were digitally scanned into Maptek Vulcan 3D software into 3D space where the mapped geology is digitized to specific mapping layers and into the geotechnical database in Vulcan.

Between 2003 and 2014, the individual underground geology departments at the Carlin Complex adopted a 3D face mapping technique where the face, ribs and back of available headings are mapped on a gridded map sheet. The paper maps are then transcribed to Vulcan and located in 3D space. The mapped

 

   

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geology is digitized into specific mapping layers and into the geotechnical database in Vulcan, where the geology is interpreted from one mapped face to the next mapped face.

 

9.2.

GEOCHEMICAL SAMPLING

Owing to the long mining history of the Carlin Complex area, most geochemical sampling techniques have been superseded by data from drilling and open pit mining. More than 125,000 rock chip, soil and stream sediment samples have been collected (Figure 9-1).

All current operations have meteoric water mobility testing (MWMT) for the ore and waste material. This testing is supplemented by petrographic examination, multi-element geochemistry, and semi-quantitative X-ray diffraction (XRD) and X-ray fluorescence (XRF) analysis, as required.

Figure 9-1: Geochemical Sampling Index Plan

 

 

   

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Key: green = rock samples, blue = stream samples, red = soil samples. Although Project tenure outlines are not shown, sampling has taken place within the confines of the mineral tenure held by NGM at the time that sampling occurred. Current tenure outlines are included in Section 4.

 

9.3.

GEOPHYSICS

Geophysical methods have been used in Barrick, Newmont and NGM work programs on the Carlin Complex since 1973. From 1973–1993, geophysical tools were primarily regarded as support tools due to the initial discoveries cropping out on surface, or only having a thin veneer of cover, and the inability of the early methods to directly detect the deposits.

During the 1990s, previous operators recognized that geophysical methods could be used as a structural mapping and deposit vectoring tool. Methods adopted included modern airborne and ground magnetics; radiometrics and electromagnetics (EM); gravity, resistivity, and controlled-source audio-frequency telluromagnetics (CSAMT) and magnetotellurics (MT); self-potential (SP); induced-polarization (IP); time domain pole-dipole IP; time domain MT/IP using a distributed assay system; electrical logging of drill holes; and downhole IP. Gold mineralization is not directly detectable by geophysical methods; however, these surveys identify subsurface properties that are useful in interpreting lithology, alteration, and structure as guides to gold mineralization. Typically, airborne surveys were performed by contract companies; whereas ground surveys were performed by Barrick, Newmont and NGM personnel or contract crews under the supervision of Barrick, Newmont and NGM personnel.

Key uses are to delineate:

 

   

Intrusive rocks (porphyries) and contact metamorphic aureoles associated with such intrusions;

 

   

Remnant-magnetized volcanic rocks;

 

   

Fault mapping;

 

   

Basin fill mapping;

 

   

Pyrite zones, at depth; and

 

   

Alteration, in particular zones of decalcification.

From 1987 to 2019, a total of 91 surveys were completed (Figure 9-2).

 

   

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Figure 9-2: Geophysics Index Plan

 

Key: yellow area = Carlin Trend; blue outlines = area of airborne survey coverage; red blocks = areas of ground geophysical coverage. Although tenure outlines are not shown, sampling has taken place within the confines of the mineral tenure held by NGM at the time that sampling occurred. Current tenure outlines are included in Section 4.

 

9.4.

PITS AND TRENCHES

Pitting and trenching were used as first pass delineation tools during the 1960s and 1970s. Trenches and pits were excavated on the Gold Quarry, Rain, Genesis, Betze Post, Pete and Carlin deposits. The trenched and pitted areas have since been mined out. Information obtained from the pits and trenches was employed to support the geological mapping used to inform the 3D geological model that was built using mapping and drill hole data.

 

   

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9.5.

PETROLOGY, MINERALOGY, AND RESEARCH STUDIES

Since 1961, a significant number of structural, petrology, mineralogy, lithogeochemical, and research studies have been completed on the Carlin Trend, making the area one of the more intensively studied geologic provinces in the world.

Approximately 40 university theses have been completed on the deposits within the NGM holdings. NGM has identified about 230 theses in total that deal with aspects of geology and mineralization in Nevada and maintains a database of such research.

Approximately, 20 lithogeochemical studies, including fluid inclusion, age dating, gold characterization, and alteration studies have been undertaken. Additionally, there are over 200 different petrology, mineralogy, and structural studies on the Carlin Trend deposits.

 

9.6.

COMMENTS ON EXPLORATION

In the opinion of the QPs:

 

   

The exploration programs completed to date are appropriate to the style of the deposits and prospects within the Carlin Complex; and

 

   

The Carlin Complex retains significant brownfields exploration potential, and additional work is planned.

 

   

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10.

DRILLING

Over 77,000 surface and underground drill holes (31 million feet [Mft]/9.54 million metres [Mm]) have been drilled on NGM’s Carlin Complex properties and are used in Mineral Reserves or Resources. This includes approximates of each drill type: 52,517 RC holes (16.9 M feet/5.17 M metres); 17,083 core holes (10.5 M feet/3.20 M metres); 3,418 conventional air rotary holes (1.2 M feet/0.37 M metres); 1,899 cubex holes (0.2 M feet/0.06 M metres); 286 conventional mud rotary drill holes (0.4 M feet/0.11 M metres), and 2,172 other drill holes (2.1 M feet/0.63M metres), which include combined RC with core tails.

Details of the various drilling types are summarized in Table 10-1.

Some duplicate hole counts are possible in the above hole count due to surface and underground data extraction areas that overlap or by drilling RC with core tailing. However, the QPs have determined this is not material, since flagging of drill data, blocks and mine engineering efforts prevent double counting of ounces.

Between 1905 and 1965–1966, drilling was completed primarily for early-stage, exploration-focused programs and for initial gold resource estimates. From 1966 onward, drilling was used to support advanced-stage project evaluation as well as deposit and pit delineation.

 

10.1.

DRILL METHODS

Over the 50-year history of the Carlin Complex a number of different drilling techniques have been employed, several which are still employed currently: Details are summarized in Table 10-1.

 

   

RC (54% of total drilling), currently using;

 

   

Core (34%), currently using;

 

   

Air rotary (4%);

 

   

Mud rotary (1%); and

 

   

Cubex (1%), currently using.

Drilling fluids used during coring include water-based mud systems with bentonite (clay) and inorganic polymer added. Drilling muds are also employed in mud conventional and RC drilling.

 

   

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Table 10-1: Summary by Drill Type

 

Drill Type  

 Number of 

Holes

 

 Drilled 

Feet

(Mft)

 

Drilled

 Meters 

(Mm)

 

 Percentage of 

Total Drilling

%

Air rotary conventional   3,418   1.2   0.37   3.90%
Cubex   1,899   0.2   0.06   0.60%
Core   17,083   10.5   3.2   33.60%
Mud rotary conventional   286   0.4   0.11   1.10%
Reverse circulation   52,517   16.9   5.17   54.20%
Other*   2,172   2.1   0.63   6.60%
Total   77,375   31.3   9.54   100.00%

*Other: Unknown type, or RC with core Tails

Note: Sums may not add due to rounding

 

10.2.

AIR AND MUD DRILLING METHODS

Conventional air drilling methods were used to approximately 1985 by Newmont at Carlin. The drilling method used air to pull the sample from the bit to the hole collar up the outside of the drill stem. Typically, conventional air holes were short, less than 152 metres, and terminated at the water table. The drill diameter range was from 14 cm to 17 cm (5.5 in. to 6.5 in). Rotary air drills historically used TH-60, TH-75, TH-100, CP-650, RD-10, RD-20, DH-40, MPD-1500, DR-24, Explorer 100 and 1500 models, Schramm 680 and 685 models, Reichdrill, Jaswell, and LM-120 and 140 models.

Conventional mud drilling by Newmont at Carlin used a similar sampling technique; with drill muds employed facilitating drill sample return. Employed on the Carlin Trend up to the mid-1990s, the drill type was typically used for holes greater than 152 m in depth. Mud rotary drill holes range in diameter from 6–9 inches (15-23 cm). Rotary mud drills include Midway-1500, Failing 1500 and 2500 models, RD-10 and RD-20 models, Portadrills, TH-60, TH-100, and TH-75 drills converted to mud rotary-style.

Limited information remains on the drilling, logging, and sampling methodology for these drill hole types.

At Goldstrike, historic air or mud rotary drilling is not present in the drill hole database other than ten conventional mud drill holes in the Goldstrike underground area.

 

   

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10.3.

REVERSE CIRCULATION DRILLING METHODS

RC drill rigs used historically and currently on the Carlin Complex are either truck-mounted or track-mounted. Drill bits are standard carbide-buttoned hammer bits and carbide-buttoned tri-cone (rock) bits. The hammer bits are efficient in dry drilling conditions but lose their effectiveness in wetter conditions. Tri-cone bits are used after significant water is encountered in the hole. The varying diameters of both types of bits are due to the need to reduce the diameter of the bit every time drilling conditions have eroded the gauge buttons on the bit to the point a reduction is required. The new bit must have a slightly smaller diameter to get back to the bottom of the hole due to degradation of the worn-out bit.

Depths to which RC drilling is used depend on water table depths and the depth of mining activities in the region.

Rigs described under the rotary-air, rotary-percussion, and core drill sections could also be used for RC drilling.

Newmont-Contributed Mines: Geologic Logging

The Newmont-Contributed Mines on the Carlin Complex have a comprehensive logging procedure for RC drill chips, developed in the 1980s. Drill samples (typically less than 1.2 cm rock chips) are collected by the drillers in 1.5 metres intervals in plastic chip trays for geologic logging. Each chip tray represents a maximum of 30 metres of drilling. Chips are electronically logged using Newmont’s Visual Logger software.

The logging form contains fields for hole number, project name, date, geologist, azimuth, inclination, and total depth at the top of the first page. Geologic logging is conducted utilizing a standardized set of pull-down fields in each column for structure, lithology (formation and rock type), metallurgical type, and intensity codes for metallurgy and alteration. Comments can be added in the far-right column of the drill log at the geologist’s discretion.

Geology logs were directly uploaded from Visual Logger to the Global Exploration Database (GED) database, eliminating the data entry step and possible errors associated with traditional paper logs. A hard copy was printed out and archived in the geology office.

With the formation of NGM, starting in October 2019, the drill hole data from the Newmont-Contributed Mines was copied to an NGM acQuire database with logging changed to the Logging

 

   

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Data Entry form using acQuire and web interface reports. This creates a PDF from the data that was logged, to be stored to a local shared drive that is backed up regularly. The same data is collected, and procedures followed that were developed by Newmont and this remains the method for logging currently.

Each chip tray is marked as logged with a red “L” on the end of chip tray and stacked in complete piles. Chip trays are then transferred to the Maggie Creek Complex warehouse and inventoried. Prior to the introduction of chip trays, representative RC chips were glued to boards as hole records. The majority of the boards are also retained at the Maggie Creek Complex warehouse.

Digital back-up copies of the geologic logs are stored offsite. All hardcopy logs that were used prior to the inception of Newmont’s Visual Logger are archived in files, labelled, and stored in the Elko warehouse.

Barrick-Contributed Mines: Geologic Logging

The Barrick-Contributed Mines continue to use the Barrick logging procedures. The logging codes have been standardized in 1990’s with minor updates since then. Both core and RC holes are logged directly into acQuire.

The logging form contains fields for hole number, Project Code, Depth or TD, Logger, and Date Logged at the top of the page.

Each hole logged into acQuire is then verified by the geology team before they are finalized and accepted into the database. Each chip tray is marked as logged with a red “L” on the end of the chip tray and then sent to the Goldstrike core shed where they are photographed for records and stored. Core is first photographed before logging.

Digital backup records are stored off-site for Goldstrike. All hardcopy logging records used at Goldstrike prior to the use of the acQuire Logger are archived in files, labelled, and stored in the Goldstrike Geology Library in the basement of the Goldstrike Administrative Building, in the Geology office at the Goldstrike truck shop, and at the Underground Administrative Building or have been scanned and saved digitally.

 

   

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Surveys

A discussion of the collar and downhole survey methods and hole marking techniques used in the Carlin Complex is included with the core drilling program in Section 10.4. Magnetic azimuths and correction factors applied are also discussed in that section.

Recovery

Recovery data are not recorded for RC drilling at the Carlin Complex. Visual inspection of sample bags indicate the quality of recovery.

Water

Drillers typically record the presence of water in drill holes at all Carlin Complex Mines. The water data are recorded into the database. Additionally, Carlin Complex procedures suggest that RC drilling is halted when water is encountered, and the drilling method is changed to core drilling. During daily checks on the rig, the supervising geologist or drill supervisor verifies the presence or absence of water.

Sample Weights

The Carlin Complex does not weigh samples on site but received weights are reported by the laboratories on the assay certificates.

 

10.4.

CORE DRILLING METHODS

Core sizes are typically HQ (2.5 inch/6.4 cm diameter) for surface drilling at all Carlin Complex Mines. Occasionally, surface core holes are reduced from HQ size to NQ (1.9 inch/4.8 cm diameter) size if difficult drilling conditions are encountered. Surface metallurgical core at the Carlin Complex Mines includes PQ, SHR series (3.3 inch/8.4 cm and 4 inch/10 cm), and 6 inch/15 cm core.

Geologic Logging

The Carlin Complex has a comprehensive logging procedure currently used at all Carlin Complex Mines, for the core including both geological and geotechnical logging, which is described below.

 

   

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Samples from core drilling are taken from the core tube and placed into coated cardboard boxes. Intact core may be broken to make it fit into the box slots. Core boxes are transported from the drill site to various locations (Maggie Creek Complex, Goldstrike Main Complexes) for detailed logging. Core is measured and checked against run footage blocks and box labels for accuracy and sequence. Out of place core is reorganized and/or driller’s footage blocks are relabelled as needed.

After the logging of open pit holes is completed, the core is halved with a diamond saw and sampled in five-foot (1.5 m) intervals. Underground core samples are half split but may be taken as whole core samples where appropriate. Samples are placed in a sample bag with a barcode and sample ID that correlated to the cut sheet which identifies the hole number and the starting and ending depth of the sample. This information is also written on the sample bags. NGM maintains a written protocol for drill core logging and sampling.

Core is electronically logged at the core shed using portable tablets loaded with acQuire Logger software. Logger utilizes the same software as RC logging to ensure codes and methods are consistent.

Prior to the implementation of digital logging, the project geologist directly typed the hand-written logging information into the database. No validation or double data-entry techniques were employed at the time. Hardcopy logs that were used prior to the inception of the electronic logging are archived in files, labelled, and stored in the Elko warehouse, Goldstrike Administration Building, or scanned and saved to network locations.

Geotechnical logging is completed on core using industry standards as directed by the project geologist or geotechnical engineer.

Collar Surveys

Newmont-Contributed Mines

Collar grid coordinates have been determined by optical surveys (1960s through late 1980s), field estimates, Brunton compass and pacing, compass-and-string distance, and most recently the use of laser survey or global positioning system measurements. Since 1998, NGM has employed a Trimble GPS system, which has 0.4 inch (1 cm) accuracy. From 1985 through 1998, a Topcon total station instrument was used, accurate to within five seconds of a degree.

 

   

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Drill hole collars were historically marked in the field using polyvinyl chloride (PVC) pipe. This practice ceased in the mid-1990s and NGM now employs painted laths that are cemented into the hole collar. Such laths typically last about two to three years.

Drill collars are typically surveyed at the end of a drilling program. Surveys are transferred electronically from the GPS to the computer of the appropriate project geologist who uploads the data, once validated, to the database. Drill hole locations are field checked by either geologists or support staff, plotted on maps, and visually checked for reasonableness in the database.

Underground drill collar locations are collected while the hole is being drilled or after the rig has moved from the station. The principal method at Leeville for collecting these data is having the ore control geologist measure from surveyed control points, face, ribs and sill to triangulate each collar location. Collar measurements at Exodus and Pete Bajo are collected by the underground survey department after the hole is completed and loaded into Vulcan. The measurements are in the mine coordinate northing, easting and elevation in Vulcan. The coordinates are verified and entered into database by the project geologist. At the initial set up for each hole the driller uses a Reflex TN-14 gyro compass to determine the azimuth and dip of each core hole.

Barrick-Contributed Mines

Planned drill hole collar locations at Goldstrike open pit are set out by the open pit surveyors using Trimble High Precision global positioning system (GPS) to determine the location of every hole and to establish foresights for all angle holes. After the holes are drilled, the surveyors pick up the final collar coordinates using GPS. Surveys are uploaded by the Database Administrator (DBA) into acQuire. Survey accuracy and completeness are verified by the geologist and the database analysts before the data is finalized.

At Goldstrike underground, all holes are given sight lines by underground surveyors based on planned azimuths. Dips are set by the drillers based on the designed collar orientations. When drilling is complete, the collars of the exploration holes are surveyed to determine their final elevation, northing, easting, azimuth, and dip. If circumstances do not allow for survey of the collar, the planned location, azimuth, and dip are used. Collar locations are verified by the geologist and the database analysts before the data are finalized.

 

   

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Magnetic Declination

Magnetic declination values are determined in January of each year using the National Oceanic and Atmospheric Administration; NOAA website. The reported declination is maintained throughout the year at all Carlin Complex Mines.

Downhole Surveys

Newmont-Contributed Mines

Determination of the hole trace has been accomplished historically by projection of the initial collar orientation, using a downhole single-shot or multi-shot film camera (typical for most underground surveys), use of a downhole precession gyroscopic survey tool, or a gyroscopic tool requiring initial orientation with a compass. Current practice includes the use of gyroscopic surveys; with results being transmitted electronically and loaded to the database using canned software.

Gyroscopic surveys are normally reported at 8 or 15 metres (25 or 50 ft) intervals. Readings are taken with reference to true north (adjustments for declination are made on-site). Magnetic interference is not generally a problem for most of the drill sites in Nevada. Care is taken to reduce the effects of nearby metal objects when compasses are used for survey tool orientation. Drills are set up on sites using a forward-sight and back-sight set of survey stakes or a painted line on the ground. These stakes and lines are placed by the geologist using a compass to determine orientation.

Prior to 2013, it was up to the project geologist’s discretion to perform a downhole survey. Surveys were typically only completed on angle drill holes deeper than 183 metres. The current standard procedure is to perform a downhole survey on all angled drill holes and vertical drill holes deeper than 61 metres. The downhole survey is completed by lowering a gyroscope through the intact drilling steel and measuring the deviation of the original angle and the variance of the original azimuth. This is completed by an external surveying contractor or by the driller using a rented survey tool. The survey data are recorded, and the geologist receives a hard (paper) copy immediately after the survey. An electronic copy of the data is e-mailed to NGM data analysts for uploading to the acQuire database.

 

   

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Downhole surveys for underground drill holes are completed by the drill crew. A downhole survey is conducted on any hole greater than 15 metres in depth for all angle core holes, and RC drill holes with an angle ranging from -90° to +35°. Any RC drill holes with an angle greater than +35° cannot be surveyed safely and therefore are not drilled. Every drill hole is aligned using a Reflex TN-14 gyro compass to determine the initial azimuth and dip. In the event a gyro compass is unavailable, surveyed sight lines are used to align the drill.

Underground core holes are surveyed using a Reflex EZ-Trac Magnetic Survey tool. The first survey is recorded at a depth of 15 metres and compared to the planned orientation for significant deviation. Typically, a less than five degree variance is acceptable but may be less depending on the project requirements. If the first survey is deemed acceptable, drilling will continue with the hole being surveyed on 30 metres increments. Each survey point is recorded digitally as well as written on a paper form. Digital survey data is uploaded to a shared network drive by the Drill Services foreman every two weeks. Surveys are processed and uploaded to the acQuire database by the project geologist. All digital data is archived in the associated drill hole folder. A hard copy of the surveys is also archived.

Underground RC holes are surveyed using a microelectromechanical system (MEMS) gyroscope that is lowered down the hole within the drill steel. Surveys are recorded digitally at 3 metres intervals after the hole has been drilled to depth. Digital survey files are collected by the geologist on a daily basis and processed prior to being uploaded to the GED.

Downhole survey accuracy and completeness are verified by the geologist and the database analysts before the data are finalized.

Barrick-Contributed Mines

Downhole surveys at Goldstrike open pit are performed on all new exploration drill holes except for shallow vertical holes with depths that are less than approximately 45 metres (150 ft). Downhole surveys by gyro instrumentation are performed under contract by International Directional Services LLC (IDS). Downhole survey accuracy and completeness are verified by the geologist and the database analysts before the data are finalized.

In the past at Goldstrike underground several of the longer core and RC holes were surveyed with a MAXIBOR downhole survey tool to determine hole deviation. Beginning in 2009, a Flexit downhole

 

   

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survey tool was introduced and continues to be used currently. This allows for the survey of RC holes. The surveys from the Flexit downhole survey tool are uploaded to a database by the database administrator after completion by the driller. Surveys are then verified by project geologist to confirm they are visually correct and do not exceed the allowed variances from planned hole orientation.

Modifications are made to survey methodologies for each deposit, summarized in Table 10-2.

Recovery

Recoveries have been measured for most of the core holes completed at the Carlin Complex Mines. Table 10-3 summarizes the core recoveries contained in the drill database for the areas where the majority of drilling has been conducted.

Photography

At all Carlin Complex Mines, core is photographed and has been photographed since the 1980s. From 1994 to the present, Newmont-Contributed Mines have used a digital camera for photography. Barrick-Contributed Mines mines adopted digital photography later in the early 2000’s, and continue to use digital photography presently. Depending on the deposit and the rock types in the core, photography can be done of wet or dry core. Some lithologies, such as the Roberts Mountains Formation, show better when photographed dry, whereas the Popovich Formation is better photographed wet.

 

   

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Table 10-2: Downhole Survey Summary

 

Deposit   Survey Note
Gold Quarry   Drilling depth variable depending upon date drilled and target depth. All holes greater than 91 m in depth are downhole surveyed. No oriented core collected to date.
Tri-Star (Goldstar, Silverstar, Bobstar, Pay raise)   Drilling depth variable depending upon date drilled and target depth. All holes greater than 91 m in depth are downhole surveyed. No oriented core collected to date.
Carlin   Drilling depth variable depending upon date drilled and target depth. All holes greater than 91 m in depth are downhole surveyed
Perry   Drilling depth variable depending upon date drilled and target depth. All holes greater than 91 m in depth are downhole surveyed
Green Lantern   Drilling depth variable depending upon date drilled and target depth. All holes greater than 91 m are downhole surveyed. No oriented core collected to date. During 2004 only, holes deeper than 123 m were downhole surveyed.
Emigrant   Drilling at Emigrant is relatively shallow, with an average of 91 m. Only a small percentage of deeper (>305 m) holes were downhole surveyed and oriented to true north. No oriented core collected to date.
Leeville Complex   Drilling depth variable depending upon date drilled and target depth. The collar dip and azimuth are determined with a north seeking gyro for both core and RC. All core holes are downhole surveyed. Additionally, all RC holes are downhole surveyed that are less than +35 degree and less than -70.
Carlin East/Full House   Drilling depth variable depending upon date drilled and target depth. All core holes are downhole surveyed. Periodic RC holes >30 m depth downhole surveyed
Chukar   Drilling depth variable depending upon date drilled and target depth. All core holes are downhole surveyed. Periodic RC holes >30 m depth downhole surveyed

Exodus/Northwest

Exodus

  Drilling depth variable depending upon date drilled and target depth. Prior to 2006, most holes within the deposit have downhole surveys. All surface and underground holes drilled since 2006 have downhole surveys. Six core holes in 2008 had oriented core tails
Pete Bajo   Drilling depth variable depending upon date drilled and target depth. All but a few holes within the Pete Bajo area have downhole surveys
Goldstrike Open Pit – Betze-Post   Drilling depth variable depending upon date drilled and target depth. The collar dip and azimuth are determined with a north seeking gyro for both core and RC. All core holes are downhole surveyed. Additionally, all RC holes are downhole surveyed that are greater than 150 ft (46 m).
Goldstrike Underground – Meikle-Rodeo   Drilling depth variable depending upon date drilled and target depth. The collar dip and azimuth for both core and RC are determined with either a north seeking gyro or a magnetic “EZtrak” survey tool. All core holes are downhole surveyed. Additionally, all RC holes are downhole surveyed that are less than +35 degree and less than -70.

 

   

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Table 10-3: Core Recovery Summary

 

Location  

Number of

 Core Holes 

  Drilled Footage  

Length-weighted

 Average Recovery 

  (ft)   (m)   (%)

Open Pit Areas

Tri-Star

  919    545,684    166,324    95 

Green Lantern

  451    355,762    108,436    98 

Gold Quarry

  1,887    1,067,854    325,482    96 

Rain/Emigrant

  43    12,236    3,730    92 

Goldstrike - Betze-Post

  3,465    3,711,817      1,131,362    N/A 

Subtotal

  6,765      1,981,307    603,902    95 

Underground Areas

Leeville Complex

  14,009    3,923,923    1,196,012    98 

Pete Bajo

  2,225    1,123,972    342,587    97 

Exodus/Northwest Exodus

  850    691,528    210,778    99 

Goldstrike - Meikle/Rodeo

  3,669    1,205,869    367,549    N/A 

Subtotal

  20,753    6,945,292    2,116,925    98 

N/A - Not Available

Note: Totals may not add due to rounding

 

10.5.

SURFACE GRADE CONTROL DRILLING

Newmont-Contributed Mines

Newmont-Contributed Mines use blasthole rigs with drill blasthole sizes ranging from 17.1 cm to 19.9 cm (6.75 to 7.85 inches) on patterns that are typically 5.5 m x 5.5 m spacing. Blastholes are used for delineation of ore and waste, and to quantify waste materials by handling method. Typically, blastholes are field-mapped and are sampled by the survey crew using a scoop to scrape off the subdrill in a cuttings pile, followed by a channel being dug out on both sides of the channel from the floor to the top.

Mapping includes:

 

   

The date and time of field determination and name of mapping geologist;

 

   

Bench elevation and configuration of each blast pattern. Geologists use computer-generated blast pattern maps showing pattern designs and pre-assigned borehole numbers and locations;

 

   

Field classification of drill cuttings rock type (lithology); and

 

   

Visual estimates of sulfide, carbonaceous material, clay, or silica content and visual identification of sulfide species.

 

   

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Mapping uses specified codes designed for the blastholes. Holes that have observed high sulfides are flagged on the ground using pin flags. All blasthole mapping was transferred electronically to the DBS Blast database and since mid-2015 to a Vulcan design database. In-pit waste is also identified using the blastholes. Three types of waste are delineated:

 

   

Alluvial material – generally suitable for waste capping material;

 

   

Non-potentially acid-generating (net carbonate value (NCV) ³ 0) – suitable for use as construction material; and

 

   

Potentially acid-generating (PAG) waste (NCV < 0) – not suitable for waste capping material.

The determination of ore and waste types is conducted by the ore control geologists and involves the integration of analytical data and geologic information from mapping of blastholes.

Barrick-Contributed Mines

At Goldstrike open pit, Barrick introduced a small diameter Cubex RC drilling rig in 2012 to drill horizontal holes up to 274 m (900 ft) and vertical holes up to 91 m (300 ft) to define near pit mineralization and for void detection and delineation. Cubex drilling has been effectively utilized to define the margins of the ore and optimize bench plans. The Cubex drill rig is also used to locate and define voids so that appropriate precautions could be implemented during mining operations.

 

10.6.

UNDERGROUND DRILLING

Underground core drilling occurs in a staged process and is similar across all the Carlin Complex underground mines as described below. Detailed descriptions of the drill spacing for each deposit can be found in Table 14-7.

The initial resource drill fans are oriented to drill on nominal 43 metres to 61 metres spacing depending on deposit, drill hole studies and drill station locations. This spacing distance may vary slightly. Holes are drilled from drifts above the deposit and designed to pierce modelled units as close to perpendicular as possible. Drill intercepts spaced at 43 metres to 61 metres are considered adequate to classify mineralization as an Inferred Mineral Resource in order to support a conceptual mine design.

Phase 1 drill programs are drilled at nominal 21 metres to 30 metres spacing to infill drill areas where resource drilling defined Inferred mineralization. This spacing is considered adequate to define

 

   

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mineralization as an Indicated Mineral Resource to support an economic mine design. At least one hole on the drill fan is designed to test the mineralized horizon outside of the modelled mineralization in order to better define the edges and/or expand the mineralization.

The drill spacing for Phase 2 drill programs vary by deposit depending on guidance from drill spacing studies for each individual deposit:

 

   

Leeville complex drill holes have 15 metres nominal spacing, are drilled in areas of mineralization defined by Phase 1 drilling and are targeted to be completed at least 18–24 months prior to development. The 15 metres spacing provides adequate drill spacing for detailed mine planning. This phased approach to infill drilling prevents over-drilling, as only those areas that require follow up will be drilled;

 

   

Pete Bajo drill holes have a nominal 21 metres spacing;

 

   

Exodus/Northwest Exodus drill holes have a nominal 15 metres or 21 metres spacing, depending on the zone; and

 

   

Goldstrike underground, Meikle-Rodeo, initial drilling is carried out at 30 metres and 15 metres section spacings. Follow-up RC definition drilling is carried out on fans 7.5 metres apart, depending on the geologic complexity and continuity. Holes are oriented to intersect the target at a spacing of 7.5 metres to 9 metres.

Selected areas can also be drilled with a RC drill to nominal 8 metre spacing or less to ensure proper stope or drift placement and for grade control purposes if determined by the mine geologist.

 

10.7.

SAMPLE LENGTH/TRUE THICKNESS

All drill holes completed at the Carlin Complex Mines are designed whenever possible to intercept the mineralization perpendicular to the ore trend. Design criteria are in place with minimum and maximum allowable drilling angles for dip and strike to ensure that holes intersect the mineralization as close to perpendicular as possible; reported mineralized intercepts are typically longer than the true thickness of the mineralization.

 

10.8.

DRILLING USED TO SUPPORT MINERAL RESOURCE ESTIMATION

Goldstrike Open Pit (Betze-Post)

Most of the drilling prior to 2003 was diamond drilling. Since then, near-pit exploration has been conducted using a combination of reverse circulation (RC) and diamond core drilling. A small

 

   

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diameter Cubex RC drilling rig was introduced in 2012 to drill horizontal holes up to 274 metres and vertical holes up to 91 metres to define near pit mineralization and for void detection and delineation.

The geometry of mineralization can be highly variable, controlled by fracturing related to faulting and folding as well as by favorable stratigraphy and variations in rock chemistry, porosity, permeability, bedding habit, etc. Drilling is done at various angles to target various structural and stratigraphic controls, to determine true width and thickness of mineralization. Drill sampling and geological interpretations completed prior to mining are generally effective in predicting the orientation of mineralization.

Drill hole spacing through the Betze, West Betze, and Screamer deposits is approximately 46 metres to 53 metres, and at Post and North Betze is approximately 46 metres. West Barrel is drilled at approximately 40 metres spacing or less, and this has been reduced to approximately 30 metres for the North Screamer Zone. Some holes did not penetrate the entire ore zone. In some areas, the location of the bottom and margins of the ore are not precisely known. Cubex drilling has been effectively utilized to define the margins of the ore and optimize bench plans.

RC drilling (614 in.) accounts for approximately two thirds of the drilling, with one third diamond drilling at HQ to NQ (212 in. to 17/8 in.) core diameters. Table 10-4 summarizes the drill hole database attributed to drilling for the Goldstrike open pit operations Figure 10-1 illustrates the drill hole locations. The Goldstrike resource estimation incorporates both these drill types and those listed in the Goldstrike underground table as detailed in Table 10-4.

Table 10-4: Goldstrike Open Pit Drilling Summary

 

Drill Type  

Number