Gold steady after Powell flags cautious approach to rate cuts
Spot gold was little changed at $2,649.27 an ounce as of 8:21 a.m. Singapore time, after closing 0.2% higher on Wednesday.
Barrick Gold (NYSE: GOLD) (TSX: ABX) is increasing its expenditure commitment on the Pueblo Grande project by as much as 120% as it looks further explore the 71 sq. km property surrounding its Pueblo Viejo mine in the Dominican Republic.
The Pueblo Grande concessions are currently held by Canadian junior Precipitate Gold (TSXV: PRG, OTCQB: PREIF). Barrick has an exclusive right to earn a 70% interest in the project for total expenditures of $10 million, as outlined in an agreement signed in April of 2020.
On Wednesday, Barrick confirmed it will now increase the required work expenditures to $22 million, triggered by its total spending on the project to date ($5 million), before completing the earn-in. The amended agreement will also see Precipitate receive $50,000 as compensation.
Precipitate Gold CEO Jeffrey Wilson said Barrick’s willingness to increase the work expenditures evidences its interest in continued exploration, specifically at the two current priority drill target areas: Pueblo Grande Norte and Pueblo Grande Sur.
Until the end of the decade, Barrick is expected to continue its work on the Pueblo Grande, and ultimately deliver a prefeasibility study to complete its 70% earn in. To date, the company has identified two early-stage targets at the Pueblo Grande Norte zone, as well as new gold anomalies within the Pueblo Grande Sur zone.
The two zones are located to the west and southeast of the Pueblo Viejo mine site respectively. The gold-silver mine, located approximately 100 km northwest of the capital city of Santo Domingo, represents one of Barrick’s main producing assets in North America. It first entered production in 2012, operating under a 60/40 joint venture with Newmont.
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