Barrick Gold Announces Mechanical Issue At Pueblo Viejo Oxygen Plant

(RTTNews) - Goldcorp Inc. (G.TO,GG) announced that it has been informed by Barrick Gold Corp. (ABX, ABX.TO) that a mechanical issue at the Pueblo Viejo mine in the Dominican Republic is expected to result in reduced production at the operation until mid-January 2016.

Based upon the impact of lower production from Pueblo Viejo in the fourth quarter, Goldcorp's 2015 gold production is expected to be at or near the mid-point of the Company's current guidance of between 3.3 and 3.6 million ounces. All-in sustaining cost guidance remains between $850 and $900 per ounce.

Taking into account the potential impact of lower production from Pueblo Viejo in the fourth quarter, and based on current rate of production, Barrick said it now expects to produce 6.0-6.15 million ounces of gold in 2015 at all-in sustaining costs of $830-$870 per ounce.

The Pueblo Viejo mine is a joint venture between Goldcorp Inc. and Barrick, where Goldcorp is a 40% partner and Barrick is the 60% partner and the mine operator.

Two of three electric motors at the mine's oxygen plant experienced an unexpected failure on November 19 and must be shipped to a specialized facility in the United States for repair. One motor remains operational. The plant provides the oxygen required for the autoclave processing facility that treats Pueblo Viejo's refractory ore. Until the damaged motors are repaired, the autoclave facility will operate at a reduced capacity. The cause of the motor failure is currently under investigation.

Current estimates by Barrick indicate repairs can be completed with units back in service by mid-January. While repairs are underway, Pueblo Viejo will bring forward maintenance activities previously scheduled for January to optimize the processing downtime. Pueblo Viejo has Property and Machinery Breakdown Insurance, including Business Interruption coverage, which is triggered after 30 days.