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UPDATE 1-Barrick Gold says Veladero output not impacted by suspension ruling

Published 2015-09-23, 11:42 a/m
© Reuters. UPDATE 1-Barrick Gold says Veladero output not impacted by suspension ruling
NWG
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GOLD
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(Recasts with Barrick saying production not impacted by halt to
cyanide pumping)
BUENOS AIRES, Sept 23 (Reuters) - Production at Barrick Gold
Corp's ABX.TO Veladero mine in Argentina has not been impacted
by a court-order suspending the pumping of cyanide solution for
the gold leaching process, the company said on Wednesday.
A judge in the western San Juan province, where the open-pit
mine is located, on Tuesday ordered pumping be halted until the
company presents an improved operation and maintenance plan
after a defective valve led to a cyanide leak.
While Judge Pablo Oritja's order prevents Barrick delivering
more cyanide solution into leach pads, a Barrick official said
it could use liquid already pumped into the leaching system.
"Veladero continues to produce using the cyanide solution
that was already in the leaching valley," Barrick said in a
statement.
A company official could not confirm how long operations
could continue before more cyanide solution would be required to
maintain operations. The technical plan requested by the judge
would be completed soon, the official said.
The judge had initially ordered a five-day halt to the
pumping of cyanide, but has now extended the suspension until he
is satisfied improved safety measures are in place.
Oritja ordered Barrick constantly monitor its operations to
prevent another leak in the future. The miner has said the Sept.
13 leak was detected almost immediately and that there had been
no contamination of nearby rivers.
RBC Capital Markets told clients in a briefing note that it
did not expect the incident to have a material impact on the
company's 2015 production or costs.
The Veladero mine produced 722,000 ounces of gold last year
and is forecast contribute about 10 percent of Barrick's 2015
gold output, RBS (LONDON:RBS) Capital said.

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